USA 2014 by CorD Magazine

FEBRUARY 2014

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CONTENTS 4

C OMMENT: SERBIA’S POTENTIAL AND LIMITATIONS

ANA S. TRBOVICH, Ph.D. Faculty of Economics, Finance and Administration – FEFA, Belgrade

ŽELJKO SERTIĆ, President of the Serbian Chamber of Commerce (SCC)

TOMASZ ROGACZ, CEO of McDonald’s Serbia EDITOR Saša Marić s.maric@aim.rs

D ECADE OF IMPROVEMENT

S TABLE PARTNER OF THE STATE

COPY EDITOR Chris McDonald c.mcdonald@aim.rs

DRAGINJA DJURIĆ, Executive Board President of Banca Intesa

C ONFIDENT IN PARTNERSHIP

MILUTIN DELIĆ, General Manager of GSK for Serbia and Montenegro and Commercial Director for the Adriatic Cluster

ROVIDING COUNSEL P

H.E. MR. MICHAEL KIRBY, US Ambassador to Serbia

O NE OF THE GLOBAL LEADERS IN DIRECT SALES

VESNA KOVLJENIĆ, National Sales Manager of Avon Serbia

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M EETING GLOBAL STANDARDS

STACEY KENNEDY, Managing Director South East Europe at Philip Morris International

RINGING THE B BEST OF BUSINESS TO SERBIA

MILOŠ DJURKOVIĆ, President of AmCham Serbia

P UTTING SERBIA ON THE MAP

S COMPANY EXPLORES U MINING POTENTIAL OF BOR Rakita Exploration d.o.o Bor

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A MCHAM AIMS TO ACT AS A ROLE MODEL TO SERBIA'S ECONOMY

MAJA PIŠČEVIĆ, Executive Director of AmCham Serbia

E XPORTS TO US RISING

U S COMPANIES IN SERBIA Investments

I MPORTING THE AMERICAN DREAM

JANE KITSON, Commercial Counsellor at the US Embassy in Belgrade

E MBRACING CHANGE

S UCCESS POSSIBLE WITH LEADERSHIP AND SUPPORT

TRS Europe

SUSAN KOSINSKI FRITZ, Mission Director of USAID Serbia

DARKO MATIJAŠEVIĆ, Managing Director of Executive Group

A LIFE IMPROVED EVERY THREE SECONDS

ZVEZDANA IVANOV, Country Manager for Medtronic B.V. Serbia

EXECUTIVE DIRECTOR Ruža Ristanović r.ristanovic@aim.rs GENERAL MANAGER Ivan Novčić i.novcic@cma.rs FINANCIAL DIRECTOR Ana Besedić a.besedic@aim.rs EDITORIAL MANAGER Tanja Banković t.bankovic@aim.rs OFFICE MANAGER Nataša Nešić n.nesis@aim.rs

H ARMONISING LEGAL NORMS

PRINTING Rotografika d.o.o.

A CALL FOR DIALOGUE

Makenzijeva 67, 11000 Belgrade, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs www.cordmagazine.com ISSN no: 1451-7833 All rights reserved alliance international media 2014

VLATKO SEKULOVIĆ, Partner at Sekulović Law Office, Belgrade

TRANSLATORS Snežana Bjelotomić _________________________

_________________________

VERY ITEM HAS E A BUYER

PHOTOS Zoran Petrović

Branislav Čale, AmCham AmCham Serbia

Trading overview

PROJECT MANAGERS: Biljana Dević b.devic@aim.rs Marina Pilipovic m.pilipovic@aim.rs Darko Novaković d.novakovic@aim.rs Milica Pajić m.pajic@aim.rs

SPECIAL THANKS TO

S YSTEM OF VALUES

DIMITAR ANDONOV, Operations Director for Serbia, Macedonia and Montenegro at Coca-Cola

ART DIRECTOR Ilija Petrović i.petrovic@aim.rs

JASMINA PAVLOVIĆ, Country Manager for Serbia, Central Balkan Countries and Moldova at Pfizer H.C.P. Corporation Representative Office

MCHAM IN 2013: A DRIVING CHANGE!

A MCHAM EVENTS IN 2013 ENGAGE FOR CHANGE IN 2014 | 3

COMMENT

ANA S. TRBOVICH, Ph.D. Faculty of Economics, Finance and Administration – FEFA, Belgrade

Serbia’s Potential and Limitations

ucts and services like those of Ball Packaging or Microsoft. merican investments Microsoft established a software development centre in Belin Serbia reflect both grade in 2005, engaging in research and development rather than the potential and the just the sale of software. While critical, the most decisive factor limitations of Serbia for this business development was not the availability of software as an investment destination. There are relatively few investments engineers or English proficiency, but the desire of Serbian expatriconsidering the size of the US economy, with the majority of US ates who had developed an excellent professional reputation while companies in Serbia operating out of small sales offices or via a working for Microsoft in the US to build a local team and work representative (franchise) local company. This includes big brands from Belgrade. Today, Microsoft Serbia is a successful enterprise such as IBM, and it is not uncommon for small countries like Serwith an active software development centre that attracts young lobia, even when you consider the larger regional market. Yet those cal talents who can develop an exciting international career while companies that made the leap into the Serbian market tend to be remaining in their home country. Ball Packaging, meanwhile, satisfied with their investment, with many expanding. came in great part to serve Coca-Cola, which has been present in The US is one of the largest foreign direct investors in Serbia, the Serbian market for decades and is an important buyer for aluwith investments of more than US$3.5 billion and employing minium cans. It took Ball two years to overcome Serbia’s complex more than 9,000 people. These investments include Philip Morconstruction permitting process and build their production plant. ris International’s purchase of the Niš Tobacco Factory in AuStill, they later expanded production and the company often praisgust 2003 through the privatisation process, Colorado-based Ball es Serbia at international investment forums as one of their most Corporation’s greenfield investment to produce beverage cans, productive facilities worldwide. In short, both Microsoft and Ball followed by the Coca-Cola Company’s purchase of bottled-water Packaging, while highly content with their investment decisions, producer Vlasinka and Merrill Lynch purchasing a 25% stake in needed an additional reason to choose Serbia over another destireal-estate firm MPC Properties, which subsequently built the Ušće nation. To attract more of such investments, Serbia needs to first Shopping Centre in New Belgrade. In August 2008, PepsiCo ininvest more in its business climate, currently ranked well below vested more than €200 million to acquire Marbo. Other sizeable its potential even when measured by GDP in surveys such as the US investments came through the Darby investment fund, which World Bank’s Doing Business or the presently owns the Sevojno copper World Economic Forum’s Global Commill, as well as cable production Ernst & Young’s survey Europe petitiveness Index. company Novkabel and Klas bread 2013 showed that only 1% of Interestingly, Ernst & Young’s atmanufacturing. The KKR fund investors picked Serbia as the most tractiveness survey Europe 2013 coninvested in flooring producer Tarattractive destination in Central firms the discrepancy between the less kett and SBB (Serbia Broadband), while additional direct investments Eastern Europe, yet Serbia scooped attractive perception and the actual were made by Van Drunen Farms, 11% of CEE FDI projects in 2012 investment experience of companies in Serbia. The survey’s results show Alltech, Eaton etc. Most recently, that only 1% of interviewed investors (808 international decisionNCR made Belgrade its headquarters in one of largest greenfield makers) picked Serbia as the most attractive destination in Central endeavours, employment-wise, engaging hundreds of universityEastern Europe, yet in practice Serbia scooped 11% of CEE FDI proeducated people. jects in 2012. These results highlight the need for improved brandSerbia’s primary advantage compared with other emerging ing and smarter, more consistent policies aimed at advancing the markets is its European location and enhanced market access as business climate, as well as the accompanying infrastructure and a result of the regional CEFTA trade treaty, the Stabilisation and education, which impacts on a country’s global competitiveness. Association Agreement, which guarantees free trade to the EU for US investors in Serbia engage with the American Chamber of most products, and bilateral treaties with Russia, Turkey and sevCommerce and other organisations to improve Serbia’s business eral other countries. While many US investments initially targeted environment and attract additional business to the country, as it is Serbian and regional markets, they are also exporting beyond the in American and Serbian businesses’ common interest that Serbia region. Yet the key question is why does Serbia not have more US prospers economically and is anchored stably to the EU. ■ investments, especially those featuring higher-value-added prod-

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Working Together For A Healthier World

Pfizer HCP Corporation, Representative office Belgrade Tresnjinog Cveta 1, Belgrade Tel: 381.11.3630 000; Fax: 381. 11. 3630 033 e-mail: office@pfizer.co.rs

INTERVIEW

MILOŠ DJURKOVIĆ, President of AmCham Serbia

Bringing the Best of Business to Serbia

Since the start of its activities here, the American Chamber of Commerce has promoted the best principles and practices of US and international business in Serbia. As well as its efforts to reform and modernise Serbia’s business environment in the short term, AmCham is making ethical practices and the education of future business leaders its key priorities

■ Your role can be described as a catalyst for he most important thing AmCham bebolstering business cooperation between gan with was the institutionalisation Serbia and the US, and maintaining a diaof a constructive standing dialogue belogue with Serbian officials with the goal of tween the private and public sectors, advancing this cooperation. How efficient with the goal of improving the business climate have you found this goal’s implementation? in Serbia, says AmCham Serbia President Miloš - Let me reply to your question by giving a Djurković of measures he believes to have been short review of the economic context in which successful. “Naturally,” he goes on, “when diaAmCham started more than 12 years ago. At logue at an institutional level is initiated, many that time, investors were not eager to invest in topics of interest for companies and the overall Serbia. They were mistrustful to a certain deeconomy emerge.” Djurković is proud of such gree and the whole environment was deemed achievements and advances made by AmCham unsafe. At first we had during its time in Serbia. companies as associaNow, AmCham is lookThe current priorities of 11 tion members with a clear ing to build on them and AmCham relate primarily goal of making Serbia a develop a generation of “uncompromising” new to a series of measures that good investment destinaSerbian business leaders. need to be implemented tion. The country’s tranprocess was still in consistently to facilitate sition its infancy and there were ■ What are AmCham’s more investment and the no investments or foreign current priorities? creation of new jobs companies in the market. - Our current priorities Today, when we look relate primarily to a series back at everything we have achieved, we can see of measures that need to be implemented conthat we now have 187 American, international sistently to facilitate more investment and the and domestic companies as members. It is also creation of new jobs, namely: reforming labour important to mention that AmCham members legislation; implementing measures aimed at have invested more than €14 billion and created increasing liquidity in the economy and stabilis100,000 jobs in Serbia so far. You have to admit ing the macroeconomic environment; securing these are impressive numbers. a predictable and efficient tax system; reducing the grey economy and corruption; and equip■ What has been the most important focus of ping professionals with know-how and skills American-Serbian business collaboration, adapted to the needs of the modern market.

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Investments

AmCham members have invested more than €14 billion and created 100,000 jobs in Serbia so far.

Know-how

We need to arm ourselves with more knowledge than we have today in order to draft projects and receive money from EU funds.

and which areas should be targeted in particular? - The ongoing promotion of Serbia as an investment destination is the centre of our attention. To illustrate this, let me say that we’ve already had a big IT investment conference in San Francisco in the last year. And together with the regional American Chambers of Commerce, we are planning to hold a regional investment conference in Serbia in the second half of this year. There is more that we do. The Generalized System of Preferences (GSP), which allows Serbia to export to the US at a reduced customs duty, expired on 31 July last year and is expected to be renewed. Until that happens, companies are advised to keep all of the required documentation because, in the past, when the GSP was renewed, export companies were refunded the money they paid on account of higher custom duties prior to the renewal of the GSP.

The American Chamber of Commerce intends to fully contribute to the expedition of the EU accession process in the upcoming period.

Serbia can implement most of the projects in the public sector through EU pre-accession funds, given the country now has better access to pre-accession and other funds because of the commencement of accession negotiations. Of course, we need to arm ourselves with more knowledge than we have today in order to draft projects and receive

■ How much does the slow but evident recovery of the US economy from recession affect Serbia in terms of the American companies that do business here? - Basically, this favourable influence can be seen through American companies showing a heightened interest in investing in Serbia. Judging by American investment in IT over The Generalized System of the last year or two, we can safely Preferences (GSP), which conclude that Serbia has a good allows Serbia to export to the basis for attracting both American and other investors. Additionally, US at a reduced custom duty, implementing necessary reforms expired on 31 July last year is one of the prerequisites for creand is expected to be renewed ating a better business climate. ■ The IT industry is often cited as an economic branch with huge potential in Serbia. What obstacles does the industry face, i.e. what kind of conditions must be fulfilled for the IT industry to develop faster? - The ICT market in Serbia is still small compared with other countries. Investment per capita is several times lower than in neighbouring countries and even dozens of times lower than in developed countries. The infrastructure, particularly within the public sector, is far below average compared with medium-developed countries, while the situation is somewhat better in the private sector. There are exceptions to this rule, namely certain companies that have gained a competitive advantage over others by investing in the modern IT sector. This opens up the possibility of facilitating the faster development of the country through bigger investments in ICT and the higher productivity and efficiency of both the public and private sectors.

money from said funds. So far, Serbia has used only 16% of the available fund money, while the Czech Republic, for instance, has used 65%. Apart from that, we need to be much more transparent in implementing these projects because project implementation is not something Serbia can brag about. A great opportunity lies in combining the international experience of large multinational companies and the experience of sound domestic companies. Such collaboration would enable the first to invest more in Serbia and the latter to expand their acquired know-how and experience to other countries. A better infrastructure would improve the efficiency of the public sector and make Serbia an investment-competitive country, while, at the same time, enabling citizens to work and live much more efficiently. ■ Cooperation with political decision-makers is required in a transitional country. How would you rate the quality of cooperation between AmCham and the Serbian authorities? - As I have said before, the dialogue with the Serbian government and representatives of state institutions has almost ENGAGE FOR CHANGE IN 2014 | 7

always been open and constructive. Implementing what has been agreed has proven the biggest challenge. We have been working to create a better business climate for more than 12 years now and have seen improvements in many areas. Still, I have to say that the pace at which reforms are conducted is slower than the one desired by political stakeholders. We do understand that there are certain transitional issues, particularly those relating to EU accession, but we hope that the implementation of reforms will pick up.

In terms of our cooperation with other business associations, we have tried to leave enough room for collaboration with similar organisations, to transfer our experience to others and to provide assistance and offer advice. It is vital that we work together on important economic issues. This should be the priority of the government, business associations and every individual.

■ How would you rate your term as AmCham President? What are you most proud of and what has been the Chamber’s biggest accomplishment during your ■ What is the future of AmCham and US-Serbian term in office? business cooperation? - I will let others judge, and will just mention some important - We have been trying to coordinate our goals with the curfacts. Specifically, from October 2011 to date, the number of rent economic, social and political environment. EU accesAmCham members grew from 160 to 187. We have been sion remains the most important issue for Serbia, and the actively involved in promoting American Chamber of ComSerbia as an attractive investmerce intends to fully conment destination by our partribute to the expedition of ticipation in two investment this process in the upcoming events held in the US thanks period. We will continue to ofto the US Embassy in Serbia. fer suggestions and proposals The first event was dedicated to better facilitate companies’ to energy and took place in operations and improve the December 2011, while the business climate, which, in second event – the IT mission turn, would result in new intrip – happened in May 2013 vestments and keep us on the and, as the name suggests, road to the change we want to was centred on IT. During accomplish together. We want that time, AmCham held an to continue to be the voice of investment conference in San American business in Serbia. Francisco under the name ‘IT Believes in Serbia’. ■ What is the key differThe Association has ence between AmCham launched several educationand other, similar business al programmes for young associations, and do forThere are too many schemers, managers such as AmCham eign investment organisations in Serbia cooperate which is obvious when we see all Academy, which has develwith each other often? of these affairs happening around oped into a serious and very prestigious business course ti- The American Chamber of us. If we want a better, more tled ‘Champions of AmCham Commerce is not a classic bitransparent and more successful – AmChamps’. Additionlateral chamber. We are more ally, we have launched a new of a business association that Serbia, we all need to work on programme called ‘SMART assembles 187 companies – improving business ethics Breakfast’, where we talk to American and other successful renowned leading public figures at meetings and they tell international and domestic companies, which, at this time, their life stories in an effort to inspire and incite various busimake up the healthiest part of the Serbian economy. ness initiatives. I would especially like to single out one of I would like to underline that our association has a very our more recent projects, the AmCham award called ‘Leaddiverse portfolio, starting from regulatory efforts to improve er in Change’. This award will be given out annually, both the business climate and promote Serbia as an investment to individuals and member companies in five categories. It destination, to getting involved wholeheartedly in educatis part of an effort to promote the values AmCham endorses, ing about and promoting the best business practices and with the end goal of positioning these values as a model most successful principles of American business, where for doing business in Serbia. Judging by the huge interest corporate responsibility and developing business ethics play shown by member companies, we’ve done well. very important roles.

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Finally, in terms of our regulatory work, AmCham has managed to make its key priorities a part of the government’s work plan. What needs to be done now is to implement these plans. With know-how, comparative practices and expertise, AmCham supports ongoing reforms in many areas that are crucial to bolstering the business climate – from parafiscal taxes, changes to real estate regulation, public acquisition regulation and the Labour Law, to stepping up the fight against the grey economy, promoting intellectual property rights and the like. We hope we will see the first results soon. Of course, this success wouldn’t have been possible without a strong team. My top priority has been to assemble right people, and you need a good leader to guide a strong team. That’s why we brought Maja Piščević, whose ideas and energy have further motivated our great team. I would like to thank all of them – Maja, Amalija [Pavić], Milica [Samardžić], Bane [Čale] and Bane [Valent], Tina [Kostić] and Anita [Karadžić] – for their great work. Our success belongs to them. I am confident that they will accomplish even more in the upcoming period. ■ If you could change one thing about the business climate in Serbia what would it be? - Business ethics. There are too many schemers, which is

obvious when we see all of these affairs happening around us. If we want a better, more transparent and more successful Serbia, we all need to pull in. This won’t happen overnight; it requires long, hard work, primarily by the state authorities, as well as from all of us. We need to provide a good example and educate those in our business surroundings constantly. Creating uncompromising new leaders is imperative for us. ■

Miloš Djurković, President of AmCham Serbia Miloš Djurković assumed the position of President of the American Chamber of Commerce in Serbia in October 2011. He has worked in the IT industry in Serbia and neighbouring countries for more than 20 years and today is the Managing Director of Hewlett Packard Serbia. Previously, he was General Manager of IBM in Serbia and Director of the Representative Office of Cisco Systems for Serbia, Montenegro, Macedonia and Albania. Djurković graduated from the University of Belgrade’s Faculty of Electrical Engineering. He was a member of the National Alliance for Local Economic Development (NALED) managing board and is a member of the Association of Serbian Corporate Directors. He is active in sports and is Vice President of Red Star Rowing Club. Djurković is married and has two children.

xxx

ENGAGE FOR CHANGE IN 2014 | 9

INTERVIEW

H.E. MR. MICHAEL KIRBY, US Ambassador to Serbia

Providing Counsel

It is in the interests of both Serbia and the US that the former continues along its reform path and seeks to build stronger, stable relationships with all international partners – including Kosovo. Serbia can count on American support every step of the way

S Ambassador Michael Kirby is by turns supportive and encouraging when it comes to Serbia’s ongoing modernisation and reform process, and forthright when talking about certain American expectations of Serbia and its institutions. As Kirby says, much of Serbia’s progress “depends on getting the legal and regulatory framework right”.

optimistic about Serbia’s long-term prospects as it moves along the path to European Union membership. US companies are interested in longterm investments in mining, power generation and telecommunications – investments in the future of Serbia that could mean jobs for thousands of Serbians. Success here, though, depends on getting the legal and regulatory framework right, and that is one important aspect of work with the Serbian government.

■ For Serbia, the stabilisation of relations with Kosovo is as important as fostering good relations with the EU. What expectations does the US have for the normalisation ■ The relationship between Serbia and the of the Serbia-Kosovo relationship? United States has had many ups and downs - We strongly support the dialogue between Serbia since 2000. How would you describe the and Kosovo and we want to see concrete measures relationship currently? that will normalise relations. The United States’ - US-Serbian relations are strong – and we are long-term goal is a Europe that is whole, free working to make them stronger. We have comand at peace – we believe the mon interests and a shared vision of a prosperous, demoIn my view, our ties Belgrade-Priština dialogue is that goal. cratic Serbia that is integrated are broader than our a stepThetoward efforts to normalise fully with the European Unefforts here at the relations, we believe, are conion and other trans-Atlantic institutions. These interests Embassy and extend to sistent with the interests of were discussed in early Feb- the human ties between Serbia and Kosovo. Not long ago, I read an eye-opening ruary when Prime Minister ordinary Serbians statistic – Serbia exported Dačić visited Washington DC. and Americans US$385 million worth of He met with senators, congoods to Kosovo in 2012, and gressmen and high officials at a little more than twice that to Russia – but Rusthe State Department and praised our two counsia has 80 times the population of Kosovo. Russia tries’ good relations. In my experience, we have is a large and potentially lucrative market, but enjoyed a very good relationship with the SerKosovo’s proximity and history suggest that it, bian government. The Serbian government has too, is a valuable market for Serbian companies. been open to hearing our concerns and forthright when they believe our counsel could be useful. ■ This February, Jonathan Moore, director This question is often asked in a political of the State Department’s Office of South context, but the economic situation is no less imCentral European Affairs, said a period of portant. Yes, Serbia’s economy faces significant stronger economic cooperation between challenges today. But American companies are

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Markets

Russia is a large and potentially lucrative market, but Kosovo’s proximity and history suggest that it, too, is a valuable market for Serbian companies.

Bytyqi Brothers

The US government remains very concerned about the Bytyqi brothers’ case. We expect police and prosecutors to pursue aggressively any leads in this case.

Serbia and the US was coming, particularly in terms of American companies bolstering investments in Serbia. What economic projects have been realised since then? - The United States remains committed to building stronger economic cooperation with Serbia, and to laying strong foundations that will better integrate Serbia into the global economy and prepare it for tough competition in the European Union. That is why the US and Serbia signed a memorandum of understanding on cooperation in the ICT industry last year. This cooperation became evident when Prime Minister Dačić and I led an ICT trade mission to the United States last year. The Prime Minister met with senior executives from Amazon, Apple, Cisco, EMC2, Google, IBM, Intel, Microsoft, PayPal and TeleSign. Each one of those companies has been in contact regarding investment opportunities. In February I visited Georgia-based NCR’s regional headquarters in Belgrade. NCR expects to grow its workforce to 2,000 people by the end of 2014. Another success: Sremska Mitrovica welcomed Cooper Standard, which broke ground last year and is expected to employ 500 people in this tough economic environment. Economic success is not just about big numbers. In many countries, prosperity is driven by small- and medium-sized enterprises: the sometimes family-owned businesses at the core of a community. For that reason, the United States prioritises women’s entrepreneurship as a leading international economic issue. Empowering women economically increases prosperity for families, communities and entire nations. We have partnered with the Association of Business Women here on a variety of projects, and support its expansion to all regions of Serbia, including the most economically disadvantaged parts of the country. ■ Economic ties between Serbia and the United States are not based solely on investments. How are these ties maintained and improved? - In my view, our ties are broader than our efforts here at the Embassy and extend to the human ties between ordinary Serbians and ordinary Americans. When we issue visas for students to study in the US, or for tourists to visit, we facilitate person-toperson interactions that allow us to understand each other better. We try to nurture and build those ties with our programmes. The Embassy sponsors a host of exchange programmes – for high school and university students, professionals, members of the

Vision

The US has a long-term vision: we see a Europe that is whole and free, prosperous and at peace. The countries of the Balkans are critical to achieving our vision.

military, politicians etc. These programmes help expose Serbians to the American perspective on many issues, from how to diminish domestic violence to how to attract economic investment to underdeveloped areas. When these Serbians return, I hope they understand us better, but have also gained something valuable to share here. More broadly, we try to open channels of communication. The Embassy has one of the largest Facebook pages in Serbia (www.facebook.com/usembassyserbia), which we update daily and which features vigorous debates about important issues. We won’t change every person’s opinion, but I hope our followers understand us better and respect the open dialogue we encourage. ■ In November, Serbian media reported on a crisis in the US-Serbian relationship caused by the Bytyqi brothers case. Serbian authorities gave their assurance that the case would be solved. What does the US government expect of the Serbian authorities in this case? - The US Government expects justice to be served. No-one – not Americans, not

We believe that NATO helps to assure the stability of the trans-Atlantic region, and it is obvious that the Serbian Armed Forces can be a force for stability in Europe and the world Serbians, no-one – wants to live in a country where people can get away with murder. Justice demands that those who murdered Agron, Ylli and Mehmet Bytyqi be called to account. Fourteen years after their deaths, no-one has been convicted for killing these three American citizens. The US government remains very concerned about the Bytyqi brothers’ case. We expect police and prosecutors to pursue aggressively any leads in this case. It is Serbia’s responsibility to ensure justice within its borders. We expect the Serbian authorities to bring to justice those responsible for murdering the Bytyqis. ■ Serbia is moving towards European integration but not towards NATO membership. What do you think is Serbia’s future in terms of its cooperation with NATO? - It is for Serbia to decide what its relationship will be with NATO. ENGAGE FOR CHANGE IN 2014 | 11

Every country in Europe, including Russia, has some type of cooperation with the NATO allies. Serbia is a member of NATO’s Partnership for Peace and has been a strong and active participant in that programme. We believe that NATO helps to assure the stability of the trans-Atlantic region, and it is obvious that the Serbian Armed Forces can be a force for stability in Europe and the world. That is why we work with the Serbian Armed Forces to promote its professionalisation, to assist in reforms and to improve their capability for cooperation with NATO forces. Since 2007, the United States has invested about US$7 million in Serbian military personnel training and 400 military students have completed their training in the United States. Over the last two decades, Serbia has gone from being an importer to an exporter of security – that benefits the region immensely and I am glad we have been helpful in that transition.

■ Apart from economic reforms, which are now at the centre of attention, what other areas in Serbia should be reformed as soon as possible? - The rule of law. Because we consider rule of law to be so important, we have multiple programmes to help foster it here. USAID runs several programmes to strengthen Serbia’s courts: one intended to help the courts administer justice more fairly, efficiently and quickly; another that helps ordinary citizens by bolstering misdemeanour courts; and another that boosts the judicial independence of the High Court Council. Along with USAID initiatives to support the Anti-Corruption Agency and the State Audit Institution, these programmes will build durable institutions – limited by the appropriate checks and balances – that can sustain anti-corruption efforts over time. In addition, two American prosecutors are working through a US Department of Justice programme to help Serbia build a criminal justice system that is more effective, more efficient and in greater compliance with international and European standards. They work with the Ministry of Justice and prosecutors’ offices to provide practical expertise as Serbia re-examines its justice sector’s laws and codes. They also conduct legal training programmes, while a separate programme provides support and training to Serbia’s police. In sum, we believe that Serbians expect and deserve a judicial system that treats everyone equally, regardless of wealth or station; and that will insure a healthy and prosperous Serbia.

■ What do you think of the economic reforms the Serbian government plans to implement in 2014? - I believe the government recognises how critically meaningful economic reform is. Enacting reform tends to be a complicated political question, in Serbia or anywhere. Serbia will have a new government after the March elections. I cannot predict the future but I will say that I will encourage the new government to improve the general business climate, especially to improve conditions for international and domestic investors alike. For example, this could be done by: • streamlining the construction permitting process so businesses can expand ■ What do you make of the claim and create new jobs without bureauthat superpowers such as the cratic delay; • implementing needed reforms to en- We believe that Serbians expect US are no longer as interested in sure clear property rights and fair and deserve a judicial system Southeast Europe? Is this a positive compensation or the return to rightthat treats everyone equally, development given the region is stable politically? What viful owners of property that prior govregardless of wealth or station; finally sion does the US have for this part ernments had confiscated without and that will insure a healthy of the world? compensation; - The United States is, and will contin• addressing rigidities in the labour and prosperous Serbia ue to be, very interested in the security market so it is easier for companies and stability of the Balkan region. Economic prosperity is key to to hire and dismiss employees – without that possibility, many the regional stability we believe desirable. Of course, crises and companies are reluctant to take on new workers; events elsewhere will attract the world’s attention, but the US • reforming state business inspections so they are more about has a long-term vision: we see a Europe that is whole and free, consumer and worker safety; prosperous and at peace. That work is not yet finished, and the • bolstering law enforcement efforts against smuggling and tax countries of the Balkans are critical to achieving our vision. The evasion – the formal economy must be more attractive to operUnited States strongly supports the membership of all Southeast ate in than the grey economy; and European countries, including Serbia, in the European Union and • strengthening protections for intellectual property rights. expanding security cooperation between the Balkan countries, The new government should focus on getting that regulatory the United States and our allies. ■ and legal framework right.

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25 years experience Over 7000 references Partnership with 55 world producers

PHILOSOPHY IN SECURITY SECURITY · SAFETY · IT · MULTIMEDIA · AUTOMATION

Koving d.o.o, 34 Jurija Gagarina street, 11070 New Belgrade, Serbia, Tel/fax: +381 11 319 34 08, office@koving.com, www.koving.rs

INTERVIEW

MAJA PIŠČEVIĆ, Executive Director of AmCham Serbia

AmCham Aims to Act as a Role Model to Serbia’s Economy

According to the AmCham Executive Director, one of the organisation’s most important roles is to serve as a role model to the Serbian economy – especially young people looking to launch their own businesses – through promoting examples of best corporate practices and ethical, transparent and socially responsible operations

mCham enjoys a mostly productive relationship with the Serbian government and is thankful for its ongoing dialogue with officials and ministries. The Chamber’s great success has been in making decision-makers sensitive to the needs of the business environment, both in terms of foreign investors and domestic companies. Since AmCham was established in Serbia in 2011, the organisation’s recommendations have had an influence on more than 100 laws and bylaws passed by the government. However, when it comes to important issues such as the drawnout process of reforming the country’s Labour Law, the Chamber and its members are justifiThe previous ably concerned.

recognised AmCham’s priorities as its own, but, as we all know, these priorities did not materialise. I am referring primarily to the Labour Law

■ The goals and mission of AmCham are well-known. How difficult has it been to implement them in practice, and what have been the biggest challenges the Chamber has had to face on an executive level? - It is difficult to give an unequivocal answer to this good-but-complex question. For me personally, the biggest challenge has been creating expectations about what AmCham can do for its members, followed by their successful implementation. You know, we are a sort of spokesperson

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for the most successful sector of the Serbian economy, assembled under the wing of AmCham. The trust our members have put in us is a huge obligation and responsibility, which is tested on a daily basis. This role also entails our members fully trusting us to recognise their key priorities and fight for their realisation, which can sometimes last for years. The second challenge is finding common denominators, because if one company has a problem, that doesn’t automatically imply that other companies, maybe even several of them, have it too. Hence it is very important to understand the needs of each member individually and work on getting as many companies on board to meet those needs whenever possible. If that is not possible, we will try to pregovernment sent their problem in the appropriate fashion. ■ AmCham has been paying a great deal of attention to direct, dynamic dialogue with Serbian officials. Are you satisfied with the efficiency of these efforts and the pace at which agreed changes are realised? - If you are asking me about the present time, I can hardly say that we are happy with how fast the promised changes are being implemented. Many publicly stated deadlines have been broken, which is why our members have expressed justifiable concerns. They were really encour-

Trust

The trust our members have put in us is a huge obligation and responsibility – which is tested on a daily basis.

Business Values

American companies have managed to live up to their role as promoters of the business values the US economy – as the global leader – is based on.

Indicator

The Labour Law has failed to win support so far. This will be a tremendously important indicator of the government’s intentions to put the economy first.

aged by the speed at which the previous government had my – as the global leader – is based on. With this goal in mind, we have decided to launch the recognised AmCham’s priorities as its own, but, as we all know, these priorities did not materialise. I am referring pri- Leader in Change Award this year. The award’s title is also AmCham’s motto. The aim of this award is to help our memmarily to the Labour Law. On the other hand, and speaking in the long term, bers to become recognised as leaders of change in their indiI am glad to say that AmCham is exceptionally proud of vidual or corporate activities. I believe that, in this way, Amthe quality of cooperation with state officials, starting with Cham will contribute significantly to promoting the social values we have continutop government officials ously endorsed. We are to line ministries, as well going to bestow honour as with the results of our upon award recipients, as ongoing dialogue and the well as the responsibility decision-makers’ sensitivto justify the trust of the ity to our organisation’s AmCham members who recommendations. Since voted for them through the establishment of Amtheir future activities. Cham in 2001, more than 100 laws and bylaws have ■ What laws do you been passed based on recthink have had the ommendations from the biggest influence on Chamber. improving the busiThese results and the ness climate in Serbia, trust that our members both for American and have put in us are both other foreign investors? an obligation and encouragement We have decided to launch - I would like to mention the infafor us not to give up on reform the Leader in Change mous Labour Law. For many years, proposals we deeply believe will Award this year. The aim the American Chamber of Comnot only make investors in Serbia merce has been involved in discusmore content, but will also send of this award is to help sions about this undoubtedly ima strong message to the investors our members to become portant subject. Our members and, we want to attract, putting Serbia recognised as leaders of we believe, the entire Serbian prion the right track for further ecochange in their individual vate sector agree that the law has nomic recovery. to be changed. Why? On the one or corporate activities hand, because Serbia cannot be an ■ How much influence can AmCham and other foreign investment organisations isolated island in a globalised world. If all regional countries really exert when it comes to changing and improv- coordinated this important piece of legislation among theming Serbia’s overall business environment? Especially selves, it would send a really important message to existing in light of Serbia’s EU accession and the necessity of and potential investors. So this should be done for domestic complying with different standards – from business and foreign investors alike. It also should be done for young people, whose unemcodes to legal and other types of regulation. - Thank you for asking that question. I firmly believe that ployment rate is frighteningly high, as well as for the midone of AmCham’s most important roles is to serve as a role dle-aged population of age 50 and over, who can contribute model to the Serbian economy – especially young people hugely to the quality of the Serbian workforce with their exlooking to launch their own businesses – through promot- perience and knowledge, but who are not given a chance to ing examples of best corporate practice and ethical, trans- do so because employers fear they might be eligible for severparent and socially responsible operations. All over the ance pay, which, according to the existing law, employers world, American companies have managed to live up to are obligated to disburse when they are forced to reduce the their role as promoters of the business values the US econo- number of employees. ENGAGE FOR CHANGE IN 2014 | 15

serve as a guarantee that laws will be enforced and as the main protector of business contracts, including the rights and obligations that stem from them. Finally, this was an opportunity for us to find out how staff could be better trained, particularly in terms of practical knowledge, motivating employers to hire more people. For that reason we decided to launch our new year-round educational programme called ‘AmChamps – Young Leaders in Change’. This programme will consist of a range of carefully devised workshops, lectures and case studies where our students – the best young managers and best students from the University of Belgrade, the cream of the crop – will be mentored jointly to modernise their knowledge, as well as acquire practical skills and precious experience. ■ As regards to the ecoAt our ‘Engage for nomic activities of AmChange’ conference, which Cham members, in which took place in December last sector are they most sucyear, we handed over the cessful in Serbia? survey results and concrete - It is difficult to answer that recommendations to top Serquestion given AmCham is made of American, other in- Quite a few companies we surveyed bian government officials. As far as we are concerned, ternational and Serbian comtalked about inefficient and the priorities of our members panies, all of which operate inconsistent courts, which should have been transformed into in more than 25 economic the agenda of our regulatory branches. Some companies serve as a guarantee that laws are conglomerates that are will be enforced and as the main committees. We are determined to invest all of the efactive in five or more economprotector of business contracts, fort it takes for these priorities ic sectors. If we look at the Serbian economy as a whole, half including the rights and obligations to materialise as much as possible and in the shortest time of the top-grossing companies that stem from them possible, since the time it will in 2012 are AmCham memtake to implement these priorities directly influences the bers, and they are energy, telecommunications, agriculcreation of new jobs in AmCham companies. ture, processing and pharmaceutical companies. In terms of our American members, the most successful come from ■ What do you feel is the future of Serbian-US ecoproduction, processing and ICT. nomic cooperation in light of Serbia’s potential future EU accession? ■ In the latter half of last year, there was talk of Am- We are confident that the gate to improving economic coCham and the Serbian government cooperating on operation with the US is wide open today. By taking responyouth employment. How far did that project progress, sible decisions, the Serbian government has secured official and what will happen with it in future? support from the US administration, which is the first and - The Engage for Change survey has been conducted among main prerequisite for bolstering economic cooperation and our members in order to find out which reforms are necesnew investment. What still needs to be done is to resolutely sary in Serbia, i.e. which reforms could facilitate higher emimplement reform priorities and conduct a targeted promoployment in their respective core business activities. Some tion of Serbia and the region. We need to pull together and answers were expected, and these are mostly about reguget as many good American investors to pass through this latory reforms, namely adopting the new Labour Law. On gate. These investors will become ambassadors of the Serthe other hand, quite a few companies we surveyed talked bian economy in the US in years to come. ■ about inefficient and inconsistent courts, which should This reformative law has failed to win support so far. For our members, as well as future investors, this will be a tremendously important indicator of the government’s intentions to put the economy first. Apart from the said law, our members expect the following legislation to be reformed as soon as possible: tax legislation, namely, reducing parafiscal charges; inspection legislation, with the view of taking a tougher stance against the grey economy; and real estate legislation, with the view to being able to acquire the required building permits in less time. In this respect, the priorities of all 187 members of the American Chamber of Commerce are our priorities too, and this is something we are going to plead in our communication with the government and relevant institutions.

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INTERVIEW

JANE KITSON, Commercial Counsellor at the US Embassy in Belgrade

As Serbia looks to boost its exports to the US market, the US Embassy’s Commercial Counsellor is doing her utmost to bring investment to Serbia. The US Embassy’s Commercial Section works to improve investment and business conditions for US companies here, often in collaboration with AmCham and other stakeholders, to the betterment of all

Importing the American Dream

building bilateral trade between the US and Serhe ‘American Dream’ is a concept that bia: USAID, the State Department’s Economic will be familiar to anyone who has been Section and my agency, the Commerce Departexposed to US culture and history. The ment’s International Trade Administration. My idea is simple: have an idea, work your agency is “the official trade promotion agency of hardest to realise it, enjoy the rewards. It’s a conthe US government” and has three main goals: cept the US Embassy in Belgrade’s Commercial promoting US exports, identifying resellers of USCounsellor Jane Kitson would like to import to manufactured goods and services, and bringing the Serbian business environment. US investors to Serbia. Kitson, like everyone else, is aware of the Here in Serbia, the Commercial Section assists reforms the Serbian government will need to US companies to offer adimplement to foster a more vice or voice their concerns business-friendly environWorking for a US the Serbian government. ment, and her organisacompany gives anyone, to With the government’s attion, the Commerce Deof any age, an inside tention to the economy, partment’s International Trade Administration, is view of transparent, non- this centres largely on prohelping US companies to discriminatory, customer- posed reforms, the regulatory framework and issues register their views about focused business. to do with investment. Ofthe local changes they’d Of course there are ten we do this in tandem like to see. Meanwhile, the exceptions, but I believe with AmCham Serbia. Commerce Department We worked extensively continues to work to bring this is generally true on the US and Serbia’s investment and business 2013 memorandum of understanding on inforfrom the US, the influence of which on young mation and communication technology, which Serbian workers might see the American Dream led to the Serbian ICT trade mission to the US. become a Serbian one too. Every company we visited is exploring investment opportunities in Serbia. ■ What has the US Embassy’s Commercial We also work regionally. The Commerce Section been doing to boost economic relaDepartment partnered with the AmChams in tions between Serbia and the US? Serbia, Croatia, Romania and Bulgaria to hold - The United States’ Embassy in Belgrade is for‘Transparency in Government’ seminars last tunate to host several agencies that focus on

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Goals

The US Embassy’s Commercial Section has three main goals: promoting US exports, identifying resellers of US goods and bringing US investors to Serbia.

Framework

Entrepreneurs need a legal framework that lets them finance ideas, hire workers, protect intellectual property, build factories and know which taxes they owe.

Collaboration

The Commercial Section and AmCham work together on issues such as intellectual property protection or reforms such as the labour or bankruptcy laws.

September. We shared best practices for implementing a agree: governments must provide stability and predictconsultative process that allows all stakeholders to review ability through the equitable application of the rule of legislation, offer expertise and voice opinions. Interest from law. Entrepreneurs – be they small- and medium-sized government agencies, businesses and the press was very enterprises, or giant businesses – need a legal and finanstrong – we exceeded capacity! The consultative process is cial framework that allows them to finance their ideas, hire workers, protect intellectual crucial for Serbia to implement effecproperty, build a factory and know tive and well-accepted reforms. I encourage Serbia which taxes they owe. Guaranteeing to think of itself that all businesses are treated equal■ Serbia has traditionally recorded as competing with ly before the law is fundamental to a trade deficit with the US. Howevother countries improving any country’s place in the er, statistical data shows that this global market. deficit dropped last year, when for investment I encourage Serbia to think of Serbia increased its exports to the US by 70%, primarily due to the export of Fiat vehi- itself as competing with other countries for investment. cles. How might trade between the two countries be From that perspective, Serbia gains when it presents a compelling set of reasons, including investment incenimproved further? - My portfolio focuses on promoting US exports and bring- tives, for businesses to come to Serbia. US businesses ing US investors to Serbia, so I cannot opine on Serbian evaluate new markets all of the time and, when they do export strategy. However, US and domestic businesses so, they measure one country’s benefits and drawbacks

The very first US tour of the Belgrade Philharmonic

OCTOBER 2014

Support us

and share in our success! “With a lot of hard work, commitment and attention to detail, our musicians can be even better than the world’s best. After all, we have soul on our side! We can triumph with music!” - Muhai Tang, Chief Conductor of BPO Zubin Mehta Belgrade Philharmonic Foundation Designated accounts for the Belgrade Philharmonic Orchestra’s US tour: Current account 160-389656-55 Banca Intesa, Belgrade Foreign currency account IBAN: RS35160005400000464533 SWIFTCHANGE CODE: DBDBRSBG Banca Intesa ENGAGE FOR IN 2014 | 19 www.bgf.rs, e-mail:office@bgf.co.rs

against another country’s. A compelling and competitive framework is crucial. ■ What kind of cooperation does the Commercial Section have with AmCham Serbia, and what is its focus? - The Commercial Section and AmCham Serbia work together on many projects – the transparency seminar is a good example – but primarily on industry-related issues such as intellectual property protection or governmental reforms that affect all market participants, such as critically needed reforms to the labour or bankruptcy laws. We strive to improve the marketplace for all, making Serbia a more attractive place to conduct business for foreign and domestic investors alike. Of course, US companies request guidance and advice, and we direct them to AmCham Serbia. AmCham’s membership and valuable network of service providers can assist in bringing those companies into the market, making Serbia more diverse and competitive in the global marketplace.

for example, focuses on youth development programmes here and around the world. One of the largest US employers in Serbia, Ball Manufacturing, has one of the most robust programmes. It runs a youth education programme focused on recycling and environmental awareness; partners with a local financial institution to foster the development of local independent beverage producers; and raises employee awareness of ethical business conduct. In Serbia I have noticed that companies in need of specialised, skilled labour, such as those in the IT or mining sectors, often partner with educational institutions to provide teaching content, visiting experts and computers to train students. This can prove to be a win-win situation, creating a highly trained labour pool that benefits the worker, company and community.

■ As American investment in Serbia’s economy grows, so will the influence of American approaches to business. What does that mean for a young Serbian who finds a job working for an American company Maybe the American Dream is in Serbia today? ■ In your opinion, are incentives for foreign inves- universal and appeals to dreamers - Working for a US company and risk-takers everywhere. gives anyone, of any age, an tors attractive enough to inside view of transparent, bring more foreign direct I believe that is America’s best non-discriminatory, custominvestment to Serbia? export – a willingness to risk it er-focused business. Of course - The question of offering inall, to make the world better for there are exceptions, but centives, and of what type, is ourselves, for our families and I believe this is generally true. for Serbia to decide. However, Most US businesses are based I would note that for large infor our communities on the ‘American Dream’: vestments, companies need that if you have an idea and you work hard, then you will access to land and buildings, skilled labour and predictable find success – and that you yourself must be the one to make taxation regimes. A fund could be set aside to offer large it happen! The US has a legal and regulatory framework investors incentives for long-term projects that bring jobs, that empowers us to succeed, and that is testament to the technology transfer, economic development and other benappeal and longevity of the American Dream. efits. Tax incentives for training employees in new technoloI have met many young Serbians who have studied or gies, or grants, capital funds and tax incentives for research lived in the United States, and the American Dream has takand development, could attract manufacturers. en hold of them. They have returned to Serbia to work for change, for the future of Serbia. Maybe that dream is uni■ Corporate Social Responsibility programmes are versal and appeals to dreamers and risk-takers everywhere. becoming increasingly important worldwide. How do Regardless, I believe that is America’s best export – a willyou evaluate CSR programmes in Serbia? ingness to risk it all, to make the world better for ourselves, - I work mostly with US firms, and their CSR programmes for our families and for our communities. ■ tend to reflect the firms’ worldwide programmes. Coca-Cola,

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CORPORATE

TRS Europe

Embracing Change

To be acquired by a global leader – as happened to print consumables company TRS Europe in 2011 – is suggestive of a company that is ‘on the up’. Since then, TRS Europe has been defined by change: new technologies, new organisation, new markets, new world

An ambitious, responsible comn the space of two years, TRS pany like ours has the right products revenues have increased 60%, – high-quality remanufactured toner EBITDA by 45% and the comcartridges made in accordance with pany headcount by 66% (225 the relevant international certificanew jobs created, 25 of which gotions, quality and ecological standing to people with special needs). Growth has been achieved through Overall, TRS Europe employs about 550 investments in workers and has a projected annual HR, technology and knowledge. turnover of €40,000,000, with 98% of its Only last year, production exported to 21 countries the company ards, all of which are conditions for aclaunched 144 new products (18% cess to the global market. By choosing of total portfolio). Overall, TRS Euour products, customers can make sigrope employs about 550 workers and nificant cost savings while at the same has a projected annual turnover of time making a significant contribution €40,000,000, with 98% of its producto environmental protection. tion exported to 21 countries. Results and business performance metrics for 2013 rank TRS Europe among Serbia’s ‘crème de la crème’. With the highest credit rating, TRS is a partner vendors are competing to work with. Now, with great results following widespread changes within the company and its working environment, TRS Europe stands as a testament that change is an opportunity to grab – just overcome the odds! ■ TRS Europe d.o.o. Rade Končara 1, 21131 Petrovaradin, Srbija Tel. +381 (0) 21 439 900; Fax. +381 (0) 21 439 901 Web: www.trs.rs

ENGAGE FOR CHANGE IN 2014 | 21

INTERVIEW

SUSAN KOSINSKI FRITZ, Mission Director of USAID Serbia

Success Possible with Leadership and Support

Contrary to at times gloomy outlooks on Serbia’s transitional efforts, the USAID Serbia Mission Director feels progress is not only possible but tangible too. The organisation continues to partner with and support Serbian enterprises and, with strong leadership from the government, results will only continue to improve

and analyses a country’s progress along different SAID Mission Director Susan Kosinski dimensions, comparing USAID-assisted countries Fritz has overseen operations in Serin Europe and Eurasia to Croatia, Bulgaria and bia since 2010 and presents a positive Romania in 2006, USAID’s last year of funding view of the country’s potential. She for each of those countries. and her colleagues have been working in Serbia’s Luckily, 2014 is not USAID’s last planned year peripheral, less developed regions, bringing busiof funding for Serbia. Using Freedom House’s Naness know-how and support, as well as helping tions in Transit, Serbia in 2013 scores better than to reduce the country’s gargantuan court case Bulgaria, and close to Romania, but slightly bebacklogs. These are just a few of the daunting hind Croatia in 2006. Using the European Bank projects USAID faces, but as Kosinski Fritz says for Reconstruction and herself, “With continued Company competitiveness Development’s (EBRD) Serbian leadership and Transition Report, Serbia sustained US and internais dependent on how in 2013 scores about the tional support, success on supportive the overall same or slightly lower a national scale is absobusiness climate is. than Bulgaria, Croatia lutely possible.” National and local and Romania in 2006 on ■ As EU accession talks government legislation and most economic indicastart, Serbia continues administrative processes tors. Where Serbia falls behind is on large-scale along its reform pathneed to be transparent privatisation, governance way. How does Serbia’s and efficient. They should and enterprise restructurdemocratic and ecoing, and banking reform. nomic development support, not hinder, a compare to Croatia, company’s growth ■ To what extent and Romania and Bulgaria in which areas do the economic and demoin 2006, when these countries – all now EU cratic development problems of Serbia difmembers – were last approved USAID funds? fer from those elsewhere in the region? - Despite facing individual challenges on their - USAID Serbia’s primary focus is on Serbian depaths to join the EU, Romania, Croatia, Bulgaria velopment. Our USAID colleagues in Bosnia and and Serbia share similar characteristics of transiHerzegovina, Kosovo and elsewhere in the region tion economies and political systems. USAID uses will have more insight into the specific challenges a number of tools to measure the level of reform in those countries. As USAID’s funding in the rein transition countries. One of these tools tracks

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gion diminishes, though, we are supporting more regional, country and attract much-needed foreign direct investment. Every country has its specific features, though, and Sercross-border programming to address some of the common bia is no exception. Serbia’s democratic transition has been challenges, primarily economic, that countries face. One of these common challenges is the need to increase relatively lengthy, although a number of key governance exports in order to create jobs for the many unemployed, reforms have been undertaken only within the past four or especially youth. For many Serbian companies, other coun- five years. This means Serbia may have lost some valuable time compared with some of its tries in the region are natural – and historic – markets. However, Through one of our initiatives, neighbours. On the positive side, companies need to have products we have improved the business with political will and public support, it may be possible to make and processes that make them skills, product design and up that lost time. competitive in both regional and sales of companies in south Another distinguishing feaglobal export markets. In part, ture of Serbia is its rich multia company’s competitiveness is and south-west Serbia, culturalism. Serbia has a diverse dependent on how supportive resulting in 400 new jobs number of multi-ethnic comthe overall business climate is. and US$13.8 million in sales munities in Vojvodina, Sandžak, National and local government from trade fairs alone south Serbia and elsewhere. How legislation and administrative the Serbian government supports processes need to be transparent and efficient. They should support, not hinder, a company’s and helps these multi-ethnic regions and marginalised growth. While specific areas of reform vary from country groups to develop is an important question. Finally, Serto country, this is a challenge throughout the region. The bia has a tradition of civil-society activism dating from the passage and implementation of key economic reforms to 1990s; as many leaders of that generation leave the scene, improve labour laws and construction permitting is critical civil society activists have a unique opportunity to help and urgent for Serbian companies to increase their competi- society address today’s and tomorrow’s challenges in new tiveness and for Serbia to increase its competitiveness as a and innovative ways.

Refreshing advice.

ENGAGE FOR CHANGE IN 2014 | 23

■ USAID and the Supreme Court of Cassation recently presented a programme to resolve old cases in Serbia’s courts. Under this programme, the total 1.75 million old cases buried in the court system should be reduced by 80% over the next five years. How is this possible in a country where it is not uncommon for an ordinary litigation case to last up to 10 years? - You are correct – like all worthy goals, this one is ambitious. But we and our Serbian partners think it is achievable. In fact, one of the courts USAID has partnered with for the last several years has reduced its old cases by 87%. The Supreme Court of Cassation is showing real leadership in reducing case backlogs. For example, it has created a special working group focused exclusively on backlogs. That same working group includes many of the judges that achieved a similar backlog reduction in 10 pilot courts with USAID help. All of these successes were only possible by using a variety of approaches: enhanced cooperation with external partners; improved internal organisation and procedural steps; and increased public trust. With continued Serbian leadership and sustained US and international support, success on a national scale is absolutely possible.

I would highlight, however, that there are superb examples of companies in these regions, including jeans and shoe producers, exporting to the most exacting customers in Europe. Just think of all that they could achieve if the transportation infrastructure were modernised and the cost and time of transporting products to Belgrade and beyond was reduced!

■ Five organisations in Serbia received grants from USAID recently, with project management placed fully in their hands. This represents a new operational approach for USAID in Serbia. What was the motivation behind this? - Our new operational approach makes perfect sense in Serbia for a number of reasons. First, USAID is changing the way we work as an agency – in Serbia and all around the world. Second, Serbia is fortunate to have some relatively strong civil society organisations with proven capacity to deliver results and manage funds effectively, so we knew we had great potential partners. Third, as our budgets grow smaller, working directly with local organisations is cost-effective and permits us to put responsibility for Serbia’s development directly into the hands of Serbians, who are best attuned to local There are superb examples needs. This will be especially of companies in south and south- important for Serbia as the west Serbia, including jeans country progresses toward the European Union. and shoe producers, exporting

■ USAID’s current strategic plan covers the period from 2013 to 2017, within which you have focused on, among other things, the least developed, peripheral to the most exacting customers ■ Are you satisfied with parts of the country – the in Europe. Just think of all they results achieved in Serbia regions of Sandžak and south Serbia. What are the could achieve if the transportation compared to elsewhere in biggest problems you have infrastructure were modernised the region? Which projects do you consider the best faced in these places? and most successful? - Businesses in south and south-west Serbia are faced with - We’re proud of all of our assistance efforts, and it isn’t all of the same macro and micro constraints as those in other possible to compare them against one another or to other parts of the country – a business environment that is costly countries in the region. Just to name a few quick highlights: and time consuming, and pressure to continuously improve our work through the Separation of Powers Project has deproducts and operations and seek out new markets, to name livered really impressive, tangible results by helping to rejust a few. A larger percentage of businesses in these regions duce case backlogs in partner courts by as much as 80%. are small and sell their products very close to home, which Through another project, we supported the development of makes them more vulnerable to changes in their markets.

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the new Law on Misdemeanours – very progressive legisla- and tabloidisation of Serbian media. Is there a solution that was drafted with substantial public and expert in- tion to the media’s growing problems? To what extent put. Through our civil society work, we’ve been supporting is government responsible? pioneering work in digital activism, corporate social respon- - USAID has supported Serbian independent media for years. In fact, we still do, through a project with an indesibility and philanthropic development. Through our Business Enabling Project, USAID is pro- pendent coalition of media groups promoting media literacy. We follow media develviding valuable analysis and opments closely. input to the government of SerWithout necessarily bia on key economic legislation agreeing that problems in that we expect will be passed the Serbian media are growsoon. Through this project, with ing, I do agree that further the help of the National Alliance reforms are needed. Implefor Local Economic Developmenting the government’s ment (NALED), we have already media strategy fully is a good helped the government to elimiplace to start: the strategy nate 138 parafiscal charges, might not be a perfect docureducing the non-tax burden ment, but it is a step in the of a medium-sized company by right direction. Transform47%. We also supported the ing the government’s role development of a new law on from direct funding to profactoring, which helps provide ject-based media support is additional liquidity to Serbian essential to moving toward companies. a competitive media market. Through another initiative, we USAID has supported Serbian Ensuring media ownership have improved the business skills, independent media for years. transparency is also extremeproduct design and sales of companies In fact, we still do, through a ly important. in south and south-west Serbia, reOn another level, though, sulting in 400 new jobs and US$13.8 project with an independent the global media trend is tomillion in sales from trade fairs alone. coalition of media groups ward consolidation as the inWe are excited about partnering with promoting media literacy dustry is transformed by new the government of Serbia’s National technologies, information Agency for Regional Development to develop and implement a project to continue supporting com- sources and consumer habits. Considering the high number of print and electronic outlets here in Serbia, some similar panies in these regions – so stay tuned for more good news! form of media consolidation is inevitable. The question is ■ With USAID having supported Serbia’s media for how government policies, aligned with European norms, many years through various projects, it’s safe to as- can help manage that consolidation in a way that encoursume you are familiar with the worsening financial ages real competition while ensuring quality public service sustainability, decreasing levels of media freedom and media freedom. ■

ENGAGE FOR CHANGE IN 2014 | 25

INTERVIEW

ŽELJKO SERTIĆ, President of the Serbian Chamber of Commerce (SCC)

Putting Serbia on the Map

In 2013, Serbian exports to the US grew to just shy of half a billion dollars, its best result since 2000. Despite a 5% dip in imports, American companies continue to invest – it is now up to organisations such as the SCC and AmCham to boost results further and keep bilateral trade on the right path

n the view of Serbian Chamber of Commerce President Željko Sertić, economic cooperation between the US and Serbia has been improving steadily, but there are still quite a few unutilised trade and investment opportunities for the two countries to explore and take advantage of. Exports of Fiat cars have helped Serbia to register a trade surplus for the first time. Now, Sertić and his organisation are pursuing all avenues to turn a novelty into a trend.

an companies should continue to export to the US as per usual procedures and continue their existing cooperation with American buyers, as there are no new or additional restrictive measures to prevent them from doing so.

■ Given political relations between the two countries have become warmer, it is realistic to expect economic relations to follow suit. How can the US and Serbia improve their economic relationship and foster more dynamic trade? - Developing relations with the USA is one of our foreign and economic policy priorities. American companies are among the biggest investors in Serbia, and developing trade relations with the US is not only significant for improving our ■ US-Serbian economic cooperation has had country’s balance of payments, but for bolstering its ups and downs. How would you rate the overall bilateral relations too. level of cooperation today? The best way to strengthen our economic re- Over the past three years, our exports to the lationship with the US is by American market have For Serbian products attracting American capigrown. In 2013, Serbian exports grew to US$493 to have a more prominent tal to the Serbian economy, namely via new projects and million, a five-fold inpresence in the US, the privatisation of our comcrease relative to the year the SCC will work panies. We need to continue before. This is our best on the networking to improve the stability and export result since 2000. predictability of our investGiven imports from the between Serbian ment and business environUS have declined by 5%, and US companies, as well as continue dethis is the first time we disseminate information, ment, veloping market institutions, have had a surplus – in educate and prepare promoting our investment the amount of US$145 potential, our liberal foreign million – in trade with the Serbian businesses investment regulation and US. Exporting Fiat vehicles for their appearance free-trade agreements with has contributed to better on the US market a view to breaking into third export performance. markets, either together or individually. Despite Serbia’s GSP status – the GeneralIn order for Serbian products to have a more ized System of Preferences, or duty-free export prominent presence in the US market, the SCC of more than 4,650 Serbian products – expiring will continue to work on the networking between on 31 July 2013, our exports grew. We believe Serbian and American companies, disseminate that Congress will vote in favour of re-activating information, educate and provide other services the GSP status of countries that had it previously. to Serbian businesses, preparing them for their The Serbian Chamber of Commerce thinks Serbi-

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appearance on the American market – including informing them of new export opportunities. Also, the Serbian Chamber of Commerce will continue to develop its activities to inform potential American business partners about the conditions and opportunities for cooperation with Serbian businesses.

to be realised in the coming period. In November 2013, Microsoft representatives reciprocated with a visit to Belgrade, where they continued talks about investment projects. Companies such as Freeport, General Electric and Chevron are also willing to invest in Serbia. Freeport is looking to invest in the exploitation of mineral ore, General Electric would like to acquire a locomotive and train car factory, while Chevron is interested in oil shale.

■ As you mentioned, the export of Fiat vehicles has helped Serbia to reduce its disparity in trade with ■ Which of the existing the US. Could you tell us about this year’s plans for The US market is demanding and treaties between the two further exports to the US, very competitive, and transport countries are most importo Serbian-American and which sectors have costs are very high, so any Serbian tant economic ties? realistic opportunities for company marketing its products - The agreement between the growth in this respect? governments of the United - We expect export tendencies in the US is very important to to grow, and we would like to Serbia’s reputation and economy States and Serbia and Montenegro on economic, technical see our export structure improved with a higher share of finished products. The growth and related assistance, which was ratified on 6 March 2001, of the Serbian economy and its capacity to secure sufficient determines the formats and means for providing economic, quantities of goods, continuity in delivery and adherence to technical and other related US assistance to Serbia and Mondelivery times, as well as having appropriate product design tenegro, while the agreement on the promotion of investand complying with the demands of the American market, ments between the federal government and the US governwill certainly contribute to that. Serbian exports to the US ment ratified on 12 December 2001 practically boils down to could also benefit from stronger marketing activities, higher protection of US investments. The development of economic visibility for Serbia’s economic potential and networking relations between the two countries would be bolstered sigwith distribution companies. New opportunities to develop economic cooperation lie in the food industry and agriculture, as well as metal processing, wood processing, textiles, the IT industry, infrastructure and construction, the military industry and the banking sector. Beogradska 39, 11000 Belgrade, Serbia One of the best examples of cooperation with US comPhone: 381 11 3302 500; Fax: 381 11 3232 655 E-mail: contact@sbs.rs; Web: www.sbs.co.rs panies is the company Medino from Krnjevo, which in late August 2013 concluded an agreement for the distribution of Leading IT systems integrator with tradition and natural honey and other products with a distribution comreputation in the markets of Serbia and the region. pany from New Jersey. Serbian honey is soon going to be sold in more than 1,000 shops across the US under Medino’s For a number of years, Woodland and ZiZu brands. we have provided our clients in Serbia and the region with state-of-the-art IT solutions that incorporate topThe US market is demanding and very competitive, and class technology and professional services. transport costs are very high, so any Serbian company marketing its products in the US is very important to Serbia’s reputation and economy. In most cases, Serbian companies sell their products to the distribution chains of American retailers. The biggest concentration of Serbian products is in small retail shops where the Serbian diaspora is the target group. ■ Several Serbian officials visited the US in 2013, with some concrete business deals announced. Do you know if the implementation of any of these projects has begun? - During Serbian officials’ last visit to the US, American investors expressed interest in investing in the IT sector, energy and mining, so we do expect these business initiatives ENGAGE FOR CHANGE IN 2014 | 27

nificantly if they concluded an agreement on the mutual promotion and protection of investments and a double taxation agreement.

Cham participate in our activities. AmCham is also a member of the SCC Foreign Pool, the role of which is to develop and bolster mutually beneficial, continuous and long-term cooperation between our and other bilateral chambers, their representative offices, associations and business clubs in Serbia. The primary goal of this body is to form networks between national and international business communities in Serbia in order to achieve more rational utilisation of resources, higher synergy and more efficient internationalisation. This is in the best interest of both the SCC and Foreign Pool members. Apart from AmCham, the Serbian Chamber of Commerce has had exceptionally good cooperation with the US Embassy’s Economic and Trade Affairs Section in Belgrade and on USAID projects in Serbia.

■ Can you single out some good examples of American companies investing in Serbia, creating new jobs and contributing to economic collaboration? - The biggest American investment in Serbia was the acquisition of Niš Tobacco Industry (DIN) by Philip Morris International. In 2003, Philip Morris acquired the Niš-based company for €518 milllion and the company’s investments so far have exceeded €660 million. The following American multinationals have also made significant investments and operated successfully in Serbia: Coca-Cola, PepsiCo, Ball Corporation, Microsoft, Cooper Tire, Van Drunen Farms and Alltech. ■ There are several thousand Serbs Although I am bit apprehensive living in the US and Canada. Most about singling out any company, I would of them emigrated in the 1990s and like to mention two: can manufacturer many are still emigrating to this day. Ball Corporation, as the first and biggest These are often top experts, managforeign greenfield investment in Serbia; ers and scientists in whose educaand Microsoft’s regional development tion Serbia had invested billions of centre. In 2005, Ball Packaging opened dinars. Is Serbia communicating a state-of-the-art production facility in with these people today to help adZemun, hiring more than 100 domestic vance economic cooperation, as Turworkers. The plant now produces cans key and other countries do? for both the regional and European mar- The Serbian diaspora is a huge and an kets. In 2011, the company expanded its insufficiently mobilised development reproduction capacity and hired 40 more source, which should be better utilised workers. According to Ball Packaging, with the aim of attracting investments to they have invested around €100 million Serbia and exporting Serbian products. in Serbia so far. Also, Microsoft’s decision The Serbian Chamber of Commerce to open a regional development cenvalues our diaspora as an important tre in Belgrade in 2005 was very imThe SCC values our diaspora as of the Serbian economy and has portant for Serbia considering that, an important part of the Serbian part been trying to win back their trust, as at that time, the company had only economy and has been trying to well as use their know-how, business three such centres worldwide. The latest example of a success- win back their trust, as well as use contacts and capital for the betterful American investment is the one their know-how, business contacts ment of the Serbian economy. One the first indicators of a successful carried out by National Cash Regand capital for the betterment of ofeconomic environment is when its ister (NCR). This is the world leader the Serbian economy diaspora starts to invest. Trust and in providing technological support investments from the diaspora are to companies across various sectors, good indicators for other investors too. from the public sector to finance and games of chance. NCR has Back in 2001, the SCC formed the Diaspora Centre and conopened an operations and information centre in Belgrade that will stituted the Diaspora Business Council, which today comprises have close to 2,000 young, highly educated employees by the end 32 members from the diaspora and 17 members from Serbia. of the year. At the same time, we have been advocating setting up an intelThis year, we are also expecting the construction of a heat exlectual diaspora network as a vehicle to bring our experts back changer and refrigeration factory to begin. This is an investment to the country. We have also signed a cooperation agreement by the company Luvata and the plant will be located in Zrenjanin’s with the Serbian Ministry of Diaspora stipulating that Serbian industrial zone. students living abroad should do their professional practice with Serbian companies, through which we contribute to the state’s ■ How would you rate cooperation between the SCC and efforts to bring young experts back to Serbia. I expect that an the American Chamber of Commerce? increasing number of SCC members will recognise that this is in - Our cooperation with AmCham is good. We exchange informatheir interest and join the project. ■ tion and have joint activities, while individual members of Am-

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INTERVIEW

STACEY KENNEDY, Managing Director South East Europe at Philip Morris International

Decade of Improvement presented, Marlboro Advance XL. Additionally, we have increased exports of our products to other countries significantly. Products made at our Niš factory are not only being exported to CEFTA markets, but also to Asian countries. This is a great achievement, as it confirms the high quality standards of the products we manufacture in Serbia.

The Managing Director of tobacco giant Philip Morris’ South East Europe sector reflects on the company’s first 10 years in Serbia and the ‘agility’ that has allowed its operations here to adapt to challenges, innovate and continue to thrive in a sometimes difficult market

10 years.

hilip Morris International (PMI) is behind well-known cigarette brands such as Marlboro and Parliament and has been operating in Serbia for over

■ The illegal tobacco trade disturbs your company’s market operations. Do you think enough has been done to curb the growth of the black market? - Last year, the legal cigarette market decreased by 20%, resulting in losses of more than €170 million to the state budget from excise taxes and VAT. A large number of small retail outlets are also struggling because of this illicit ‘competition’. Given the high unemployment rate and that retail entrepreneurship is the only way many in Serbia can provide for their families, you can imagine the black market’s economic and social impact. The problem must be tackled quickly and efficiently. The only way to do this is through a joint effort by all stakeholders involved, proper enforcement and a strong ‘zero tolerance’ attitude to the grey economy.

■ Philip Morris marked its 10th anniversary in Serbia last year. Could you sum up the company’s most important results during that period? - The decade behind us was devoted to the continuous improvement and development of all aspects of our Serbian business. Our financial in■ Philip Morris’ ‘Start Up for Your Business’ vestments since the acquisition of Duvanska Inproject supports small family businesses. dustrija Niš have amounted to more than €672 What results has the project had thus far? million. I am proud to celebrate our 10th anni- It has been five versary in Serbia as a years since we startstable market leader, Last year, the legal cigarette ed supporting small but also as an agile market decreased by 20%, and family business organisation caparesulting in losses of more than entrepreneurship in ble of responding quickly to consumer €170 million to the state budget Serbia. I’m proud we have helped people needs and a pioneer from excise taxes and VAT address their unemof innovation. ployment directly and encourage entrepreneurial Last year, Philip Morris was the first in Serbia thinking. ‘Start Up for Your Business’ has helped to launch branded universal tobacco – suitable as many as 280 business owners build a better both for rolling and tubing. Our Niš factory was future for their families. They in turn have prothe first PMI factory in Eastern Europe, the Midvided employment for roughly 1,000 individuals. dle East and Africa to manufacture such a prodThe new contest cycle is currently in progress, uct. However, the event that makes me particuthrough which we hope to help start up another larly proud was Serbia becoming the first country 100 small businesses. ■ worldwide where a new variant of Marlboro was ENGAGE FOR CHANGE IN 2014 | 29

INTERVIEW

DRAGINJA DJURIĆ, Executive Board President of Banca Intesa

Stable Partner of the State Banking has become an often unfairly maligned industry, one whose positive contributions to the economy and the lives of citizens tend to get lost amid the criticism. Banca Intesa and its peers are the “engine of the broader financial system in Serbia”, according to Draginja Djurić, and in spite of challenges the banking sector is still the soundest segment of the economy

anca Intesa, the Serbian bank of Italy’s Intesa Sanpaolo group, is the strongest bank operating in the country. Its Executive Board President Draginja Đurić has seen the bank continue to perform well since it started operations in Serbia, even in the face of worsening economic conditions. Here she explains the challenges facing the Serbian banking sector and speaks about the need to create a stronger, more stable economy for the benefit of all.

Still, in order for banks to be able to deploy their potential to a greater extent, it is crucial to tackle the high level of non-performing loans (NPLs), which pose a heavy strain on both the banking sector and businesses, while at the same time addressing key market challenges and taking resolute steps to put the economy on a sustainable growth trajectory.

■ Away from objective reasons and the economic crisis, what do you think should be done to help the banking sector to drive Serbia’s economy? ■ By most indicators, Banca Intesa has been - The role of the banking sector in any counthe most successful bank in Serbia for years try is to channel funding towards productive and you have been heading the bank from investments and facilitate efficient allocation the start. How would you describe the state of resources for the purof the Serbian banking pose of increasing insector today? The role of the state is dustrial production and - Banks are the engine to help foster a stable exports and creating of the broader financial and predictable market jobs. In general, a stasystem in Serbia, and deenvironment, giving ble and healthy banking spite challenges reflected sector plays a key role in amplified credit risk impetus to economic in supporting economand contracting demand, activity, encouraging ic activity, but banks the banking sector is still investors and reviving themselves cannot drive the soundest sector of industrial production. economic growth. the domestic economy. What spurs GDP exThe reasons for this lie in The role of the banks is pansion is investment, the fact that, on the one to support this process innovation and technohand, the local banking logical advances, which is why it is essential sector is well regulated and supervised, while on to improve the overall business climate in the the other most of the banks in Serbia operate as country. The role of the state is to help foster part of international groups that are fully aligned a stable and predictable market environment, with the highest global banking standards. This giving impetus to economic activity, encourprovides important, double-stability assurance, aging investors and reviving industrial prowhich, coupled with high capitalisation and liduction. The role of the banks is to support quidity indicators, gives banks ample capacity this process. to support the economy along its recovery path.

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■ Ever since the deepening of Serbia’s economic cri- return on equity has been in decline for several years and sis, banks have been under public pressure for mak- is now more than twice below its level in 2008, which is ing profit. Is there a credible bank or a company in the also reflected in the fact that, according to the last report world that is not generating profit and what is your of the central bank, as many as 13 of the 31 banks that operated in the market in 2013 ended the third quarter of reaction to these occasional populist campaigns? - The value-creation ability of banks is often considered in the year in the red. a rather critical and one-sided way, while their contribution to The value-creation of banks ■ The current economic crihas narrowed banks’ inthe economy and community is is often considered in a one- sis vestment horizons signifieasily overlooked. The capacity of sided way. The capacity cantly – the number of NPLs any bank to preserve the interests of banks to preserve the has grown substantially and of its shareholders and deposilending safety has been retors, provide for its employees, interests of shareholders, to a minimum. What do help the economy and contribute provide for employees, help duced serious banks such as Banca positively to the community must the economy and contribute Intesa do to overcome such not and should not be placed into to the community should not be market conditions? a negative context. The Serbian banking sector is placed into a negative context - In an environment where banks are unable to collect one of every a stable partner of the state and the key supplier of finance for businesses, while providing five loans they give, the focus is placed on asset-quality manjobs and financial security for the families of the more than agement, additional prudency in new lending and efficient 27,500 people it employs. It is also second by contribution to collection. It is not in the interest of any bank to tie funding in loan loss provisions, so at the same time we are putthe state budget through taxes paid from business. On the other hand, the profitability of banks in Ser- ting maximum effort into being responsible and proactive, bia is clearly overstated. The domestic banking sector’s and helping those clients that have encountered repayment

ENGAGE FOR CHANGE IN 2014 | 31

problems by coming up with acceptable options, either through debt reprogramming or restructuring. However, those are limited, individual efforts that cannot produce a long-term impact unless there is a wider effort coordinated by the state and coupled with economic activity growth and reduction in unemployment.

around 87%, the domestic financial sector is lagging behind those in developed parts of Europe, but we must not forget the conditions local banks operate in. With the unemployment and NPL rates each exceeding 20%, living standards being among the lowest in the region and the real economy facing a major liquidity crunch, there is a lot to be done, and the role of the state is crucial here.

■ Banca Intesa tops Serbia’s asset list. From that po■ How can the National Bank of Serbia and the govsition, how would you assess the near future of the ernment help in this process? banking sector in Serbia, especially when it comes to - The government has identified comprehensive fiscal an issue such as the long-announced consolidation, consolidation and strucmergers and reduction of tural reforms as a priority the number of banks? for unlocking the potential - It is evident that the domesof Serbia’s economy, which tic banking sector is graduis why full and consistent ally reducing in size, and implementation of the anthat trend of consolidation nounced measures is crucan be expected to continue. cial. Steps to improve the Overall, the sector is fairly business climate need to be competitive, but given the taken without delay in orneeds of the economy and der to draw more investors, our citizens, the market is boost industrial production overly fragmented, with a and exports, and ultimately large number of banks takcreate jobs. Given the scope ing rather small shares in of the NPL problem, its resoassets, lending or deposits. lution is imperative. Furthermore, there are a The central bank has certain number of banks provided a significant conwith a track record of untribution to this process profitability. On top of this, Overall, the sector is fairly by amending the decision further market consolidacompetitive, but given the needs on the classification of baltion is likely to be induced of the economy and our citizens, ance sheet assets, laying by external factors such as the foundations for resolvglobal mergers or the need of the market is overly fragmented, ing the issue of bad loans, some banks to comply with with a large number of banks which could eventually lead recommendations from the taking rather small shares in to lower interest rates. BeEuropean Commission. assets, lending or deposits sides these measurements taken by the National Bank, ■ Real estimates of the it is necessary that all other institutions join the process Serbian financial sector show it to be underdevelin order to improve the efficiency of the entire judiciary oped, both by volume and the number of products system, ensure the protection of creditors and secure the available, benefiting neither banks nor citizens. safety of investors. What do you think should be done to enable banks Legislative changes, namely those concerning the laws in Serbia to expand their activities and improve their on mortgages, bankruptcy and enforcement and execution products for the mutual benefit of all? are needed to speed up the collection process and address - The offer of the banking sector corresponds to the level the NPL problem in a more systematic way. Also, enabling of market development. Even though banks themselves banks to sell claims from individuals through changes to are constantly working to introduce innovative solutions, the Law on the Protection of Financial Service Users would there is sufficient room here to broaden the spectrum of unburden balance sheets and unfreeze more funding to be products. With a general lack of understanding in the channelled towards development initiatives. The NPL burmarket for more advanced financial instruments, it is up den affects not only banks and the economy, but also the to banks to engage in active education and promotion of state and consequently the citizens. It calls for active and more sophisticated products. committed involvement from all sides. ■ When it comes to volume, with an asset-to-GDP ratio of

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CORPORATE

Rakita Exploration d.o.o. Bor

US Company Explores Mining Potential of Bor

FreeportMcMoRan’s portfolio of metals assets includes the Grasberg minerals district in Indonesia, significant mining operations throughout the Americas and the Tenke Fungurume minerals district in the Democratic Republic of Congo

reeport-McMoRan Copper & Gold Inc. is a leading international natural resources company with headquarters in Phoenix, Arizona and a global workforce including approximately 34,000 employees. Freeport-McMoRan operates large, longlived, geographically diverse assets with significant proven and probable reserves of copper, gold, molybdenum, cobalt, oil and gas. It is also the world’s largest producer of molybdenum and a significant gold, oil and gas producer. The company has a strong commitment to safety performance, environmental management and to local communities wherever it operates. Freeport-McMoRan is a founding member of the International Council on Mining and Metals and committed to implementation of the ICMM Sustainable

Development Framework. Freeport-McMoRan’s portfolio of metals assets includes the Grasberg minerals district in Indonesia, significant mining operations throughout the Americas and the Tenke Fungurume minerals district in the Democratic Republic of Congo. In addition, the company’s portfolio includes oil and gas assets in North America and the Gulf of Mexico In the Bor district of eastern Serbia, the Timok Project is an early stage exploration project that is majority-owned and operated by Freeport-McMoRan. Initial drilling at Timok has returned encouraging results, with high copper and gold content. Freeport-McMoRan is continuing to explore the property to determine if the Timok Project has the potential for development into a mine. ■

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INTERVIEW

DIMITAR ANDONOV, Operations Director for Serbia, Macedonia and Montenegro at Coca-Cola

System of Values C

Coca-Cola employs some 1,300 workers in Serbia and, according to a survey commissioned by the softdrinks giant, the company’s successful operations contribute indirectly to the employment of a further 18,000 people. Overall, Coca-Cola’s output in Serbia is equal to 1.18% of the country’s GDP

oca-Cola is not just one of the world’s most famous brands, it was one of the first major international companies to bring its business to the region. Coca-Cola Operations Director Dimitar Andonov discusses the positive effect his company’s system and values have had on Serbia and the region.

cio-Economic Impact of the Coca-Cola System in Serbia’, which was written by the London-based Steward Redqueen consultancy. The study’s aim was to demonstrate, using an economic model, the degree of influence the Coca-Cola system has in countries it operates in, where the influence is defined as value added and an employment incentive. The study showed that Coca-Cola employs around 1,300 workers in Serbia today who contribute indirectly to the employment of 18,000 people in Serbia. In other words, each Coca-Cola worker in Serbia helps to support 13 other workers throughout the Serbian economy, which is no small feat, both for us and the Serbian economy.

■ Coca-Cola made one of the first large investments in the region, and the company has seen a lot here over the past 45 years. ■ Foreign investors such as large interWhat were the most important stages in Conational companies exert a strong influca-Cola’s regional development in the last ence over the economy in Serbia. Do you half century? think the government, through laws and - Our history in Serbia started 46 years ago. Back regulations, provides Coca-Cola and other then, Coca-Cola issued a bottling plant in Zemun companies with enough room to grow and with a license for the production of Coca-Cola in advance their businesses? Serbia. The Zemun facility still - The Coca-Cola system emproduces Coca-Cola along with The contribution ploys the local workforce, other globally renowned nonof the Coca-Cola contributes to the employalcoholic beverages. Over the system is important ment, wages and tax revyears we have improved our enues of the entire economy business while at the same time to the country’s the purchase of contributing significantly to the budget considering it through goods and services from varidevelopment of both the local amounts to 1.18% ous suppliers and the selling community and the domestic of national GDP of its products via a wide diseconomy. tribution network. If we conIn 2005, we acquired the sider the aforementioned, we can say Coca-Cola Vlasinka mineral water plant, where Rosa minis a domestic company. eral water is bottled, and the year after that we Large business systems such as ours thrive bought Fresh & Co. By doing so, we have develon stable and predictable business conditions, oped our portfolio significantly by adding new constructive dialogue between the state and the products. These strategic moves further solidified economy, strong legislation and its implemenour leadership position in the market for non-altation, and the continuation of EU integrations. coholic beverages and mineral waters. Reforming public administration, the very low I think we have best showed our contribution liquidity of the Serbian economy and, lately, the to the Serbian economy in a study called ‘The So-

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unstable dinar exchange rate are just some of the biggest problems we hope will be resolved soon. ■ You mentioned a study about the socio-economic impact of the Coca-Cola system in Serbia. The study claims Coca-Cola has paid almost €350 million into the Serbian budget and employs more than 1,300 people. Has the economic downturn changed this picture? - Undoubtedly the economic crisis has had a huge impact on business in Serbia. The reduced purchasing power of Serbian citizens has impacted upon our operations too. The current crisis has sent us back to a period of slower economic activity, but the Coca-Cola system remains a reliable partner to our business partners and the community in which it operates. Although this year is going to be challenging for us and we are going to have to show business flexibility, quality and the satisfaction of our consumers remain our absolute priorities.

and the fact overheads have kept growing, the consolidation model was a way for us to maintain our leadership position. This model also ensures that the company has a better exchange of information and know-how, as well as giving our talented employees the chance to advance much faster.

■ Away from the negative influence of the economic crisis, Coca-Cola has been dedicated to CSR activities. What are your CSR plans for 2014? - We always like to point out just how proud we are to have contributed to the development of Serbia’s economy and society, as well as to long-term investments in the local community. For us, socially responsible operations are a priority, and the sustainability principle permeates our entire business process. We will continue to initiate activism, so that, together with our partners, we can contribute to changes that will improve the conditions and quality of life of Serbian citizens today. We are going to continue constructing 45 outdoor gyms ■ Also, if Serbia were to import your beverages rather than buy them directly from you, the economy “would to celebrate 45 years of our operations. Along with this, we are going to continue working in areas we have been conlose additional €50 million”. Could you elaborate? tributing to for years, such - While we were involved in as environmental protection, writing the study on the imConsidering the economic pact the Coca-Cola system has situation, the consolidation model supporting vulnerable groups and educating young people. had on the Serbian economy, was a way for us to maintain our We have excellent cooperation we took a hypothetical situaleadership position. This model with representatives from the tion in which all of Coca-Cola’s operations in Serbia were re- ensures we have a better exchange public, civil and corporate sectors, and we are going to conplaced by imports, i.e. only the of information and know-how, tinue to join forces with them in company’s distribution and and gives talented employees many activities. sales channels would remain. the chance to advance Over the following period, The result we got was that, together with Coca-Cola volin this scenario, the Serbian budget would lose €50 million – and we won’t even go into unteers, we would like to promote forgotten values such as generosity. Our idea is – through the small everyday gestures the impact this would have on jobs, wages and tax revenues. Generally speaking, the contribution of the Coca-Cola that give life meaning – to motivate, encourage and inspire system is important to the country’s budget considering it people to change their behaviour despite the tough times we amounts to 1.18% of national GDP. This information best il- are living in. Maybe these kinds of initiatives are not closely lustrates the fact that Coca-Cola is more than a liquid refresh- related to corporate social responsibility, but we in the Cocament to the countries in which it operates. Our system is also Cola system have been living and promoting this for decades now. We are very proud that our activities in this field have an important source of economic growth and development. been recognised and that people have joined in, so that both ■ Large companies in the region are starting to con- companies and individuals can contribute to attention-worsolidate their markets to increase business efficiency. thy human endeavours. This is also directly linked to the overall economic and political stability of the region. What are Coca-Cola’s ■ Every year, Coca-Cola invests hundreds of thousands of euros in local communities. What sectors do plans in this respect? - The consolidation process is nothing new and happens you spend your money on and what is your priority for across various industries. Our companies in the region un- 2014 in this respect? dertook this process a long time ago. The Coca-Cola Compa- - Our corporate social responsibility strategy states that ny operates along the matrix principle, wherein most of our Coca-Cola should contribute most to those areas we believe managers work simultaneously across several markets and could significantly change overall society for the better, such as environmental protection, supporting vulnerable groups, with several brands. Considering the economic situation of the last few years, educating young people and promoting active living. ■ ENGAGE FOR CHANGE IN 2014 | 35

INTERVIEW

DARKO MATIJAŠEVIĆ, Managing Director of Executive Group

Every Item has a Buyer

“A

The media landscape is changing at a pace that is frightening to those unwilling or unable to adapt. This coupled with a disadvantageous economic landscape has given space to those who are most creative and willing to try something different. It is in this environment that Serbian integrated communications agency Executive Group has thrived

s a one-stop shop for all communications, we have managed to provide clients with an attractive value proposal in a complex economic and media environment,” says Executive Group Managing Director Darko Matijašević while explaining the source of the integrated communications company’s success. With double-digit growth over the last five years, Executive Group is a Serbian company able to handle the brave new digital world.

in the fourth quarter of this year than during the same period last year as they commence competition for consumers and their improved purchasing power.

■ Do you expect to see advertisers shifting their budget allocations towards new media? - We are monitoring trends in this arena, and one thing we noticed is that large companies are turning increasingly to business operations and therefore also to advertising on social media. Social media offers ample space for launching creative messages and entire campaigns to the widest possible audience. These can bring exceptional results but still carry a certain amount of risk because the online environment has rules that ought to be well understood. Strategies should be ■ The global financial crisis has affected the designed in the right way, alongside other comoperations of all businesses in the region, munications channels such particularly the media. as traditional PR. What are your projections There are players Advertising space still exfor this year’s commercial who recognise and ists on TV networks because a revenues from advertising take advantage of large portion of consumers is in the media in Serbia and new opportunities. still not committed exclusivethe region? ly to social media. Print media - Brand owners have been Considering the constricting their marketing number and diversity is slightly falling behind and pace, but numerous budgets since 2008 in light of of our clients, and our losing publications still have loyal declining consumer spending double-digit growth, readers – those who read and various competitive pressures, such as price wars in it seems we are doing newspapers and magazines regularly as an irreplaceable several industries. Marketing something right daily ritual. The main task is decisions on new investments to develop appropriate high-quality content beare being made carefully and brand owners are cause the saying “every item has a buyer” is true. adjusting their business strategies to market trends. Based on our analysis and indications ■ Companies have become more cautious from clients, our 2014 forecast for Serbia foresees in regard to expenditure and investment, low single-digit growth in the media market. and are looking to increase the efficiency We expect the election campaign to produce of advertising. How does this reflect on the a net positive impact on ad spending as well as business operations of agencies, especially the expected global recovery, which will spill media outlets? over into the local market towards the beginning - In Serbia, we are already used to doing business of the fourth quarter. We are being led to believe in a market without stable economic parameters that brand owners will spend significantly more

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or a predictable environment, but there are players who recognise and take advantage of new opportunities. Considering the number and diversity of the clients we serve, and our double-digit growth over the last five years, it seems we are doing something right. Our philosophy to build and cultivate an integrated communications agency with strong competence and capabilities in digital, PR, advertising, public affairs and event management has served our clients well. As a one-stop shop for all communications, we have managed to provide clients with an attractive value proposal in a complex economic and media environment where the integration of traditional and digital channels has become a key factor of success. We have been focused on a strategic approach to every client and committed to providing solutions through the high quality and stickiness of ideas and communications content.

- As I have already mentioned, a strategic and integrated approach to communications is what makes Executive Group distinct in the Serbian and regional communications market. In 2009 we formed a special team and department for digital communications and new media with the desire to offer clients the best solutions in this field. The digital field, which includes online communications, digital marketing and production, today represents an integral part of our business because the demands of the market require ongoing technological development. We communicate daily with more than one million users in the region on behalf of our clients via social networks. I expect one of the leading trends in communications over the coming years will be mobile communications. This trend is highly present in Europe, but Serbia also has the preconditions for growth in this area because today we communicate mainly via mobile phones we always have with us, like a kind of arm extension. Over the phone, a brand can communicate with consumers in an extremely active manner, and this is how various transactions are made today, along with purchasing services, groceries, tickets for shows and the like.

■ It seems like the financial crisis has forced large companies to turn more and more to innovative communications strategies. Where does the classic PR format of message distribution stand in all of this? - The process of integrating various com■ There is an increasing number of munications channels began around 20 multinational, even regional, comyears ago and went into fuller swing with panies in the region using new methe breakthrough of social networking Executive Group combines dia channels with the aim of being and new technologies. This process has become even more evident because many knowledge and creativity more efficient and direct in their companies are investing their resources with the latest technologies. campaigns. What experience does Executive Group have in this area? and creative potential into the developWe continuously observe - One of the main advantages our agency ment of business strategies for a market global trends and invest in has is a strong presence in the regional where purchasing power has become increasingly weak. We have set ourselves employee development and market. We have been doing business for apart by always designing and conduct- new technological solutions more than six years in all countries of the former Yugoslavia, as well as in Albania, ing communications through various channels, aiming towards innovation, creativity and increased and our activities extend to other countries in the region. Over 30% of our revenue comes from regional activities. Clients often want a impact and efficiency. The basis of communications is to convey information to the more efficient approach to communications in the region, so they widest possible audience. The space for the traditional PR format choose a single solution that contains everything they need. The strategies of integrated agencies such as ours increasingly is decreasing considerably, but we try to find ways to set ourselves apart. Regardless of the advantages the digital revolution has include the creation of campaigns for big clients where, along brought, traditional media still plays an important role. The point with PR, marketing and advertising, all areas relating to digital of the media – to inform the public – still hasn’t changed. We are presence represent integral parts of their communications. In this convinced the media and PR agencies can work together if they way they have no limits and campaigns can be easily transferred to the entire region. do their jobs well. ■ The communications market is more complex and dynamic than ever, and consumer focus has become divided with the introduction of new distribution channels, leading towards integrated channels. Do you expect to see digital media take over from traditional media in future?

■ Serbia has begun its EU accession process. What changes in the relationship between agencies and the media do you expect to see during this process? - The process of EU accession represents a chance for the development of our country and a quicker economic recovery, and at the ENGAGE FOR CHANGE IN 2014 | 37

same time it opens up new possibilities in communications. The exchange of knowledge and experience is a stimulating process for all of us, and, in my opinion, a stricter implementation of standards will bring about better results for those who are prepared for the challenge. If we want to succeed, we have to be as innovative as possible and as engaged as possible when attracting leading global companies, and it is my belief that we have something to offer. In terms of our agency, this process opens up a new area for the further improvement of integrated communications. At the level of new media, as well as at the level of the state administration and non-governmental organisations, we are seeing great improvements in the use of new communications channels, changing the society we live in. It is my hope that the media in the period to come will become stronger and a kind of mirror of a better society, and that with the implementation of new, contemporary media legislation, we will succeed as a society in responding to all challenges in accordance with European standards.

of what we are doing in Serbia and what is considered the global standard. I believe the even stronger competition of world-famous agencies will influence those of us who wish to stay in this business, and make us prove that we are equal to if not better than the best. New challenges encourage creativity, and an integrated presence in all communications channels will become a necessity. I believe we have the potential to develop at the global level, as proven already by the activities of our outsourcing arm Fabrika, which has been providing services in digital production to leading marketing and digital agencies worldwide for three years. With Fabrika, we not only export products made in Serbia, but also import the latest technological and creative solutions for implementation in the local market.

■ Executive Group has won plenty of awards already, so what is the basis of your company’s strategy and where do you see further development? - Our strategic goal is to continue to develop and grow aggressively in all fields. When it comes to advisory services in the area of integrated ■ From the perspective of Despite the seemingly difficult communications, we strive to a successful media agency, environment, I believe it has improve and strengthen the leadwhat possibilities do you foresee for the sustainable never been more exciting to be in ing position in the Serbian and markets, while within development of Serbia’s memedia than today. The paradigm regional our outsourcing activities in digidia sector, which today is in change is tremendous and many tal and TV production, we are big crisis? outlets will cease to exist. Those expanding our cooperation with - Despite the seemingly difficult environment, I believe it has who transition well and recreate the biggest global companies. We started as a very small team more never been more exciting to be themselves will be bigger and than 10 years ago; today we have in media than today. The parabetter than ever more than 80 professionals. Our digm change is tremendous and agency has received the PRiznanje award four times from the many outlets will cease to exist. Those who transition well Serbian Society for Public Relations, and has been selected as PR and recreate themselves will be bigger and better than ever. agency of the year. The most prestigious global awards in the inWe live in the information and media age, where various medustry, SABRE and IPRA, which we received in 2009, also serve dia have the opportunity to expand their business model beas testimonies to the quality of our work. yond information and content sharing into various services Executive Group combines the knowledge and creativity – e-commerce being one of them. of its people with the implementation of the latest technologies, and we continuously observe global trends and invest in ■ Do you expect to see stronger competition in the near the development of employees and new technological solufuture with the arrival of one of the leading global fulltions. Our recipe for success includes top-quality services, a service agencies? comprehensive understanding of the market and dedication - Considering we have had the chance to work on internato each and every client. Continuous growth, a strategic aptional projects with leading communications agencies, and proach to communications and integrated operations are all contrary to our preliminary view, I am confident there are no parts of our motto. ■ crucial differences between the quality, methods and results

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INTERVIEW

VLATKO SEKULOVIĆ, Partner at Sekulović Law Office, Belgrade

Harmonising Legal Norms

During the many years the Sekulović law practice has existed, the firm has come to realise that the most important prerequisite for efficient implementation of laws is that they are simple to interpret. Only then can legal norms be mutually coherent and consistent

preliminary draft law’s basic premises comerbia’s existing laws were ply with European standards, and what written during different sowould be a mutually acceptable solution for cial and economic systems. both trade unions and employers? We still have some laws dat- In terms of labour legislation, [EU] member ing back to the socialist self-governcountries have relative freedom to regulate the ment period, followed by laws from the 1990s rights and obligations of employers and employ– namely the period when Serbia was isolated ees. The draft law, which has been made public, internationally – followed by laws passed after contains certain novelties in areas that are exceppolitical upheaval in 2000, as well as laws and tionally important to foreign investors. The issue regulations taken from the European Union. of severance pay needs to be regulated differSuch a situation creates legal confusion as these ently, as the current legislation has been misused laws often oppose each other or are completely by employees, meaning employers must carry obsolete. As such, says lawyer Vlatko Sekulović, the biggest burden unjustly. The procedure of it is necessary to put regulation under the guiljob termination should lotine once more, with be made less formal, the aim of eliminating Only with efficient and which would make outdated and unnecesuniformed implementation employer-employee resary legal norms and harmonising the Serof laws are we going to have lations more balanced. Apart from a few other bian legal system. predictability and safety important amendments in business, which is very that should be made, ■ Foreign investors important to investors I think another key often state that laws thing is for the law to are not Serbia’s probbe formulated differently and to attenuate sanclem; instead it is the lack of bylaws that hintions for employers in the case of unlawful job ders the implementation of adopted laws. dismissal. Existing regulation, in regard to these Do you concur? three issues, just deters employers from hiring - When passing legislation, lawmakers need to new employees. create a complete legal framework of statutory norms and adopt bylaws. Efficient and uniformed ■ In your experience, what would you say implementation of laws by the state administraare the biggest legal hurdles preventing tion and courts is even more important. Only in new investment in Serbia? this way are we going to have predictability and - Too much red tape, a huge number of required safety in business, which is very important, both permits, opinions, approvals and other docuto foreign and domestic investors. ments that investors must acquire before embarking on any kind of business activity. We ■ The Labour Law, which is currently on need to simplify administrative procedures and hold, is one of the key reformative laws and introduce the self-certification principle, just like a law that large companies and foreign inin the EU. ■ vestors are especially interested in. Do the ENGAGE FOR CHANGE IN 2014 | 39

INTERVIEW

JASMINA PAVLOVIĆ, Country Manager for Serbia, Central Balkan Countries and Moldova at Pfizer H.C.P. Corporation Representative Office

A Call for Dialogue

With revenues for 2013 in excess of Serbia’s GDP, Pfizer knows a little something about improving economic performance. The company believes that investment in healthcare should be a priority and wants greater dialogue between the pharmaceutical industry and government

■ How is the process of introducing new pharmaceutical products to Serbia in comparison with other European countries? Does administration and a lack of money in the Serbian healthcare system slow down the process? - We know Serbia faces many health challenges, with rising levels of disease. In comparision with neighbours Romania and Bulgaria, Serbia has a low number of newly introduced pharmacotherapies per capita, i.e. biologics, and this figure has not increased over the years. The lower GDP of Serbia in comparison with these countries is one of the causes, but there is also the suboptimal allocation of existing funds. Less than 30% of the total National Health Insurance Fund budget is ■ Pfizer is one of the world’s biggest pharspent on medications and only US$120 is spent maceutical companies, with recently reon pharmaceuticals per capita. ported revenues for 2013 of more than We believe, in the interests of innovation and US$51 billion. How is Pfizer Serbia organthe improvement of the healthcare system, that ised and what is its strategic direction? more dialogue between the industry and the gov- Pfizer is one of the world’s largest researchernment could improve both the speed and qualbased pharmaceutical companies. We strive to ity of the process and that Serset the standard for qualbia shouldn’t hesitate to use ity, safety and value in the Less than 30% of the this opportunity. discovery, development total National Health and manufacture of mediInsurance Fund budget is ■ Citizens in general are not cines. R&D is at the heart spent on medications and satisfied with the quality of of fulfilling Pfizer’s purpose only US$120 is spent on healthcare in Serbia. How as we work to translate advanced science and tech- pharmaceuticals per capita do things look from the perspective of a multinational nologies into the therapies company and what should be the governthat matter most. We focus our efforts on core ment’s priority when solving the most imporareas where we believe Pfizer is best positioned to tant healthcare issues? bring unique, needed therapies to patients. This - Pfizer believes the introduction of an integrated includes chronic inflammatory and autoimmune information system to healthcare will allow betdiseases, vaccines, oncology, neuroscience and ter diagnostics and evaluation of the current pain, cardiovascular and metabolic disease, and healthcare system. In our opinion, this is a necrare diseases. essary first step. Solving the funding problem is Our structure, leadership team and financial crucial and a new integrated system could help capability are organised around three important improve healthcare financing. business areas: innovative, established and overMany European governments drastically the-counter pharmaceutical products that will cut down their public health expenditure durcontinue to deliver value to patients, payors and ing the financial crisis. Now the consequences of other stakeholders in 2014 and beyond. Serbia this financial downturn on health have begun to and Balkan countries we cover from Serbia follow emerge. This recession has led to an increase in the same strategy as Pfizer globally. fizer is a global pharmaceutical development giant whose activities in innovative, established and overthe-country medications have seen it amass monster revenues. The company’s operations in Serbia, though also successful, face challenges in the form of burdensome levels of administration and a lack of investment in healthcare. Pfizer’s Country Manager for Serbia Jasmina Pavlović discusses these issues and how the company’s activities can help boost the country’s economy.

40 | ENGAGE FOR CHANGE IN 2014

poor health status, raising the rates of anxiety and depression among the economically vulnerable. The most important thing authorities should strive to find is a good balance between the measures they introduce and their impact on the quality of healthcare. Pfizer believes a lack of investment in healthcare and prevention is a false economy. Our focus on R&D means that we are strong contributors to Europe’s economic health. Despite the impact of cutbacks, we have maintained our investments relative to other industries. As of November 2013, Pfizer has 81 compounds in its research pipeline focused on areas of unmet need, such as cancers and rare diseases. ■ Pfizer has been praised and awarded for its commitment to education and corporate social responsibility. In Serbia, such efforts are sometimes perceived in the wrong light. How do you mitigate

Our focus on R&D means that we are strong contributors to Europe’s economic health. Despite the impact of cutbacks, we have maintained our investments relative to other industries local ‘conspiracy theories’ and follow globally accepted trends while still ensuring that local users of your products get the necessary education for patient treatment? - As a member of today’s rapidly changing global community, we strive to adapt to the evolving needs of society and contribute to the overall health and wellbeing of our world. We continually review and improve our efforts to lessen our impact on the environment, nurture a workplace of diversity and inclusion, and conduct responsible business practices. We are committed to conducting our work with healthcare professionals to the highest ethical standards to ensure the integrity of these relationships. We try to explain to people that because our knowledge of diseases changes rapidly, there is a lot of information healthcare professionals and the industry can learn and exchange with each other. We have a legal obligation to work with a variety of healthcare professionals such as doctors, researchers and scientists to ensure we provide the best possible care for patients. During these interactions, Pfizer Serbia’s activities are determined by the laws and bylaws of Serbia, as well as the innovative drug industry association Inovia’s code of conduct. The authorities should seek a better public understanding of the industry’s role, since it could lead to further investments by the foreign pharmaceutical industry in the Serbian market. ■

INTERVIEW TOMASZ ROGACZ, CEO of McDonald’s Serbia

Meeting Global Standards

The golden arches were first raised in Belgrade more than 25 years ago, and McDonald’s growth in Serbia has mirrored its growth worldwide. Now, one of the world’s truly iconic brands is set to attract success in Serbia for years to come

cDonald’s Serbia CEO Tomasz Rogacz talks about the positive role the restaurant chain has had and intends to keep having in Serbia.

various methods of education, to improve their skills and develop professionally. Today, if you want to succeed, you need to evolve and enrich your knowledge regularly.

■ Last year, McDonald’s cel- ■ As a franchise of one of the ebrated 25 years in Serbia. world’s biggest companies, you How do you rate the company’s must fulfil high operating standards. Do Serbian McDonald’s achievements in 2013? - Last year was very important for restaurants fulfil company-wide us. Our first restaurant was opened regulations? in 1988 in Slavija, Belgrade and was - All of our 20 restaurants in Serthe very first McDonald’s restaurant bia operate completely by the high in this part of Europe. For 25 years standards established on a global we have been growing continuously level. Our top priorities are strict and competing successfully in the de- standards of food preparation, the highest quality of our products and manding, dynamic Serbian market. a rich customer exWhen we talk perience. All of our about our core busiAll of our 20 products are conness in 2013, our torestaurants in trolled from very tal sales growth was Serbia operate beginning, starting 12% higher comcompletely by the from breeding and pared with 2012. In high standards growth, to processthe previous year we ing in different faciliopened three new established on a ties and preparation restaurants and reglobal level at our restaurants modelled two that were operating already. We made sig- before serving them to guests. Also, we try to source all of our nificant investment in the local maringredients in local markets. In Serket and created more than 200 jobs. bia we cooperate with partners such ■ As you grow, you will need as OSI Food Solutions, Žitoban, Salat more quality employees. Could Centar and Desing, all of whom fulfil you describe the training a Mc- all standards for producing top-quality products. We always offer additionDonald’s employee receives? - People are the biggest asset a com- al support to the local market, and in pany can have. Quality workers are this case, by cooperating with local those who are well motivated and companies we are influencing the Sereducated. We offer our employees bian economy in a positive manner. ■ ENGAGE FOR CHANGE IN 2014 | 41

INTERVIEW

VESNA KOVLJENIĆ, National Sales Manager of Avon Serbia

One of the Global Leaders in Direct Sales

In 1955, the Avon Foundation was established as the biggest global corporate philanthropy project focused on the most important female issues. Today, it continues to work for women everywhere through its efforts to provide funds for medical research, fight cancer and prevent domestic violence

the test certificates required for the markets in irst and foremost, which Avon operates. Avon is dedicated to empowering ■ How is Avon implementing its global women, which can strategy in the Balkans ? be shown by the more than - Avon was established more than 125 years ago, six million women across and the unique business format we created and the globe who comprise the implemented has positioned the company as the big Avon family. So far, the one of the global leaders in direct sales. We have Avon Foundation has raised and donated in exbeen operating successfully in Serbia for more cess of US$800 million to medical research in than 10 years and have a long-term commitment more than 50 countries, as well as to help women to this market. Our long-standing experience in fighting breast cancer and domestic violence all catalogue sales and a growing number of clients, over the world. both worldwide and in the Balkans, demonstrates “Avon aspires to create innovative products that we have not only won consumer trust, but in order to make the modern woman feel beautialso that our business format is widely accepted. ful, content and healthy,” says Vesna Kovljanić, Just over 10 years ago, Avon Serbia National Sales Manager of Avon Serbia. “Womlaunched a breast cancer campaign that has en are the be-all and end-all to us whenever we subsequently evolved into a make a new business move or widespread movement, encome up with a new idea.” Last year, Avon lightening women about the Avon has a special way launched National importance of prevention. of communicating with its Breast Cancer Day consumers. For instance, the company was the first to cre- in Serbia, which now ■ How is this campaign deand what are Avate an e-commerce site for takes pride of place veloping, on’s other immediate plans cosmetics, establish the diin the calendar. in this matter? rect sales format and nurture This day will be - One of Avon’s main goals is constant communication with its clients. marked every year to empower women and aid their overall development. We have invested a lot of emotion and effort into suc■ How would you rate the Serbian market cessfully realising this campaign in more than given there are new ‘products’ launched in 50 countries all over the world. Last year, Avon the grey economy on an almost daily basis, launched National Breast Cancer Day in Serbia, and that these ‘products’ haven’t been testwhich now takes pride of place in the calendar. ed adequately? This day will be marked every year. Our goal is for - It is exceptionally important to be mindful of the people to never stop thinking about breast cancer quality of the cosmetic products we use, exactly and, with every future step, Avon will continue as we are mindful of the food we eat. Avon has to prove to ladies how much they mean to us and top experts and state-of-the-art technology. All of how much we care about them – just like they our products are subjected to additional inspecshould take care of themselves. ■ tion by the relevant institutions and have all of

42 | ENGAGE FOR CHANGE IN 2014

INTERVIEW MILUTIN DELIĆ, General Manager of GSK for Serbia and Montenegro and Commercial Director for the Adriatic Cluster

Confident in Partnership Pharmaceutical company GSK continues to push the boundaries of medicine development through its dedication, not only to innovation and science, but to its people

aving come off another strong year for GSK internationally, the company’s General Manager for Serbia and Montenegro, and Commercial Director for the Adriatic, discusses the year ahead. ■ How do you see the year just gone in terms of GSK’s business and what are the company’s plans for 2014? - Looking back, 2013 was exceptional year for GSK worldwide, taking in consideration R&D delivery with approvals for 6 major products and 5 additional regulatory filings completed. New product launches strengthen our business in res-

piratory, vaccines, HIV and oncology. We are expanding the respiratory portfolio with two significant recent approvals and seven potential new products that are in late-stage development, providing a platform to maintain market leadership to 2020 and beyond. Despite major organizational restructuring in 2013 and the challenges in the external environment, GSK Serbia has succeeded in realizing its financial plan. Changing the way in which we operate has given the organisation a fresh perspective on the value we deliver to society. We will keep a high standard of employee empowerment in 2014 by fostering a culture of support and resilience. When

you’re in charge of an organization, you’re not just in charge of delivering the next quarter, but of trying to set its culture and philosophy. I firmly believe that people are our most valuable asset, and investment in their development and wellbeing is our key priority. Looking ahead, only a motivated and high-performing team will be

and eliminate waste through improved efficiency. Financial volatility threatens the solvency of the entire sector and brings a challenge to pharmaceutical companies to provide the best treatment for patients with constant risks to the financial sustainability. Our efforts in medicine development would be of maximum help to Serbian patients if we improve the access time needed for patients to benefit.

We are confident that innovative pharma can act in partnership with the state to find long-term, sustainable solutions able to deliver excellence and respond to the unmet needs of Serbian patients. Here in Serbia, we have that. ■ As President of Inovia’s Managing Board, what is the major challenge facing innovation in the pharmaceutical industry in 2014? - Healthcare budgets are under pressure – governments should optimize the value and outcome of their healthcare spend

We anticipate that EU accession would reflect in this area, in the form of quicker, more streamlined procedures. We are confident that innovative pharma can act in partnership with the state to find long-term solutions that balance financial investment with recognizing the value of innovation and clinical outcomes for the patients, all of which would provide equal opportunity for the optimal treatment of Serbian citizens. ■

ENGAGE FOR CHANGE IN 2014 | 43

TRADING OVERVIEW

Exports to US Rising T

hand luggage, work gloves, leather clothes, steel rading and steel products, glass and glass products, and between electronics. Although there is a requirement that Serbia 35% or more of the value added to an exported and the product must come directly from Serbia. US had previously been characterised by a huge Serbian exports Last year on 31 July, Serbia’s GSP status exdeficit. But since 2001, the first noticeable growth to the US reached pired and it is due for reactivation in the coming in Serbian exports to the US occurred in 2005 folperiod. Given this wasn’t the first time that the lowing the start of the US’s open-market policy their highest level country’s GSP status has expired, it is expected that towards Serbia (which was re-awarded Most-Falast year: US$133 the US Congress will vote in favour of reactivating voured-Nation status). The first major export total GSP status for countries that have had it before. – hitting US$81 million – was registered in 2007. million. Such Companies should be able to continue exporting In 2009 and 2010 exports grew again, close to improvement can to the US under regular procedures and continue US$86 million, a slight increase from 2008. Then fostering relations with American clients given in 2011 and 2012 Serbian exports grew by 21% be put down to there are no new or additional restrictive clauses to and imports by 17%. an increase in prevent them doing so. There is also the possibility The last three years have witnessed a progresthat Congress will authorise retroactive disbursesive increase in Serbia’s exports to the US. If we quality, both of ment of all amounts due from the differences in tarcompare June 2012 to June 2013, we see that finished products iff rates to American companies Serbian exports grew threefold The last three years that have been importing goods to US$133 million while imports and in production from countries on the GSP list. remained virtually the same at have witnessed capacity, as On 4 January 2011, PresiUS$159 million (source: Serbian a progressive dent Barack Obama signed the Chamber of Commerce). Serbiawell as ongoing increase in Serbia’s Food Safety Modernization Act to-US export figures have been exports to the US investments and (FSMA), which brought the bigimproving due to improvements gest changes to food imports since 1938. The act in local production and quality, a number of investSerbia’s natural came into force in July 2011. The aim of the FSMA ments and Serbia’s propensity for the US market. inclination is to ensure food safety through stricter control of The formal contribution to this increase in food producers, as well as improving the standarditrade happened on 1 July 2005, when Serbia was towards the sation of food production, transport and import. In granted preferential duty-free entry for 4,650 SerUS market essence, this act bans the import of food products bian products under the US Generalized System that do not comply with American standards, inof Preferences (GSP). These custom-free exports troduces stricter procedures for obtaining required include a substantial number of industrial and documents and implies re-registration of food faciliagricultural products (with the exception of most ties and products. This shifts focus from US Customs textile products), clothing and footwear, watches, to the FDA (Food and Drug Administration) and inFiat the Biggest Exporter, Roche the Biggest Importer creases control over the production and transport of food sold in the US market. The act introduced To the end of July 2013, the following Serbian companies exported most to the changes to a total of 30 processes and procedures. US: Fiat Automobili Srbija d.o.o. Kragujevac; Prvi Partizan Užice; Zastava Arms AD Kragujevac; Alltech Serbia AD Senta; Copper Mill AD Sevojno; and others. The FDA has created a special web page about To the end of July 2013, the following Serbian companies imported most from FSMA: the US: Roche d.o.o. Belgrade; RTB Bor Group – RTB Bor d.o.o. Bor; NIS AD Novi Sad; www.fda.gov/Food/FoodSafety/FSMA/ ADOC d.o.o. Belgrade; Cooper Tire & Rubber Company Serbia d.o.o.; and others. ucm247546.htm

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Leading SITC import sectors from the US

Leading SITC export sectors to the US

Chemical materials and products, not specified elsewhere Scientific and control instruments Road vehicles

Road vehicles Miscellaneous finished products, not specified elsewhere

16% 74%

57%

Machines and devices

2% 2%2% 4%

Miscellaneous food products

7% 7%

Non-ferrous metals

11%

10%

Other

Metal products, not specified elsewhere Medical and pharmaceutical products Other

ing. In 2012, the ratio recorded a slight growth of 3.68%, SIGNED AGREEMENTS There are only a handful of intergovernmental econom- while in 2013 to July the ratio grew rapidly to 110.12%. In the last few years, there have been a number of changes ic and trade agreements in force currently, which is unsurprising given the US’s use of sanctions against the Federal in terms of imported and exported products due to structural changes in the Serbian economy, a substantial number of priRepublic of Yugoslavia until 2000. The two countries have signed the following agreements: vatisations carried out by US companies and Serbia changing • The Agreement between the Government of the United its development strategy to accommodate available resources States of America and the Government of Serbia and and the development of its economy. After 2008, the strucMontenegro Concerning Economic, Technical and Relat- ture of trade between Serbia and the US hasn’t changed much ed Assistance, which was signed and ratified on 6 March and there have been no noticeable fluctuations. Only trading 2001. The agreement stipulates ways in which the US in food, chemical products, machines and transport devices, will render economic, technical and related support to non-ferrous metals, natural rubber and several other product categories has oscillated. Serbia and Montenegro. The export of Fiat vehicles was the • The Investment Incentive AgreeThe export of Fiat biggest positive influence on the strucment between the Government of vehicles was the biggest ture of Serbian exports to the US in the United States of America and the positive influence on 2013. Last year Serbia mostly exportGovernment of the Federal Repubthe structure of Serbian ed machinery and transport (road) lic of Yugoslavia, which came into force on 12 December 2011. This exports to the US in 2013 vehicles (55.44%), miscellaneous finished products (31.59%), fruits and agreement protects US investments vegetables (6.6%), non-ferrous metals and natural rubber in Serbia and Montenegro. As of July 2013, the US ranks 17th on the list of 149 products (4.73%). In terms of imports, Serbia mostly importcountries that Serbia exports to, with 2.01% of Serbian ex- ed the following products from the US: machinery and transports ending up in the US. On the other hand, the US ranks port equipment (34.58%), chemical products (26.23%), mis18th on the list of 189 countries that Serbia imports from, cellaneous finished products (18.73%) and metal products, with US exports accounting for 1.61% of total Serbian im- rubber and other products (7.47%). Relative to 2012, the ports. The trade deficit stands at just US$26,041, which is import structure hasn’t changed to a great degree. The graph directly above shows the leading SITC secalmost negligible. (Source: Serbian Chamber of Commerce) Graph 2 shows the export-to-import ratio in trading with tors of Serbian imports from the US. Serbia mostly imported the US. This ratio declined noticeably from 2006 to 2008. chemical products, scientific and control instruments, road From 2009 to 2010, the export-to-import ratio grew con- vehicles, medical and pharmaceutical products and other siderably due to the global economic crisis and reduced trad- miscellaneous products from the US. ■ Export to import ratio, in %

120

Trade exchange between Serbia and the US, in million USD 600

100

110.12

400 200

-200

40 20

21.94

16.79 25.93

0 2005

2006

2008

-600

25.56

13.53 2007

-400

27.36 17.56

2009

2010

2011

2012

2013-VII

2005 2006 2007 2008 2009 2010 2011 2012 2013-VII

Export in USD

Import in USD

Balance in USD

ENGAGE FOR CHANGE IN 2014 | 45

INVESTMENTS

US Companies in Serbia

Although the official report for January-May 2013 from the National Bank of Serbia (NBS) cites the US as the 13th biggest investor in Serbia, the real value of American investments is actually much bigger

Agreement on US Assistance for Development of Civil Society

his can be explained by the fact that some US companies invest via their foreign offices, mainly based in the Netherlands and other European countries. According to the NBS, during the said period, the US investment in Serbia was €6.613 million net. The biggest American investors in Serbia are Philip Morris, U.S. Steel, Coca-Cola, PepsiCo, Ball Corporation and Microsoft. There are several successful international companies from the US operating in Serbia, with the following two having realised the biggest projects: Ball Corporation, the second biggest can producer in the world, has built a state-of-the-art production facility in Zemun that employs more than 100 Serbian experts. The company’s products are exported to numerous countries both in the region and across Europe. Microsoft, mean-

The biggest American investors in Serbia are Philip Morris, U.S. Steel, Coca-Cola, PepsiCo, Ball Corporation and Microsoft while, opened its development centre in Belgrade in 2007. Although not a financially substantial investment, this had a great symbolic meaning for Serbia given Serbia was only the fourth country in the world to have one of these development centres at the time. Even during the economic downturn in 2009, US investors in Serbia continued to invest, even if to a somewhat lesser degree. One of the most important investments during this period was carried out by U.S. Steel, which invested in environmental protection, specifically by acquiring new environmental protection equipment in Smederevo. Over the last two years the company has spent €60 million on the project. In 2011, Ball Corporation invested €35 million to expand its production facility, hiring 40 new workers. Although call-centre companies National Cash Register (NCR) and Sitel are not considered major investors in Serbia, they each plan to implement projects in the country, creating 200 and 500 new jobs respectively. ■

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H.E. MR. MICHAEL KIRBY, US Ambassador to Serbia, SUSAN FRITZ, Mission Director of USAID Serbia, and IVANA ĆIRKOVIĆ, Director of the Office for Cooperation with Civil Society Photo: Tanjug/D. Peternek

On 14 February, Director of Serbia’s Office for Cooperation with Civil Society Ivana Ćirković and USAID Serbia Mission Director Susan Kosinski Fritz signed an agreement for the implementation of a project to aid the development of civil society

S Ambassador to Serbia H.E. Michael Kirby attended the signing ceremony at the Serbian government building, noting that the US government will be donating more than US$200,000 to the Serbian government through this project. Funds will be used for training programmes and strengthening the Office for Cooperation with Civil Society’s capacity. Kirby said the project is part of a new strategy whereby the Serbian government will receive direct assistance via USAID, confirming confidence in Serbia’s capacity to spend the funds in the most productive way possible. The agreement constitutes an illustration of the increasingly strong partnership between Serbia and the US, he added. Ćirković said the Office for Cooperation with Civil Society is working to strengthen the dialogue between institutions and civil society, adding that the process of reinforcement of cooperation between the civil sector and the government was backed by the EU through its accession funds. The project was approved in keeping with the agreement on assistance between the Serbian government and the US, with a view to improving how public administration functions. The project will support the Office for Cooperation with Civil Society for a duration of 18 months. ■

INVESTMENTS

Serbia Good for Foreign Investment During his mid-February visit to US company NCR Corporation, Serbian First Deputy Prime Minister Aleksandar Vučić said the company will employ 2,000 people by the end of 2014, adding that Serbia is becoming a good place for foreign investment

ALEKSANDAR VUČIĆ, First Deputy Prime Minister of Serbia, and PETER DORSMAN, Executive Vice President of NCR Photo: Tanjug

učić thanked US Ambassador H.E. Michael Kirby and representatives from NCR, which currently employs 900 people in Serbia, for opening the NRC regional centre in Belgrade. He also pointed out that the Serbian government is ready to assist all foreign companies operating in Serbia through employment and tax incentives. Vučić stated his assertion that Serbia will be a good place for investors, adding that the government will respond quickly to ensure improved conditions for youth employment. According to Vučić, the educational system should be changed and market-oriented, and he also noted that Serbia has many young people who are experts in information technology and logistics. ■

INTERVIEW ZVEZDANA IVANOV, Country Manager for Medtronic B.V. Serbia

A Life Improved Every Three Seconds Medtronic, global leader in medical technology has been helping people in Serbia and the region to treat chronic diseases for four decades. With continued focus on R&D and constant innovation, the company’s products go a long way to keeping patients healthier and pain-free

edtronic has been operating in therapies that are less invasive or can conthe region for a long time yet tinually monitor key physiological changes little is known about the scope within patients for better long-term disease of its advancements in technology for management. Our first life-changing therapy – a treating chronic disease. In short, what kind of benefits does Medtronic provide wearable, battery-powered cardiac pacemaker – was the foundation for dozens its clients? - For more than 65 years Medtronic has more Medtronic therapies that use electribeen changing the face of chronic disease cal stimulation expertise to improve the treatment. Each year more than 8 million lives of millions of people. Over the years people benefit from our medical therapies, we have adapted additional technologies for the human body, inwhich treat cardiac radio frequency and vascular diseases, Here at Medtronic it is cluding therapies, mechanical diabetes, neurological our foremost priority devices, drug and bioand musculoskeletal conditions. Medtronic to contribute to human logic delivery devices, employees across the welfare and our success and diagnostic tools. Today, our technologies Adriatic region (based would not be possible are used to treat more in Croatia, Serbia and without our 46,000 than 50 chronic diseasSlovenia) offer our breakthrough therapies dedicated employees in es affecting many areas and provide education 140 countries worldwide of the body. and training to local ■ Why has Medtronic healthcare specialists, enabling them to alleviate pain, restore enjoyed worldwide success for so long? health and extend the lives of many pa- - Medtronic offers more than 150,000 different products for the treatment of more tients in need. than 50 different chronic diseases. Our ■ Could you elaborate on these life- 46,000 dedicated employees in 140 countries worldwide contribute to human welchanging therapies? - Millions of people around the world fare and our success. We have 44 manufacbenefit from our breakthrough therapies. turing facilities and 26 R&D centres around This translates into another life improved the world, and approximately 10% of our by a Medtronic product or therapy every revenue is invested back into R&D. three seconds. Through innovation, Medtronic is com- ■ Which diseases have you come across bining its devices with advanced informa- most often in the region, particularly tion technologies and new developments in in Serbia? biologics. The results are new breakthrough - Cardiovascular diseases. ■ ENGAGE FOR CHANGE IN 2014 | 47

AMCHAM IN 2013

Driving Change! Promoting Members’ Strengths: More Than 90 Events and 5,000 Participants

ver the course of 2013, AmCham organised more than 90 events, which were attended by more than 5,000 participants. To engage members, there was a balance of traditional and innovative events. SMART breakfasts, wherein public figures revealed their life stories, grew into a forum for inspiring change. AmCham’s educational programme, including the AmCham Academy, Soft Skills for Tough Leaders series and various student programmes, looked to improve the skills of young managers and students ready for the real business world. Advocacy-oriented conference ‘The Second Lap Time: Engage for Change’ advanced AmCham’s position as Serbia’s leading business association, while business seminars and topical briefing sessions produced opportunities to share experiences and expand personal networks. Global trends in corporate reputation, IT trends, job grading, the impact of social networks and organisational culture were just a few of the topics covered. Finally, specialised B2B forums provided the opportunity to explore new business possibilities and exchange views with peers and colleagues. All of which helped AmCham to lift networking and sharing standards to a new level. EY POLICY REFORMS: K SHARPENING THE ADVOCACY EDGE On the advocacy front, in 2013 AmCham promoted its policy reform priorities: budget stabilisation, labour regulatory reform,

a crackdown on the grey economy, reducing excess administration in the construction industry, and the finalisation of economic restructuring are recognised as painful but necessary steps towards recovery. AmCham’s persistent and constructive support for the law-drafting process saw labour, parafiscal and construction regulation reforms pushed forward for adoption in 2014. In addition, out of the 35 regulations that AmCham Committees follow, 14 were amended. Implementation, however, has been a problem, especially in intellectual property protection, tax regulation enforcement, coordination of various inspections and a new public procurement regime – particularly in the health sector. AMCHAM SURVEY: AN IMPORTANT EFFORT FOR THE CREATION OF NEW JOBS Over the period of October to December 2013, AmCham conducted a survey of its members with the purpose of identifying the prerequisites for the creation of new jobs in their core businesses and revealing the obstacles they encounter in the Serbian market. Respondents identified the following priority measures necessary for the creation of new jobs: – Reform of labour legislation – Implementation of measures to improve the liquidity of the economy and ensure the stabilisation of the macroeconomic environment – Provision of a predictable and effective taxation system – Reduction of the grey economy and corruption – Provision of an ample pool of skilled labour able to cope with the needs of the

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modern market. Respondents also indicated that failure to make progress on the identified reforms in the coming period will significantly reduce their prospects for increasing employment during any later period. The survey results were presented to the public and government representatives at AmCham roundtable ‘The Second Lap Time: Engage for Change’. The highest-priority reforms revealed by the survey’s findings will be valuable for setting AmCham’s advocacy priorities for 2014. I NVESTMENT PROMOTION: WE BELIEVE IN SERBIA Besides improving the business climate at home, we focus on spreading the good word about Serbia around the world. To that effect, in May 2013, as part of the Serbian-US ICT mission, AmCham organised a conference in San Francisco called ‘I(T) Believe(s) in Serbia’. Its aim was to promote Serbia as an attractive investment destination for companies operating in Silicon Valley, the heart of the global IT industry. More than 80 US companies were offered first-hand information about Serbia’s highly competitive wage structure and why the country is rapidly becoming a regional hub for ICT services and software development companies. EMBERSHIP GROWTH AND M AN INCREASE IN VISIBILITY In other positive news, AmCham has maintained a stable membership base, ending the year with 187 members, repre-

senting a 7.5% annual growth rate. In addition, the constant development of AmCham’s communications channels has progressed to more than 600 quality public media returns annually and the extensive communication of AmCham’s message via social media and online in general. LOOK TO THE FUTURE: ENGAGE FOR CHANGE IN 2014

As well as our regular activities, AmCham will continue to introduce innovations throughout 2014. The most significant projects include ‘Young Leaders in Change – AmChamps’, AmCham’s annual ‘Leader in Change’ award and a regional investment conference. AmChamps is a brand-new educational programme for young managers and students with the goal of boosting their leadership potential and encouraging their further professional development. It will also provide students with an opportunity to gain practical knowledge and acquire the modern working skills necessary for today’s business environment. The AmCham ‘Leader in Change’ award will be presented annually as part of an effort to recognise the values the American Chamber of Commerce stands for and wishes to encourage and promote in its capacity as a role model for business in Serbia. Eligible candidates for the award will be individuals and businesses that have demonstrated extraordinary leadership and determination to convert their vision to reality. Finally we plan to join forces with other American Chambers of Commerce in the region to organise a regional investment conference in Serbia in the second half of this year. ■

Facts & Figures:

ENGAGEMENT & NETWORKING & SHARING EXPERIENCE – 90 AMCHAM EVENTS WITH MORE THAN 5,000 PARTICIPANTS!

Key Policy Reforms: Regulatory or Implementation Changes

Thumbs Up • Ministry of Finance opinions deemed mandatory for the Tax Administration • The land development fee integrated into the Property Tax Law finally abolished • Reform of the inspections system initiated – published the concept of the umbrella law on inspections with key measures for improving efficiency, transparency and client-oriented service • Intellectual property (IP) rights protection improved through implementation of the new public procurement regime – a model statement requiring a declaration of possession of IP rights made obligatory in all procurement processes • Transfer Pricing Rulebook published, decreasing arbitrariness of the conduct of the tax authorities • Improvements to the Competition Law adopted Thumbs Down • The following were initiated without completion: – amendments to the Labour Law – amendments to the Law on Planning and Construction – parafiscal reform · new Law on Compensation not adopted · significant problems with the implementation of local-charges reform – signage fees increased in some cases over 4,000% • No follow-through on initiative for open discussion on improving Tax Administration performance • Implementation of Public Procurement Law not adequately prepared • Central procurement procedures for health institutions adopted without public debate

Membership

Membership Growth • 39 new members • 187 total membership • 7.5% growth rate over 2013

Values & Responsibility INSPIRATION!

SMART Breakfast • 14 inspiring speakers • 500 attendees • 2,500 views @ YouTube EDUCATION! Programmes for Young and Mid-management – A Forum for Inspiring Change AmCham Academy • 2 generations completed • 114 participants – prospective leaders • 17 lectures delivered by top managers • 3 workshops conducted by HR managers New: Soft Skills for Tough Leaders • 8 workshops • 30 AmCham member representatives Student Programmes – Engaging the Leaders of Tomorrow! ‘Qualify to be Qualified’ – Preparing Students for Future Success • 2 programme cycles • 15 workshops on… • 11 topics attended by… • 62 students from more than… • 20 faculties of the University of Belgrade Meet the Business First-hand – Visiting Successful Companies: •3 visits: JTI, GroundLink, Schneider Electric •2 0 company top-management involved in lecturing • 100 final-year students attended

Communications

Thinking Big & Voicing our Vision •M edia exposure: 643 media reports, 20% growth compared with 2012 •A mCham.rs: 115,000 page views, 27,000 visits, 500 uploads •A mCham @ Twitter – 600 tweets, 550 followers •A mCham @ LinkedIn – 330 group members, 60 discussions commenced •A mCham @ YouTube – 15 uploads, 21,000 views •P erspective magazine: 2 issues, more than 30 contributors

ENGAGE FOR CHANGE IN 2014 | 49

AMCHAM EVENTS IN 2013 30.01.2013

26.02.2013

Seminar with Cameron Munter on Good Governance and Serbia’s International Image Former US Ambassador to Serbia Cameron Munter shared his views on good governance and Serbia’s international Image with representatives of AmCham member companies. Professor Munter provided insights on how businesses can contribute to a better business climate through internal reforms and overall best practices.

SMART Breakfast with Represent System & Ivan Tasovac At this first SMART breakfast of the year, AmCham members had the chance to hear the latest from the digital world and social networking from Represent System CEO Borislav Miljanović and special guest Ivan Tasovac, at the time Director of the Belgrade Philharmonic Orchestra. The speakers discussed the value of personal brands, how to manage your online identity and create a symphony of good reputation using a multitude of digital tones.

05.03.2013

Public Discussion on the Draft Law on Compensation 12.02.2013

General Assembly Meeting Member companies elected seven new officers to the board of governors at the AmCham 12th General Assembly. Jugoslav Pirić of Microsoft was elected First Vice President of AmCham, while Vladan Živanović of Saga was elected Second Vice President. Stephen Fish (Ernst & Young), Ivan Vujačić (Eurobank), Miša Lukić (Leo Burnett), David Banjai (Ball Packaging) and Željko Tomić (OSA Računarski Inženjering) were also elected to the board.

At a public discussion organised with the Foreign Investors Council (FIC), AmCham welcomed the draft Law on Compensation, noting that the opportunity to review the levels of all charges and their clear setting in the law should not be missed. Stakeholders agreed on key improvements to the draft law but also suggested potential aspects in need of development.

18.03.2013

AmCham & B92 Fund: IT Leaders in Battle for Maternity Wards AmCham Serbia and the B92 Fund, with the initiative of Microsoft and the support of IT companies and the Ministry of Health, organised a charity dinner at which contracts were signed for the donation of €65,000 to the Battle for Maternity Wards campaign, which is aimed at providing funds for badly needed hospital equipment. With the help of donations from IT leaders, the means were gathered to support the purchase of 35 CTG machines for 15 Serbian maternity hospitals.

21.02.2013

Exclusive VIP Screening of ‘Lincoln’ AmCham Serbia, weekly Vreme and MegaCom Film organised an exclusive VIP screening of Steven Spielberg film ‘Lincoln’ for members of the Serbian National Assembly, AmCham members and US Embassy representatives.

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20.03.2013-30.05.2013

and 02.10.2013-17.12.2013

Second and Third Cycle of AmCham Academy

22.04.2013

Public Procurement Legal Framework Briefing AmCham hosted a briefing session on the new Public Procurement Law with representatives from the state authorities in charge of its implementation. The event proved to be an excellent opportunity to discuss key changes to the law and ask questions regarding its implementation.

The second and third generation of AmCham Academy participants completed the 2013 programme for developing business skills. Around 100 young perspective managers participated in lectures delivered by Serbia’s most reputable business leaders. During the award ceremonies, AmCham Executive Director Maja Piščević congratulated all participants and expressed special gratitude to the lecturers for their continued cooperation and excellent contribution to promoting strong values and best business practice.

13.05.2013

‘I(T) Believe(s) in Serbia’ Investment Promotion

21.03.2013

‘Not at the Expense of Others’ IPR Campaign The ‘Not at the Expense of Others’ campaign was launched by AmCham Serbia and the US Embassy with the aim of raising awareness among youth of the importance of respecting intellectual property rights and the negative impact of piracy on Serbia’s economy. The campaign was capped off by a ceremony to announce the winner of a contest to shoot the best amateur film on IPR protection, during which the winning film received its premiere.

As part of the Serbian-US ICT mission, AmCham Serbia organised a conference entitled ‘I(T) Believe(s) in Serbia’, which aimed to promote Serbia as an attractive investment destination for companies operating in Silicon Valley, the heart of the global IT industry. The conference took place in San Francisco and was held in front of more than 80 US companies.

16.04.2013

Key Challenges in Personal Data Protection The Chamber welcomed Commissioner for Information of Public Importance and Personal Data Protection Rodoljub Šabić and his deputy Aleksandar Resanović to a briefing session that served as an open discussion on the personal data protection regulatory framework. AmCham member companies had the opportunity to exchange views on common challenges in this area, emphasising that the framework should be amended and further liberalised.

15.05.2013

Business Speed Dating with AmCham Law Offices In one of the newest AmCham B2B formats, Business Speed Dating, 11 AmCham member law offices made a series of five-minute presentations on their services and deals to other AmCham members. The objective was to secure followup business meetings with potential clients.

ENGAGE FOR CHANGE IN 2014 | 51

AMCHAM EVENTS IN 2013 27.05.2013-31.05.2013

and 16.12.2013-20.12.2013

Qualify to be Qualified Programme for Students

plans to reform the inspections regulatory framework, get expert recommendations for the improvement of inspections efficiency and coordination, and discuss some of the most common challenges facing current practices. The latter included overlapping jurisdictions, focus on repression instead of prevention, lack of adequate education, corruption and lack of transparency.

08.07.2013

‘Serbia Turns to Economy – Responsibly Together out of the Crisis’ Conference The Qualify to be Qualified programme was held twice this year as a cooperation between AmCham and the University of Belgrade’s Centre for Career Development. The aim was to enable young students and graduates to explore their career potential and develop professionally through a series of workshops and lectures by AmCham HR committee members. Around 60 carefully selected students had the opportunity to learn about some of the most important soft skills, such as team building, time management and writing skills.

30.05.2013

Business Luncheon with Jorgovanka Tabaković National Bank of Serbia Governor Jorgovanka Tabaković met with representatives from the largest foreign and local companies in Serbia. Tabaković discussed inflation projections, expectations regarding monetary policy in the forthcoming period and the stability of the financial sector.

At this conference jointly organised by AmCham, the FIC, the Privrednik club and the EU delegation, representatives from the business sector, government, EU delegation, IMF and World Bank discussed specific steps necessary to overcoming the economic crisis and improving Serbia’s business climate. The representatives pointed to economic priorities that should be high on the government’s agenda, such as labour-legislation reform, an effective taxation system, reducing corruption and the stabilisation of the macroeconomic environment.

06.09.2013

Business Luncheon with Aleksandar Vučić

20.06.2013

Roundtable on Regulatory Reform in the Field of Inspections AmCham members had the opportunity to hear the government’s

Serbian First Deputy Prime Minister Aleksandar Vučić discussed the economic challenges facing the Serbian economy and the goals of the government at a business luncheon held with representatives of AmCham member companies. Vučić highlighted the necessity of structural reforms in order to improve the the country’s business climate.

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12.09.2013-07.11.2013

First Generation of Managers Complete Soft Skills for Tough Leaders Programme

30.09.2013

SMART Breakfast with Vlade Divac Mid-level managers received certificates after completing the eightweek Soft Skills for Tough Leaders programme, which consisted of soft-skills workshops delivered by HR committee members. The certificates were awarded by AmCham Executive Director Maja Piščević, who congratulated all participants on their commitment.

17.09.2013

Belief in success, persistence in achieving goals and respect for others are just some of the values that renowned basketball player Vlade Divac discussed while talking about his life at a SMART Breakfast organised by AmCham Serbia. “Dreams are what propel you forward, while determination and hard work lead you onto the right path,” said Divac, adding that the ability to adapt, continually progress and have faith in yourself are among the main conditions for success.

Cooking with AmCham – Guess the Secret Ingredient AmCham Serbia organised a cooking spectacle on a lovely afternoon, opening a season of networking events and attracting more than 120 guests from the membership. AmCham members enjoyed food prepared and served by AmCham board members, with US Embassy officials acting as chefs’ assistants. Guests also enjoyed a game of ‘Guess the Secret Ingredient’, tasting a variety of recipes and attempting to guess the mystery ingredient in each.

24.10.2013

SMART Breakfast with Vanja Grbić Members of AmCham heard an inspiring story of the values related to leadership, as well as role of leaders and individuals in the team, from our famous volleyball player Vladimir Vanja Grbić. “Commitment, patience, belief in yourself and your team are the most important values“, said Grbić at the AmCham SMART Breakfast, but added that without failure one cannot reach its highest achievement potential.

25.09.2013

American Standards in Rulemaking The Embassy of the US in Belgrade and AmCham organised a joint seminar on the importance of a transparent and comprehensive consultation process during the adoption of regulations. The seminar attracted both Serbian stakeholders and representatives of United States Department of Commerce, who shared relevant US best practices.

ENGAGE FOR CHANGE IN 2014 | 53

AMCHAM EVENTS IN 2013 25.10.2013

02.11.2013

Intellectual Property Protection Roundtable

SAMCham Tennis Tournament

AmCham organised a roundtable on the subject of intellectual property rights in the software industry, attracting stakeholders from the Tax Administration, Market Inspection, the Ministry of the Interior, Customs Administration and Judiciary. Special guests were representatives of the music and film industries, who addressed the piracy issue from their perspective.

AmCham organised a tennis tournament with the Serbian Association of Managers (SAM) at the Gemax Tennis Club in Belgrade. Members of both organisations made the most of a sunny autumn day by playing on both indoor and outdoor courts. A total of 14 singles matches were played, resulting in an AmCham victory of 10-4, after which an award ceremony was held.

28.10.2013

AmCham Extraordinary General Assembly An Extraordinary General Assembly was held to vote on amendments to AmCham statute, as proposed by the board of governors. Amendments were adopted by a large majority and will result in a more competitive and even stronger AmCham for the benefit of all member companies and the Serbian business environment.

04.11.2013

Business Today Seminar on the Global Reporting Initiative (GRI) At the Business Today seminar on the Global Reporting Initiative, participants shared their knowledge of sustainable business and corporate social responsibility through GRI methodology. Representatives of companies implementing GRI reporting shared their practical experiences and provided insights into the main challenges their companies faced during the process of report certification.

31.10.2013

AmCham Children’s Halloween Party On the final night of October, the AmCham premises were filled with children who came trick-or-treating while dressed in colourful costumes. There were Halloween games for them to play, as well as a costume contest. Parents also enjoyed the holiday atmosphere, mingling as their kids unleashed their creativity and had fun.

20.11.2013

SMART Breakfast with Mirjana Karanović

Courage, self-confidence and a battle against personal fears are just a few of the topics that Serbian actress Mirjana Karanović

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touched upon during her SMART Breakfast with AmCham members. She emphasised that courage comes with practice and recognised how essential it is to rationalise actions and draw conclusions from them.

Time – Engage for Change’. Government and AmCham member representatives discussed reform priorities for improving the business environment and regulatory and structural changes whose implementation would help to increase employment in Serbia.

03.12.2013

Public Discussion on Construction Permits & Conversion AmCham welcomed government efforts to simplify construction permit issuance procedures at a public discussion on the new draft Law on Planning and Construction, which was organised in cooperation with USAID. Participants agreed that conversion still remains a problem, however, and warned that without strong control from law enforcement, it will not be possible for the procedures to function properly.

18.12.2013

Christmas Cocktail Party

10.12.2013

Meet the Business First Hand, Hosted by JTI Together with the Centre for Career Development and Student Counselling, AmCham organised a student field trip to the Japan Tobacco International plant in Senta. This was a great opportunity for final-year students to see how a leading international company operates, and to discover to what extent their theoretical knowledge aligns with real-world business practice, preparing them for their future career challenges.

Members and partners enjoyed the elegant ambiance of the White Palace at a Christmas cocktail party jointly hosted by AmCham and Philip Morris Serbia. This end-of-year gala was also an opportunity to celebrate Philip Morris’ 10th anniversary of doing business in Serbia.

27.12.2013

SMART Evening with Kori Udovički & Rade Šerbedžija Through memories and a bit of nostalgia, the SMART Evening with Kori Udovički and Rade Šerbedžija reminded those present of forgotten human values. Starting his story with memories of Yugoslavia’s disintegration, as well as better times, Šerbedžija told the audience that he is an incorrigible optimist who still believes in this country’s people and their incredible strength. Udovički agreed that as a society Serbia needs a very small push to develop, and predicted better times ahead.

17.12.2013

‘The Second Lap Time – Engage For Change’ Roundtable More than 50% of AmCham member companies are expecting additional investment and new job openings in their respective industries over the next two years. This optimistic forecast comes from a survey conducted by AmCham, the results of which were presented at AmCham-organised roundtable, ‘The Second Lap

ENGAGE FOR CHANGE IN 2014 | 55

COMPANY REGISTER ABBOTT LABORATORIES S.A. Miloš Davidović (+381 11) 314 95 21 (+381 11) 314 95 51 Bulevar Mihajla Pupina 115D Belgrade www.abbott.com ABBVIE BIOPHARMACEUTICALS GMBH Jelena Španović (+381 11) 314 95 21 (+381 11)269 08 49 Bulevar Mihajla Pupina 115D, Belgrade www.abbvie.com AGRI BUSINESS PARTNER Ronan Conroy (+381 25) 451 800 Vojvode Radomira Putnika 1 Sombor www.abp.rs AIGO BUSINESS SYSTEMS Dragan Popović (+381 11) 209 08 00 (+381 11) 209 08 08 Sinđelićeva 9 Belgrade www.aigo-Bs.com AIRPORT CITY Adir El Al (+381 11) 209 05 25 Omladinskih Brigada 88 Belgrade www.airportcitybelgrade.com “ALEKSANDAR MILOVANOVIĆ OF AVIONICS & TELECOMMUNICATION SERVICES” Aleksandar Milovanović (+381 11) 630 16 55 Takovska 36-38 Belgrade www.ats-Serbia.com ALGOTECH Aleksandar Bakoč (+381 11) 353 76 00 (+381 61) 820 00 05 Požeška 60 Belgrade www.algotech.rs ALLIANCE ONE TOBACCO Jelica Leontijević (+381 11) 245 87 53 (+381 11) 245 87 53 Cara Nikolaja Ii 59 Belgrade www.aointl.com ANA I VLADE DIVAC FOUNDATION Ana Koeshall (+381 11) 334 17 55 (+381 11) 334 17 55 Ilije Garašanina 53A Belgrade www.fondacijadivac.org APATINSKA PIVARA APATIN Dragan Radivojević (+381 11) 307 24 00 (+381 11) 307 24 44 Milutina Milankovića 11A/I Belgrade www.jelenpivo.com ARROW ECS DOO SRBIJA Ljubica Hadžistević (+381 11) 655 75 80 (+381 11) 655 75 83

Tošin Bunar 272 Belgrade www.arrowecs.rs ATLAS CENTER LTD BEOGRAD Pedja Petronijević (+381 11) 313 07 51 (+381 11) 313 07 52 Bulevar Zorana Đinđića 64A Belgrade www.gtcserbia.com AVON COSMETICS Ielyzaveta Korobchenko (+381 11) 222 00 00 (+381 11) 222 00 01 Bulevar Mihajla Pupina 165G Belgrade www.avon.rs BALKAN TRUST FOR DEMOCRACY Gordana Delić (+381 11) 303 64 54 (+381 11) 303 64 55 Cara Lazara 16 Belgrade www.gmfus.org BALKANS REAL ESTATE Thomas H. Villadsen (+381 11) 220 02 17 (+381 11) 220 02 20 Pc Ušće, Bulevar Mihajla Pupina 6/23, Belgrade www.mpcproperties.rs BALL PACKAGING EUROPE David Banjai (+381 11) 377 06 02 (+381 11) 377 08 02 Batajnički Drum 21A Zemun www.ball-Europe.com BANCA INTESA Draginja Đurić (+381 11) 310 88 88 Milentija Popovića 7B Belgrade www.bancaintesa.rs BBDO OVATION ADVERTISING Dragoslav Ilić (+381 11) 414 61 60 (+381 11) 414 61 64 Velisava Vulovića 16 Belgrade www.ovation.rs BDK ADVOKATI/ATTORNEYS AT LAW Vladimir Dašić (+381 11) 328 42 12 (+381 11) 328 42 13 Dobračina 38 Belgrade www.bdklegal.com BDO D.O.O. Ksenija Ristić Kostić (+381 11) 328 13 99 (+381 11) 328 18 08 Knez Mihailova 10 Belgrade www.bdo.co.rs BEL MEDIC Jasmina Knežević (+381 11) 309 10 00 (+381 11) 309 10 11 Koste Jovanovića 87 Belgrade www.belmedic.com BEOGRADSKA FILHARMONIJA (+381 11) 328 29 77

Studentski Trg 11 Belgrade www.bgf.co.rs BERLIN CHEMIE Marinko Veković (+381 11) 655 60 90 (+381 11) 267 24 76 Milutina Milankovića 19A Belgrade www.berlin-Chemie.rs BEST SEED PRODUCER LTD Vladimir Vrbaški (+381 21) 735 577 (+381 21) 735 577 Maršala Tita 15/I Feketić www.bsp.co.rs BRANKO ŽUŽIĆ OF BLACK BOX ADVERTISING Branko Žužić (+381 11) 328 76 78 Cara Uroša 12 Belgrade www.blackbox.rs BREAKTHROUGH William S. Infante (+381 11) 369 34 86 Vase Pelagića 60 Belgrade www.brekthroughpr.mn BRITISH AMERICAN TOBACCO (BAT) Thanos Trimis (+381 11) 310 87 00 (+381 11) 310 87 26 Bulevar Mihajla Pupina 165G, Belgrade www.bat.com CARLSBERG Gabor Bekefi (+381 11) 330 39 33 Bulevar Zorana Đinđića 64A, Belgrade www.carlsberg.rs CBS INTERNATIONAL DOO Dragan Radulović (+381 11) 225 87 77 (+381 11) 228 19 69 Omladinskih Brigada 88B Belgrade www.cbre.rs CENTRO ŠTAMPA HOLDING Dejan Stančević (+381 11) 715 95 05 (+381 11) 715 96 28 Milutina Milankovića 19 Belgrade www.stampa.rs CISCO SR D.O.O. BEOGRAD Goran Obradović (+381 11) 209 20 00 (+381 11) 209 20 01 Omladinskih Brigada 88 Belgrade www.cisco.com CITIBANK N.A. REPRESENTATIVE OFFICE Predrag Radlovački (+381 11) 312 27 10 (+381 11) 31 22 640 Bulevar Zorana Đinđića 64 A, Belgrade www.citibank.com CLEAN EARTH CAPITAL Philip Bay (+381 18) 520 789 (+381 18) 520 789

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• Tel: 011 3091000; 069/309-1000 • Fax: 011 309-1011 • Adresa: Koste Jovanovića 87, 11000 Beograd • Email: belmedic@belmedic.com www.belmedic.com Milojka Lešjanina 8 Niš www.cleanearthcapital.co.uk COCA COLA COMPANY Nataša Đurđević (+381 11) 308 11 56 Batajnički Drum 14-16 Belgrade www.coca-Cola.com COCA COLA HELLENIC Ramon Weidinger (+381 11) 307 31 00 (+381 11) 307 31 99 Batajnički Drum 14-16 Zemun www.coca-Colahellenic.rs COLLIERS INTERNATIONAL Ana Vuković (+381 11) 313 99 55 (+381 11) 313 99 58 Bulevar Mihajla Pupina 115D Belgrade www.colliers.rs COMMUNIS Ivan Stanković (+381 11) 363 67 00 (+381 11) 363 67 78 Bulevar Oslobođenja 61 Belgrade www.communis.rs COMTRADE Veselin Jevrosimović (+381 11) 201 56 00 (+381 11) 201 56 26 Savski Nasip 7, Belgrade www.comtrade.com CONTINENTAL WIND Ana Brnabić (+381 11) 785 00 20 Resavska 23/4B Belgrade www.continentalwind.com CROWNE PLAZA Živorad Vasić (+381 11) 220 40 04 (+381 11) 220 41 04 Vladimira Popovića 10 Beograd www.crowneplaza.com DANAS CONFERENCE CENTER Željko Pantić Milentija Popovića 5, Belgrade www.danas.rs DEJAN VUKOVIĆ OF VUKOVIĆ & PARTNERS Dejan Vuković (+381 11) 3691 670 (+381 11) 2653 621 Bulevar Vojvode Putnika 24

Belgrade www.vp.rs DEKEL DOO Dejan Zarić (+381 11) 339 01 63 (+381 11) 339 00 07 Bulevar Despota Stefana 79, Belgrade www.dekel.com DELHAIZE SERBIA D.O.O John Kyritsis (+381 11) 715 34 00 (+381 11) 715 39 09 Jurija Gagarina 14 Belgrade www.maxi.rs DELOITTE Miloš Macura (+381 11) 381 21 00 Terazije 8, Belgrade www.deloitte.com DELTA HOLDING Jasminka Kiselčić (+381 11) 201 11 00 (+381 11) 201 11 11 Milentija Popovića 7V Belgrade www.deltaholding.rs DERTOUR Vili Mitova (+381 11) 222 06 16 (+381 11) 313 20 81 Francuska 17/I Beograd www.dertour.rs DHL INTERNATIONAL Darko Babić (+381 11) 310 55 00 (+381 11) 310 55 99 Jurija Gagarina 36V Belgrade www.dhl.rs DINERS CLUB INTERNATIONAL Obrad Sikimić (+381 11) 344 18 65 (+381 11) 344 18 65 Njegoševa 72 Belgrade www.diners.rs DIRECTGROUP George Zachariades (+381 11) 353 29 00 (+381 11) 353 29 08 Autoput Za Novi Sad 96 Zemun www.direct-Group.com DOKUKINO FOUNDATION Darko Soković (+381 11) 322 37 98 (+381 11) 323 36 01

Kosovska 43/6 Belgrade www.dokukino.org DUFRY D.O.O. Adrian Bradshaw (+381 11) 209 70 22 (+381 11) 228 64 44 Aerodrom Nikola Tesla Belgrade www.dufry.com ĐORĐE MILJKOVIĆ OF TECHNO-FARM D.O.O. Đorđe Miljković (+381 11) 304 89 41 (+381 11) 304 89 45 Bulevar Mihaila Pupina 125 Belgrade www.technofarm.co.rs ĐORĐE NIKOLIĆ OF NIKOLIĆ Kokanović Otašević Đorđe Nikolić (+381 11) 715 05 00 (+381 11) 715 05 01 Njegoševa 11, Belgrade www.nko-Law.com EATON ELECTRIC DOO Dragan Tadić (+381 22) 600-000 (+381 22) 600-099 Rumski Drum 13 S. Mitrovica www.eaton.rs EKI TRANSFERS-WESTERN UNION Mirjana Zečević (+381 11) 330 03 00 (+381 11) 322 80 70 Kosovska 1/V, Belgrade www.wu.co.rs EKO POSLOVI Jernej Blatnik (+381 11) 225 26 60 (+381 11) 312 27 58 Milutina Milankovića 7V Beograd www.ekoposlovi.rs EKONOMSKI INSTITUT A.D. Dragan Šagovnović (+381 11) 361 31 18 (+381 11) 361 30 37 Kralja Milana 16 Belgrade www.ecinst.org.rs ELI LILLY Miha Kline (+381 11) 655 00 01 (+381 11) 712 07 98 Vladimira Popovića 38 Belgrade www.lilly.com

EURO PAYMENTS IN BANKS TeleGroup d.o.o. Beograd Svetozara Miletica 9a, 11000 Belgrade, Serbia T: +38111 3081 981 • F: +38111 3081 991 office@telegroup.rs • www.telegroup.rs EMBASSY TECHZONES D.O.O. Ramgopal Narayanan (+381 11) 266 07 26 (+381 11) 266 13 96 Dedinjska 10, Belgrade www.embassytechzones.rs EOS MATRIX Jelena Jović (+381 11) 330 07 33 (+381 11) 330 07 77 Đorđa Stanojevića 14 Belgrade www.eos-Matrix.rs ERNST & YOUNG Stephen Fish (+381 11) 209 58 00 (+381 11) 209 58 90 Španskih Boraca 3 Belgrade www.ey.com/Rs ERSTE BANK Slavko Carić (+381 11 ) 201 50 00 (+381 21) 489 06 20 Milutina Milankovića 11B Belgrade Www.erstebank.rs EUROBANK Filippos Karamanolis (+381 11 ) 202 33 53 Vuka Karadžića 10 Belgrade www.eurobankefg.rs EUROELITE D.O.O. BEOGRAD Branivoje Lazović (+381 11) 353 62 00 Francuska 12, Belgrade www.euroelite.rs EXECUTIVE GROUP Darko Matijašević (+381 11) 328 44 88 (+381 11) 328 44 80 Knez Mihailova 9, Belgrade www.eg.rs FIRST DATA Olja Dakić (+381 11) 207 11 00 (+381 11) 207 11 15 Kopernikova 8 Belgrade www.firstdata.rs FRESENIUS MEDICAL CARE Rajko Hrvačević (+381 11) 395 10 00 (+381 11) 395 10 09 Jurija Gagarina 11-11A Belgrade www.fresenius.com G4S SECURE SOLUTIONS Uroš Gojković (+381 11) 209 79 00

Kumodraška 240, Belgrade www.g4s.rs GENERAL ELECTRIC Gaetano Massara (+381 11) 220 07 98 (+381 11) 220 07 99 Bulevar Mihaila Pupina 6/17 Belgrade www.ge.com GI GROUP HR SOLUTIONS Olga Svoboda (+381 11) 244 39 80 (+381 11) 244 39 80 Prote Mateje 52 Belgrade www.consulteam.rs GLAXOSMITHKLINE Milutin Delić (+381 11) 310 57 00 (+381 11) 310 57 99 Omladinskih Brigada 88 Belgrade www.gsk.com GORDANA JURAN ZDRAVKOVIĆ OF BIOTEC INTERNATIONAL Gordana Juran Zdravković (+381 11) 3341-350 (+381 11) 325 15 61 Resavska 2 Belgrade www.biotec.co.rs GRAND CASINO D.O.O. Christos Tsemperas (+381 11) 220 28 00 (+381 11) 220 28 10 Bulevar Nikole Tesle 3 Zemun www.grandcasinobeograd. com GROUNDLINK D.O.O. Jelena Pićurić (+381 11) 334 65 34 (+381 11) 334 65 34 Resavska 23 Belgrade www.groundlink.com HARRISONS Mark Harrison (+381 11) 312 98 25 (+381 11) 312 98 23 Bulevar Mihajla Pupina 6/24, Belgrade www.harrison-Solicitors.com HARVARD CLUB OF SERBIA Branka Anđelković Topličin Venac 3 Belgrade www.harvard-Serbia.org.rs HEMOFARM A.D.

Ronald Seeliger (+381 13) 803 100 (+381 13) 803 100 Beogradski Put Bb Vršac www.hemofarm.com HEWLETT PACKARD Miloš Đurković (+381 11) 205 58 00 (+381 11) 205 59 03 Omladinskih Brigada 90B/I Belgrade www.hp.co.rs HONEYWELL Julian Hedera (+381 11) 357 26 83 (+381 11) 630 29 43 Zrmanjska 27/13 I 14 Belgrade www.honeywell.com HRG SERBIA Predrag Španjević (+381 11) 202 80 88 (+381 11) 202 80 92 Topličin Venac 19-21 Belgrade www.hrgworldwide.com HYPO ALPE-ADRIA-BANK Zoran Vojnović (+381 11) 222 60 00 (+381 11) 222 67 99 Bulevar Mihajla Pupina 6 Belgrade www.hypo-Alpe-Adria.rs I & F MCCANN GRUPA Srđan Saper (+381 11) 202 22 00 (+381 11) 202 22 22 Terazije 7-9, Belgrade www.mccann.rs IBM INTERNATIONAL BUSINESS MACHINES D.O.O. Željko Vujinović (+381 11) 201 35 05 (+381 11) 201 35 01 Bulevar Mihajla Pupina 6 Belgrade www.ibm.com/Rs/ IGOR IVIĆ OF METHODES DOO - FRANKLINCOVEY SERBIA Igor Ivić (+381 11) 712 13 00 Vladimira Popovića 6 Belgrade www.frenklincovey.rs INFOBIRO Sanja Ignjatović (+381 11) 33 48 209 (+381 11) 32 41 862 Kursulina 13 Belgrade

www.infobiro.tv INTEL TECHNOLOGIES DOO Abdul Guefor Omladinskih Brigada 88A Belgrade www.intel.com INTERNATIONAL SCHOOL OF BELGRADE Robert Risch (+381 11) 206 99 99 (+381 11) 206 99 44 Temišvarska 19 Belgrade www.isb.rs JANKOVIĆ, POPOVIĆ & MITIĆ LAW OFFICE Nikola Janković (+381 11) 207 68 50 (+381 11) 207 68 99 Vladimira Popovića 6 Belgrade www.jpm.rs JOHNSON & JOHNSON Tin Ivanković (+381 11) 353 67 00 (+381 11) 145 037 Omladinskih Brigada 88B Belgrade www.jnj.com JT INTERNATIONAL AD SENTA Chris Woods (+381 11) 205 03 00 (+381 11) 205 03 01 Vladimira Popovića 38/67 Belgrade www.jt-Int.com KALEMEGDANSKA TERASA (+381 11) 328 30 11 Mali Kalemegdan Bb Belgrade www.kalemegdanskaterasa. com KARANOVIĆ & NIKOLIĆ LAW OFFICE Dragan Karanović (+381 11) 309 42 00 (+381 11) 309 42 23 Resavska 23 Belgrade www.karanovic-Nikolic.com KINSTELLAR DOO Branislav Marić (+381 11) 321 02 00 (+381 11) 321 02 22 Takovska 23-25 Belgrade www.kinstellar.com KNJAZ MILOŠ Daniel Boehi (+381 34) 700 700

(+381 34) 727 211 Južna Industrijska Zona BB Aranđelovac www.knjaz.co.rs KOMERCIJALNA BANKA Ivica Smolić (+381 11) 308 01 00 (+381 11) 344 13 35 Svetog Save 14, Belgrade www.kombank.com KONSING GROUP Zdenko Lekan (+381 11) 7195 871 (+381 11) 719 58 74 Surčinski Put 1A, Belgrade www.konsing.com KOVING D.O.O. Bojan Radulović (+381 11) 319 34 08 (+381 11) 319 34 08 Jurija Gagarina 34, Belgrade www.koving.com KPMG James Thornley (+381 11) 205 05 00 (+381 11) 205 05 50 Kraljice Natalije 11 Belgrade www.kpmg.rs LALIN LAW OFFICE Radovan Lalin (+381 21) 443 948 Sestara Ninković 11/2 Novi Sad www.lalinlaw.com LEO BURNETT D.O.O. Miša Lukić (+381 11) 209 02 00 (+381 11) 209 02 95 Danila Lekića 31, Belgrade www.leoburnett.rs L’OREAL BALKAN Brigitte Streller (+381 11) 220 59 00 (+381 11) 220 59 01 Bulevar Zorana Đinđića 64A, Belgrade www.loreal.com LUKA BEOGRAD Ivana Veselinović (+381 11) 275 29 71 (+381 11) 276 47 64 Žorža Klemansoa 37 Belgrade www.lukabeograd.com LUNA/TBWA Bojan Joksimović (+381 11) 398 03 43 (+381 11) 397 18 83 Milovana Marinkovića 3

Belgrade www.lunatbwa.co.rs MASINOPROJEKT KOPRING Slobodan Lalić (+381 11) 363 57 00 (+381 11) 239 574 Dobrinjska 8A, Belgrade www.masinoprojekt.com MEDTRONIC Hrvoje Badovinac (+381 11) 209 59 01 (+381 11) 209 59 85 Bulevar Zorana Đindića 64A, Belgrade www.medtronic.com MERCK SHARP & DOHME DOO Predrag Gušić (+381 11) 441 02 00 Omladinskih Brigada 90A/1400 Belgrade www.merck.com METRO CASH & CARRY Roberto Mancuso (+381 11) 2927 774 (+381 11) 37 77 607 Autoput Za Novi Sad 120 Belgrade www.metro.rs METROPOL PALACE D.O.O. Dragana Mudrić (+381 11) 333 31 00 (+381 11) 324 62 51 Bulevar Kralja Aleksandra 69 Belgrade www.metropolpalace.com MICROSOFT SOFTWARE D.O.O. Andreas Hartl (+381 11) 330 66 00 (+381 11) 330 66 01 Španskih Boraca 3/Iii, Belgrade www.microsoft.com MIKIJELJ JANKOVIĆ & Bogdanović Vladimir Đerić (+381 11) 323 19 70 (+381 11) 324 50 65 Vlajkovićeva 28, Belgrade www.mjb.rs MISHA SIAMASHVILI OF JUGOSCAN D.O.O. Misha Siamashvili (+381 11) 262 27 62 (+381 11) 262 27 62 Studentski Trg 21, Belgrade www.yugoscan.co.rs MK GROUP Miodrag Kostić (+381 11) 353 95 39

ENGAGE FOR CHANGE IN 2014 | 57

(+381 11 ) 353 95 99 Bulevar Mihajla Pupina 115E Belgrade www.mkgroup.co.rs MONDELEZ Philip Dickinson (+381 11) 353 08 73 (+381 11) 313 37 88 Omladinskih Brigada 88B Belgrade www.kraft.com MORAVČEVIĆ, VOJNOVIĆ & ZDRAVKOVIĆ OAD Matija Vojnović (+381 11) 320 26 00 (+381 11) 320 26 10 Francuska 27, Belgrade www.schoenherr.rs MTV SERBIA D.O.O. Ninoslav Jovanović (+381 11) 303 74 84 (+381 11) 303 74 85 Obilićev Venac 15/Vii Belgrade www.mtv.rs MULTIKOM GROUP Jadranka Drinić (+381 11) 222 23 00 Antifašističke Borbe 13B Belgrade www.multikomgroup.com NATAŠA HEROR OF HEROR MEDIA PONT Nataša Heror (+381 60) 7337 555 Dunjina 33 Sremska Kamenica www.heror-Media-Pont.ls.rs NAUMOVIĆ & PARTNERI LAW OFFICE Zoran Naumović (+381 11) 241 75 66 (+381 11) 241 90 02 Krunska 77, Belgrade www.nsi.co.rs NELT CO. D.O.O. Ranko Sočanac (+381 11) 377 91 11 (+381 11) 377 91 26 Maršala Tita 206 Dobanovci www.nelt.com NESTLE ADRIATIC FOODS Ansgar Bornemann (+381 11) 201 93 01 (+381 11) 313 20 22 Milutina Milankovića 11A Belgrade www.nestle.rs NEW MOMENT NEW IDEAS Žarko Šakan (+381 11) 322 99 92 (+381 11) 334 65 60 Hilandarska 14, Belgrade www.newmoment.com NIS A.D. NOVI SAD Kirill Kravchenko (+381 21) 481 11 11 (+381 21) 481 51 33 Narodnog Fronta 12, Novi Sad www.nis.eu NOVASTON ASSET MANAGEMENT Nikola Nedeljković (+381 11) 785 7076 Vuka Karadžića 4, Belgrade www.novaston.com NOVO NORDISK PHARMA

DOO BEOGRAD Predrag Radošević (+381 11) 2222 700 (+381 11) 2222 701 Milutina Milankovića 9B Belgrade www.novonordisk.com OMNICOM SOLUTIONS D.O.O. Rade Mačković (+381 11) 344 38 80 (+381 11) 344 38 89 Ljubostinjska 2, Belgrade www.omnicom.rs ORACLE SERBIA Billz Joseph Mulcahy (+381 11) 201 68 00 (+381 11) 313 01 08 Bulevar Zorana Đinđića 64A Belgrade www.oracle.com ORION TELEKOM David Schoch (+381 11) 410 04 44 (+381 11) 410 00 01 Gandijeva 76A Belgrade www.oriontelekom.rs OSA-RAČUNARSKI INŽENJERING Željko Tomić (+381 11) 329 03 62 (+381 11) 329 13 53 Takovska 45/Vi Belgrade www.osa.rs PEDERSEN & PARTNERS Jelena Kralj (+381 11) 303 74 32 (+381 11) 334 61 70 Đušina 2, Belgrade www.pedersenandpartners. com PFIZER H.C.P. CORPORATION Jasmina Pavlović (+381 11) 363 00 00 (+381 11) 363 00 33 Trešnjinog Cveta 1, Belgrade www.pfizer.com PHILIP MORRIS SERVICES Stacey Renee Robbins Kennedy (+381 11) 201 08 24 (+381 11) 201 08 42 Bulevar Zorana Đinđića 64A/Vi Belgrade www.philipmorrisinternational. com PRICEWATERHOUSECOOPERS D.O.O. Emmanuel Koenig (+381 11) 330 21 00 (+381 11) 330 21 01 Omladinskih Brigada 88A Belgrade www.pwc.rs PROCREDIT BANK A.D. Svetlana Tolmacheva Dingarac (+381 11) 207 79 00 (+381 11) 207 79 05 Milutina Milankovića 17 Belgrade www.procreditbank.rs PROJECT MANAGEMENT ASSOCIATION - PMI SERBIA CHAPTER Dragana Ilijašević (+381 11) 313 07 03 (+381 11) 313 07 04

Bulevar Zorana Đinđića 101 Belgrade www.pmi-Serbia.rs RAIFFEISEN BANK A.D. Zoran Petrović (+381 11) 320 21 00 (+381 11) 220 70 80 Đorđa Stanojevića 16 Belgrade www.raiffeisenbank.rs RAJKO MANDIĆ OF LEAN SIX SIGMA INSTITUT Rajko Mandić (+381 11) 31 31 454 (+381 11) 31 31 454 Antifašističke Borbe 21A Belgrade www.leansixsigmainstitute.org RAKITA EXPLORATION DOO Dejan Koželj (+381 30) 249 54 73 (+381 30) 249 54 73 Cara Lazara 1/6 Bor www.fcx.com REPRESENT SYSTEM Borislav Miljanović (+381 11) 202 22 03 (+381 11) 262 67 95 Kosovska 10, Belgrade www.represent.rs RES TRADE (JOHN DEERE SERBIA) Edward Tonchew (+381 21) 480 33 33 (+381 21) 480 33 70 Bulevar Vojvode Stepe 24 Novi Sad www.res-Trade.rs RIO SAVA EXPLORATION LLC Richard Storrie (+381 11) 276 14 77 (+381 11) 675 23 76 Takovska 45, Belgrade www.riotinto.com RUDNAP GROUP AD Aleksandar Škulić (+381 11) 222 41 04 (+381 11) 222 41 43 Bulevar Mihajla Pupina 6/21, Belgrade www.rudnap.com S&T SERBIA DOO Predrag Vraneš (+381 11) 711 62 21 (+381 11) 711 76 65 Đorđa Stanojevića 14 Belgrade www.snt.rs SAGA D.O.O. Igor Pavlica (+381 11) 310 85 00 (+381 11) 310 85 67 Milentija Popovića 9, Belgrade www.saga.rs SALFORD CONTINENTAL, INC (DANUBE FOODS) Slobodan Petrović (+381 11) 222 25 00 (+381 11) 222 25 33 Batajnički Drum 10, Deo 1B Belgrade SCHNEIDER ELECTRIC SRBIJA D.O.O. Dragoljub Damljanović (+381 11) 377 31 00 (+381 11) 312 12 22

58 | ENGAGE FOR CHANGE IN 2014

Vladimira Popovića 38-40 Belgrade www.schneider-Electric.rs SEAF Nikola Stefanović (+381 11) 212 95 24 (+381 11) 212 95 25 Bulevar Zorana Đinđića 67 Belgrade www.seaf.co.rs SERBIA BROADBAND - SRPSKE KABLOVSKE MREŽE Dragica Pilipović Chaffey (+381 11) 333 27 46 (+381 11) 30 33 288 Bulevar Zorana Đinđića 8A Belgrade www.sbb.rs SERBIAN BUSINESS SYSTEMS Mirko Drašković (+381 11) 330 25 00 (+381 11) 323 26 55 Beogradska 39 Belgrade www.sbs.rs SGS BEOGRAD LTD. Marinko Ukropina (+381 11) 715 52 75 (+381 11) 715 52 79 Jurija Gagrina 7B Belgrade www.sgs.com SIEMENS Tihomir Rajlić (+381 11) 209 63 05 (+381 11) 209 60 61 Omladinskih Brigada 21 Belgrade www.siemens.rs SOCIETE GENERALE BANK Frederic Coin (+381 11) 130 14 00 (+381 11) 313 28 85 Bulevar Zorana Đinđića 50A/B Belgrade www.societegenerale.rs STAR IMPORT Rolf Juergen Seyerle (+381 11) 3019 001 (+381 11) 3019 048 Omladinskih Brigada 33 Beograd STRACON SECURITY D.O.O. Milorad Petrović (+381 11) 382 24 01 (+381 11) 382 24 02 Đurićeva 6, Belgrade www.stracons.com SVA D.O.O. Mirko Mandić (+381 11) 322 29 10 (+381 11) 322 65 61 Palmotićeva 12, Belgrade www.sva.rs TEKNOXGROUP SRBIJA Bogdan Pavlović (+381 11) 360 52 50 (+381 11) 360 52 90 Autput Za Niš 17 Vrčin www.teknoxgroup.com TELEGROUP Milomir Gligorijević (+381 11) 308 19 81 (+381 11) 308 19 91 Svetozara Miletića 9A Belgrade

www.telegroup-Ltd.com TELENOR D.O.O. Ove Fredheim (+381 63) 869 15 21 (+381 11) 440 33 99 Omladinskih Brigada 90 Belgrade www.telenor.rs TELESIGN MOBILE DOO Nenad Vučinić (+381 63) 632 905 Trešnjinog Cveta 1 Belgrade www.telesignmobile.com TITAN CEMENTARA KOSJERIĆ Miroslav Gligorijević (+381 31) 590 300 (+381 31) 590 398 Živojina Mišića Bb Kosjerić www.titan.rs TMF SERVICES D.O.O. Jelena Ćuk (+381 11) 220 93 00 (+381 11) 220 93 10 Bulevar Zorana Đinđića 64A Belgrade www.tmf-Group.com TRIZMA D.O.O. Marko Kovačević (+381 11) 353 75 00 Cara Dušana 205A, Zemun www.trizma.com TRS EUROPE Snežana Vuković (+381 21) 439 900 (+381 21) 439 901 Rade Končara 1 Petrovaradin www.trs.rs TURNER SOUTHEAST EUROPE Maja Češljević (+381 11) 715 69 62 (+381 11) 715 69 00 Vladimira Popovića 38-40 Belgrade www.turnerconstruction.com UNILEVER BEOGRAD D.O.O. Ljubo Milošević (+381 11) 209 18 00 (+381 11) 216 91 78 Omladinskih Brigada 88 Belgrade www.unilever.com UNIQA OSIGURANJE Franz Weiler (+381 11) 202 41 00 (+381 11) 202 41 38 Milutina Milankovića 134G Belgrade www.uniqa.rs URBIS DESIGN Alex Bajc (+381 11) 369 11 92 (+381 11) 369 11 92 Bulevar Vojvode Mišića 17 Belgrade www.urbis-Group.com UROŠ POPOVIĆ OF BOJOVIĆ & PARTNERS Uroš Popović (+381 11) 7850 336 (+381 11) 7850 337 Čika Ljubina 16/Ii Belgrade www.bojovicpartners.com VICTORIA GROUP AD

Zoran Mitrović (+381 11) 353 27 00 (+381 11) 353 27 28 Bulevar Mihajla Pupina 115B Belgrade www.victoriagroup.rs VIP MOBILE Andreas Graf (+381 11) 225 33 33 (+381 11) 225 33 34 Omladinskih Brigada 21 Belgrade www.vipmobile.rs VLATKO SEKULOVIĆ OF SEKULOVIĆ LAW OFFICE Vlatko Sekulović (+381 11) 311 69 85 (+381 11) 311 69 85 Vladimira Popovića 6 Belgrade www.sekulovic-Law.rs VODA VRNJCI Zvonko Gobeljić (+381 36) 612 500 (+381 36) 612 501 Kneza Miloša 162 Vrnjačka Banja www.vodavrnjci.rs VREME Stevan Ristić (+381 11) 323 47 74 (+381 11) 323 86 62 Trg Republike 5/Iii Belgrade www.vreme.com WEST PHARMACEUTICAL SERVICES BEOGRAD Dejan Milutinović (+381 13) 741 654 (+381 13) 744 025 Rimski Jarak Bb, Kovin www.westpharma.com WIENER STADTISCHE Branko Krstonošić (+381 11) 220 99 02 (+381 11) 220 99 45 Trešnjinog Cveta 1, Belgrade www.wiener.rs WOLF THEISS Miroslav Stojanović (+381 11) 330 29 00 (+381 11) 330 29 25 Bulevar Mihaila Pupina 6/XVIII Belgrade www.wolftheiss.com WRIGLEY D.O.O. Stefan Tarandjiiski (+381 11) 212 00 15 (+381 11) 313 23 77 Omladinskih Brigada 90V Belgrade www.wrigley.com ZVEZDAN HORVAT OF ASEE (ADIZES SOUTH EAST EUROPE) Zvezdan Horvat (+381 21) 662 46 88 (+381 21) 662 46 88 Ljubice Ravasi 16, Novi Sad www.asee.biz ŽIVKOVIĆ & SAMARDŽIĆ LAW OFFICE Branislav Živković (+381 11) 263 66 36 (+381 11) 263 55 55 Makedonska 30 Belgrade www.zslaw.rs