Partners: USA - SERBIA 2019 by CorD Magazine

Partner U S A

S E R B I A

Better Understanding For Better Partnership

H.E. KYLE SCOTT, U.S. Ambassador To Serbia ■ PATRICK MIKKELSEN, Chairman, Amcham Europe, Amcham The Netherlands ■ JELENA PAVLOVIĆ, President Of The Amcham Board Of Directors ■ BARON LOBSTEIN, Economic Attache At The U.S. Embassy ■ VERA NIKOLIĆ DIMIĆ, Executive Director Of Amcham Serbia ■ MIKE DE LA ROSA, Usaid Mission Director ■ AJŠA VODNIK, Ceo, Amcham Slovenia ■ ANDY HUNDER, President, Amcham Ukraine ■ DARIA SIVOVOL, Ceo, Amcham Estonia ■ ELIAS SPIRTOUNIAS, Executive Director, Amcham Greece ■ JAMES LASRY, President, Amcham Gibraltar ■ MARKO MIROČEVIĆ, Executive Director, Amcham Montenegro ■ SUSAN DANGER, Ceo, American Chamber Of Commerce To The Eu ■ STEFAN LAZAREVIĆ, General Manager, Ncr Serbia ■ MARINKO UKROPINA, Managing Director At Sgs Group For Serbia, Croatia, Slovenia, B-H And Montenegro ■ JELENA KNEŽEVIĆ, Director, LeitnerLeitner ■ ĐURA MIJATOVIĆ, General Director Of Živko Mijatović & Partners D.O.O. (Ltd.) ■ NEBOJŠA ŠKULJEC, Director, Merck Sharp & Dohme ■ PROF. DR MIROSLAV MALEŠEVIĆ, Producer’s expert associate ■ ZORAN NAUMOVIĆ, Lawyer, Naumović & Partners

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CONTENT

SERBIA IS THE MASTER OF ITS EUROPEAN FUTURE

KYLE SCOTT, U.S. AMBASSADOR TO SERBIA

EAGER TO INTRODUCE AMERICAN COMPANIES TO SERBIA

BARON LOBSTEIN, ECONOMIC ATTACHE AT THE U.S. EMBASSY

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MARINKO UKROPINA, MANAGING DIRECTOR AT SGS GROUP FOR SERBIA, CROATIA, SLOVENIA, B-H AND MONTENEGRO

OUR TASK – A POSITIVE IMPACT ON THE FUTURE!

APATIN BREWERY

TRYING TO BRING TANGIBLE BENEFITS TO SERBIA

MIKE DE LA ROSA, USAID MISSION DIRECTOR

STRENGTHENING TRANSATLANTIC BUSINESS PARTNERSHIPS

PATRICK MIKKELSEN, CHAIRMAN, AMCHAM EUROPE, AMCHAM THE NETHERLANDS

WE ARE STRONG SUPPORT FOR BUSINESS GROWTH

VERA NIKOLIĆ DIMIĆ, EXECUTIVE DIRECTOR OF AMCHAM

TOGETHER WE CAN MAKE FUTURE PROGRESS

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NEW LAWS INCREASE SURENESS

JELENA KNEŽEVIĆ, DIRECTOR, LEITNERLEITNER

NO PROGRESS WITHOUT INNOVATION

ĐURA MIJATOVIĆ, GENERAL DIRECTOR OF ŽIVKO MIJATOVIĆ & PARTNERS D.O.O. (LTD.)

INNOVATIVE MEDICINES WILL SAVE THE WORLD

41 42

EXPERTS IN ICT LAW

TWO WOMEN ONE WAR TEA PARTY 100 YEARS AFTER

44 46

US SEES SERBIA AS PART OF A STABLE BALKANS

NEW PERFORMANCE MADE IN COOPERATION BETWEEN THE HOUSE OF JEVREM GRUJIĆ AND THE U.S. EMBASSY IN SERBIA

U.S.-SERBIA RELATIONS

INDUSTRY MADE FOR GROWING EDUCATION

NEBOJŠA ŠKULJEC, DIRECTOR, MERCK SHARP & DOHME

STEFAN LAZAREVIĆ, GENERAL MANAGER, NCR SERBIA

BRIDGING INDUSTRY AND THE STATE

CERTIFICATION OPENS MANY DOORS

A TRULY INSPIRING EVENT

EXECUTIVE DIRECTORS OF THE AMCHAMS, MEMBERS OF THE AMCHAM EUROPE (ACE)

ZORAN NAUMOVIĆ, LAWYER, NAUMOVIĆ & PARTNERS

SAFE, HIGH-QUALITY, AND DECLAREDSERBIAN SEED!

PROF.DR MIROSLAV MALEŠEVIĆ, PRODUCER’S EXPERT ASSOCIATE

JELENA PAVLOVIĆ, PRESIDENT OF THE AMCHAM BOARD OF DIRECTORS

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CULTURAL MELTING POT

AMERICAN CULTURE

THE AMERICAN DOCTOR WHO “SAVED BELGRADE”

DR. EDWARD RYAN

EDITOR IN CHIEF: Miroslava Nešić-Bikić m.bikic@aim.rs DESIGN: Jasmina Laković j.lakovic@aim.rs EDITORIAL MANAGER: Neda Lukić n.lukic@aim.rs PHOTOS: Zoran Petrović

COPY EDITOR: Mark Pullen

Mihailo Čučković, m.cuckovic@aim.rs

TRANSLATION & EDITING MRP EDITORIAL Halifax Translation Services

OFFICE MANAGER: Svetlana Petrović s.petrovic@aim.rs

SALES MANAGERS: Biljana Dević, b.devic@aim.rs Nataša Trifunović, n.trifunovic@aim.rs Vesna Vukajlović, v.vukajlovic@aim.rs

FINANCE: Dragana Skrobonja finance@aim.rs GENERAL MANAGER: Maja Vidaković m.vidakovic@aim.rs

PUBLISHER: Ivan Novčić i.novcic@aim.rs DIRECTOR: Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com PARTNER USA BETTER UNDERSTANDING FOR BETTER PARTNERSHIP Published by: alliance international media

Makenzijeva 67, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile:+(381 11) 2450 122 E-mail: office@aim.rs; office@cordmagazine.com www.aim.rs; www.cordmagazine.com No 15; ISSN: 2560-4465 All rights reserved alliance international media 2019 THIS PUBLICATION

WORLD INNOVATIVE CENTRE SILICON VALLEY

IS FREE OF CHARGE The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media

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INTERVIEW

KYLE SCOTT, U.S. AMBASSADOR TO SERBIA

SERBIA IS THE MASTER

Of Its European Future

We fully support Serbia in finding its rightful place among the European community of nations. The path toward achieving this goal is closely connected to political and economic reforms, including a compromise agreement with Kosovo, increased efficiency by the legal system, a serious fight against corruption, and protection for independent media 6

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PRORITY

HOPE

DIALOGUE

European integration for Serbia is our priority, as it is the priority of the Serbian government

I hope that Kosovo will remove tariffs on goods from Serbia and that Serbia will suspend its derecognition campaign

We believe that Serbia and all the countries of the region will only flourish when they can find a way to listen to each other

uring his mandate as U.S. Ambassador to Serbia, H.E. Kyle Scott supported many initiatives which fortified bilateral relations between the U.S. and Serbia in terms of political, economic, and cultural cooperation. Some of them like the “Vi ste svet” ads gained the heartfelt support from all sides, from the general public to politicians, and some others proved to be more complex. Yet, there was one fine line which connected all of these moments and that is the shared commitment of the U.S. and Serbian governments to work toward an EU future for Serbia.

tions of Serbs and believes in the potential of this nation. I hope I helped contribute to this understanding. Recently, while speaking about your experiences, your talked about the idea of “restraint towards America.” Who were you referring to with that statement – the me-

Your Excellency, you find yourself reaching the end of your time in Serbia. What would you single out as some of the most important moments during the past four years? - There is not enough space in your magazine for me to recount even a fraction of the highlights of serving in Serbia as the United States Ambassador. I am proud of Serbia’s growing economy, which I believe has been aided by American efforts to help We’ve invested more than dia, politicians or just part of the socalled Twitter community that you’ve enhance government efficiency and any other bilateral donor said sends you insults? the business climate here. One par- Unfortunately, it’s true that there ticularly important achievement for in recent years in helping are elements of the media and politime has been to shed new light on the Serbia achieve its goal of cal establishment here that continue proud history of Serbian-American advancing closer to its to push false narratives about the relations, from the contributions of United States. The tabloids in parSerbian-Americans, like Tesla and Purightful place among the ticular trade in hatred, knowing that pin, to Americans who helped Serbia European community fake headlines about impending wars during World War I to the ordinary and foreign threats might help them Serbs who saved the lives of more of nations sell newspapers, which I guess they than 500 American and Allied pilots need to do to pay for the seemingly endless stream of during World War II. Serbian-Americans helped NASA put libel judgments against them in Serbian courts. I don’t a man on the moon. These stories were being forgotten spend much time reading comments from my Twitter and overshadowed by the 1990s, but I believe we helped trolls. What matters to me is the thousands of people remind Serbia of the depth and breadth of our friendship. in Serbia who have the opportunity to receive and read Seeing Serbs gain a renewed respect for this relationship our positions on social media. We’re routinely seeing after watching our Vi ste svet ads, or the warm welcome tweets reaching tens of thousands of people. They that was shown to David Vuich, the last surviving member don’t need to agree with us; we just hope they listen of the Serbian Seven, from the Apollo 11 mission, was and try to understand us, just like we listen to and try heart-warming. The United States respects the contribu7

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to understand Serbia. The Serbs I know are hospitable, civil people, even when we disagree. When it comes to relations between our two countries, have you attempted to develop an understand-

Returning to the present, could you tell us how you see the role of new U.S. special envoy to the region Matthew Palmer, a person who local media have already compared to Richard Holbrooke? - Matt Palmer’s appointment is a clear and important signal that America is serious about wanting to help Serbia and Kosovo reach the sort of agreement that is mutually beneficial, durable, and will contribute to stability throughout this region. Ultimately, success depends on the courage and wisdom of leaders here and in Pristina. It is also important to remember that Mr. Palmer is the Special Representative for the entire Western Balkans. His appointment demonstrates our commitment to the entire region. We believe that Serbia and all the countries of the region will only flourish when they can find a way to listen to each other, show true mutual respect for each other, and cooperate for everyone’s mutual benefit.

The media has speculated that we ing for the reservations that exist More than 20,000 Serbs could soon see a repeat of the sceeven within more moderate circles in Serbia, where it is stressed that now collect paychecks from nario by which the U.S. takes over the facilitating/mediating of the there hasn’t been a lot in U.S. poliAmerican businesses. That’s Belgrade-Pristina dialogue from the cy that’s been friendly towards Serbia in the last few decades? The two 3,000 jobs added by American EU, with a view to reaching a solution prior to the 2020 U.S. election. countries continue to mark the anniversary of the World War II opera- companies just in the time I’ve Does that correspond with the intentions of the current U.S. admintion to rescue U.S. pilots in Serbia been Ambassador istration? as the pinnacle of our friendship. - This is Europe, and we fully expect that the European What does that tell you? Union will continue to take a leading role in supporting - The United States, along with the vast majority of Europe Belgrade and Pristina. We want to support them, and and Serbia’s neighbours, clearly disagreed with Slobodan encourage them to press ahead. We have no deadlines, Milosevic. I do not think it’s at all correct, however, to say that but I think an agreement is long overdue. U.S. policy has not been friendly towards Serbia in the last few decades. We’ve invested more than any other bilateral During a recent visit to Serbia, U.S. Senators Johndonor in recent years in helping Serbia achieve its goal of son and Murphy said that both the Serbia and Kosovo advancing closer to its rightful place among the European sides must relinquish something. What, in your opincommunity of nations. European integration for Serbia is ion, should Serbia accept as a loss, and what should our priority, as it is the priority of the Serbian government. Kosovo give up? Our militaries have conducted more than 300 cooperative - That is not for me to define. Only Serbs and Kosovars events since 2016 alone to help address joint security threats. can negotiate the settlement. We simply want to enUnfortunately, many Serbs don’t hear about these success courage both sides not to lose this opportunity for a stories, because they do not fit the prevailing narrative in lasting peace. What we seek right now is for leaders many of the tabloids that America is bad. Regarding the to return to the dialogue process. For a start, let me Halyard Mission in World War II, I am thrilled that this story repeat my hope that Kosovo will remove tariffs on of heroism is being told to wider audiences. 8

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goods from Serbia and that Serbia will suspend its derecognition campaign. How would you assess economic cooperation between the U.S. and Serbia, which seems to remain in the shadows compared to complex political relations? - The numbers don’t lie: more than 20,000 Serbs now collect paychecks from American businesses. That’s 3,000 jobs added by American companies just in the time I’ve been Ambassador. More than $4 billion of American investment has now come to Serbia. American companies like NCR, Nutanix, Ball Packaging, and Ametek, to name just a few, are expanding and planning to hire more workers here. A compromise agreement on Kosovo will be a huge step forward in terms of opening Serbia’s door to additional investment from the world’s largest economy. Even though Serbia has an excellent workforce and a premium geographic location, businesses do not like uncertainty or political instability.

- Measuring the impact of this message is not easy, especially in the short term. The video clips have been viewed more than 10 million times on YouTube, and countless more times on TV screens in Serbia. I have heard many positive comments, including from government officials, about the message.

AmCham is doing an How can events like the annual conference of AmChams in Europe, to be You recently announced that Amerexcellent job of helping held in Belgrade this October, conican engineering company Bechtel to develop the business tribute to raising interest in investwould build the so-called Moravian Corridor. What can you say about environment in Serbia. It’s ing in Serbia among American companies and the sharing of knowlthat engagement of a U.S. compaclear to me that small and edge between AmCham chambers ny in the area of infrastructure in Serbia, where developers from Chimedium enterprises will be throughout Europe and the busicommunity in Serbia? na, Azerbaijan, Russia and the Euthe motor of growth here, as ness - AmCham is doing an excellent job ropean Union are already present? they are in the United States of helping to develop the business - Successful completion of the Moraenvironment in Serbia. It’s clear to va Corridor will require extremely me that small and medium enterprises will be the mocomplicated engineering and technical expertise, and tor of growth here, as they are in the United States. To I have faith that the largest construction company in truly unlock this potential—and the 6 per cent annual the United States is up to the task. The project is more economic growth that Serbia needs to reach EU living than just laying down concrete for a highway – Bechtel standards, slow the brain drain, and achieve the prosperhas the capacity and experience to execute this smart ity deserved by its citizens—will require political and infrastructure project, which also includes extensive flood economic reforms, including a compromise agreement control work, elevating the entire roadway by a meter, an with Kosovo, increased efficiency by the legal system, internet and telecommunications corridor, and economic a serious fight against corruption, and protection for development and planning work with local municipalities. independent media. These are all connected and will set the stage for Serbia to reach its potential. I believe that You made an unusual gesture in Serbia by publishing AmCham and the conference of their European chapters several promotional television videos honouring Serare extremely important voices that can help bring these bia’s contribution to science and the arts. How would important reforms. you rate the effects of this project? 9

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INTERVIEW

PATRICK MIKKELSEN, CHAIRMAN, AMCHAM EUROPE, AMCHAM THE NETHERLANDS

STRENGTHENING

Transatlantic Business Partnerships

AmCham Serbia’s bid to host the European Conference in October was extraordinary, and that is why we will all be at the Belgrade Hilton from October 16 to 19. It will be an opportunity to showcase Serbia and the Serbian chapter of AmCham to all members of our community

mChams in Europe (ACE) were established back in 1963, and it serves as an umbrella organization for 45 American Chambers of Commerce (AmChams) from 43 countries throughout Europe and Eurasia, explains Patrick Mikkelsen, chairman of AmCham Europe and AmCham The Netherlands. Although ACE is an association with a long tradition, the business public is not that familiar with their work. This will change on on October 16–19, when ACE members gather in Belgrade for the European Conference, one of two annual landmark events. This year for the first time the conference will be hosted by AmCham Serbia. “In Europe, we represent the interests of more than 17,000 American and European companies employing more than 20 million workers – accounting for more than $1.1 trillion in investment on both sides of the Atlantic,” says Mikkelsen. “With a presence in 43 countries, AmChams in Europe is the largest network of international chambers of commerce in Europe. ACE is governed by an executive committee that consists of seven AmCham executives, each representing

an AmCham member country. Our role is to develop and support the network of AmChams across Europe and ensure the exchange of best practices among member organizations.” What does AmCham Europe offer its members when it comes to managing the complex landscape of transatlantic economies? - As a bilateral voice of American and European companies, AmChams in Europe works to communicate the importance of a transatlantic economy for both Europe and the United States. Our members use this platform to facilitate the development of their businesses in key European markets by engaging with AmChams according to their interest. It is also important to note that AmCham membership provides companies with access to relevant government officials; knowledge exchange and network development for local, regional, or international leadership; specific industry and cross-industry committee programs, and increased company visibility with key stakeholders and decision makers.

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GOAL

CONFERENCES

FOCUS

As a bilateral voice of American and European companies, AmChams in Europe works to communicate the importance of a transatlantic economy for both Europe and the United States

Two annual landmark gatherings represent a best-practice sharing platform that is highly appreciated throughout our network

At the Belgrade conference we will talk in detail on where AmChams in Europe should stand in the next 20 years, and how the AmChams should adapt to a fast-changing international landscape

How can the European network help for members in the U.S. get a better understanding of developments in this part of the world? - AmChams in Europe organize two milestone annual conferences. One in the United States and one in Europe, which will be held in Belgrade this October. When it comes to the United States, the conference is the multilateral opportunity for all participants. AmCham executives meet with companies, organizations and governmental agencies in Washington DC as well as relevant U.S. cities or regions, with the purpose of increasing awareness of AmChams in Europe, strengthening partnerships, and sharing key insights into the current European and U.S. business and political climates. This sharing of knowledge and information supports a better common understanding and facilitates companiesâ&#x20AC;&#x2122; market strategies and business opportunities.

How does the network function on a daily basis? How do members exchange best practices among themselves? - There is a lot everyday communication among the AmChams in Europe. As an umbrella organization, our main task is to facilitate the exchange of European and U.S. business related information, but it is also to facilitate international business opportunities and support the growth of our members. We communicate and share relevant information on a regular basis, but the two annual gatherings represent a best-practice sharing platform that is highly appreciated

Recently AmChams in Europe welcomed a new member from the Balkans. What will the European network mean for them? - The ACE Community is very proud and privileged to had welcomed AmCham Bosnia and Herzegovina to the network. We are confident that the many upcoming opportunities to collaborate AmChams in Europe (ACE) throughout our network. We present with our new member will be fruitful the most successful local AmCham represents more than 17,000 projects to the group, and, by doing and that will allow us all to gain many beneficial insights - from learning about so, the most successful projects are American and European new best practices through exchanging implemented by other AmChams in companies employing more Europe. We exchange ideas on local of knowledge to the cultural uniqueness. Our newest member was estabthan 20 million workers and and national governmental relations, membership criteria and retention lished in 2001 to advance the interests account for more than rates, HR and communications initiaand views of the U.S. and other foreign $1.1 trillion in investment on tives and this knowledge sharing helps businesses in BiH, to assist in improving the business environment in BiH, and to us all grow and develop further and in both sides of the Atlantic promote high standards of commercial a sustainable way. practice. It stands as a powerful and efficient leading voice in the business community in Bosnia and Herzegovina, promoting What were the most important messages from the latest the global competitiveness of its economy through advocacy conference in the U.S.? Which insights into the current U.S. and events as well as implementing best practices. Being an business and political climate would you like to share with ACE member will allow them to further leverage their posiour business community? - The AmChams in Europe annual conference in the U.S. was tion in BIH and strengthen local and international relations. 11

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held in Washington, D.C., and Seattle, Washington, from May 12 to 17, 2019. Our 35-member delegation from 29 countries met with prominent American politicians in Washington, and we spoke and shared insights about the global economic situation and viewpoints with representatives of the U.S. Department of Commerce, including Karen Dunn Kelley,

identified the most important areas of future development. One of the conclusions of the meeting was that Europe is indeed lagging significantly behind the U.S. and China in terms of digital development. But thanks to the presence of U.S. companies on European soil and to the technological advancement of the 21st century, this gap will be closing very soon – so I wouldn’t worry that much. This fall, executive representatives of participating AmCham Europe countries will gather in Belgrade, Serbia in October for the annual European Conference. Which topics will be in focus? - The European Conference is traditionally hosted by an AmChams in Europe member and the conference focuses on facilitating the exchange of best practices and discussing relevant issues impacting AmChams and their members. I must emphasize that AmCham Serbia’s bid was extraordinary, and the executive team did a great job in representing Serbia at its best. and that is why we will all be at the Belgrade Hilton from October 16 to 19. It will be an opportunity to showcase Serbia and the Serbian chapter of AmCham to all members of our community. We will talk in detail on where AmChams in Europe should stand in the next 20 years, how the AmChams should adapt to a fastchanging international landscape, how we can jointly reinforce the positions of the AmChams in our home countries, etc.

Deputy Secretary of Commerce, repWe assist the exchange resentatives of the Pentagon, the U.S. of European and U.S. Department of State, the U.S. Chamber of Commerce and the Atlantic Council. business related information, The purpose of the conference was to but we also facilitate raise awareness of the importance of the role of trans-Atlantic relations, international business strengthen existing partnerships, opportunities and support promote the organization and gain insight into trends and events in both the growth of our members In the upcoming conference, a particthe political and economic spheres. The ipating representative with the best delegation saw the conference as extremely successful, project or practice will also be presented with the Creaand one of the main messages they brought back from the tive Network Award. How much does this relatively new U.S. is that cooperation, mutual respect and awareness of initiative contribute to fostering an exchange of innovavalues are extremely important, and that Europe has to tive ideas? stay connected if it wants to keep up with other countries. - The Creative Network Award is given out to the best project or practice in various categories, ranging from membership One of the insights from the U.S. conference was that Euand management, advocacy and impact, communication, to marketing creative initiatives and programs. This award rope is lagging significantly behind the U.S. and China in is a huge opportunity for local AmChams to make their acterms of digital development. To what extent are U.S. companies operating in Europe able to accelerate progress complishments visible in an international arena, but also an and lessen this lag? opportunity for fellow AmChams to apply similar concepts in - After the visit to Boeing’s largest factory, known for its their home countries. The ACE Creative Network Award was hi-tech development in the aviation industry, we visited established in 2014 with the aim of incentivizing AmChams Seattle - a city known for having two of the world’s three to share creative initiatives and projects, for the benefit of trillion-dollar companies. We first visited Accenture, which AmChams throughout the ACE network, with the intention employs half a million people around the world, and we of fostering an exchange of innovative ideas. 12

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INTERVIEW

JELENA PAVLOVIĆ, PRESIDENT OF THE AMCHAM BOARD OF DIRECTORS

Together We Can

MAKE FUTURE PROGRESS The European conference in Belgrade, one of two traditional gatherings of AmCham Europe, represents a success for AmCham Serbia and a rare opportunity for our team to present its unique experience of Serbia to fellow colleagues from more than 40 European countries

and the judiciary are areas where a great deal of work yet remains to be done. The current reform momentum needs to be faster paced and oriented towards businesses that are healthy, prosperous and are contributing with outstanding values to the growth of our country.

How do AmCham and its members see the current reform momentum? In which areas do the biggest advancements need to be made? - Each year, AmCham Serbia publishes our business survey with the aim of identifying key reform processes that would improve the business environment and so to promote investment and job creation. In the last two years, the highest scores were awarded to slashing the budget deficit, reducing construction permitting administration, reforms to the Labor law, and an overhaul of e-government. This trend continues, since Serbia maintains its macroeconomic stability, keeps cutting public debt, and maintains the high growth rates. Our survey also sheds light to the areas where little or no progress has been made – such as reforms to state-owned enterprises (SOEs), healthcare,

How much is the present business environment conducive to growth and new investment? - In the last few years, we have seen a wave of the foreign direct investments in Serbia that in 2018 amounted to EUR 3.5 billion, while the official data show that the trend in 2019 is even better: year-on-year first half influx of the FDI is 30 percent higher. This data is highly encouraging and of a huge importance for the growth of our economy. Still, private domestic investment has a huge potential and that is an area where together we can make a lot of progress for the future. Last year private domestic investments amounted to as little as 9 per cent of Serbian GDP, while the EU average is around 20-25%. The government should encourage businesses that already operate in Serbia to invest more by creating certainty and predictability. Our member companies seek a level playing field and a business-friendly environment, with limited government presence in the market.

mCham Serbia members are optimistic about the opportunities Serbia offers for business, but there is much to be done to secure a level playing field and an environment conducive to growth. Jelena Pavlović, President of the AmCham Board of Directors, explains what the country’s largest independent business association sees as necessary steps and in which areas it may support the government in reforms.

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- Based on our survey results, our members are “moderately How does AmCham foster dialogue with the government? satisfied” with the business environment and are expecting - As the country’s largest independent business associaminor improvements in the near future. A total of 79 per tion, we have both the obligation and credibility to direct cent of AmCham members awarded the business climate the attention of government to the principal obstacles a solid score of three (out of five), a really good result hindering faster and sustainable business and economic given how critical the respondents had growth. Government has, to date, been receptive to our priorities, as Current reform momentum been until recently (68 percent were “moderately satisfied” last year and witnessed by shared success in many needs to be faster paced 46 percent were so the year before). reform endeavors that were part of This is the second consecutive year the agendas of our nine thematic and oriented towards that AmCham members have been committees. AmCham participates businesses that are noticeably more optimistic about their in numerous government groups, healthy, prosperous and growth prospects than previously, in working on enacting new or amendterms of both business performance ing existing laws and regulations. Our are contributing with and hiring. As many as 73 per cent of goal is to bring the best practices of outstanding values to the all firms expected to grow, while 58 our member companies, offer solution per cent reported planning new hiring. which will make a positive impact on growth of our country the business environment in Serbia, What do they see as the biggest challenges in their eveand to be a helping hand to government in all the initiatives ryday activities? How much has the development of ethat are relevant for our membership. government removed red tape and improved efficiency? - Year after year, institutional reforms have increasingly How do your members reflect on their own prospects taken center stage for AmCham members. Promoting for growth and investment in Serbia?

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the rule of law and further enabling public administration to implement regulations, enhancing efficiency of the judiciary, and mainstreaming active public-private dialog into lawmaking are fast becoming indispensable preconditions for any effective sectoral reforms. Therefore,

44 Chambers in 42 countries with 16,438 member companies and 4.2 million employees. This is an influential network, accredited by the largest business association in the world - the 3-million-member US Chamber of Commerce in Washington, DC. Being a part of such society helps us to be updated with the latest information and trends in the global economy and politics, but also gives us the opportunity to learn and share the best practices from our network, and ultimately apply the knowledge into our everyday work.

In October, executive representatives of participating AmCham Europe members will be in Belgrade for the annual European Conference. What will this event bring to Serbia and your members? Such events may also serve for country promotion. What message should the conferenceâ&#x20AC;&#x2122;s guests bring home from Belgrade? - There are two traditional gatherings of the AmCham in Europe network â&#x20AC;&#x201C; one that is being held in Washington DC and another one being held each year in another European country. AmCham Serbiaâ&#x20AC;&#x2122;s Executive team we keep highlighting the importance Our member companies made a bid and won against fierce of predictability and certainty and competence from five European counsupport all efforts to enhance the seek a level playing field tries and will handle the organization business environment through the and a business-friendly of the European conference to be held creation of rules that apply equally environment, with limited in October in Belgrade. This will be an to all, institution-building, and the opportunity for our team to present rule of law. government presence the achievements in the last few years, Once we resolve those systemic in the market share best practices and a chance for flows, everyday challenges will beall of us to learn from each other. Adcome problems of the past. One of ditionally, this will be an occasion for us to present unique the key preconditions for AmCham members to grow in experience of Serbia to the fellow colleagues from more a sustainable way is the further development and promothan 40 European countries. tion of e-government, e-commerce, and e-business. Some developments had been made to ease the everyday busiWhat do the members of the AmCham Serbia see as ness, but the pace has to be faster, since, in addition to their priorities in advancing change in the Serbian insaving time and money, the replacement of paper-based stitutional framework in 2020? routines with electronic ones will limit the scope for cor- The highest priority and the most important task for ruption, widely perceived to be at its most widespread in Serbia is the development of independent, professional, administrative procedures. and efficient institutions that will guarantee fundamental rights to businesses and the citizens. The greatest chalAmCham Serbia is a member of the AmCham Europe. lenges and obstacles for sustainable growth in the future How does this membership contribute to your work? remain to be corruption, inconsistent implementation of - AmCham Serbia is a member of the 115-member-strong regulations, the shadow economy, a slow judiciary, and the AmCham community worldwide and is particularly proud insufficiently developed education system. to be part of the AmCham Europe network, comprised of 16

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INTERVIEW

BARON LOBSTEIN, ECONOMIC ATTACHE AT THE U.S. EMBASSY

EAGER TO INTRODUCE

American Companies To Serbia Many U.S. corporate executives see Serbia as a country with great potential for future growth, where a visionary company can seize an advantage by being a “first-mover” in a promising market

he United States wants to see an economically strong Serbia that is anchored in European institutions and capable of improve the quality of life in Serbia, contributing to the prosperity and stability of the region, says Baron Lobstein new economic attache at the U.S. Embassy. You are one among the many US diplomats who came to Serbia with very good Serbian already. Was it hard to learn a new language, although we know you already speak Russian? - Learning new languages is one of the real privileges of working with the American diplomatic service. During my 17-year Foreign Service career, I have had the opportunity to speak Russian, Chinese, German, French, and Uzbek on the job. Learning Serbian over the past year has been somewhat easier than Chinese, for example, but especially enjoyable because of our teachers at the Foreign Service Institute in Washington. We have wonderful teachers from Serbia who love their country and love sharing their culture with us. In class, we spoke only Serbian for six hours every day for ten months. We read the poems of Vuk Karadžić as well as the daily Serbian-language news. We listened to the songs of Toma Zdravković and had Serbian meals together. The experience was a great joy. You have served in the Economic Section at the U.S. Embassy in Beijing and as Economic Chief on the State Department’s

Russia Desk, fostering strong economic ties with both countries. What would be your most valuable and useful experience for Serbia? - The most powerful lesson of my prior diplomatic experience is that we cannot treat any single country in isolation from others. Each country, large or small, is part of a global community, and even in cases where we have strong disagreements with other countries on some issues, we can still make progress in other areas for mutual benefit. During my time in Moscow, for example, we made a choice to work together to advance Russia’s efforts to join the World Trade Organization, to protect our shared Arctic environment, and to contain the spread of infectious diseases, even though we differed in major ways on other issues. In Beijing, we organized an intensive series of talks aimed at resolving long-standing differences on economic and trade policy, because both our governments understood that a better U.S.-China trade relationship would materially improve millions of lives not only in our countries, but around the world. These are vital lessons for my work in Belgrade. Serbia faces significant challenges in its effort to join the European Union. This goal is also important to the United States, because an economically strong Serbia that is anchored in European institutions can improve its people’s living standards and contribute to stability and prosperity throughout the region. We

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want Serbia to succeed economically, because it is good for Serbia, and it is also good for America. As a person who covered U.S.-China trade, intellectual property rights, information technology, and other related issues, how do you see the impact of current developments on other countries that deal with China? In information technology, for instance? - In my years working in U.S. economic diplomacy, the United States has worked around the world to promote high standards of fairness and transparency in a rules-based community of nations and institutions. We supported China’s accession to the World Trade Organization in 2001 because we believed it was important for China to be a part of a global system of rules and fair trade, with established principles and procedures for dispute settlement. Our current concerns with China’s trade practices focus largely on its unequal treatment of U.S. and other foreign companies in its own market. But because China’s market is so large, its industrial policies, particularly

in the area of information technology, have the potential to affect the entire world. The modern economy is increasingly based on products of intellectual effort and electronic storage and the exchange of information. We are concerned not only that China has disadvantaged American and other foreign technology companies within China, but also that Chinese firms have unfairly used technologies developed by American firms as the basis for their own products. Some people claim that the United States wants to “contain” China’s rise. This is not our aim. We want China to develop its economy, but we want it to do so fairly.

Countries like Serbia that seek to introduce new e-government services and advanced manufacturing should cooperate closely with international partners on sharing best practices in cybersecurity

How do security questions shape the way economies advance in “Industry 4.0,” and what should smaller countries like Serbia keep in mind when building e-government services and digital business solutions? - The entire complex of emerging technologies that are defining the coming industrial age – smart manufacturing, smart cities, the Internet of Things, cloud computing, and the 5G networks

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that will enable these technologies – introduce a whole universe of new security issues, which affect all economies. Both government and the private sector in the United States have faced serious problems with the security of data and networks, including the theft of personal information. Cyber-attacks on critical infrastructure like power plants and financial networks have become a serious threat that could even affect the global economy. Countries like Serbia that seek to introduce new e-government services, advanced manufacturing, and other digital business solutions must also deal with these threats, just as larger countries do. But they often must do so with more limited resources. This makes it all the more critical for

such countries to cooperate closely with international partners on sharing best practices in cybersecurity, and to commit to use only the most secure equipment in building new digital infrastructure.

We want Serbia to succeed economically, because it is good for Serbia, and it is also good for America

In comparison to Russia and China, Serbia is quite a small economy. What interest can U.S. companies have here, beyond those which are already operating in the country? - U.S. companies are always looking for opportunities to expand into new markets, to find new sources of talent, and to save money. Just since arriving in Serbia a month ago, I have talked to representatives of American firms that appreciate what Serbia has to offer. You have talented, well-educated workers, and a government that is eager to attract new investment, in a country where the cost of living is still relatively inexpensive. In Serbia, many corporate executives see a country where there is great potential for future growth, where a visionary company can seize an advantage by being a “first-mover” in a promising market. We are eager to introduce American companies to Serbia. Serbia is recognized as a country with a promising start-up community, looking to build ties with Silicon Valley and be20

come a true start-up nation. Would you assist in fostering these relations? - Our embassy is always looking for opportunities to build new connections between Serbian and U.S. partners that can help benefit both countries. Only a few days ago, I had the pleasure of attending the annual celebration of Serbia’s National Alliance for Local Economic Development (NALED), which was founded 13 years ago with assistance from the U.S. government and our embassy. Since then, it has fostered a series of important economic reforms that have improved Serbia’s business climate. Together with efforts by Minister Mihajlovic and her team, NALED has helped Serbia to rise to 43rd on the World Bank’s “Doing Business” index of the easiest countries to open and operate a business. The easier it is to do business here, the more people will choose to start businesses in Serbia, and the more small and medium-size firms will create job opportunities that give young, talented Serbians a reason to stay and live in Serbia. Our embassy has several programs that can take advantage of this trend and help promising Serbian entrepreneurs build connections with their American counterparts. We look for promising leaders in both government and the private sector for exchange visits to the United States, such as our International Visitor Leadership Program, which allows them to observe and discuss entrepreneurship, public administration, intellectual property rights, and other key economic issues with American partners. Whenever possible, we also try to bring expert speakers and other visitors to Serbia to meet and interact with Serbian professionals. Building an effective Corporate Social Responsibility (CSR) program is essential for today’s business success, and foreign companies, including members of AmCham Serbia, are putting a strong emphasis on CSR. How can the embassy and AmCham contribute to bringing this know-how to Serbia? - This is an excellent suggestion, and I plan to expand on progress already made by the embassy in this arena. For the past ten years, “Our Belgrade” has been working to develop a culture of corporate volunteering and philanthropy in Serbia. This effort was launched by the Responsible Business Forum and Smart Kolektiv, with support from USAID. Already, more than 30 companies and 3,500 employees have participated in these efforts. Another great initiative began this past April when USAID launched a $2 million “Framework for Giving” project with the Ana and Vlade Divac Foundation, as well as the Serbian Chamber of Commerce and other partners, to promote philanthropy in Serbia and modernize the nation’s laws governing this important arena. Smart enterprises focus on corporate social responsibility not just because it’s the right thing to do, but also because they know that in today’s world, attracting and retaining the best workers requires these efforts.

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STEFAN LAZAREVIĆ, GENERAL MANAGER, NCR SERBIA

BUSINESS

WE ARE STRONG SUPPORT For Business Growth

NCR is a U.S. company that operates on the global market for 135 years. Throughout the time, it has been continuously reaffirming its position as a leader in the information technology sector by providing the solutions that not only keep up with business trends, but also create them

CR started its operation in Serbia eight years ago, initially as a small customer support centre with 300 employees, while today it brings together some of the top experts, who invest their talent and creativity to contribute to the company’s progress and to Serbian-American relations.

for both working and socialising. Apart from the workspace, the campus will also have many additional facilities, such as spaces for education, relaxation, play and recreation, a canteen and a cafe. It will be a state-of-the-art office for at least 4,200 employees.

More than 90 million U.S. dollars will be invested in development of the campus. To what extent will it resemNCR has gained a global reputation for cash registers and ble your campus in Atlanta, which provided the model cash machines (ATMs) production. What can you tell us for its design, and how significant is the construction of about NCR’s business today? this kind of campus for Serbia and for promoting coop- NCR vision is to be the leading software and services-led eration between Serbia and the U.S.? enterprise provider in banking, retail and hospitality indus- The campus in Belgrade is the second tries. Today, in the digitally connected NCR Corporation’s campus. The first, world, NCR is focused on the creation The Belgrade campus which is at the same time the headof software solutions, offering services will reflect NCR culture, quarters of our company, was opened in and different kinds of tech support reinvention and its role Atlanta at the beginning of 2018. Both for clients in the finance sector, retail, telecommunications and hospitality, as a global technology leader buildings are designed to be an inspiring working environment for employees to in order to help them transform and develop business through innovation. Belgrade campus improve their business activities. Within NCR’s Digital will be the biggest investment of this kind in the region First strategy, we simplify business processes of our and will hold LEED Gold Certification, which means that it clients, thus leaving them time to dedicate themselves to will be designed, built, and maintained using best practice their customers. strategies for green building and energy efficiency. By investing in such a project, NCR is showing recognition NCR has around 3,500 employees in Serbia, which acfor its employees in Serbia in terms of their expertise and counts for 10 per cent of the total number of NCR employexcellent results. We are proud of the fact that NCR Serbia ees worldwide. Do you expect the number of employees in only eight years has become a hub for development, imto increase once the state-of-the-art technology campus provement and innovations. Several thousand talented and in New Belgrade’s Block 42 opens? innovative people in Belgrade not only support the execu- Our employees currently work from six different locations tion of company’s Digital First strategy and the business in Belgrade and one of the primary goals of building the growth, but also represent a significant advancement in campus is to bring them all under one roof in Belgrade, in Serbian-American relations. a work environment that will be innovative and stimulating 21

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INTERVIEW

VERA NIKOLIĆ DIMIĆ, EXECUTIVE DIRECTOR OF AMCHAM

BRIDGING INDUSTRY

And The State We continuously promote Serbia as a desirable investment destination for American companies and cooperate with the state in improving the business environment, thus contributing to local development

s one of the most active chapters out of the 44-member network of AmChams in Europe, AmCham Serbia is soon going to host the 2019 annual European Conference. We spoke with Vera Nikolić Dimić, Executive Director of AmCham Serbia, about the forthcoming conference and the work of the association. How much can this part of Europe be interesting for American companies and their overseas operations? - AmCham is indeed a unique economic bridge connect-

ing our country with the US. We continuously promote Serbia as a desirable investment destination for American companies, as do our member companies in their HQs. At the same time, we also believe that the ongoing essential reform of all systems in Serbia is, in fact, the best promotion one could get. Therefore, we are helping the state through our activities, targeting business environment improvements, to enhance the environment for companies already doing business here and sending a powerful message to companies contemplating investment opportunities. As a country, we are sending out powerful signals whenever we conquer another ‘peak’ in shoring up the rule of law. Good news travels fast, and whenever we adopt another reformist law, take another step towards more effective implementation, or solve one of our economic shortcomings, we are closer to future investments. AmCham members in Serbia hire more than 95,000 citizens of this country, which is nearly 10% of all private sector employees. Hence, our part of Europe is very

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interesting for American companies, and the good news is that year after year we are picking up the pace in attracting investments. However, we are not the only country working to attract them, of course.

tions, and also with the Tax Administration, Tax Police and Market Inspection.

Which recent initiatives aimed at improving business climate in Serbia do you see as the most fruitful and the game changers? - Year after year, AmCham members are With a membership of more than 200 of the increasingly focusing more on institutional most successful American, international, reform. Predictability of change and enand domestic companies, how well is your forcement of regulations are the biggest voice heard in the business community and challenges for as many as 51 per cent of our in communication with the government? members, whereas 74 per cent of them believe - We believe that cooperation is the key to streamlining the judiciary and strengthening development and that good communication the rule of law are priorities to improve the is the basis of good cooperation. We listen business environment. It is crystal clear: to each other and have an excellent rapport rule of law is the biggest game changer. The with the government. The best practices that economic environment should be changed so we have established, and indeed have been we can remain competitive, and only rule of implementing through several programs, law can guarantee our competitiveness in works on the principle of our mapping the attracting investments and long-term growth issues and providing specific assistance to of individual companies. the state to deal with them. For example, the Another outstanding results of our last year’s example of cooperation survey on key priorities Only the rule of law is the establishment of for business environment can guarantee our the National Coordinaenhancements in Serbia pointed out that as many competitiveness in attracting tion Body for Trade Fahappening a as 82% of respondents investments and long-term cilitation, little more than one year saw the biggest obstagrowth of individual ago, as well as this body’s cles were in long judicial present activity in workprocesses, but also in the companies ing groups. Competent lack of adequate knowlauthorities accepted edge and specialization priority requests from the industry and among judges, so we kicked off a series of incorporated those in work groups’ action panels between industry and the judiciary, plans, to be implemented by the end of 2019. together with the Ministry of Justice. We have until the end of the year to see the Another example of outstanding and success rate in implementing these requests, specific cooperation with the state is HRebut we are certain that their fulfilment will source that we initiated in cooperation with positively reflect on the overall growth of the Office of Prime Minister, which is being economic activity. Taking down non-tariff implemented under the auspices of the barriers is one of AmCham priorities in the National Academy for Public Administration field of foreign trade; however, a major export with a view to build and strengthen public chance for Serbia lies in aligning foreign administration capacities. This program, that trade procedures throughout the region. evinced our readiness to put our knowledge These should be gradually built, together and our members’ experience at the disposal with simplifying import procedure. of the state, is currently wrapping up its second cycle. Having in mind that the aim of the work of But that is not all. We have also put tothe AmChams in Europe is the exchange of gether several briefings, panels with other good practices, which practices of your colinstitutions, such as the Ministries of Interior, leagues would you like to see implementFinance, Construction, Transportation and ed here? Infrastructure, Tourism and Telecommunica23

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- Strong associations are crucial for the state and industry to cooperate, exchange experiences and fight for common causes. We are a high-level networking platform covering topics relevant for our market, but we also think beyond this. That is why we are an active part of European AmCham and that is why we are bringing them

Which of your practices would you like to share with others? How does AmCham Serbia stand out in comparison to your colleagues in other countries? - AmCham Serbia is genuinely renowned and recognized, not only in our country but in the European network as well. This is shown in the fact that Belgrade was chosen to host the European conference. We regularly familiarize our colleagues with innovations and practices that yield results. I must say that we are most proud of nearly 300 young people who have been part of our youth professional development programs for years, both students and managers. We use the youthful energy to promote synergy between the academic and corporate sectors. This is how we shape the leaders of the future, people who will soon (even sooner than most people think) lead the Serbian business community. We believe this is an excellent model for our colleagues in other countries.

Among other things, you are quite active in supporting the development of the IT sector and startup community. How much are these new parts of the economy interesting for your members coming from traditional sectors? all to Belgrade soon. That is going to AmCham Serbia - Digitalization is a major and imbe one exciting conference. The focus of our mid-October is genuinely renowned and portant topic for Serbia today. If we skipped a period of accelerated meetings with our colleagues from recognized, not only in our development in the 90s, due to sancall over Europe will be on exchanging experiences in various fields - human country but in the European tions and isolation, we have a serious ahead to lead the way. In order resources, finance, strategies of comnetwork as well. Therefore, task to foster the development of the IT municating with the broader public and Belgrade was chosen to host sector and startup community, we membership, access to advocacy and are focusing the bulk of our work many other fields that will enable us to the European conference on e-government, e-trade and ebe a better service for our members. commerce. We can proudly claim we are bridging the gap The importance of this event is proven by the fact that between the traditional and innovative. AmCham members employ 20 million people in more than We did not identify digitalization only now, but earlier 17 thousand companies - which stands for more than $1.1 when we recognized and networked women hailing from trillion in investments across the Atlantic. the business and start up communities who are together Our goal is to speak with a single voice. However, even ready to push the envelope in the technological industry. the best of voices needs regular training, development This was in the context of our Women in Tech Mentoring and improvement. Firstly, we would like to hear from our Program. We believe in the era of digitalization and the colleagues what the trends are over there since these fact that the education system must keep pace with foreign trends are often multiplied, if not directly transinnovations. Therefore, we planned for numerous trainferred, here. Our members represent the healthiest part ing sessions in the coming period, one of which is a very of the Serbian economy, which is why our association is interesting session about blockchain technology. more obliged to them and the local economy in general. 24

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APATIN BREWERY

BUSINESS

OUR TASK – A Positive Impact

On The Future! Whenever we produce, sell or drink beer, we leave a beer print. The beauty of our responsibility is that we care every day about making that impact positive!

he Molson Coors Brewing Company has recently announced a set of new global targets to reduce plastics in packaging. By 2025, a maximum volume of the company’s packaging will have been reusable, recyclable and biodegradable. This also supports the company’s goal of reducing packaging-related emissions, using more recycled material and improving recycling solutions in its priority markets. These goals are set out in the annual sustainability report. Apatin Brewery is engaging in many actions planned globally by the Molson Coors Brewing Group. One of the goals is for the brewery to have a constant positive impact on business, the community and the environment in which it works, leaving a kind of ‘beer print’. The employees of Molson Coors are therefore committed to the mission of raising awareness of responsible alcohol consumption, respecting environmental standards, improving health and contributing to the community in which they live and work. In 2018, 4,000 employees worldwide joined 5,500 people in local communities to make a positive impact on business, the environment and the community. Apatin Brewery is making a positive impact in Serbia by promoting responsible alcohol consumption, producing beer sustainably, contributing to the community and creating a positive business culture. WE CONSUME RESPONSIBLY! Working with the world’s largest alcoholic beverage producers and in cooperation with countries around the world, Molson Coors has pledged itself to reduce irresponsible and inappropriate alcohol consumption by 10 percent by 2025. Through the campaign “When I Drink, I Don’t Drive” and its cooperation with the Traffic Police Directorate of the Serbian Ministry of Internal Affairs, Apatin Brewery has been educating the public for 13 years about responsible drinking and the risks of alcohol. Effective checking of drivers’ alcohol levels by traffic police and preventive actions taken to raise awareness

of the harmful effects of driving under the influence of alcohol have contributed to a gradual reduction in the number of road accidents year by year. In partnership with the NAVAK Academy, training sessions for young drivers are organized each year. WE WILL NOT DUMP WASTE IN LANDFILLS! For Molson Coors, sustainable beer production means that by 2025 it will have reached Zero Waste to Landfill, that is, it will dump nothing into landfills. Apatin brewery currently disposes of just over 3% of its solid industrial waste in landfills. Other waste is reused, recycled or disposed of in any one of the statutory ways. Apatin Brewery has invested more than €13 million in its wastewater treatment plant, as part of a long-term solution of the brewery’s wastewater treatment. Production follows all environmental demands, rationalizing the consumption of water, carbon dioxide and electricity, and using natural gas instead of crude oil. Through the You Too Can Recycle campaign, proper disposal of packaging waste is effectively promoted and awareness raised of the importance of recycling. WE CONTRIBUTE DAILY TO THE COMMUNITY AND TO A GOOD BUSINESS CULTURE! Maintaining the balance between private life and business is a priority for the company and all its employees, who help to raise the bar daily in brewing beer and achieving the ambition - first choice for consumers. Apatin Brewery’s team helps the community by participating in many charitable sporting events. Every year, they run for the Belgrade Marathon for the BELhospice and participate in sporting tournaments, helping the first hospice for palliative care. This fall, the brewery employees will continue to make a positive impact through donations to the local community, marking the World Day for Responsible Beer Consumption and participating in the BELhospice Charity Tennis Tournament. 25

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INTERVIEW

MIKE DE LA ROSA, USAID MISSION DIRECTOR

Trying To Bring

TANGIBLE BENEFITS TO SERBIA Firm partnership and support for reforms define our relationship with the government of Serbia, the private sector, and civil society. Our aim is to help Serbia achieve its goal of EU membership

n July 8, 2019, the United States Government and the Government of Serbia signed agreements under which the United States will provide an additional $20.8 million in assistance to Serbia. “This assistance will allow USAID to strengthen its cooperation with the government of Serbia, the private sector, and civil society to help the country to continue growing its economy, which means more Serbians are working and putting food on the table for their families. The assistance funding will also let us work together to bolster the capacity of Serbia’s key democratic institutions. Ultimately, our aim across the board is to help Serbia achieve its goal of EU membership. That will take some time and effort. But we’ll strive to do this through a firm partnership, supporting those reforms and helping those organizations that make Serbia’s economy more competitive, strengthen rule of law, improve the regulatory environment, and combat corruption,” says Mike de la Rosa, USAID Mission Director. “I would like to note that since 2001,

the U.S. government has provided over one-billion dollars in assistance, not including loans and credit agreements. And with its well-educated and talented work force, Serbia has attracted four billion dollars in investment on top of that.” Knowing that USAID constantly and consistently supports these areas of work (rule of law, SMEs, etc.), what would you outline as the biggest achievements of your engagement in these fields recently? - There are so many good examples, so it’s hard to talk about just one or two achievements. However, one area of progress in recent years that really resonates with me is centred on making it easier to do business in Serbia. I’m talking about the dramatic streamlining of business inspections and attainment of construction permits. With these reforms, supported through USAID’s Business Enabling project, Serbia has become the tenth best country in the world in terms of the ease of obtaining required permits. And there are very tangible benefits

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to Serbia and the Serbian people. For example, this reform enabled IKEA to become the first foreign investor in Serbia to receive an electronic construction permit in 2015, a full 25 years after their first attempt to enter the Serbian market. What does that mean to the average Serbian? Well, IKEA’s investment in Serbia is worth more than EUR 70 million and has created hundreds of jobs. We are proud to have played a role in this change in the business environment, which will also serve to mitigate the brain drain from Serbia. Another crowning achievement in my opinion is USAID’s assistance in helping renovate misdemeanour courts throughout Serbia, including the largest one in the country, namely the Belgrade Misdemeanour Court which was previously spread across 13 different locations. Working alongside partners like the Ministry of Justice, High Court Council, and the Judicial Academy, USAID helped improve court operations with case-management systems and electronic registries. The integrated program is now used by over 2,000 misdemeanour judges and staff in 153 locations throughout Serbia. It facilitates real-time monitoring of individual court and judge performance, increasing both the efficiency and transparency of court proceedings, and it resulted in reducing the case backlog by over 80% in some courts.

services. For example, FinTech would allow someone to apply for a loan online, provide the required documentation and digital signatures, and in the end, save significant amounts of time for all parties. A bank could more easily monitor payments and cash flow from lenders, making the financial institutions more confident that small lenders have the cash flow to repay loans. Technically, these new approaches are possible; realistically, we need to find a way for the regulatory framework to embrace these new, cost-saving approaches are accepted and legislated.

In June, USAID organized a business forum to look at ways various financial technological solutions could be adapted to ensure greater access to financing for small businesses in Serbia. What can SMEs expect to come out of the discussions at that event? - At the Financial Technologies Business Forum, USAID focused on how to expand access to financing. For Serbia to more aggressively grow its economy, entrepreneurs require greater access to financing so they can adequately meet the demands of the private sector, while at the same time, create more jobs. When starting a business, nearly three quarters of Serbian entrepreneurs either use their own savings or rely on help from family and friends. Aspiring entrepreneurs are forced to do this because most small businesses do not qualify for bank loans. And banks aren’t particularly interested in small loans because it’s simply too administratively burdensome for banks to process a loan, to determine if a small customer can pay the loan back, monitor the loan, and finally, to collect on it. FinTech, which is short for “financial technologies,” is the term commonly used to describe 21st century methods to improve and automate the delivery and use of financial

es. How do you cooperate with the businesses and the government on these issues? - When people think of “agriculture,” many, especially city dwellers, just picture a farmer on some piece of land. But in today’s competitive markets, it’s much more than that. If you want to export, say, ajvar, on a large scale, someone needs to grow the peppers, transport them to a plant for cleaning and processing, ship the cases of jars, clear them through customs, and get them into the hands of foreign buyers who can enjoy this amazing Serbian product. This is a very simplified explanation that doesn’t capture all the intricate steps required to export that ajvar, or raspberry jam, or other processed foods. What USAID is trying to do is help streamline and optimize every step along the value-chain to bolster Serbia’s ability to compete on the world stage. A couple successes that come to mind are the four USAID-supported facilities that provide support services that have helped 20 food start-ups enter both domestic and international markets. Over 30 new products are now found on the retail shelves of major domestic chains. To name just a few examples with which you might be familiar -- there’s

In the same fashion, USAID intervention is focused on boosting agriculture exports as well as lending for agribusiness-

We are proud to have played a role in important changes in the business environment, which will also serve to mitigate the brain drain from Serbia

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“Real Red Raspberry” whole fruit raspberry spread, there’s “NatBar” raw energy bars, and who can forget those delicious “Dolovac Organic” dried fruit rolls. Just one more example that I’d like to mention before moving on is the export of Serbian apples to the United Kingdom. They’ve actually now increased ten-fold in value. This is due in large part to two key issues that USAID has helped the start-ups focus on: improved quality control of their products and improved marketing.

To what extent is the institutional framework ready to accept new fundraising techniques and players? - As I mentioned earlier, the current regulations and laws have not kept up with the rapid change in technology. As one stark example, only banks can legally provide loans. Why only banks? Other countries are not nearly as rigid, and that means that Serbian companies have a harder time competing in the world economy. The good news is that the Ministry of Finance is one of our partners in developing a Law on Alternative Investment Funds that we all hope to see adopted this year. This law alone would markedly increase access to finance, including for innovative start-ups and digital-based businesses.

to fund local community projects nominated and voted on by people of the same community. So, the great thing about this initiative is that everyone really does benefit. Individuals now receive a discount on their purchases at participating stores, which build up a larger base of customers. Citizens can also nominate initiatives and projects to be funded through purchases made with the card; they get to vote and decide which ones should be supported; and they are also the beneficiaries of the local initiatives that receive the funding. The card is already being used in Sremska Mitrovica, Novi Pazar, Leskovac, Obrenovac, and Krusevac. We hope to see the card used nationwide within three years. How else do you cooperate with local communities? - We believe that the road to self-reliance begins with locally-led development. As such, we try to respond to local needs and empower local actors through different interventions. Let’s look at our civil society portfolio. We are all about engaging citizens to focus on issues they think are important to their communities. This can include everything from fighting corruption to improving the media environment. According to World Bank’s and European Commission’s recent reports on citizens’ experiences with and perception of the justice system in Serbia, only one in four citizens trusts the justice system, identifying citizens’ access to justice and access to information as major issues of the judicial reform process. With our local partners, we helped bring the judiciary closer to the citizens it serves by establishing several mechanisms of communication between citizens and representatives of the judiciary. Just a couple of examples include the initiation of local council meetings across 15 Basic Courts and the development of the online ‘Gateway to Justice’ educating people on their rights and how to optimally utilize them as they navigate the justice system. We work with industry leaders and associations on developing cooperative economic models in order to help contend with the challenge of consolidating the fruit and vegetable processing sector while increasing exports. For example, we partnered with the Sirogojno company, one of the largest exporters of frozen fruit from central Serbia, to improve product quality and meet food safety requirements of their supplier networks utilizing more modern technology. As a result, Sirogojno has added 15 cold storage facilities and increased its frozen and dried fruit supplier base by over 300 SMEs and farms.

We try to respond to local needs and empower local actors through different interventions

Earlier this year, USAID helped launch the Really Important Community Card as a way of supporting local businesses and financing local community projects. Could you please explain the concept of the card and who benefits from it? - The Really Important Community Card is an innovative customer loyalty card developed through our Framework for Giving Project, implemented by the Ana and Vlade Divac Foundation. As you mentioned, it’s also interestingly enough a fund-raising tool. Here’s how it works. Citizens receive a discount if they show the card when making purchases at participating stores. One percent of purchases made using the card will be donated 28

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EXECUTIVE DIRECTORS OF THE AMCHAMS, MEMBERS OF THE AMCHAM EUROPE (ACE)

A Truly

INSPIRING EVENT

The forthcoming European Conference to be held in Belgrade is a great opportunity for each AmCham Europe (ACE) member to hear and inspire others for new ideas, infuse new energy and motivate them to work further on improving transatlantic relations, business development, and job creation between the U.S. and Europe

O 30

n October 16â&#x20AC;&#x201C;19, AmCham Serbia will host one of the two annual events of the European association of the AmChams: the European Conference. We asked the executive directors

of member associations of ACE about their expectations related to the conference and more importantly about the role the AmChams play in economic development in their respective countries.

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AJŠA VODNIK

CEO, AMCHAM SLOVENIA

VISIONARY THINKING AmChams are an ecosystem of human interaction, as well as synapses of progressive thinking that can play a pivotal role in improving the business and living environments in their respective countries Best practice exchange, empowering the best ideas, visionary thinking, meeting interesting people and new learning from my colleagues across Europe and of course some “Balkan style” partying - these are my expectations from the annual European Conference in Belgrade. In my opinion, AmChams are an ecosystem of human interaction, as well as synapses of progressive thinking. By being proactive,

ANDY HUNDER

PRESIDENT, AMCHAM UKRAINE

GREAT OPPORTUNITY TO SHARE BEST PRACTICES AND OPINIONS 2019 was very interesting across Europe, including for the Ukraine where the country elected a new president, and we look forward to sharing insights to share with colleagues from the ACE network I am delighted to have the opportunity to visit Belgrade, and we are all very grateful to Vera and all the AmCham Serbia team for hosting this event. It is indeed a great opportunity to showcase to the heads of AmChams across 42 European countries, the best of what Serbia has to offer. As a tradition, the AmChams in Europe Conference will serve as a great opportunity to share best practices and opinions on pressing

AmChams can play a pivotal role in: Connecting, collaborating and spreading optimism by creating various networking events, addressing numerous current topics, fostering the exchange of good business practices, and creating platforms that offer unique opportunities to collaborate, connect, and exchange knowledge. Improving general business and living environment in the country. By uniting a great wealth of people from various industries, fields and profiles, AmChams are an authentic treasure trove of knowledge. By joining knowledge and expertise, they can suggest plausible changes and open dialogue with the state to inspire and initiate positive changes in business and living environment. Professional as well as personal development of people in the community. AmChams can play a crucial role in the development of people who are part of the communities, with a strong emphasis on young leaders. Student internships and many diverse mentorship and coaching programs, in-tended for young professionals as well as senior leaders, provide an opportunity for the AmChams to bring generations of young and active individuals together. Promotion of American Business & International Collaboration. By being promoters of the im-portance of transatlantic relations, business development and job creations, AmChams can repre-sent an entry point for companies that want to enter the US market, and open doors to potential foreign as well as domestic investors.

issues of today’s business world, as well as to discuss policy issues that impact members from different AmChams across Europe. 2019 was very interesting across Europe, including for the Ukraine where the country elected a new president, so obviously there are a lot of insights to share with colleagues from the ACE network. Plus, we will announce the winner of the ACE Creative Network Award. I am very grateful to Vera and her team for hosting our AmCham Ukraine Healthcare committee coordinator at AmCham Serbia in Belgrade this summer. This was a good opportunity to share best practice in Healthcare reform in non-EU member states. The American Chamber of Commerce is the oldest international business association in the Ukraine, operating since 1992. For 27 years, AmCham Ukraine has been standing up for business, taking care of international companies operating on the ground, and attracting Foreign Direct Investment to strengthen Ukraine’s economy and improve the investment environment. The primary role of AmCham Ukraine as the country’s top B2G platform is to deliver the voice of business at the highest level, offering unique access to key politicians and advocating for pro-business initiatives. Our recent survey shows that 74% of our members have noticed their businesses grow in the Ukraine last year; three quarters are forecasting continued growth into 2019. AmCham members believe in the Ukraine, have great success stories to share, and AmCham Ukraine supports them to make their business grow and expand. 31

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DARIA SIVOVOL

CEO, AMCHAM ESTONIA

PROUD OF OUR WORK The Estonian AmCham is by far the most active and influential business organization in Estonia. We are not big in terms of numbers, but we are very important when it comes to thoughtleadership, advocacy and impact

ELIAS SPIRTOUNIAS EXECUTIVE DIRECTOR, AMCHAM GREECE

LOOKING FORWARD TO BEING IN BELGRADE The program set by AmCham Serbia looks excellent, and I am confident it will serve greatly the scope and goals of the conference

This annual gathering is very important for the chambers since it provides the opportunity to their managers and senior staff, who occasionally also participate, to discuss and exchange views on many common issues the chambers are dealing with, 32

I am very excited about the upcoming conference in Belgrade! Not only it will be a new destination for me to discover, as I have never been to Serbia before, but also it is always a highlight of my fall business season. I get truly inspired by our colleagues from so many different AmChams all across Europe, their projects and successes. I come back with lots of new ideas, new energy and definitely motivation to continue striving in my own chamber! Our AmCham is by far the most active and influential business organization in Estonia. We are not big in terms of numbers (appr. 140 members), but we are very important when it comes to thought-leadership, advocacy and impact. We are truly proud of our extensive Advocacy & Policy reach in Estonia, our strong voice in the business community and with policymakers and information intelligence that we are able to provide through our 40+ events during the year. I am especially proud of the Women in Leadership series that we have been running for the last five years and that has become a true flagship program for AmCham Estonia.

to present and share best practice and benchmarks, and finally to meet with local business and senior administrative officials of the host country. The program set by AmCham Serbia looks excellent, and I am confident it will serve greatly the scope and goals of the conference and we look forward to our participation and presence in the beautiful city of Belgrade. AmCham GR is considered to be one of the most dynamic and vocal business body in Greece today. Having been established in 1932, AmCham GR is one of the oldest American Chambers in Europe and worldwide. With a corporate membership today of more than 700 companies operating in Greece, including American companies doing business in Greece and major Greek enterprises doing business in or with the U.S., the Chamber continues to encourage and facilitate trade, investment and professional partnerships from both sides of the Atlantic. It serves as an effective spokesperson to governments and their agencies in order to obtain effective results in policy matters affecting Greek-American economic and trade relations, and as a liaison between the government and the private sector regarding general and specific points of concern. Through the organization of top-quality events, exhibitions, fora, seminars, and congresses on both sides of the Atlantic, AmCham GR manages to raise awareness and effectively advocate for the interests of its members and the business community in extend.

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JAMES LASRY

PRESIDENT, AMCHAM GIBRALTAR

ALIGNING POLITICAL EFFORTS WITH POLICY OR COMMERCIAL INTERESTS AmCham Gibraltar’s expectations are to use the ACE conferences to get to know our fellow colleagues better and work together to learn our collective best practices

AmCham Gibraltar is the youngest AmCham in Europe and for associations such as us, the value of joining conferences such as this enables us to meet with long established AmCham organisations and seasoned AmCham leaders from the various countries. AmCham Gibraltar’s expectations are really to use each of these conferences to get to know our fellow colleagues better and work together to learn our collective best practices so that we can help to implement these locally for our community and stakeholders. As Henry Ford said, “Coming together is a beginning. Keeping together is progress. Working together is success.” As a superpower, the United States has a unique ability to shape global events. We believe that AmCham Gibraltar’s role is to help build lasting relationships between the US and Gibraltar so that our local stakeholders can benefit as much as possible from this superpower relationship. Be it in helping to align political efforts with policy or commercial interests in trade or even inspiring the youth of our country with educational and cultural exchanges. AmCham is the door to help facilitate, nature and grow all of these aspects for our home country. AmCham Gibraltar’s role is of integral importance on the advocacy aspect.

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MARKO MIROČEVIĆ EXECUTIVE DIRECTOR, AMCHAM MONTENEGRO

SUCCESS AND NOTHING LESS My expectation is that this year the conference in Belgrade will be a total success. Knowing AmCham Serbia very well, I am sure that the organization will be great The AmChams in Europe Best Practice conferences are meant for us to learn from each other, familiarize ourselves with the best programs that we implement in the countries in which we operate, exchange views, and network. My expectation is that this year the conference in Belgrade will be a total success, it will fulfil its purpose and knowing AmCham Serbia very well, I am sure that the organization will be great. We live in a world that is changing exponentially, and as an organi-

SUSAN DANGER

CEO, AMERICAN CHAMBER OF COMMERCE TO THE EU

INSPIRATION FOR BRUSSELS TEAM Over the years I’ve enjoyed seeing the projects presented during the Creative Network Awards. Some of them have provided me with ways to improve or change AmCham EU’s work The annual European Conference is an excellent opportunity for the AmCham Directors and members of their teams to exchange best practices and, most importantly, to learn from each other. The conference is a unique opportunity to share common challenges and to get new ideas. I am always inspired by the work and commitment of my peers from other chambers. 34

zation which is committed to the development of the business environment, our task is to embrace the change and drive it. That is why future development of the organization will be highly positioned on the conference agenda. AmCham Montenegro represents the strongest collective voice of the international business community in Montenegro. Our mission is to improve the business environment in order to attract more US and other investments to Montenegro. In order to succeed in that, we have focused our activities to develop a culture of public-private dialogue in Montenegro, in which business organizations are viewed as decision-makers partners in shaping the business environment. In the last couple of years, thanks to our Partnership for a Better Business Environment Program, we are having significant success in that sense. Our unique approach, the dialogue model, has been appreciated by the Montenegrin Government, and the results that we have obtained in influencing legislation improvement and business barriers removal are widely felt by our members. I’m also proud to say that AmCham Montenegro is a leader in promoting corporate social responsibility (CSR). For the development of our economy, foreign investments are very important, but not only in terms of money and workplace generation, it is also about importing business best practices that have CSR values in their core. That is why we are proud to promote and represent companies that care for people and the environment in which they operate.

For example, over the years I’ve enjoyed seeing the projects presented during the Creative Network Awards. Some of the projects have provided me with ways to improve or change AmCham EU’s work and inspire my team back in Brussels. I also appreciate the opportunity to share some of our approaches and experiences. Overall, I get a lot of energy from interacting with my peers – I was sad to miss the last AmChams in Europe gathering, so I am really looking forward to the upcoming Best Practices Conference. I hope that collectively, we can continue to show the commitment of our member companies to Europe. AmCham EU speaks for American companies committed to Europe on trade, investment and competitiveness issues. It aims to ensure a growth-oriented business and investment climate in Europe. AmCham EU facilitates the resolution of transatlantic issues that impact business and plays a role in creating better understanding of EU and US positions on business matters. Aggregate US investment in Europe totalled more than €2 trillion in 2018, directly supports more than 4.8 million jobs in Europe, and generates billions of euros annually in income, trade and research and development. As a recognised and trusted policy partner we provide constructive input and expertise to the regulatory work of the EU institutions. Our mission is (1) to build a stronger and more united EU; and (2) to maintain and strengthen the transatlantic relationship.

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BUSINESS

MARINKO UKROPINA, MANAGING DIRECTOR AT SGS GROUP FOR SERBIA, CROATIA, SLOVENIA, B-H AND MONTENEGRO

CERTIFICATION Opens Many Doors

SGS Group is the world's largest company for control, testing and certification, and represents an unrivalled authority in terms of the quality of its expertise. Having existed for over 140 years, it operates in more than 180 countries, of which Serbia is only one

y possessing a valid certificate, the company proves to its customers that it is a less risky supplier, and that is the basic reason why certificates are insisted on in the EU and the developed world. The range of services that SGS provides is huge and expands in line with trends. SGS has existed for more than 140 years and operates in more than 180 countries. Do world trends transfer automatically to our market or do you still adapt them to our region? - Certain services that SGS provides in our region, such as management system certification or product certification, are implemented according to methodologies that are harmonised at the global level. However, we tailor certain services to our region, primarily in the areas of education and advancing operations. Within the scope of the SGS Academy in Serbia, we’ve developed a number of courses aimed at meeting the specific demands of our clients, and as a company we wish to thereby contribute to advancing the economic environment in our region.

higher. Of the total, the largest number of certificates were issued in the food, pharmaceutical and construction industries. Your certificates ease the export of Serbian products and protect us from imports of poor quality products. Is certification among the first steps towards joining the EU and the developed world? - We need to differentiate between the certification of an organisation, i.e. business system organisation, and product certification. The certification of an organisation according to certain international standards confirms that it’s able to meet the needs of its customers and stakeholders in continuity, while product certification confirms that a product is safe to use and meets the requirements of certain technical standards relevant to that product. We are witnessing accelerated changes to operations. Customers and stakeholders are increasingly demanding, and in this sense organisations are increasingly focused on establishing a business risk management system with a particular focus on the “supply chain”. By possessing a valid certificate you confirm to your customers that you are a less risky supplier for them, and that’s the main reason why certificates are insisted on in the EU and the developed world. Among other factors, why would they take on the risks of your operations or poor product quality? It is very important that through the education process, starting from college, there is an insistence on the importance of applying international standards, because that is the framework within which our companies and their employees will have to “play” a very complex market game.

Possessing a certificate just to meet the requirements of a tender or similar process doesn’t contribute to long-term progress

How many certificates have you issued to date in Serbia and are you satisfied with that number? In which industry have you issued the most? - SGS Belgrade, as a certification body, has so far issued more than 2,000 certificates for management systems. This is a significant number of certificates issued, especially considering the number of certificates issued by other certification bodies in the wider region. However, we believe that the total number of certificates issued for management systems in Serbia (which can be viewed at www.iso.org / ISO Survey) should be significantly 36

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JELENA KNEŽEVIĆ, DIRECTOR, LEITNERLEITNER

BUSINESS

NEW LAWS

Increase Sureness

LeitnerLeitner is one of the most influential tax consulting and auditing companies in Central and Eastern Europe and is getting more and more recognized in Serbia due to professionalism and high quality of services provided to the clients

e recognized the significance of CEE countries early on and can therefore offer our clients the best course of action. Tax optimization, tax planning, and successfully business strategy that are tailored to each client’s needs – that’s what we aim to achieve for our clients by offering comprehensive advice In order to achieve harmonization with EU regulations (Directives 2013/34/EU, 2014/56/EU and 2014/95/EU and EU Regulation 537/2014), as well as MONEYVAL recommendations, Draft Law on Accounting and Law on Audit have been introduced, suffering significant changes, in compare with current laws. It is anticipated that new laws will enter into force on January 1, 2020, with the exception of articles which should apply from January 1, 2022 or from the date of accession of the Republic of Serbia to the EU.

by April 30th of the following year. As for legal entities whose fiscal year differs from calendar year, the deadline is three months from the balance sheet date; * Invoice, as an accounting document, must be in electronic form; * Register of accounting service providers has been introduced, which is to be kept by the Serbian Business Register Agency (SBRA), while licences for providing accounting services would be issued by the Chamber of Authorized Auditors. The most discussed change is introduction of professional titles, which becomes a condition for issuing a license for the accounting firms. The transitional provisions of the Draft Law on Accounting will prescribe an obligation for entities to provide, within three years from the day this law enters into force, evidence that at least one person with a professional title in the field of accounting or auditing has been employed.

The Draft Law on Accounting outlines the following significant changes: * The criteria for legal entities and entrepreneur’s classification have been completely harmonised with EU Directive (Directives 2013/34/EU); * Groups of legal entities are defined, which are now classified into small, medium and large groups using the same criteria and thresholds for small, medium and large legal entities, but on a consolidated basis; * Full IFRS/IAS implementation is allowed for all entities, regardless of its size. However, it is still not specified when the official translations of latest IFRS/IAS will be published; * Notes to financial statements are now part of annual financial statement set for all entities, except entrepreneurs and other legal entities classified as micro entities; * Deadline for annual financial statement’s submission is March 31st, while consolidated financial statements should be submitted

The main changes within the Draft Law on Audit are as follows: * Obligatory audit report content harmonized with EU Directive; * It is stipulated that audit firms with one full-time licenced auditor are obliged to conclude cooperation agreement with another audit firm; * The Draft Law defines the possibility of contracting a statutory audit with more than one audit firm for companies of public interest; * Quality control of audit firms and licensed auditors is under the jurisdiction of the Securities Commission of RS (currently performed by the Chamber). According to the legislature, the ultimate goal is to improve the quality of corporate financial reporting and strengthen confidence in financial and audit reports. It should contribute to better assessment of future business performance, enabling investors to make a perspective investment decision as well as to reduce the risk of financial crises and its negative impact on economy.

The ultimate goal of amending the law is to improve the quality of financial reporting and to strengthen confidence in financial and audit reports

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BUSINESS

ĐURA MIJATOVIĆ, GENERAL DIRECTOR OF ŽIVKO MIJATOVIĆ & PARTNERS D.O.O. (LTD.)

No Progress

WITHOUT INNOVATION Law Office Živko Mijatović & Partners (ZMP) was established in Belgrade in 1939 as a general practise law firm, while over the last 30 years its lawyers have become experts in intellectual property rights. ZMP has a network of offices in 15 countries of Central and Eastern Europe

boundaries between the physical and digital, and placing y aligning its regulations with the legislation of innovative solutions at the top of our priorities when it the EU, Serbia is advancing well on the road to comes to the advancement of civilisational flows. establishing legal certainty and effective enforcement of intellectual property rights, which will The headquarters of your office is located in Alicante. result in the creation of a more favourable environment Apart from Spain and Serbia, where for technological development and do you have offices? advancing protections in the turnover Intellectual property rights else - The office of Živko Mijatovic & Partof goods and services. are historically relatively ners provides intellectual property Innovations are taking over the place young compared to all other protection and advisory services in a total of 15 European countries. that used to belong to material items acquis, so these types of Apart from offices in Alicante (Spain) – resources and raw materials. Does and Belgrade (Serbia), we also have this mean that intellectual capital is challenges are equally direct presence in Albania, Bosamong the most important resourcpresent in our country as they ania-Herzegovina, Bulgaria, Croatia, es today? are around the world Czechia, Hungary, Kosovo*, North - Intellectual capital is undoubtedly Macedonia, Montenegro, Poland, one of the key resources of the modRomania, Slovakia and Slovenia. ern age. Now that we are at the threshold of the fourth industrial revolution, which represents the upgrading To what extent are our intellectual property laws harof digitalisation that began in the middle of the last monised with European Union regulations; do we need century, the emphasis is increasingly shifting from the further alignment? mass production of material goods to the creation of new - National laws in the domain of protecting intellectual technologies. This new kind of “production” is erasing the

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property rights are largely aligned with EU regulations. According to the European Commission’s latest report, Serbia has achieved a good level of alignment in this area. Significant progress is considered as having been made with the adoption of amendments to the Law on Patents, as well as with the adoption of a new strategic framework for the 2018-2022 period. In the period ahead we also expect the adoption of the new Law on Copyright and Related Rights, the new Law on the Protection of Topographies of Agricultural Products, as well as important amendments to the Law on Trademarks. The objective of amendments to the existing legislative framework in this area is to create a favourable environment for future business operations as a full member of the EU’s internal market. EU Accession Negotiation Chapter 7, which regulates the issue of harmonising laws in this field, aims to establish legal certainty and the effective enforcement of intellectual property rights in the Republic of Serbia, which will actually result in the creation of a more favourable environment for technological development and the improvement of protection in the turnover of goods and services.

- Familiarisation with new technologies and their constant advancement primarily represents a challenge for users. By extending on existing foundations, it is actually authors themselves who are pushing the boundaries when it comes to new technologies. They don’t represent a challenge for them, but rather, on the contrary, they provide the impetus for further creation. The legislator, on the other hand, faces certain challenges that relate primarily to the adequate implementation of innova-

PostalAddress:P.o.Box526,11000Belgrade,Serbia A i r C o u r i e r : S t u d e n t s k i T r g 4, 1 1 0 0 0 B e l g r a d e , S e r b i a e-mail:patents@zm-p.com,FAX:+381113341792 Tel:+381113341771,+381113341797

The new era is erasing the boundaries between the physical and digital worlds, and placing innovative solutions at the very top of priorities

How would you assess existing procedures in Serbia for the registration and protection of any form of intellectual property, or any creation of the human mind? - Formal procedures for the registration of industrial property in the Republic of Serbia are conducted by the national Intellectual Property Office. Here I’m deliberately singling out industrial property, given that copyright protection and related rights are not subject to formal protection procedures. The length of procedures at the national Intellectual Property Office are largely within the boundaries of the practise of most European institutes of this kind, and even considerably shorter compared to some countries of the region. As an example, I would like to single out the trademark protection procedure, which lasts – from the moment of filing until final registration – between six and nine months in Serbia.

New technologies have imposed new demands and challenges on authors and national legislatures. Are we dealing with this in the right way?

tions within the scope of existing legal solutions. However, given that intellectual property rights are historically relatively young compared to all other acquis, these types of challenges are equally present in our country as they are around the world.

How important is it for exporters to think in advance about the protection of the origin of goods through geographical indication? - Geographical indications of origin by their very nature can be, and most often are, a significant marketing tool that guarantees an advantage for the authorised user over the competition on the market, given that its use guarantees the origin, control and, ultimately, the quality of a product or service provided. In the case of Serbia, when it comes to geographical indications of origin, we usually mean agricultural or artisan products, such as “Homolje honey” or “Pirot rug”, the protection of which enables their producers to enjoy a certain monopoly on trade. Moreover, they perhaps also play a significant role in promoting domestic culture and craftsmanship beyond the borders of our country. 39

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BUSINESS

NEBOJŠA ŠKULJEC, DIRECTOR, MERCK SHARP & DOHME

INNOVATIVE MEDICINES

Will Save The World Merck Sharp & Dohme is one of the top American biopharmaceutical company, global leader in providing innovative solutions in medicines, vaccines and biologic drugs. In the US, MSD celebrates its 130th anniversary; in Serbia, 23 years of business operations

- Immuno-oncology (IO) is one of the fastest growing therapeutic areas in the pharmaceutical sector. Therefore, IO is expected to become backbone treatment for numerous tumor types. One of the greatest advances that we’re already witnessing is in the increased survival rate of patients with advanced malignant melanoma and lung cancer, who now have the chance to live longer with great quality of life. MSD Serbia has initiated a medical Merck Sharp & Dohme is one of the world’s largest pharmaceuprogram worth $10 million for the treatment of 70 patients with tical companies dedicated to identifying and introducing new lung cancer in Serbia, allowing 70% of them to surivive the first medicines, vaccines and biological therapies. What is the globyear of treatment. al meaning of your slogan “Inventing for Life”? In addition to our research in the field of oncology, as the - MSD is one of the top American biopharmaceutical companies, fastest-growing in the industry, we’re committed to bringing an a global leader in providing innovative solutions in medicines, Ebola vaccine to market, and we remain one of the few companies vaccines and biologic drugs. While MSD celebrate its 130th annistill committed to studying antibiotics. MSD was also among the versary globally, in Serbia we’re proud to mark 23 years of business first to discover and develop medicines for operations, commitment to the Serbian treatment of HIV, a vital step in makhealthcare system, and patients. This also At MSD Serbia, we are focusing our the ing HIV a survivable condition, and we’ve includes philanthropic and CSR activities efforts on telling the story of our remained at the forefront of HIV research. reaching market value of over $30 million in spending in Serbia. medical inventions and making As the representative of a major U.S. pharFor more than a century, MSD has been them accessible to our patients maceutical company, you head the Health inventing medicines and vaccines for many Committee of the American Chamber of of the world’s most challenging diseases. It Commerce, which advocates the introduction of numerous inmeans that 125 million children who would have died from measles novative therapies to Serbia. How would you rate your cooperwere given a chance to live; 110 million people live without fear of ation with the Serbian Health Ministry? river blindness; a second generation of people with HIV live full lives, - We are actively engaged in several trade associations where and we are raising new generations who will never know anyone AmCham is one of the key stakeholders for enabling active with tuberculosis, hopefully one day also with cervical cancer. dialogue between the public and private sectors. The main topic Through Merck for Mothers, our flagship CSR initiative through in these discussions is the need for improvement in access to inwhich MSD has committed investment of over $500 million, we’re novative medicines, where Serbia is still lagging behind European helping to improve the health and well-being of mothers during pregcountries. Nevertheless, we remain confident that the Ministry nancy and childbirth, helping to make sure that giving life is safer. of Health and the Health Insurance Fund, both of which recognize the importance of this issue, will find sustainable solution in Global HealthCare ranked your immunological therapy as number cooperation with the Ministry of Finance to increase investment one among the Top 10 most promising life-saving medicines a few behind innovation. years ago. Are you working on other discoveries of equal importance? SD’s scientists contunue to work relentlessly to find solutions for many of the world’s most devastating diseases, pushing the boundaries of science with the hope that the medicines we invent will lead to better health for society and generations to come.

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ZORAN NAUMOVIĆ, LAWYER, NAUMOVIĆ & PARTNERS

BUSINESS

EXPERTS In ICT Law Naumović & Partners is a medium-sized law firm with professionals and experts who have been working on the most fascinating and complex legal issues in Serbia since 1995. In recent years, they have been recognized as experts in information technology law

T contracts and disputes are specific because they carry risks that can often lead to immeasurable damage and costs, and the problem is that there are as yet no specialized ICT court departments in Serbia.

Almost a quarter of a century ago you founded your own law firm, which today is one of the leaders in Serbia. At that time you probably didn’t imagine specializing in information technology law. Is this area of law currently seeing its fastest expansion?

- We have been in the Corporate-IT-IP magic triangle almost from the beginning, and today it is our unique expertise in the market that is the essence of ICT law. ICT law today is multidisciplinary: in addition to software, intellectual property rights, corporate, status and contractual issues, there is employment, data protection, GDPR, internet services, trade secrets, knowhow, e-commerce, criminal law in terms of cybercrimes, not to mention blockchain technology, 3d printing, IoT (Internet of things), AI (artificial intelligence) and machine learning, social media, influencer contracts, smart contracts, tax issues related to all these, and much more. The fact is that ICT law is experiencing its greatest expansion today. This trend will continue, since we are

probably on the threshold of a new revolution, it is only a question of which new technology will be the smash hit of that technological revolution. How are IT contracts and disputes different from others? - Contracts and disputes related to information technology are specific because they carry risks that can often lead to immeasurable damages and costs, which in our practice is known as “Contract Disaster” and even may result in shutdown of large companies. Often the contract itself is good, but the “legal mechanisms” under which that contract operates, that is, the acts or other contracts or relations over certain rights within the contracting party, are not good, that can become a trigger for a chain of damages affecting the contractor, subcontractor, users, company, etc. As for disputes, the problem is that we do not yet have specialized ICT court departments yet, so the outcome of disputes is uncertain. That is why our advice is: regulate a relationship with a contract, to ensure trial by the contract, and not by law.

Clients are advised to regulate an ICT relationship by means of a contract and if necessary be judged by the contract rather than by law

For IT law, do only big IT companies, developers, come to your law office? - We mainly work with high-tech companies that are not necessarily in the IT industry, but with companies both in and out of the IT sector that encounter IT contracts or that need to reduce or manage IT risks. We have also recently been approached by start-ups that are becoming aware of the risks they face when developing products and services or collaborating with or selling their company, and with funds when they are assessing certain start-ups. 41

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BUSINESS

PROF.DR MIROSLAV MALEŠEVIĆ, PRODUCER’S EXPERT ASSOCIATE

SAFE, HIGH-QUALITY,

And Declared-Serbian Seed!

Best Seed Producer is a refining centre for the production and marketing of seed products. Established in 2009, its main activity is the processing and packaging of agricultural crop seeds or, more precisely, of cereals, corn and oilseeds

n the past decade since its beginnings, the company has been constantly growing and developing, ever following its vision of winning a lead position in agribusiness. Best Seed Producer, or BSP, has the most advanced seed processing equipment in this part of the Balkans, purchased from reputable companies like Cimbria - Heid. Due to its good geographical location in the heart of Vojvodina, the largest grain-producing area of south-eastern Europe, and also because of its technical equipment, professional staff, and sound management, Best Seed Producer is the largest finishing center in the region. Here you can get many services in one place: receiving and storing natural seeds of various cultures, testing, declaring, finishing and packaging seeds. Besides sowing seeds, the company can provide a complete service for commercial goods. Of course, the finishing center in Srbobran has a large warehouse capacity for both natural and finished goods: the complete cycle. In terms of finishing center facilities, the completest, highest level service is provided. BSP has: • Dryers for corn seed (Two driers for drying raw clips of sowing corn with a total capacity of 500 tonnes. Daily reception capacity is 160-180 tons of raw clips). • Line for finishing and packing cereals (Processing capacity 400-450 tons of packaged wheat seed per 24 hours (17-20 t/h). Packaging in the range of 20-50 kg. Equipment manufacturer Cimbria Heid).

• Soybean processing and packaging line (Finishing capacity 20-25 t/h. Note that ventilation extractor systems are installed on all machines, which further improves the quality of finish and essential for finishing and packaging). • Corn seed processing and packaging line (Daily packing capacity on two lines of 15,000 SU. The same lines pack sunflower seed in SU from 25,000 to 150,000 seeds). • Dryer for commercial corn (Vertical flow dryer for drying mercantile corn. Capacity 30 tons/h). Besides its refining centre, its services and high capacity, Best Seed Producer works exclusively with Serbian-declared varieties, which in every aspect are the finest on the market both in yield and quality. “Serbian-declared seed has been created in the conditions of our country’s agro environment and, as such, has a far greater potential for yield and quality than foreign varieties because they were simply developed under different conditions. As soon as the seed is declared, it means that it has been produced under the control of all the right experts, and this is the only way to sow seed,” says Best Seed Producer’s expert associate Professor Dr Miroslav Malešević. For years, the company has been the general representative and distributor of NS wheat varieties produced at the Institute of Field and Vegetable Crops in Novi Sad. Its policy is to distribute only the best, Serbian-declared seed. We can also boast of successful and fruitful cooperation with the Zemun Polje Institute, which says a lot about how serious and successful we are in the field of finishing, distribution and packaging of seed and commercial goods.

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NEW PERFORMANCE MADE IN COOPERATION BETWEEN THE HOUSE OF JEVREM GRUJIĆ AND THE U.S. EMBASSY IN SERBIA

CULTURE

TWO WOMEN ONE WAR Tea Party 100 Years After

JELENA LOZANIĆ

MABEL GRUJIĆ

In the early days of December, under the patronage of the U.S. Embassy in Belgrade, the House of Jevreme Grujić, a museum of history, arts and diplomacy, will bring you the fascinating story Two Women One War – Tea Party 100 Years After

his performance is about the friendly relations between two nations, the Serbian and the American, during the Great War, in the most horrific moments of our history, as reflected in the intertwined fates of two women, who spent years striving, promoting and representing Serbia, serving the country in such diplomatic mission throughout the world. One of these two women was American, Mabel Dunlop Grujić, who married Serbian diplomat Slavko Grujić, and the other was Serbian, Jelena Lozanić, who later married John Frothingham, one of the greatest American benefactors of the Serbian people. Both of these women have two homelands – Serbia and the U.S. For her extraordinary humanitarian work, Mabel Grujić was christened by the world press as “the Serbian Joan of Arc”. They wrote that she managed to gather and unite American ladies from high society and to get them to knit wool socks for Serbian soldiers fighting on the frontline. She stayed together with her adopted people went through trials and tribulations crossing Albania on foot, an experience which left her unable to have children. Together with Mihajlo Pupin, she made shelter homes for Serbian orphans and mobilized U.S. doctors to come to Serbia to help their colleagues. The lecture she gave at the Princeton University about the sufferings of the Serbian people was attended by more than four thousand students, as well as Woodrow Wilson, who was the president of Princeton University at the time, and who later became her great friend. One of the most enduring achievements of Mabel and

Slavko Grujić was to urge the Carnegie Foundation to send money, in the amount of US$ 100,000, for the construction of the university library in Belgrade, which has remained one of their greatest contributions. Meanwhile, Jelena Lozanić, daughter of Sima Lozanić, the first rector of Belgrade University, was a staunch activist who fought for women rights. During the Great War she volunteered as a nurse and took care of Yugoslav children orphaned by the war. In wartime, in the period from 1915 to 1920, she went on an important humanitarian mission as representative of the Red Cross to the U.S. where she raised funds for the Serbian army. Just like Mabel, Jelena organized workshops where American and Canadian women made bandages and clothes for Serbian soldiers. That is where she met the love of her life, John Frothingham, who had already fallen in love with Serbia, where he spent the happiest years of his life and fed and supported more than 600 children. This great American philanthropist, presently nearly forgotten, made donations to Serbia which amounted to four times more than the total national budget of this country in 1915! Two brave and uncompromising benefactors of the Serbian people, will be portrayed by actresses Vjera Mujović and Marija Bergam, in a performance written by Jelena Kajgo. The performance will be held at the House of Jevrem Grujić at 17, Svetogorska Street, starting from December 2019. Also supported by The Commissioner for Protection of Equality. 43

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U.S.-SERBIA RELATIONS

Serbia occupies a key strategic juncture in the Balkans, at the social, political, and geographic crossroads of Eastern and Western Europe

US SEES SERBIA

As Part Of A Stable Balkans

he United States seeks to strengthen its relationship with Serbia by deepening cooperation based on mutual interest and respect. The United States wants Serbia to be part of a stable Balkan region, and we pursue this by supporting Serbia’s integration into European institutions, helping normalize Serbia’s relations with Kosovo, strengthening the rule of law, partnering on security issues, and promoting economic growth. Serbia opened EU accession negotiations in January 2014 and has embraced the goal of EU membership as its top strategic priority. The United States continues to support Serbia’s efforts to make progress in EU accession talks. Serbia’s accession is conditioned on significant rule of law and economic reforms, as well as the normalization of relations with Kosovo via the EU-facilitated Dialogue, launched in 2011 with strong U.S. backing. The United States supports the efforts of Serbia and Kosovo to fully implement Dialogue agreements made thus far and to help move both sides toward full normalization.

U.S. ASSISTANCE TO SERBIA The U.S. government’s assistance goals in Serbia include supporting Serbia’s EU accession path and strengthening Serbia’s capacity to counter terrorism and transnational crime, combat corruption, and participate in international peacekeeping missions. Since 2001, the United States has provided nearly $1 billion in assistance to Serbia – strengthening the rule of law, increasing good governance, fostering inclusive economic growth, supporting cultural preservation, and helping local communities repair infrastructure and become stronger. SECURITY PARTNERSHIP Our Ohio National Guard-led bilateral State Partnership Program is the cornerstone of our security relationship with Serbia. Throughout the 12-year partnership, Ohio and Serbia have worked together to enhance joint training opportunities, averaging about 20 events annually, which have provided an effective platform for developing vibrant and close bilateral ties between our armed forces. Serbia has also been an active participant in

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in the same period, similar to the corresponding period of 2017. NATO’s Partnership for Peace program for more than a decade, Serbia has implemented reforms to its labor law, construction and the United States has been a firm and consistent supporter permitting, and inspection oversight, all with U.S. assistance. of Serbia’s efforts to strengthen its relationship with NATO. We There is growing interest from potential U.S. investors value, in particular, Serbia’s contributions to multilateral efforts in Serbia, in line with these positive trends and with Serbia’s aimed at defeating ISIS and combatting international terrorism. prospective EU accession. In September 2018 the United States The United States and Serbia have also partnered for more and Serbia signed a Memorandum of Understanding that seeks than ten years through our International Military Education and to increase cooperation in the field of infrastructure projects. Training (IMET) program to allow Serbian and American officers To deliver the additional jobs and growth its citizens demand and non-commissioned officers to train together and learn from and to catch up with EU standards, Serbia must move forward each other in our most prestigious military schools. with economic reforms to strengthen its The United States values Serbia’s contributions to global peacekeeping efSince 2001, the United States private sector, reform its public adminisforts. Under our Foreign Military Financing has provided nearly $1 billion tration, resolve state-owned enterprises, (FMF) program, which has provided more and improve the rule of law. in assistance to Serbia than $8.6 million in security assistance to Among the leading U.S. investors in Serbia for defense modernization and Serbia are NCR, KKR, Philip Morris, Molson – strengthening the rule of law, training since 2011, the United States has Coors, Ball Packaging, Coca-Cola, PepsiCo, increasing good governance, delivered a total of 40 High-Mobility MulCooper Tire, Ametek and Van Drunen fostering inclusive economic Farms. Many other leading U.S. firms, from tipurpose Wheeled Vehicles (HMMWVs/ a broad variety of industrial and service Humvees) to support Serbia’s participagrowth, supporting cultural tion in UN operations around the world. preservation, and helping local sectors, have a significant presence in Serbia. There has been increased interest Serbia has been a Global Peace Operations Initiative (GPOI) partner since 2011, communities repair infrastructure from U.S. information technology (IT) combenefiting from U.S. security assistance panies in Serbia, with specific emphasis and become stronger aimed at enhancing Belgrade’s capabilon opportunities in e-government, cloud computing, digitization, systems integration and IT security. ity to train and deploy peacekeeping forces. Since becoming NCR, Microsoft, Oracle, and IBM all have significant IT-related a GPOI partner, Serbia has increased its contributions to UN operations in Serbia, along with a growing number of IT startPeacekeeping Operations more than tenfold. ups. Serbian IT professionals are highly sought after. BILATERAL ECONOMIC RELATIONS SERBIA’S MEMBERSHIP IN As part of its EU accession process and the three-year agreement it signed with the International Monetary Fund in 2015, INTERNATIONAL ORGANIZATIONS Serbia has undertaken economic reforms and has seen meaningful Serbia and the United States belong to a number of the short-term improvements. Significant fiscal consolidation and same international organizations, including the United Nations, efforts to combat the informal economy delivered GDP growth the Organization for Security and Cooperation in Europe, the of 4.9% in in the first half of 2018, with falling unemployment, International Monetary Fund, and the World Bank. Serbia is also moderate inflation, and a small budget surplus. Foreign Direct a member of the Council of Europe. Investment inflows remain strong at 1.4 billion euros ($1.7 billion) Source: US Department of State

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EDUCATION

Industry Made For GROWING The U.S. Department of Education lists more than 4,000 degree-granting academic institutions. Overall, the number of colleges in the U.S. is shrinking, particularly in the for-profit sector. When it comes to determining how many universities are in the U.S., it's a number in flux. The short answer: There were 4,298 degree-granting postsecondary institutions in the U.S. as of the 20172018 school year, according to the National Center for Education Statistics

he long answer: It depends on how university branch campuses are counted, as numerous institutions have opened satellite locations. The number also is subject to change in a higher education landscape that has experienced numerous recent college closures and mergers. Education is “like any industry, in the sense that you’ve got activity with firms growing, opening, closing, changing, merging continually,” says Guilbert C. Hentschke, Dean Emeritus at the University of Southern California Rossier School of Education.

Though the U.S. Department of Education tallies more than 4,000 colleges and universities, U.S. News ranks only around 1,400 schools. To be eligible for inclusion in the Best Colleges rankings, a school must be regionally accredited and offer four-year undergraduate degree programs. Colleges that offer only associate degrees are not ranked, nor are schools with a student body of fewer than 200. PUBLIC VS. PRIVATE COLLEGES Of the 4,298 institutions listed by NCES, there were 1,626 public colleges, 1,687 private non-profit schools and 985

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determine what matters most and then find colleges that for-profit schools in 2017. The data divides the institutions best align with those academic priorities. into categories such as four-year colleges and universities “It really depends on what’s important to them,” Fraser and two-year schools, often known as community colleges. says, noting that it may be location, academic programs, Overall, the number of colleges in the U.S. is shrinking, or other factors. particularly in the for-profit sector. To get a feel for a college, prospective undergraduate “Colleges are closing because they are struggling finanstudents are advised to visit and familiarize themselves with cially. Many for-profits closed because their enrollment the campus and degree programs and “talk to professors fell off substantially in large part due to adverse publicity, while they’re on campus, talk to students and alumni. It’s challenges with their students getting financial aid and really about being a good consumer.” challenges that the (federal government) posed,” Lucie While students living in the U.S. may be able to take Lapovsky, principal at Florida-based Lapovsky Consulting numerous college tours, that can be more difficult for interand former president of Mercy College in New York, wrote in an email. She references stricter regulations on the fornational applicants. To bridge that divide, students overseas profit sector as one contributing factor. often turn to free resources, such as EducationUSA, a network While for-profit academic institutions have struggled of advising centres supported by the U.S. Department of in recent years with many closings, so too have small liberal State, or to paid consultants, such as Mandee Heller Adler, arts colleges. founder and president of International “Among the private colleges, those College Counselors based in Florida. Of the 4,298 institutions most susceptible to closing are the “It’s just a very overwhelming pro800 private colleges with enrolment listed by NCES, there were 1,626 cess for a child in another country to of (fewer) than 1,000 students. Schools public colleges, 1,687 private know what to do,” Adler says. that are small, schools that are almost entirely dependent on student revnon-profit schools and 985 COLLEGE VS. UNIVERSITY One difference, experts say, is that enues” Lapovsky says, adding that for-profit schools in 2017. The universities offer both undergraduate vulnerable institutions are threatened data divides the institutions and graduate programs, while many by the lack of other non-tuition funding colleges focus solely on undergrads. streams flowing into those schools. into categories such as The difference between a college Hentschke notes that there are four-year colleges and and a university in the U.S. may not many factors in play when it comes to always be apparent to students who college closures. universities and two-year grew up in other parts of the world. “It’s a combination of size, market schools, often known as The word “college” doesn’t have the location, market recognition and a community colleges same meaning in every country, which brand that can either keep you afloat or can create confusion for prospective conspire against you,” Despite market international students interested in studying in the U.S. shifts, he notes the number of schools that close or merge “In Spanish, ‘colegio’ means high school,” says George is “relatively small in a given year.” DaPonte, director of international admissions at the UniDemographics also play a role. The declining birthrate in the U.S. means colleges compete for fewer undergraduversity of Tampa in Florida, citing one example. For this and other reasons, some prospective students ate students. may pass over U.S. schools that have “college” instead of “You look across all institutions and that number is going “university” in their name, admissions experts say. By dodown, not up,” Hentschke says. ing so, students could miss out on a school that may have been a good fit. FINDING THE RIGHT COLLEGE FIT While some four-year postsecondary institutions in the With more than 4,000 schools or additional branch U.S. have “college” in their name and others have “university,” campuses to choose from, students have an abundance both grant undergraduate degrees. Here are some things of undergraduate degree options available, whether they to keep in mind when researching U.S. institutions that call are seeking an education at a research-oriented university, themselves colleges and those that identify as universities. a small liberal arts college or a trade school. That number can be overwhelming and “stress-inducing for students,” says Kelly Fraser, owner and principal consultant WHAT IS A COLLEGE? at Green Apple College Guidance & Education. To help trim Often, schools with “college” in their name are smaller those options, she advises students to develop criteria to institutions that emphasize undergraduate education, 47

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Johanna Fishbein, head of university advising at the United World College of South East Asia’s Dover Campus, an international school, said by email. This is not strict rule, since there are a number of exceptions. Colleges often emphasize undergraduate education in a broad range of academic areas. Universities are typically larger institutions that offer a variety of both undergraduate and graduate degree programs. Many universities are also committed to producing research.

Another type of school in the U.S. with “college” in its name is a community college. These are two-year schools that grant associate degrees and career-related certificates. Community colleges vary in enrolment size – some are large, despite having “college” in their name. Some students begin their education at a community college and then transfer to a four-year college or university to complete a bachelor’s degree.

WHAT IS A UNIVERSITY? Many schools with “university” in their name are larger institutions that offer a variety of both undergraduate and graduate degree programs. Public universities are some of the most sizable schools, sometimes enrolling tens of thousands of students. These schools are also highly committed to producing research. But it is a misconception that all schools with “university” in their name are big, says Chelsea Keeney, assistant director of international student recruitment at the University of Minnesota—Twin Cities. Some are relatively small, such as Marymount California University, which had a total enrollment of 985 students Some colleges, known as liberal arts in fall 2016, per U.S. News data. “Colleges are closing colleges, give students an education Also, not all universities are public. in a broad range of academic areas Private universities include, among because they are struggling as opposed to having them specialize many institutions, some of the Ivy financially. Many for-profits League schools, like Princeton Uniearly in one particular subject. Since liberal arts colleges are un- closed because their enrolment versity. Sometimes adding to the confusion common outside the U.S., prospective fell off substantially in large for international students, Keeney international students aren’t always familiar with them, says Carly Mankus, part due to adverse publicity, says, is the fact that large universities often made up of smaller divisions senior assistant dean of international challenges with their students are called colleges. Each of these colleges admission at Franklin and Marshall getting financial aid and has a specific academic focus, such as College, a liberal arts school in Pennsylvania. challenges that the (federal business, engineering or social work. And liberal arts-type study is not Prospective students may also government) posed,” exclusive to small colleges. Some, but sometimes mistakenly believe liberal not all, universities have a core curricuarts institutions only focus on the humanities, admissions experts say. But many of these schools lum for undergraduates, meaning students take a variety of offer degrees in science fields too. general education courses before focusing on their major. Another common misconception is that schools with By nature of their size, large universities tend to offer “college” in their name don’t offer much in the way of research a wider array of research opportunities than small colopportunities, said Fishbein, who serves as president of the leges. “But undergraduate students may need to compete International Association for College Admission Counseling. with graduate students for resources and opportunities,” But, for example, 65% of Franklin and Marshall students Fishbein said. participate in research before they graduate, Mankus says. Source https://www.usnews.com/ 48

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AMERICAN CULTURE

By KIM ANN ZIMMERMANN

CULTURAL

Melting Pot

The United States is the third largest country in the world with a population of more than 325 million, according to the U.S. Census Bureau. A child is born every 8 seconds, and a person dies every 12 seconds

n addition to Native Americans who were already living on the continent, the population of the United States was built on immigration from other countries. Despite recent moves to close the U.S. borders to new immigrants and refugees, a new immigrant moves to the United States every 33 seconds, according to the Census Bureau.

Because of this, the United States is one of the most culturally diverse countries in the world. Nearly every region of the world has influenced American culture, most notably the English who colonized the country beginning in the early 1600s. U.S. culture has also been shaped by the cultures of Native Americans, Latin Americans, Africans and Asians. 49

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The Census Bureau estimates that more than 300 The United States is sometimes described as a “melting languages are spoken in the United States. The bureau pot” in which different cultures have contributed their own divides those languages into four categories: Spanish; distinct “flavours” to American culture. Just as cultures other Indo-European languages, which includes German, from around the world have influenced American culture, Yiddish, Swedish, French, Italian, Russian, Polish, Hindi, today American culture influences the world. The term Punjabi, Greek and several others; Asian and Pacific Western culture often refers broadly to the cultures of Island languages, including Chinese, Korean, Japanese, the United States and Europe. Thai, Tamil and more; and “all other languages,” which The way people “melt” into the United States differs. is a category for languages that didn’t fit into the first “Different groups of immigrants integrate in different three categories, such as Hungarian, Arabic, Hebrew, ways,” De Rossi told Live Science. “For example, in the languages of Africa and languages of native people of United States, Catholic, Spanish-speaking communities North, Central and South America. might keep their language and other cultural family traditions, but are inThe United States RELIGION tegrated in the urban community and is sometimes described Nearly every known religion is have embraced the American way of as a “melting pot” in which practiced in the United States, which life in many other ways.” was founded on the basis of religious The Northeast, South, Midwest, different cultures have freedom. About 71% of Americans Southeast and Western regions of the United States all have distinct contributed their own distinct identify themselves as Christians, traditions and customs. Here is a brief “flavours” to American culture according to information gathered by the Pew Research Center, a nonpartioverview of the culture of the United san research group, in 2017. The research also found that States. about 23% had no religious affiliation at all and around 6% of the population is made up non-Christian religions. LANGUAGE The number of people who identify with no religion There is no official language of the United States, seems to be decreasing. According to the Pew Research according to the U.S. government. While almost every Center, this category is expected to drop from 16% in language in the world is spoken in the United States, the 2015 to 13% in 2060. most frequently spoken non-English languages are Spanish, Chinese, French and German. Ninety percent of the U.S. AMERICAN STYLE population speaks and understands at least some English, Clothing styles vary by social status, region, occupaand most official business is conducted in English. Some tion and climate. Jeans, sneakers, baseball caps, cowboy states have official or preferred languages. For example, hats and boots are some items of clothing that are closely English and Hawaiian are the official languages in Hawaii. 50

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SUNGHO CHOI, MY AMERICA

sion and movies. According to the U.S. Department of Commerce, the United States comprises one-third of the worldwide media and entertainment industry. The television broadcasting industry took hold in the United States in the early 1950s, and American television programs are now shown around the world. The United States also has a vibrant movie industry, centred in Hollywood, California, and American movies are popular worldwide. The U.S. film industry earned $31 billion in revenues in 2013, and will have reached $771 billion by 2019, according to the U.S. Department of Commerce. The United States’ arts culture CUISINE extends beyond movies and televiAmerican cuisine was influenced by The U.S. film industry earned sion shows, however. New York is Europeans and Native Americans in its $31 billion in revenues in 2013, home to Broadway, and Americans early history. Today, there are a number and will have reached have a rich theatrical history. Ameriof foods that are commonly identified can folk art is an artistic style and as American, such as hamburgers, $771 billion by 2019, is identified with quilts and other hot dogs, potato chips, macaroni and according to the U.S. hand-crafted items. American mucheese, and meat loaf. “As American sic is very diverse with many, many as apple pie” has come to mean someDepartment of Commerce styles, including rhythm and blues, thing that is authentically American. jazz, gospel, country and western, bluegrass, rock ‘n’ There are also styles of cooking and types of foods roll and hip hop. that are specific to a region. Southern-style cooking is often called “American comfort food” and includes SPORTS dishes such as fried chicken, collard greens, black-eyed The United States is a sports-minded country, with peas and corn bread. Tex-Mex, popular in Texas and the millions of fans who follow football, baseball, basketball Southwest, is a blend of Spanish and Mexican cooking and hockey, among other sports. Baseball, which was styles and includes items such as chili and burritos, and developed in colonial America and became an organized relies heavily on shredded cheese and beans. sport in the mid-1800s, is known as America’s favourite pastime, although its popularity has been eclipsed by THE ARTS football for the past three decades, according to the The United States is widely known around the world Harris Poll. as a leader in mass media production, including televiassociated with Americans. Ralph Lauren, Calvin Klein, Michael Kors and Victoria Secret are some well-known American brands. American fashion is widely influenced by celebrities and the media, and fashion sales equal around $200 billion per year, according to a paper published by Harvard University in 2007. More and more Americans are buying fashion, electronics and more online. According to the Census Bureau, U.S. retail e-commerce sales for the first quarter of 2017 totalled around $98.1 billion.

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DR. EDWARD RYAN

A large number of Americans of Serbian descent made a major contribution to the development of American society. From world renowned scientists such as Nikola Tesla, Mihajlo Pupin, Milojko Vucelic, to politicians such as George Voinovic and Helen Delich Bentley, writer Steve Tesic, actor Carl Malden, artist Marina Abramovic, Pete Maravich, the first Serb in the NBA and many others…

The American Doctor Who “SAVED BELGRADE”

et one American, who left a large mark on Serbia during the First World War, remained a little in the shadows. Not long after the start of the Great War, in August 1914, the American Red Cross began recruiting doctors to work in those areas of Europe hit hardest by the massive conflict. Dr. Edward Ryan volunteered to work

in Serbia. After securing the donation of the equipment he would need from an American Red Cross benefactor named Mrs. Helene Hartley Jenkins, Dr. Ryan arrived in Belgrade at the start of 1915. To the residents of Belgrade, it was as if the U.S. Cavalry had come to the rescue. A British volunteer nurse named Emily Simmonds provided the following description to the Washington

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Post (January 17, 1915): “The coming of the American unit, Although already a hero of Belgrade after his first under Dr. Edward Ryan, was a godsend to the Serbians, month on the job, Dr. Ryan’s work in Serbia had only just for at the time of their arrival we were down to our last begun. He spent a brief time spent as an Austrian prisoner bits of dressings and were living on short rations. *… Up of war before the Austrians released him so that he could to the arrival of Dr. Ryan and his American nurses, the continue running the Red Cross Hospital in Belgrade. hospital was constantly in danger of artillery fire. Dr. When a typhus epidemic hit Belgrade in March 1916, Ryan’s first act was to unfurl an American flag over the killing thousands, Dr. Ryan organized his American Red building. It was instantly respected, and conditions rapCross unit to fight it. Typhus killed two of his fellow Ameriidly improved.” In an earlier interview can doctors – Dr. Ernest Pendleton to the New York Times (January 15, Magruder of Washington, D.C. and Dr. 1915), Nurse Simmonds commented: James F. Donnelly of Brooklyn, New “Dr. Ryan has become a real national York – and knocked Dr. Ryan out of hero in Serbia, and it was owning to action for weeks, providing him with his raising the American flag over another near-death experience. His the hospital that anything is left of obituary carried the following comthe city of Belgrade.” ment: Dr. Ryan “later admitted that Under the title “American Doctor despite his Mexican experience, the Saved Belgrade,” the New York Times typhus attack had brought him closer (January 31, 1915) ran an interview to the grave than he had ever been.” with Mrs. Slavko Grouitch the wife When ARC Dr. Reynold Kirbyof the Serbian Under Secretary of Smith arrived to relieve the infected Foreign Affairs. In this interview, Dr. Ryan, he observed to the New the former Miss Mabel Dunlop of York Times (June 17, 1915) that “the West Virginia stated: “I believe that great epidemic was practically under Dr. Ryan actually saved Belgrade control as a result of the methods DR. EDWARD RYAN from destruction. In the city when the introduced by the American Dr. Ryan Americans arrived were some 15,000 and other sanitarians.” Dr. KirbySmith Although already a hero of of the poorer population.” remarked that “the country was one As Serbian military forces had Belgrade after his first month great hospital” with 1,500 patients withdrawn from Belgrade, “Dr. Ryan on the job, Dr. Ryan’s work in alone at the overcrowded American was practically in sole authority. He Cross Hospital in Belgrade. When Serbia had only just begun. Red commandeered all the provisions in asked how many people the typhus He spent a brief time spent epidemic had killed, Dr. Kirby-Smith the place.” Elsewhere, Mrs. Grouitch commented: “Dr. Ryan was entrusted as an Austrian prisoner of war “replied that it was a question that not only with the wounded, but also probably never would be correctly the care of the women and children before the Austrians released answered. They had died by the thouand other non-combatants, and he him so that he could continue sands, and the total no man knew.” had to keep order in the town. This By October 1915, Dr. Ryan was well running the Red Cross he was able to do because the peoenough to resume control of the ple turned to him in their distress. American Red Cross Hospital which Hospital in Belgrade When they learned that Americans he would run until October 1916. In were in charge of the hospital, women came crowding addition to saving thousands of Serbians from typhus, to the gates begging to be taken in. Certainly, Dr. Ryan Dr. Ryan and his staff performed over 8,000 operations inspired confidence from the first.” The interview ends and coordinated Red Cross assistance programs for with her description of two letters she received from her thousands of Serbian refugees across the country. husband in which Under Secretary Grouitch stated: “Dr. After his tour of duty in Serbia was over, Dr. Ryan set Ryan had saved Belgrade and its remaining population off on the long voyage home across Austria and Germany. when the Austrians captured the place, and … in the presDuring his year-and-a-half in Serbia, Dr. Ryan had manence of the American Minister and other high officials, aged to collect several souvenirs of the Great War which Dr. Ryan had been thanked by the Crown Prince for the he planned to show his friends back in the United States. great services he had rendered the Serbians.” Serbia One of these souvenirs was a “dud” artillery shell which posthumously awarded Dr. Ryan the Order of the White exploded when it was roughly handled by porters at the Eagle for his work. Budapest train station. 53

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SILICON VALLEY

WORLD Innovative Centre Silicon Valley is the U.S. centre for innovative technology companies. It's located south of San Francisco, California. It's home to 2,000 tech companies, the densest concentration in the world. This proximity to suppliers, customers, and cutting-edge research gives each a competitive advantage

ven more important, most of them are also leaders in their industries. These include software, social media, and other uses of the internet. Its companies also produce lasers, fibre optics, robotics, and medical instruments. Silicon Valley was named for the silicon needed to make semiconductor computer chips. Silicon Valley creates a centre for innovative companies

to become highly profitable. That creates jobs, more tax revenue, and higher stock prices. It gives the United States a comparative advantage over other countries. Silicon Valley includes the cities and towns south of San Francisco. It originated in the Palo Alto/Menlo Park/Stanford University area. It was originally the nickname for the Santa Clara Valley. It is bordered by the San Francisco Bay on the east. The

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B y K I M B E R LY A M A D E O

Santa Cruz mountains are on the west, and Redwood City is to the north. The south shares its border with several cities. These include Los Altos, Mountain View, Sunnyvale, Cupertino, Santa Clara, and San Jose. The Coast Range Mountains are in the southeast area. The main reason for Silicon Valley’s success is its spirit of cooperation. For example, many founders of local companies went to school together. That makes them more likely to promote each other regardless of company affiliation. Personal loyalties override corporate ones. Professional networks led to easy information exchange. Companies found that collaboration between them made them all more successful. The State of California prohibited non-compete clauses. As a result, star performers could leave a company to start their own to test out new ideas. As a result, employees focus on helping each other solve problems. An often-overlooked reason is Silicon Valley’s cultural diversity. Between 19952005, more than half of its start-ups were founded by immigrants. Why? The Valley attracts top engineers from around the world, especially India and China. Diversity leads to innovation as long as everyone focuses on their shared goals. Top-notch universities surround the Valley. Many company founders graduated from Stanford University. Other local universities contributed the trained technical support staff. These included the University of California at Berkeley, San Jose State, and community colleges.

GOOGLE HEADQUARTERS

The main reason for Silicon Valley’s success is its spirit of cooperation. For example, many founders of local companies went to school together. That makes them more likely to promote each other regardless of company affiliation. Personal loyalties override corporate ones

SILICON VALLEY COMPANIES The most well-known Silicon Valley companies are Apple, Facebook, Google, and Netflix. The area also launched Tesla, Twitter, Yahoo!, and eBay. There are many business support companies such as Cisco, Oracle, Salesforce.com, Hewlett-Packard, and Intel. Other companies include Adobe, Intuit, and Zynga.

He encouraged two of his them, William Hewlett and David Packard. He even got grants for them so they could create the high-tech company named after them. After World War II, Terman became Dean of the engineering school. He encouraged faculty to sit on the boards of new enterprises. He used contacts in Washington to get Federal grants for school research. He founded the Stanford Industrial Park to cross-fertilize research between Stanford and local businesses. The University leased land to Varian Associates, Eastman Kodak, General Electric, Lockheed, and Hewlett-Packard. In 1955, Terman became provost of Stanford. He expanded the Park to include biotech companies. In 1957, Fairchild Semiconductor launched, spawning 38 companies including Intel. The name “Silicon Valley USA” was first used in 1971. Don Hoefler chose the name for a series of articles published in Electronic News.

HISTORY OF SILICON VALLEY The idea for Silicon Valley began during the Great Depression. Stanford engineering professor Frederick Terman decided to create more jobs opportunities for his students. 55