InFocus Croatia 2018 by Diplomacy&Commerce magazine

Croatia 2018

THE COUNTRY THAT HAS IT ALL LUKA BURILOVIĆ

President of the Croatian Chamber of Commerce (CCC)

H.E. GORDAN BAKOTA Croatian Ambassador to Serbia

MARIJA RADULOVIĆ

MSc, President of the Croatian Business Club in Serbia

NATURE IS THE KING!

Almost 10% of Croatia is made up of 11 nature parks, eight national parks and two nature reserves. Maybe the most striking is The Plitvice Lakes.

FAIRY TALES? INDEED! The hit HBO series Game of Thrones was filmed on the Dalmatian coast in Split and Dubrovnik. Also, The Star Wars Episode VIII: The Last Jedi was shot partially in Dubrovnik.

06 INTANGIBLE WORLD HERITAGE

GOLDEN CAPE BEACH The most famous beach in all of Croatia, sometimes considered the best in Europe, is in Bol, on the island of BraÄ?. Zlatni Rat Beach changes in shape and colour depending on the wind.

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Both Spain and Croatia have the highest number of UNESCO Intangible Goods of any European country. Including lace making, gingerbread baking, and wooden toy carvings.

SHAKESPEARE IS HERE TOO

Shakespeare’s Twelfth Night was staged in Illyria an ancient region of the Western Balkans whose coast covered modern day Croatia (and also Slovenia, Montenegro and Albania).

THE SEA SONG

The world’s first pipe organ that is played by the sea’s rhythmic waves is in Zadar, on the Dalmatian Coast. It comes in the shape of stairs.

ANCIENT SCRIPT REVIVING?

From the 9th century on, Croatians used their own Glagolitic script. It was used in parallel with Latin script until the 18th century. It is proudly displayed is some official places!

FINGERPRINTS Ivan Juan Vučetić criminologist and anthropologist, was born on the island of Hvar (later emigrated to Argentina) invented scientific dactyloscopy (identification by fingerprints).

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INTERVIEW

WE HAVE ENOUGH REASON FOR OPTIMISM

LUKA BURILOVIÄ&#x2020;

President of the Croatian Chamber of Commerce (CCC) 4

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A moderately high growth of the Croatian GDP, as recorded in the last three years, is a result of the decline in external debt and in the overall state deficit, as well as of the low lending activity of commercial banks in all sectors. Such growth is considerably more sustainable than the one from the "prosperous" period between 2002 and 2008. CCC is contributing to these positive trends with its activities

roatia is still progressing slower than other countries in the region, while results recorded in late 2017 show a faster GDP growth. The President of the Croatian Chamber of Commerce (CCC), Luka Burilović says that the results are encouraging. „Looking at the data and forecasts generated by the IMF, Croatia's growth over the past three years was identical to the average growth in the countries in the region, which stood at 2.9%. It should be noted that Croatia is still considerably more developed than the regional average, which in theory means that it is easier for the countries in the region to achieve growth. The data about the GDP per capita according to the purchasing power parity shows that, in 2010, Croatia was at 60% of the average development rate in the EU, while the countries in the region averaged at 36% (without Kosovo)“, says Burilović. He adds that economic growth in Croatia continues to be further constrained by the unfinished transition process, namely the absence of necessary reforms needed to boost the economy's efficiency. However, positive trends and GDP growth have been recorded in the last three years. "The

IN ORDER TO PROVIDE AN EVEN MORE DIRECT SUPPORT TO COMPANIES, WE ARE PLANNING TO OPEN ADDITIONAL OFFICES IN AUSTRIA (VIENNA), ITALY (MILAN), GERMANY (MUNICH), BOSNIA AND HERZEGOVINA (SARAJEVO) AND TURKEY (ISTANBUL) growth of export of goods is quite pronounced as a result of the EU accession, positive global trends, and companies focusing more on export. There is also quite encouraging data on steady growth in revenue from export services, and the steady growth of industrial production and commerce. In addition to the increasing foreign demand, domestic demand has also been recovering which was still at a significantly lower level (about 13%) last year relative to the pre-crisis year of 2008“, our interlocutor says.

This year, Croatia is expected to achieve a 2.6% growth of the national GDP while other Western Balkan states are expected to have a 3.3% growth. How much does the domicile economy feel the consequences of the development impetus felt in the rest of Europe? On the other hand, what do changes in the regional economies mean to business people in Croatia? ― Economic activity in Croatia is strongly dependent on the flow of goods and services export due to the strong influence that this export has on GDP. It is the overall exports, driven by Croatia's accession to the European Union, that were the driving force behind the current economic growth. There has also been a steady increase in the export's impact in recent years. More specifically, in 2017, for the first time in history, the goods and services export value exceeded 50% of GDP. The EU and the countries of the region hold a special importance in this aspect because of the high share of these markets have in Croatia's export of goods and services. According to the EU members, 65% of Croatian exports end up in the EU, and 18% in the Western Balkan countries, the latest available data has shown. This amounts to a total of 83% of Croa-

OFFICIES

WE HAVE DECIDED TO RE-OPEN OUR OFFICES DUE TO THE SUBSTANTIAL NUMBER OF OUR COMPANIES OPERATING IN SERBIA AND OTHER COMPANIES THAT WANT TO ESTABLISH CONTACTS OR SET UP THEIR BUSINESSES IN SERBIA CROATIA 2018

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its term, while Croatia still needs structural reforms, simplification of administrative procedures and digitalization of the same, in other words, Croatia needs a comprehensive public administration reform. Business community would certainly welcome tax reliefs.

tia's overall export of goods. The export of services is also high with the EU countries being highest ranked among countries that Croatia exports its services to, while Bosnia and Herzegovina and Serbia rank seventh and eleventh respectly in the same export category (we don't have available data for other countries). Have the fears regarding the situation in Agrokor subsided now? What kind of resolution of this problem would benefit the Croatian economy the most? ― The public is somewhat less fearful now about the outcome, but the situation is far from resolution. What comes next is a rather complicated settlement process. The only thing that is doable now is to minimize the damages. The people involved in this issue have to understand that everybody would suffer losses to a certain degree. Howver, I am optimistic because I think that it is possible to find a solution that would ensure the continuation of operations and preserve jobs. To what extent did the Croatian government manage to fulfil the expectations of Croatian business community in terms of creating a better environment for doing business? ― So far, the government's work has been focused on the positive tendencies of

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ACK OF WORKFORCE COULD BE RESOLVED THROUGH THE IMPLEMENTATION OF THE DUAL EDUCATION MODEL WHICH WOULD CREATE A SIMPLE AND TRANSPARENT SYSTEM OF HARMONIZATION OF EDUCATIONAL PROGRAMMES the country's economic recovery and is more conducive to the economy by striving for a more comprehensive tax reform and measures that would alleviate parafiscal and administrative fees which, in turn, would facilitate better operations of companies in Croatia with a focus on being more mindful of the needs of small and medium enterprises. The fiscal consolidation results, which were achieved through reduction in the country's deficit and debt, pave the way for the country obtaining a better credit rating. However, the government is only half way through

How Croatia compensating for the lack of adequate workforce and the braindrain, particularly in the segment of highly qualified young workers? What does the CCC propose regarding this problem? ― In order to resolve this problem, the CCC proposes implementing a more flexible model for defining quotas for hiring foreign nationals which means that employers would be able to hire foreign workers when they need them, i.e. they will be allowed to employ foreign workers if they prove that there is no adequate workforce in Croatia that could do that specific job (the so-called Slovenian model). However, this is only an acute resolution of the problem. The longterm resolution of the problem would be to implement dual education model like the one in Austria and Germany. Such education, where between 60% and 70% of curriculum is carried out in companies and 30%-40% in schools, involves young people in the labour market while they are still in school. Students will be getting better quality schooling, better chances of finding a job, continuity of working for a company and financial independence. Despite the relatively poor overall economic performance, and despite certain political challenges, the external trade between Serbia and Croatia has been growing. What are your expectations from that cooperation in the coming period? ― In the first ten months of 2017, the value of the external trade in goods between Croatia and Serbia amounted 1,032 million EUR, while the total value of the trade in 2016, amounted to 1,019 million EUR which suggests that a positive growth trend will continue in 2018 too. Croatia continued to record a trade surplus in the period from January to September of 2017 which amounted to 68 million EUR. Given that Serbia is the 8th most important trading partner of Croatia, and the continuous increase in trade between the two countries which

was not hindered Croatia's exit from CEFTA and its accession to the European Union, I believe we can be satisfied with our bilateral economic relations. After several years, the CCC has reopened its offices in the region, including Serbia. What do you expect from such direct market presence? ― We have decided to re-open our offices due to the substantial number of our companies operating in Serbia and other companies that want to establish contacts or set up their businesses in Serbia. This is also the reason why the CCC opened its office in Belgrade late last year which will promote and advocate the interests of the Croatian economy, especially in establishing business relations between businesses from the two countries, attracting investments, promoting technology transfer and know-how, and monitor economy-related regulations. We are confident that this will contribute to the further improvement of economic ties between Croatia and Serbia to mutual benefit. How important is the joint appearance of government representatives, chambers and business associations in this time in terms of opening and increasing foreign market presence? How developed is economic diplomacy in the CCC? ― I always point out that boosting the internationalization of the Croatian economy has to be one of the core goals of Croatia's economic policy, and also a prerequisite for sustainable economic growth. Internationalization must become the key topic in all institutions that deal in economy in any way. The state and public institutions should be providing concrete and adequate support to businesses in expanding to foreign markets. Only synergistic effects can lead to great results. The Croatian Chamber of Commerce has recognized the importance and opportunities for promoting Croatian economy during the meetings of top officials. To that end, the Chamber often organizes the visits of economic delegations as a part of the official presidential visits, especially when it comes to official visits to countries outside the European Union. As a part of these official visits, we always strive to set up economic meetings, and provide institutional support to our business people who have expressed interest

CROATIA STILL NEEDS STRUCTURAL REFORMS, SIMPLIFICATION OF ADMINISTRATIVE PROCEDURES AND DIGITALIZATION OF THE SAME, IN OTHER WORDS, CROATIA NEEDS A COMPREHENSIVE PUBLIC ADMINISTRATION REFORM in doing business or selling goods and/ or services in individual markets that is sometimes a key to opening the door. It is a well-known fact that without the political support of the institutions in the country from which a company originates, there is virtually no chance of accessing the markets of third countries. This is where we see an immediate benefit for our members. The Croatian Chamber of Commerce continues to assist Croatian companies in their positioning in foreign markets. In order to provide an even more direct support to companies, we are planning to open additional offices in the

countries which appeal to our members the most such as Austria (Vienna), Italy (Milan), Germany (Munich), Bosnia and Herzegovina (Sarajevo) and Turkey (Istanbul). We believe that, by doing so, we will greatly facilitate the business of Croatian companies and enable them to easily access these markets. How would you rate the relations with the Serbian Chamber of Commerce and how do you cooperate in reforming the chamber system? ― The cooperation between the CCC and our Serbian colleagues has been successful for a number of years which facilitates operations of our companies in Serbia, and definitely creates new business opportunities and more space for investments. In 2014, our chamber of commerce commenced the reform of the chamber system. Along with reducing our membership fees and the abolition of the chamber contribution, we introduced a number of new services for our members in order to facilitate their business and encourage them to focus more actively on internationalization. We are also active in the Digital Chamber project, i.e. we are currently carrying out modernization, automation and digitalization of our chamber by investing in information and communication technology.

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WE NEED A REALISTIC APPROACH AND GOODWILL ON BOTH SIDES While past issues make our bilateral relations delicate, I believe that at this moment we should focus our energy on current and future aspects of our cooperation. This is especially important in light of the fact that Croatia is a member of the European Union today, and Serbia is on the path of becoming a member, which should be used as a platform for boosting our cooperation

H.E. GORDAN BAKOTA

Croatian Ambassador to Serbia

e are talking to the Croatian Ambassador to Serbia, H.E. Gordan Bakota about the complex relations between Croatia and Serbia.

How would you rate the current bilateral relations between Croatia and Serbia? â&#x20AC;&#x2022; I think we need to view the relations between Croatia and Serbia in a wider context. We are talking about two neighbouring countries that share a common past, which relations are very layered and intertwined, and which, despite everything aforementioned, are trying to build good neighbourly relations. In many respects, we have good and substantive cooperation, which shows that overall bilateral relations need not be assessed solely through the prism of historical or political disagreements.

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All in all, we need a realistic approach, goodwill and commitment. Particular emphasis should be put on cooperation in the European context and the accession process where respecting European principles and values should be the priority.

THE PAST ISSUES SHOULD NEVER BE IGNORED, BUT WE SHOULD RATHER OPEN UP SPACE FOR SERIOUS HISTORIC RESEARCH ACCOMPANIED BY MUTUAL DIALOGUE AND RESPECT

To what extent do different interpretations of the past are hindering the development of good relations between the two countries? â&#x20AC;&#x2022; It is not easy to come up with a common view in terms of issues that we have a different standpoint on. However, there is no need to run away from the fact that the history of our relationships, especially the most recent ones, was complex. We cannot change our past. I believe that, at this moment, it is more important to focus our energy on the present and the future. Today, Croatia is a member of the European Union, Serbia is on the path of becoming one, and that is what we need to recognize and use as a platform for enhancing our cooperation and feeling optimistic about the future. Issues from the past should not be ignored, but they must be left to the historians to deal with in a

manner that is conducive to science. In that sense, dialogue and respect should create space for comprehensive research. Positive examples of other countries that have had conflicts in the past could be useful to us in doing so. How far have the talks about open issues of minorities, missing persons, the return of cultural treasures, succession, and other progressed? ― Croatia is ready and willing to talk to the Serbian side about resolving all outstanding issues, in good faith and in a rational manner. We are convinced that time has come for this, and that there is mutual will. Over the last few months, we have intensified dialogue between relevant institutions with the aim of revitalizing the work of several intergovernmental commissions which have been discussing the ways of resolving these issues at an expert level. However, I would like to underline that, apart from working on solving open issues, we would like to intensify our activities in many other areas of bilateral cooperation that are of common interest. What are the most important minority issues at this time that you think should be addressed? ― I believe that the most important now, would be to ensure that both of our minorities - the Serbian minority in Croatia and the Croatian minority in Serbia - have equal opportunities to exercise their rights in everyday life. I would like to recall that that the constitutional and legal framework in Croatia guarantees extensive rights for all national minorities who have systematic representation in the Croatian Parliament and in representative bodies at the local level. Furthermore, the repre-

We also expect Croat representatives to be involved in activities related to adoption of legal solutions related to the implementation of minority rights. I would like to particularly underline that I am convinced that both minorities can have an invaluable and positive role in building the overall relations between the two countries.

atia’s assistance to Serbian in the European integration processes. In which areas are the Croatian experts currently engaged the most? ― First and foremost, I would like to point out that enlargement policy and Southeast Europe will be in our focus and among the priorities of the Croatian Presidency of the Council of the EU in the first half of 2020. Croatia has been always emphasising its readiness to help Serbia on its way to the EU. As the youngest member of the EU, we have the most relevant knowledge of the accession process, which is known in all the countries of the region which we are supporting in this process. The most successful cooperation was achieved with the Office for European Integration of the Government of Serbia which became the Ministry for European Integration. Since 2012, Croatia has carried out over 60 different activities and programmes through which close to 1,050 participants took part - officials at the national and local level, representatives of the civil sector and the media.. Following the successful cooperation with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), within the framework of the Open Regional Fund project and in cooperation with the Ministry for European Integration, Croatian experts will continue to participate in regional programmes intended for the countries in Southeast Europe. Emphasis will continue to be on concrete experiences in harmonizing legislation in certain negotiation chapters, with the special attention given to Chapters 23 and 24.

There has been more talk about disagreements between the two countries in public, and very little talk about Cro-

Could you evaluate the cooperation on cross-border projects? What does the European framework offer in this

sentatives of the Serb minority in Croatia are a part of the ruling majority, support the work of the Croatian Government and are actively engaged on minority agenda, as well contributing to addressing issues that concern all citizens in Croatia. On the other hand, we expect Serbia to fulfil its commitments from the bilateral treaty with Croatia as well as obligations stemming from the EU accession process. This pertains to securing guaranteed political representation of Croats in Serbia at all levels - state, provincial and city levels.

THROUGH THE WORK OF MANY INTEGOVERNMENTAL COMMITTEES, WE HAVE INTENSIFIED THE DIALOGUE ABOUT THE RESOLUTION OF CONTENTIOUS ISSUES IN THE LAST FEW MONTHS

LOGIC

THE ECONOMIC COOPERATION BETWEEN CROATIA AND SERBIA HAS ITS OWN DEVELOPMENT LOGIC THAT IS PRIMARILY BASED ON ECONOMIC INTERESTS CROATIA 2018

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respect, and how can we use it, especially when it comes to involving minorities in their implementation? ― The Interreg IPA cross-border cooperation programme for the period 20142020 is currently in force. This programme covers 4 counties in Croatia and 5 administrative districts in Serbia. The priorities of the programme relate to improving the quality of services in healthcare, environment and nature protection, tourism development, cultural and natural heritage, boosting competitiveness and development of the business environment. The total value of the programme is just over EUR 40,000,000, most of which comes from the EU funds. Given that the main objective of these projects is improving the quality of life of the population in the border areas, such as the development of a system for protection of people and natural resources from flooding, the Croatian minority, who live in the border areas in the Republic of Serbia, will also be benefiting from them. We have witnessed that the politics has often been meddling in the economic cooperation between the two countries in the last few years. On the other hand, we can see positive trends such as the opening of the Croatian Chamber of Commerce in Belgrade. To what extent are economic ties immune to political challenges? ― As you know, the economic cooperation between Croatia and Serbia has its own development logic that is primarily based on economic interests. Nevertheless, the political atmosphere continues to play a very important role in the development of economic relations. Every change on the political front, whether positive or negative, reflects on economic relations and cooperation, and specifically on activities of Croatian companies in the Serbian market. Economic matters, unfortunately, often seem to be unnecessarily politicized and inappropriately presented in the media, ultimately affecting the creation of the overall atmosphere in the relations between the two countries and in the economic sphere. I believe that the reopening of the Croatian Chamber of Commerce's representative offices in the Republic of Serbia and the synergistic work with the Croatian Embassy in Belgrade, the Croatian Business Club

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I AM CONFIDENT THAT THE EUROPEAN PROJECTS "RIJEKA - EUROPEAN CAPITAL OF CULTURE 2020" AND "NOVI SAD EUROPEAN CAPITAL OF CULTURE 2021" WILL FURTHER ENHANCE THE CULTURAL LINKS BETWEEN CROATIA AND SERBIA and the Serbian Chamber of Commerce will provide for a better environment for advancing bilateral economic relations. Let me also add that the Joint Committee for the Implementation and Promotion of Economic Cooperation will meet in Zagreb soon. This will be an additional opportunity to talk not only about preventing any obstacles from arising, but also about improving the cooperation. The two countries have good cooperation in the field of science and culture.

Can you single out best examples or directions that will lead to the cooperation developing even further this year? ― The scientific cooperation is carried out in accordance with the provisions of the Memorandum on scientific and technological cooperation. Over the last two years, the Joint Commission has approved a total of 52 projects in areas of biomedicine, biotechnology, social sciences, humanities, natural sciences and engineering. An agreement was also reached on having a joint Research Day which would be alternately organized by the relevant ministries and where the presentation of the approved projects will take place. The cultural collaboration is very intense, also based on an intergovernmental agreement, and is operationalised through direct agreements between cultural institutions, associations and individuals. It gives me a great pleasure to have frequent opportunities to meet and welcome outstanding Croatian artists at their performances in Serbia. Also, I am confident that the European projects "Rijeka - European Capital of Culture 2020" and "Novi Sad - European Capital of Culture 2021" will further enhance the cultural links between Croatia and Serbia.

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ENHANCING COOPERATION IN THE ENTIRE REGION In the last two years, the number of members of CBC almost doubled. This shows that the growing interest of the companies from both countries are boosting economic ties, which has a positive impact on the economic growth in the region as well

INTERVIEW

MARIJA RADULOVIĆ

MSc, President of the Croatian Business Club in Serbia

he number of CBC members has been growing year-on-year, as the number of obstacles that Croatian companies are facing in the Serbian market has been declining. Such developments have an impact on the continuation of investing by the established and new companies in Serbia, and, as of recently, the ever more visible presence of Serbian companies in the Croatian market. At the same time, owing to the active role that the CBC has, its members - both Serbian and Croatian companies have been connecting with other clubs and business associations and have jointly been lobbying for better business conditions. One of the initiatives that we are working on is establishing reciprocity on VAT return between the two countries. We are talking to the President of the Croatian Business Club, Marija Radulović about these topics. What are the main factors that have led to the increasingly better cooperation between the two countries? ― There are more than 200 Croatian companies operating in Serbia today, and investments from both countries are

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increasing. The external trade in both directions is also growing, which is a clear sign that the business does not recognize nations or borders. While catering to their business interests, big companies are expanding regionally and considering their geographic connectivity it is only logical that they are expanding to neighbouring countries. Serbia and Croatia are among the leading economies in the region, so there is both individual and wider / regional interest to further strengthen their mutual cooperation. On the other hand, we should not ignore the fact that, not so long ago, we

PARALLEL WITH WORKING ON OBTAINING MORE MEMBERS, WE INTEND TO EXPAND THE COOPERATION WITH FOREIGN MIXED CHAMBERS AND BUSINESS CLUBS IN SERBIA

all lived in the same country, and that the citizens still have positive emotions that are not threatened by occasional political tensions. The goal of both countries is to increase economic cooperation in the future, and I believe that this will continue to be the task of the relevant state institutions, especially the chambers of commerce in both countries. How is this reflected in the number of your members? ― In the last two years, the number of the club members almost doubled, with five new members joining the CBC in 2018. The club now has close to 45 members, and we hope to continue at such expansive pace. With the strengthening of the economic cooperation between the two countries, the number of Croatian companies in Serbia increases as well, which leades to the heightened interest for membership in the Croatian Business Club. Membership is available to both Croatian and Serbian companies, both big and small, and to anybody willing to establish open cooperation and who needs support with this cooperation. As an institution, CBC strives to provide this support

through maintaining close contacts with the most important state institutions in Serbia in order to contribute to creating the best possible business conditions in both countries. What do your members say are the most important issues that the Club should be working on in 2018? ― Parallel with working on obtaining more members through direct communcation and with the help of local chambers of commerce, we intend to expand the cooperation with foreign mixed chambers and business clubs in Serbia. Given that we have a close cooperation with the Embassy of the Republic of Croatia in Serbia, as well as with the representative office of the Croatian Chamber of Commerce in Serbia, we are going to implement joint activities that will be in the best interests fo companies from both countries. We also want to to extend our cooperation with other business clubs and chambers which started with the establishment of CBC. So far, we have established cooperation with the Slovenian Business Club, the Hellenic Business Association, and the French-Serbian Chamber of Commerce. There is a realistic possibility of establishing similar cooperation this year with three more similar business associations. How do your members rate the overall business climate and what do they think are the most important prerequisites for improving this climate? ― In terms of improving the business climate, our members view the cooperation that the the Club has with the Serbian Chamber of Commerce as very important, as they do the opportunity of having a direct communication with the relevant

ministries - the Ministry of Economy, the Ministry of Labour, the Ministry of Finance and other institutions that are relevant to foreign companies in Serbia. Lobbying is also important, especially through joining forces with other chambers and business clubs with the view of creating a more favourable business environment. The initi-

THE CLOSE COOPERATION BETWEEN THE CBC, THE CROATIAN EMBASSY AND THE REPRESENTATIVE OFFICE OF THE CROATIAN CHAMBER OF COMMERCE IN SERBIA, ON ONE SIDE, AND THE SERBIAN CHAMBER OF COMMERCE, ON THE OTHER, CONTRIBUTES TO THE GROWTH OF EXTERNAL TRADE AND INVESTMENTS

ative to establish reciprocity in VAT return in both countries is just one example of this. We are in regular contact with the members who can turn to us as well as the representative office of the Croatian Chamber of Commerce for any kind of assistance in solving any problems related to the two countries. The fact that the number of Croatian companies operating in Serbia is growing is a testament to the fact that the problems are getting smaller and that the business climate is quite favourable. We can often see that chambers of commerce and business clubs have been joining forces and organizing joint events. How do these events benefit the members? ― The cooperation in organizing joint events with other business associations is important, primarily for expanding business contacts, but also for exchanging experiences. Most business clubs are open to cooperation just like the Croatian Business Club, and are guided by the idea that we are not in competition with each other, but that we can achieve better results by working together and exchanging good energy.

INTENTION

WE INTEND TO EXPAND THE COOPERATION WITH FOREIGN MIXED CHAMBERS AND BUSINESS CLUBS IN SERBIA CROATIA 2018

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ACTIVITIES OF THE CBC

GROWING NUMBER OF MEMBERS AND ACTIVITIES

The continuous increase in the number of members and the expansion of the range of activities marked the Croatian Business Club's operations last year with the Club working closely with the Croatian Embassy in Serbia, and members of other business associations

June gathering at Café Café

ast year was very successful for the Croatian Business Club (CBC). The Club's management woked diligently on fulfilling the goals set for 2017. Some of the CBC's key objectives were increasing its membership, expanding the cooperation with foreign mixed chambers and clubs, and working on improving the business conditions for Croatian companies in Serbia. The activities on increasing the number of the club's members were carried out through direct communication with com-

Marking the Statehood Day of the Republic of Croatia

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panies, primarily Croatian, of which there are close to 200 in Serbia, but also through regional chambers of commerce. In 2017, we established cooperation with foreign mixed chambers and clubs, and the Club also actively participated in the work done by the Council of Mixed Chambers of Commerce in the Serbian Chamber of Commerce. Furthermore, the CBC has been engaged in improving the business environment by taking the that are important for the club's members in front of the state institutions and bodies.

Last year, the CBC continued to closely cooperate with the Croatian Embassy in Serbia. The first meeting of the CBC Assembly in 2017 took place in the premises of the Croatian Embassy in Belgrade, with the Croatian Ambassador, H.E. Gordan Markotić and the majority of the Club's members in attendance. Also, the May meeting of the Club's members also took plac here. On the occasion, Director of the Serbian branch of the Zagreb-based company D-Link, Mr Nenad Petković, presented the company and the

The CCC's Assembly meeting at the Croatian Embassy

opportunities it provides. D-Link is one of the world's leading online network infrastructure manufacturers, and for 31 years now the company has been delivering innovative and intuitive high performance products for companies and private users. Ms. Dragica Pikula, a longtime member and a friend of the CBC, presented the conference "Restructuring Operations: Key Challenges to Business Sustainability", organized by TMA Serbia, the Serbian branch of the TMA International Corporation that is engaged in corporate restructuring. At the iniviation of H.E. Mr Gordan Markotić, the represenatives of the CBS attended a solemn event marking the Statehood Day and the Day of the Republic of Croatia's Armed Forces. The CBC members met again at the Embassy in September 2017. On this occasion, the new Croatian Ambassador to Serbia, H.E. Mr Gordan Bakota introduced himself. Mr Bakota took on the duties of the ambassador on 11th September, 2017. One of the CBC's most successful endeavours was setting up "quick business meetings", attended by more than 30 representatives of companies which are the members of the French-Serbian Chamber of Commerce, the Hellenic Business Association and the Croatian Business Club. Members of these business associations had the opportunity to expand their network of contacts and establish the basis for future business cooperation through this innovative format of informal meeting. The representatives of all three chambers agreed that such encounters positively contribute to the dynamics of business cooperation between their members, but

Meeting and introduction to the new Ambassador H.E. Gordan Bakota

AT THE INIVIATION OF H.E. GORDAN MARKOTIĆ, THE REPRESENATIVES OF THE CBS ATTENDED A SOLEMN EVENT MARKING THE STATEHOOD DAY AND THE DAY OF THE REPUBLIC OF CROATIA'S ARMED FORCES also strengthen the synergy between the chambers themselves. The plan is that this type of cooperation between the chambers continues in 2018 through a series of similar innovative meeting forms where companies will be able to establish cooperation, and exchange their experiences and best practices in order to strengthen the business sector in Serbia.

The CBC management organized a series of different gatherings too. In June, more than twenty members of the Croatian Business Club gathered at the CafeCafe & Fish restaurant in Belgrade, which is one of the new CBC members, to summerize the results achieved in the first semester and meet new members. The CBC also met at the same place in February when the CBC marked the retirement of Vlada Oreskovic, the longtime director of the Končar Company in Serbia and a CBC member since its establishment. Another event that marked 2017 was the meeting of the Council of Mixed Chambers of Commerce, held on Wednesday, 12th April, at the Serbian Chamber of Commerce. At the meeting, the Council discussed the goals of the Serbian government, measures to curb the shadow economy and introducing a new system of inspection work in line with the Law on Inspection Oversight, adopted in 2015. The CBC is one of the 16 members of the Mixed Chamber.

November meeting and getting to know new members

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CORPORATE

We are Optimistic About Future LJUBIŠA VELJKOVIĆ

Chairman of the Executive Board of Milenijum Osiguranje d.o.o. We are becoming increasingly recognized as a company, we are boosting our brand's strength, and creating opportunities for a more efficient market appearance – says Ljubiša Veljković, President of the Executive Board of Milenijum Osiguranje a.d.o, an insurer that has been recording an above average market growth of its premiums in the last few years. Are you satisfied the last year's results and which segments of your operations recorded the best results? ― In 2017, we witnessed the continuity of the results that we can be satisfied with. We achieved an over 10% growth of the premium, and we recorded an increase in most kind of insurances that we provide. We continued developing our sales channels, which should yield good results in the future, and bring further diversification of our portfolio structure. How much are the overall market conditions for doing business conducive to the development of the insurance sector? ― If we look at the insurance market in terms of competitiveness, we can notice a high saturation level with most sales channels being substantially capitalized in the previous period, while the overall market growth is favourable and is higher in comparison to the neighbouring countries which is encouraging. There have been changes

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Despite the tough market game, Milenijum Osiguranje a.d.o. has recorded growth in premiums and heightened interest of its clients for their insurance products. This insurance company is now focusing on continuing its portfolio diversification and the development of new sales channels

beetwen insurers in market share, as a result of organic growth, but also as a result of acquisitions which can be seen from the market share in certain types of insurance. Market consolidation is expected in the future. You have introduced quite a lot of novelties in the last two years. Which of your products are most popular? ― When you do business in the area of a very strong market competition, one of the possible growth models is the development of new products as well as their differentiation in relation to the existing ones, so that clients can have a variety of choice and the added value that new products provide. Client education goes hand in hand with a good

DEVELOPMENT

THIS YEAR WE ARE CONTINUING WITH THE EXPANSION OF OUR BUSINESS NETWORK AND DEVELOPMENT OF NEW PRODUCTS product which ensures that clients have a different perception of the need for insurance protection, i.e. viewing it as a need, not as an expense. This increases the insurance density, which is still lower in relation to the region, and especially in relation to the devel-

oped countries. In terms of products, our 5+ combined coverage, that includes assistance, a partial casco insurance, and a replacement vehicle in the case of vehicle insurance, has been well accepted by our clients. 'Siguran Kvadrat' is one of our new household insurance product that we have only recently incldued in our insurance offer. This insurance product is affordable and provides adequate coverage. If you go to our webshop, you will be able to purchase products such as travel health insurance, road assistance, the previously mentioned household insurance and others. We are planning on adding more products to our webshop. Also, we have an online claims reporting option which ensures a fast and easy service that our clients can use from the comfort of their home. What are the most important changes in legislation related to vehicle insurance? ― The announced amendments to the Law of the compulsory insurance in traffic will stipulate the institutionalization of the Guarantee Fund, improvements in the interpretation of the settlement of claims, and the deregulation of certain parts of the current law related to the sale of insurance policies, all with the aim of creating a transparent, competitive and stable business environment for all market stakeholders.

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Žikica Milošević

ECONOMIC COOPERATION

NECESSARY, NOT ONLY DESIRABLE There is no economy without neighbours

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roatia has a bigger and more competitive economy than Serbia and stronger institutions thanks to its accession to the European Union, but Serbia has a bigger potential for the simple reason that this potential is yet untapped. In the following years, the potential will be spurred on by structural reforms and a strong shift towards export.

STEP AHEAD OF SERBIA The above mentioned analysis, carried out by Moody's, shows that the worse one can catch up to the better one. However, Croatia is not stagnating either. This is what the analysis has shown... In the comparative report, 'Governments of Croatia and Serbia - Croatia's more developed

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economy and institutions justify stronger credit profile', Moody's underlines that Croatian economy is more competitive and that other EU countries have been supporting Croatia in its reforms. â&#x20AC;&#x17E;Croatia's economy is approximately a third larger

THE UNTAPPED POTENTIAL ALSO LIES IN THE CROSSBORDER AREA CONNECTED BY THE DANUBE, HENCE, THE TRAFFIC ON THE RIVERS DANUBE AND SAVA MUST BE IMPROVED

than Serbia's, and EU membership facilitated a comprehensive overhaul of its institutions" said Evan Wohlmann, a Moody's Vice President -- Senior Analyst and co-author of the report. But Serbia itself is a developing market, as shown by the results from 2016, when Serbia first achieved a surplus in trading with Croatia, and when a Serbian company, Swisslion became the majority owner of a company in Croatia for the first time since 2009 by acquiring Euro Food Market from Sisak. The changes in the existing climate can be seen in other elements too, but both the climate and the "tide" will not really turn around until Serbia gets the same credit rating as Croatia. Currently, Serbia's credit rating is a level below the Croatian one and it stands at Ba3 for Serbian government bonds.

AGROKOR'S DARK CLOUDS Todorić's empire, or what we, on the surface, know as Idea / Konzum but is rather a huge octopod called Agrokor, is the biggest affair in Croatia today, and its sorest point. In Serbia, through privatisation and various acquisitions, Agrokor bought Mercator S (the Mercator, Idea and Roda retail chains), the Zrenjanin-based cooking oil and margarine producer Dijamant, the Belgrade-based producer of ice cream and frozen fruit and vegetables Frikom, Kikindski Mlin, Nova Sloga (which produces dried vegetables and seasonings), and the mineral water company Mg Mivela. Close to 20,000 people work for these companies. The story about the collapse of one of the richest people in the Balkans begins in 2013 when Agrokor became the largest retail chain in the region by purchasing Mercator. Ironically, the fall happened just when the company seemed most stable and when Idea supermarkets were all around us, virtually in every street. In order to achieve this, Agrokor needed 544 million euros which it did not have at the time as it was deeply affected by the global economic crisis and growing competition. And so, through magic of accounting, 'a bubble' was created in the company's financial statements where losses suddenly disappeared, and the already crumbling business was shown to be sound just to maintain credit rating. Soon after, Sberbank granted Agrokor a 600-million-euro loan, followed by yet another loan of 350 million euros. As it turned out, Agrokor was unable to pay back all this money, and the recent audit found out many bookkeeping irregularities. Big credit rating agencies which, in

NOW, EVERYBODY IS TRYING TO FIND A SOLUTION THAT WOULD PLEASE ALL THE RELEVANT STAKEHOLDERS – FROM SBERBANK, WHICH HAS A STRONG PRESENCE IN BOTH MARKETS, AND A MYRIAD OF AGROKOR'S EMPLOYEES TO BIG COMPANIES 2014, gave Agrokor stable ratings, suddenly changed their opinion. Now, everybody is trying to find a solution that would please all the relevant stakeholders – from Sberbank, which has a strong presence in both markets, and a myriad of Agrokor's employees to big companies. And everybody is also trying to maintain some kind of stability, not allowing governments to get involved too much, all in accordance with regulation.

FIGURES AND POTENTIAL

The value of the external trade between Serbia and Croatia in 2016 stood at 903.8 million euros which is a 4,8% annual growth relative to the year before. While Serbian exports to Croatia rose by 17% to 467.3 million euros, imports from this neighbouring country fell by 6.1% last year and amounted to 436.5 million euros. Serbia also recorded a surplus in external trade with Croatia in the amount of 30.8 million euros. This clearly shows that there is plenty of room to further boost the trade between the two countries if not for any other reason but to counteract crises and growing debt that we see all around us. Working and cooperating together is not only desirable, but also necessary. The untapped potential also lies in the cross-border area connected by the Danube, since the borders of Vojvodina and Croatia are the only points of contact between the two countries. Hence, the traffic on the rivers Danube and Sava must be improved.

TRADE

THE VALUE OF THE EXTERNAL TRADE BETWEEN SERBIA AND CROATIA IN 2016 STOOD AT 903.8 MILLION EUROS WHICH IS A 4,8% ANNUAL GROWTH RELATIVE TO THE YEAR BEFORE CROATIA 2018

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ECONOMY

STABLE CRUISING, DESPITE STORMS One of top 10 most stable economies in world

f you think that this information is just a typical spin of the Croatian government, which is something that has been rampant lately everywhere, than you are sorely mistaken. It is the eminent Bloomberg that has ranked the Croatian economy based on the global risk index.

BE STABLE The global risk index in economy, based on four criteria, shows Croatia in favourable light. According to three out of four criteria, Croatia is deemed as having one

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of the least risky economies in the world. Just to reiterate, this index is generated by the renowned company Bloomberg. The index measures the share that international reserves of the central bank, excluding state's gold reserves, have in the country's GDP, the share of the unemployed in the society, the inflation rate, and the fluctuation rate of the local exchange rate. So, how does Croatia fare in all criteria? Well, Croatia does have a high share of international reserves of 26% which puts it in the top nine least risky countries.

The expectations regarding inflation are low, and because the forecasted inflation rate is only 1.2%, Croatia ranks 14th in the world. The poor results were recorded only in the unemployment segment according to which Croatia is considered a risky country. As reported by the International Labour Organisation, this year Croatia should have the unemployment rate of 11.7%, placing the country at 75th place among the 82 countries in which results were analysed and compared which is a dreadful result. This is not surprising considering the epic braindrain of both qualified and unqualified workforce in Croatia. Just like in Serbia and Bosnia and Herzegovina, it is usually the workers who are difficult to replace, like doctors and other medical workers (anesthesiologists), as well as not so prominent but necessary worker profiles like tram and bus drivers, that have been leaving the country in droves. We often do not notice the lack of the latter worker profiles unless it starts jeopardising road safety in the region.

TRANSITIONING

AFTER THE FALL OF REAL SOCIALISM IN THE 1990S, CROATIAN ECONOMY STARTED TRANSITIONING TOWARDS OPEN MARKET ECONOMY The criteria that was not applied to Croatia was the fluctuation in the exchange rate of the Croatian currency – the kuna – which is pretty stable anyway. Overall, Croatia scored well in the global risk index analysis, but this does not mean that the country is now 'high and dry', so to speak. Although Croatia has a solid standing among the 27+1 EU countries (and slowly making its way to the group of privileged countries, adapting to it as Great Britain is exiting), Croatia's credit rating is still not at the A level. Moody's assigned a Ba2 rating to the Croatian state bonds with a good outlook which does give reason for optimism. By doing this, Moody's is signalling to investors that Croatian state bonds are considered a speculative buy, and that, as such, they should not be considered an investment. Considering the divergent aspirations of the Croatian economy (as in other countries of the region, the emigration is high, but the tourism revenue is incredible and growing), we can expect a "bumpy ride" but with relatively stable projections, even if that means „filling the gaps with surplus“.

DEINDUSTRIALISATION VS. REINDUSTRIALISATION Deindustrialisation is present in Serbia just like anywhere in the East or in Europe, as well as in the so-called Rust Belt in the US. However, if we kiss the illusions goodbye and stop lamenting about the deindustrialisation of our country, there

THE GOOD SEGMENTS OF THE CROATIAN ECONOMY ARE DEFINITELY THE AGRICULTURE are some encouraging figures to consider. After the fall of real socialism in the 1990s, Croatian economy started transitioning towards open market economy. Today, this is one of the strongest economies in Southeastern Europe, and judging by its GDP, it has even surpassed some of

the other EU members. The good segments of the Croatian economy are definitely the agriculture (still solid, even if Slavonia is in the worst position out of all Croatian regions), the food industry, the textile industry, the wood processing industry, the metal industry, the chemical industry, the oil industry, the electrical industry, the construction industry, and a “great trinity of the Croatian economy" - shipbuilding, maritime and tourism. If the country decides, as they all do, to opt for reindustrialisation, IT clusters will become the new hope for Croatian economy just like in Serbia, Belarus, Romania or Ukraine, as will green agriculture, green energy, and, of course, an infinitely developing tourism industry that shows no signs of slowing down. One of my friends says that Dalmatia is one of the top 3 regions in the world in terms of ideal tourist destinations, and it is really not that difficult to use such a potential today, especially as younger generations become smarter and more flexible in the use of marketing technologies.

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Žikica Milošević

SPIRIT

CATHOLIC SLAVISM The Easternmost Point of the European West.. in the South

an-Slavism has drowned itself in its own problem, namely there isn't a group of European nations that is so sharply divided like the Slavs. The Romans are all Catholics apart from the Romanians, Moldavians and a small group of Vlachs and Tsintsars. The Germans are usually Protestant apart from the Flemish, Austrians and Bavari-

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ans. Yet, there is a much clearer distinction between the Slavs. Croatians and their spirit were formed in the framework of the Western, Catholic paradigm. The subtitle of this article sounds exactly as we intended it to sound because there is no a more precise explanation. The West can be defined in two ways, and this is the prevailing perception – firstly,

there is the demarcation of Western (Protestant and Catholic) Christianity and Orthodoxy, and secondly, and we are going to refer here to De Gaulle's quote, the West stretches from Ireland to Vladivostok, while its southerm borders start with Kazakhstan and end with the border with Iran. By definition, both Lebanon and Israel are the West, as are New Zealand

and Australia... Unfortunately, we are more inclined towards the first definition, which has a totally false premise because it takes into consideration which missionaries were the first to reach the pagans and convert them to Christianity – the Roman ones or the ones from Constantinople? If we go by the first, then Croatia is indeed the most eastern point of the West in the European Southeast (in Central Europe that is Poland, and in Northern Europe these are Lithuania, Latvia, Estonia and Finland).

BORDER BETWEEN TWO WORLDS However, this claim is all too easy to make. The Croatian spirit is deeply Balkan, with traditional strongholds of national pride in the Dalmatian hinterland, or in Lika, or in Herzegovina, with "ojkanje" (the traditional polyphonic folk singing), alka in Sinj, the Haiduks, the Uskoks and other typical Balkan features that do not blend well with the baroque face of Zagreb, Marin Držić's Dubrovnik, or Marko Marulić's Split. Therefore, it is not surprising that Croatianhood was created, in spite of the regional differences that are so drastic which even bigger countries, such as France, don't have. Croatia is a a melting pot of the Pannonian ease of Slavonians which they share with the Hungarians and the Serbs in Vojvodina, the Dalmatian / Mediterranean 'fjaka' (stillness, the state of doing nothing) they share with the Italians, and the Austrian hand-kissing readily adopted by Zagreb's crème de la crème. It is this dichotomy that is the

foundation of the contemporary Croatianhood. When the time came for the Croatians to pick their national language, they chose the Šrokavski dialect spoken only in Slavonia and very few other areas in Croatia. They did not pick Čakavski or Kajkavski dialect in which many autochthonous books in Croatian literature were written. This was the link to the Balkans, its heroism and the national language of the epic songs. On the other hand,

IT IS NOT SURPRISING THAT CROATIANHOOD WAS CREATED, DESPITE SUCH DRASTIC REGIONAL DIFFERENCES, AS THE MELTING POT OF THE PANNONIAN, CENTRAL EUROPEAN, MEDITERRANEAN AND BALKAN SPIRIT when they ran out of 'finer words', the Croatians looked to "the most prosperous Western Slavs", the Czechs, and incorporated many Czech words into their contemporary language. The Serbs, until Vuk Karadžić emerged, did the same with the Russian and old Slavic, creating the Slavic-Serbian language. However, the pernicious Karadžić left only the Turkish words and deleted the Slavic ones, only to later replace them with Latin, Greek and Western ones. Croats became wiser under Gaj, so a great number of words

(for which they are envied) remained folk - from the names of the months of the year to everyday terms.

SOUTHERN KNIGHTS And yet, after all, Croatia has remained where it is, at the border of two types of Christianity, and it is a well known fact that such nations usually have a pronounced penchant for equalizing the national and the religious. Look at the Irish (Catholics and Protestants), and the difference between the Poles and the Lithuanians on one side, and the Belorussian and the Ukrainians on the other. Ivo Gundulić openly admits in his book 'Osman' that he is a pan-Slav, and that he was led by Rome in liberation of Croatia from the occupation, but in a Catholic manner. He celebrates the Poles as the "Knights of Jesus" and somehow defines the Croats as "Southern Poles", or a bastion separating them from everyone else. However, Poland's intention to unite the Northern Slavs living in its corners (Rzecz Pospolyta), or Croatia's intention to unite the Southern Slavs, or Serbia and Russia's attempt at uniting all Eastern Slavs have all failed. But this should not fool anyone as we are the leaves of the same tree. To call ourselves the "bastions", "knights" and "guards" should be confied to the domain of interesting tradition. Nobody has benefited from these roles, but they did skilfully shape the national spirit – as it is the case with the Croatians, or Slavs who are, at the same time, Pannonian, Mediterranean, Balkan, and Central European and who are all linked by one of the most patriotic bonds on our continent, despite all the differences.

PRIDE

THE CROATIAN SPIRIT IS DEEPLY BALKAN, WITH TRADITIONAL STRONGHOLDS OF NATIONAL PRIDE IN THE DALMATIAN HINTERLAND CROATIA 2018

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2Cellos is a Croatian cellist duo, consisting of classically trained Luka Šulić and Stjepan Hauser, who have become hugely successful around the globe.

CULTURE

THE MUSIC J THAT WINS The Centre of the Regional Scene

ust like any nation that has strong national folklore and identity, while, at the same time, gravitating towards the West, Croatia is placed somewhere in-between worlds, with a deep footing in pop-rock culture and partially in folklore motiffs, especially in Slavonia and Dalmatia.

BETWEEN SCHLAGER, CANZONE AND FOLKLORE It is not a big secret that, prior and after Goran Bregović, people

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have been resorting to very witty ways in trying to make their music popular among the crowds that have different musical preferences. In the case of Croatia, the entire country was ruled by the Austro-Hungarian Empire until 1918, which left a trace in the country's music with Austrian schlagers, Hungarian folk songs and Italian canzone, which is Mediterranean to the core, leaving the biggest footprint. Considering that both Hungarians and Austrians had a very prounounced folklore tradition, and that the Croatians

had not, the folklore elements of these two nations did infiltrate the contemporary pop and rock music in Croatia. Many fondly remember a new wave band from Zagreb called Prljavo Kazalište and their ska / new wave songs, while others would advocate that it is their song „Uzalud vam trud, svirači“, which is a typical folk tambouritza song that would make the bard of the Slavnonian tambouritza scene Kićo Slabinac proud, was their best work. Many singers used the said elements in their songs, with Severina, the biggest music star in Croatia at the moment, taking the lead. Although she uses a myriad of Dalmatian writers to write songs for her, she likes to flirt with various folklore motiffs. However, whether they are playing mainstream pop music or are mixing it with other genres, Croatians have conquered Yugoslavia with their sound – from Novi Fosili (Croatian ABBA) and Magazin (with a pronounced Mediterranean influence) to musicians that are using folklore tradition albeit in ironical manner like Let 3. This is what foreigners think of the Croatian music: „The pop music of Croatia generally resembles the canzone music of Italy, while including elements of the native traditional music. Croatian record companies produce a lot of material each year, if only to populate the numerous music festivals. Of special note is the Split Festival which usually produces the most popular summer hits.” Seasoned pop singers in Croatia include: Meri Cetinić, Mišo Kovač, Ivo Robić, Vice Vukov, Milan Bačić, Arsen Dedić, Zdenka Vučković, Darko Domjan, Tereza Kesovija, Gabi Novak, Ivica Šerfezi, Oliver Dragojević, Tomislav Ivčić, Doris Dragović, Radojka Šverko, Maja Blagdan, and many others. Also, the

tian pop and a folk sound. Djavoli and Neno Belan have always swayed between the Golden Age of the American pop and the Italian canzone, with a charming touch”.

ROCK HERITAGE

MANY FONDLY REMEMBER A NEW WAVE BAND FROM ZAGREB CALLED PRLJAVO KAZALIŠTE AND THEIR SKA / NEW WAVE SONGS, WHILE OTHERS WOULD ADVOCATE THAT IT IS THEIR SONG „UZALUD VAM TRUD, SVIRAČI“ WAS THEIR BEST WORK groups Magazin and Grupa 777 have had sustained careers. In more recent times, younger performers such as Nina Badrić, Severina, Gibonni, Toni Cetinski, Jelena Rozga, Danijela, Lidija Bačić, Antonija Šola and many others have captured the attention of the pop audience. Each of them have successfully blended various influences into their distinct music style. For example, Severina threads between Croa-

But let's not forget that urban sound has always been the highlight of Croatian music, and we are not only talking about the one that originates from Zagreb. Rijeka and Slavonia were often the hubs of this sound. Case in point – Fit Group (from Rijeka), the controversial band Satan Panonski, and Majke with Goran Bare (from Vinkovci). This sound reached its evolution peak, and we happen to agree with this, during the New Wave period in the early 1980s, just like in Belgrade. While Ljubljana and Novi Sad were the first to embrace punk, Zagreb, with the musicians like Haustor, Darko Rundek, Aerodrom, Azra, Johnny Štulić, Film and Jura Stublić, Massimo Savić, Prljavo Kazalište and others, was perfectly pulsating in the rhythm of what were then the latest musical trends and, as such, brought our former country to its knees. They say that Tito promoted rock music and creativity, but only if it was in the native language, in order for young people to shun Western music. Consequentially, a small number of Yugoslav and Croatian musicians sang in English and succeeded internationally. But today, the music scene in Croatia is abundant and glowing - Nipple People, Hemendex and Lollobrigida Girls helm the electro-pop scene, and My Buddy Moose and Jonathan play great pop and are internationally recognized. The scene continues to thrive with an increasing number of musicians singing in English.

TRENDS

PSIHOMODO POP IS A CROATIAN ROCK BAND WHICH STARTED WITH A NICKNAME "THE ZAGREB RAMONES" CROATIA 2018

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Sonja Lapatanov

SOUL OVERFLOWING WITH DANCE

My career is proof that I have made right decisions

INTERVIEW

DINKO BOGDANIĆ

Choreographer and ballet pedagogue

met the charismatic Dinko Bogdanić in Dubrovnik back in 1970. That year, Maurice Bejart’s The 20th Century Ballet had a guest appearance at the Dubrovnik Summer Festival with ‘Romeo and Juliet’. Due to a series of lucky coincidences, Dinko and I became stage partners then. Out of the many ballet artists who were holidaying in Dubrovnik, the two of us were chosen to participate in the performance of the famous ballet troupe. We also received an offer to join the troupe and continue the scheduled tour in the Balkan countries. Although this was an open invitation to become a member of the globally renowned dance company, both of us were already members of other ballet ensembles - I was a member of the National Theatre Ballet from Belgrade, and Dinko of the Croatian National Theatre Ballet from Zagreb. In the years to come, our paths crossed occasionally, and every single time that happened we asked ourselves the same question. Did we or did we not make a mistake in Dubrovnik? The Croatian and Yugoslav ballet artiste, Dinko Bogdanić was born in Stari Grad on the island of Hvar. He has had a fascinating professional and international career of a principal ballet dancer, ballet professor, ballet master, choreographer and director of the Croatian National Theatre Ballet in Zagreb and Split. He is the recipient of numerous vocation-

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al and social awards, accolades, plaques and medals. As a soloist, he performed in more than a hundred plays and collaborated with numerous domestic and foreign choreographers. Dinko’s biography includes a number of independent ballet, opera and drama choreographies and directing. You have danced in many important ballet roles. What was your first role, and which role is especially dear to your heart? ― My first major role was the role of Mirko in the ballet "The Devil in the Village". I still remember those wonderful moments when I worked with Pino and Pia Mlakar, one of the greatest choreographers in this

You have worked with many choreographers. Which of them left a special imprint on your extraordinary career? ― I can mention numerous domestic and foreign choreographers, but I find it difficult to single out any of them. However, I would like to mention Balanchine, Neumeier, Ashton, Massine, Forsythe, Cullberg, Kylian, Kastl, Kokotović, and Parlić. All of them have a special place in my work as a choreographer. You are very young looking and fit. What is the secret? Is it your gene pool and ancestry to blame because you were born on the island of Hvar? ― I have to thank my parents’ genes and my Dalmatian roots for that.

I AM AN EARLY BIRD. WHEN I GET UP EARLY, I HAVE PLENTY OF TIME AND ENERGY TO DO EVERYTHING I WANT TO DO

It is a well-known fact that Dalmatians are good athletes, singers and dancers. Apart from you, do you know of any other islanders that are ballet dancers? ― There are four of us that had a worldwide career - Frane Jelinčić and Veseljko Sulić from the island of Brač, Jozo Borčić from the island of Vis and myself, from the island of Hvar.

region and in Europe. Around the same time, Melita Skorupski choreographed «Puss in the Boots » for me personally. So, it is these two great, first roles that are dear to my heart and hold a special importance in my life, because they marked my future dancing career.

How did you transition from living on Hvar to becoming a ballet dancer ? Did you have the support of your family and your surroundings when choosing a profession that is very strange for an islander ? ― My family moved to Zagreb. I was seven

years old when I made my first dance steps in what was then Pioneer Theatre. When I was nine, my father enrolled me in the ballet school in Ilirski Trg. My family has supported me throughout my career as a dancer. Their love was an encouragement to me in all my endeavours. You said that you have achieved everything you wanted in your life and that you have no regrets. Do you, however, still have some unrealized desires in your dynamic personal and professional life? ― I have travelled to all the continents except Australia. And that’s what I want to do and plan on doing in the near future. You like to travel. Have you become a passionate globetrotter after you retired? ― I have travelled around the world for my guest appearances. I love to travel and I still travel. So, nothing has changed in my life. You were a jury member on the TV show « Dancing with Stars ». What impressions do you have of this popular competitive dance show? ― I have positive impressions because I met many dear people who are dancers, and I met a great number of actors, singers, athletes, and public figures with whom I often meet for a coffee at popular places in town. You work very hard, you are very strict and you have upset some people with your rigorousness. These were the people who did not like work, order and discipline, as well as the fact that ballet is a profession that you are talented or

not talented for. Still, you were right because art always wins, doesn’t it? ― There are no results without work, order, and discipline. We were taught this and only in this way we could achieve the success that we have had. Just like best athletes depend on order, work and discipline to accomplish great results. I won’t even mention talent which, by itself, is not enough for a career in ballet.

MY CAREER IS A PROOF THAT I DID NOT MAKE A WRONG DECISION. MY BALLETS, WHETHER I WAS A DANCER OR A CHOREOGRAPHER, HAVE FILLED MY SOUL WITH LOVE  You accept what life brings to you. What have you accepted and what have you rejected in your life? ― I accepted everything my life brought me while savouring the nice moments, and forgetting the bad ones. You have had an exceptional career that spanned over 40 years, and ahead of you are many more plans for the future. Which are they? ― I always have plans. Let’s wait and see which of them will be realized. I am currently enjoying my retirement. There is this widely accepted notion that artists like to sleep long. And yet,

at 7 in the morning, you are already in your favourite café having a coffee. How do you manage to do that? ― When I was working in Germany, they told me that I was worse than the Germans. Even if I went out all night, I was always bright and early at work. I am an early bird. When I get up early, I have plenty of time and energy to do everything I want to do. When you came back to Croatia in 2002, your idea was to make the so-called Croatian Ballet. Why did this idea not materialize? ― Because of mediocrity (misunderstanding!) in the Croatian culture. You often mention Germany and positive experiences you had there while wondering why should we not experience the same here. Why is that so? ― Ballet is differently presented there. It is well-organized and respected as a profession. Dancers don’t dance until they are 65 years old and they have a different retirement system. Salaries are much higher than here. We, in this country, are very reluctant to acknowledge somebody’s success and the value of acquired knowledge. There is also disunity when it comes to the laws that regulate ballet troupes. Dinko, truth be told, do you think that you made a wrong decision in Dubrovnik in 1970? ― My career is a proof that I did not make a wrong decision. My ballets, whether I was a dancer or a choreographer, have filled my soul with love. I have always and will always live life to the fullest, as a dancer, choreographer, ballet teacher and generally an artist.

LIFE

I HAVE ALWAYS AND WILL ALWAYS LIVE LIFE TO THE FULLEST, AS A DANCER, CHOREOGRAPHER, BALLET TEACHER AND GENERALLY AN ARTIST CROATIA 2018

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THE LAND OF FAIRY TALES From Romans to Germans

hen everything fails, call tourism for help. Of course, this is a mantra for countries that don't have perfectly stable revenue sources like Greece or Turkey. Even Dubai or Qatar have nothing against making a buck for the state budget from the most propulsive global industry. In Croatia, tourism is

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experiencing a new dawn that is going to be even brighter. It is not unusual that a country that has one of the longest and the most indented coasts in the warm Mediterranean, generates a huge amount of money for the state budget from tourism, especially the coastal one. With a myriad of historical cities, beautiful nature and nature

parks, Croatia has a lot to offer. Zagreb is already positioning itself as a tourist destination as opposed to the overcrowded Prague, while INmusic Festival is becoming a fierce competitor to the Sziget Festival in Hungary or EXIT in Novi Sad. Thousands and thousands of people flock to the Croatian capital city in order to get to know it better.

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Žikica Milošević

FROM HUMBLE BEGINNINGS TO HIGH FLYERS It all started with the Romans, of course, or rather when the Romans decided to slowly but surely move from Italy, i.e. from one long Adriatic coast to another. Some, who originated from this side of the Adriatic, became patrons of the Croatian coast like the Roman emperor Diocletian who built a palace here. Later on, the relics of the saints were worshiped here, and even Shakespeare placed his play the Twelfth Night in a land called Illyrium, igniting the imagination of the British readers about a distant land. Later, the British fell in love with Dalmatians, dogs from a faraway country, while the Austrians first started to visit Opatija and Istria, which they considered their "Austrian coast", and later the rest of the country. Finally, after the mass Yugoslav socialist tourism, came the Czechs and the Germans, the Hungarians and the Italians, the Poles and the people from faraway lands, with the Serbs slowly returning too. Today, Croatia is one of the most visited countries in the Mediterranean after a sharp decline in visits to Islamic countries. The slogan, which Croatia uses to presents itself on the international tourism stage, is 'Croatia, Full of Life'. And it really is!

GLORY DAYS Lonely Planet declared Croatia the best tourist destination in 2005, while National Geographic Adventure magazine declared the country the best destination in 2006. Reuters reported that Travel Leaders, the leading travel sales company in the United

States, has declared Croatia a top international destination in Europe in 2012. According to the Google analytics data and the research conducted by the teflSearch website, where, in 2015, people from 80 countries voted for their holiday preferences, Croatia recorded the the highest percentage of searches (2.71%), making it the most desirable holiday country in the world in 2015 and 2016. We can assume that The Game of Thrones, which was partly filmed in Croatia, played a major role in this.

THE SLOGAN, WHICH CROATIA USES TO PRESENTS ITSELF ON THE INTERNATIONAL TOURISM STAGE, IS 'CROATIA, FULL OF LIFE'. AND IT REALLY IS! SMALL SCALE TOURISM But tourism in Croatia is not as massive as it is in other countries, which is quite unintentional, but great for Croatia. Since contemporary tourist trends do not encourage staying at big hotels, like the ones that were built in the socialist era, but are rather promoting individualism, most of the accommodation now is in private facilities. Therefore, most of the overnight stays are spent in private accommodation (34%), followed by hotels (26%). The Mediterranean as it once was, to quote another slogan. The Mediterranean without accommodation on a massive scale, as it used to be.

2012

REUTERS REPORTED THAT TRAVEL LEADERS, THE LEADING TRAVEL SALES COMPANY IN THE UNITED STATES, HAS DECLARED CROATIA A TOP INTERNATIONAL DESTINATION IN EUROPE IN 2012 CROATIA 2018

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NUMBERS, MORE NUMBERS! Official websites say the following: according to the eVisitor system, which contains data on the number of tourist stays in commercial and non-commercial facilities, and the nautical charter (eCrew system), during the first six months of 2017, Croatia recorded 5.7 million arrivals and 22.9 million overnight stays. Compared to the same period in 2016, this is a 22 percent hike in arrivals and a 23 percent hike in overnight stays in 2017, which was a record year in the history of Croatian tourism. Although the Germans still frequent Croatia the most, particularly Istria and Kvarner, Slovenians and Austrians are right behind while the British take

ALTHOUGH THE GERMANS STILL FREQUENT CROATIA THE MOST, PARTICULARLY ISTRIA AND KVARNER, SLOVENIANS AND AUSTRIANS ARE RIGHT BEHIND WHILE THE BRITISH TAKE THE FOURTH PLACE, JUST AHEAD OF THE POLES

the fourth place, just ahead of the Poles. The number of tourists from non-traditional countries, such as Brazil, Iceland, South Korea, China, Turkey or Finland, is growing, which shows that the world is becoming increasingly globalized, and that financial power is transferred elsewhere. All in all, year after year, Croatia has been breaking record after record. Some tourist magazines are warning that you should avoid going to Dubrovnik this year because it is going to be swarmed with millions of fans of The Game of Thrones. Hvar decided to raise the standard, so to speak, with a series of bans, which just tells us that Croatia has become a superstar of global tourism and that not only tourists pick Croatia, but now Croatia picks tourists too.

GAME OF THRONES

SOME TOURIST MAGAZINES ARE WARNING THAT YOU SHOULD AVOID GOING TO DUBROVNIK THIS YEAR BECAUSE IT IS GOING TO BE SWARMED WITH MILLIONS OF FANS OF THE GAME OF THRONES 32

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More than reasons to visit the Kornati NP

The Kornati archipelago comprises of 150 islands, islets and cliffs which make the most diverse island group in the Mediterranean. Due to the exceptionally beautiful landscape, interesting geomorphology, quite indented coastline, and especially plentiful biocenoses of the marine ecosystem, 89 of these islands make the Kornati National Park.

WHAT TO SEE IN THE KORNATI NATIONAL PARK?

WHAT TO DO IN THE KORNATI NATIONAL PARK?

• ”Crowns” (cliffs) • Magazinova škrila on the main island of Kornat • Viewpoints • Illyrian remains • Tureta fortress • Our Lady of Tarac church • Salt mine in Lavsa • Remains of Venetian castle, Church of the Nativity of the Blessed Virgin Mary on the island of Piškera • Dry stone walls

• Cruising through kornati maze • Swimming in the sea • Scuba diving and snorkeling • Watching wildlife and fauna • Hiking to viewpoints and through fields • Dining at restaurants and taverns • Overnight stay in kornati • Living with the typical kornati family

Public Institution Kornati National Park Butina 2, HR - 22243 Murter Tel: +385 (0)22 435 740 www.np-kornati.hr kornati@np-kornati.hr

CORPORATE

Feeling Safe on Winter Holidays with AMS Osiguranje You decided to go on a skiing holiday abroad with your family. Do you know that skiing injuries are quite common, and that a medical checkup alone can cost you over 50 EUR? Think ahead and protect yourself from unwanted financial loss so that you can give yourself and your nearest and dearest a carefree holiday that you deserve. Do not allow unplanned financial costs spoil your holiday, but protect yourself on time from many risks that skiing carries. By obtaining a travel health insurance policy from AMS Osiguranje you are financially covered in the case of surgical interventions, dental treatments, hospitalization and other healthcare services, in line with the terms and conditions of your insurance policy. We are here for you which is why we have made it possible to purchase our healthcare insurance policy

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CROATIA 2018

online, on our website, thus saving you precious time and money. During the promotional period only, we are offering a 30% discount on our travel health insurance premium. For only 2,425 dinars, which is how much a family insurance policy covering seven days of skiing on the territory of Europe costs with included discount, your entire family will be protected from exuberant medical costs abroad. In order to enjoy a completely

RELAX

BE COMPLETELY RELAXED ON YOUR HOLIDAY, WITHOUT WORRYING ABOUT SOMETHING HAPPENING TO YOUR HOME WHILE YOU ARE AWAY

relaxed holiday, you should also not worry whether your home is safe while you are away. AMS Osiguranje has home insurance policies that protect you from many risks including fire, burst pipes, burglary, bad weather or theft, in accordance with the terms and conditions of your policy. You can buy an affordable home insurance policy online, in our webshop. Do not allow unplanned events suprise you! Instead let AMS Osiguranje take care of that because our clients come first. All you need to do is take few minutes, and from the comfort of your home, in just few steps, obtain a travel health insurance policy and leave for your winter holiday completely relaxed . You can find the detailed instructions how to purchase a travel health insurance online, by clicking on https:// webshop.ams.co.rs . For more information, please call 0800-009-009.

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