InFocus Croatia 2019 by Diplomacy&Commerce magazine

Croatia 2019

CROATIA & SERBIA

QUALITY RELATIONS - BETTER COOPERATION H.E. GORDAN BAKOTA Ambassador of the Republic of Croatia to Serbia

PERO MIJAKIĆ

MARIJA RADULOVIĆ

President of Croatian Chamber of Economy in Serbia

President of the Croatian Business Club Belgrade

T HE ORIENT EXPRESS

The story in the novel “Murder on the Orient Express” by Agatha Christie, where Hercule Poirot solves the riddle of the murder in the train stuck in the snow happens in Croatia – somwhere between Vinkovci and Slavonski Brod.

C RAZY HILL, TRANSLATED

If you were to spread a map of the world flat the town of Ludbreg in Croatia would be bang in the centre.

ARCO M POLO WAS A CROAT(IAN), PROBABLY

05 STONE

WALLS OF STON

The Walls of Ston are the longest preserved fortification system in the world after the Great Wall of China.

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CROATIA 2019

The family of famous Venetian globetrotter Marco Polo was originally from the island of Korčula, where his family house still stands. Korčula was a Venetian possession at the time.

03 SPHYNX FOR REAL

Split’s Diocletian Palace has a genuine Egyptian sphinx thanks to Emperor Diocletian who had it brought in from Egypt to adorn the entrance to his tomb.

04 CITY OF VINKO,

CIBALAE, AND EVEN OLDER

The oldest inhabited city in Europe is the eastern Croatian city of Vinkovci. The city has been inhabited for the past 8,000 years.

08 TORPEDO BY A CROAT The world’s first torpedo was constructed in Rijeka. Giovanni Luppis (Ivan Vukić) developed the first prototypes of the self-propelled torpedo in 1866.

07 INTANGIBLE, BUT ENJOYABLE

Croatia has the highest number of UNESCO Intangible Goods of any European country together with Spain.

CROATIA 2019

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WE CAN DO MORE AND BETTER

H.E. GORDAN BAKOTA

Ambassador of the Republic of Croatia to Serbia

„C

roatia remains committed to bolstering good neighbourly cooperation and developing biletaral relations. I will personally continue to invest a lot of effort to that end,“ says H.E. Gordan Bakota, Ambassador of the Republic of Croatia to Serbia. Among other things, we have also talked to Mr. Bakota about the development of bilateral relations between Serbia and Croatia

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CROATIA 2019

Our relations with the countries in Southeast Europe and EU enlargement will be one of the main priorities of the Croatian Presidency of the EU which takes place in the first half of 2020. At our initiative, a new EU and Western Balkans summit will be held in Zagreb at that time. In regard to bilateral relations, we can do more and better

last year and the priorities of the Croatian Presidency of the EU which will take place in the first half of 2020, which are closely related to this region and its European perspective. What characterized the bilateral relations between the two countries in 2018?  Last year was dynamic, with ups and

downs in our bilateral relations. During the visit of President Vučić to Croatia, both sides stressed the importance of further improving the relations and expediting the work on unresolved issues, especially addressing the issue of missing persons. The importance of the status of national minorities has also been underlined. The dialogue has intensified and a certain dynamics was established in a number of areas.

As far as our relations go, we can surely do more and better. In order to do that, we need to constantly invest in creating a positive atmosphere that will facilitate the improvement of our relations. Unfortunately, we have witnessed a series of events and incidents that do not contribute to this. On the contrary, they adversely affect our relations. Regardless, Croatia remains committed to bolstering good neighbourly cooperation and developing relations, and I will personally continue to invest a lot of effort to that end. Despite the fact that, in the past year, we were not able to achieve a significant growth in the external trade between our two countries, to the extent it had been in the past years, economic cooperation remains one of the bright points of the bilateral relations between Croatia and Serbia. Last year, the Republic of Croatia's Chamber of Economy re-opened its office in Belgrade, adding to the synergy in the bilateral economic cooperation. Also, the Joint Committee for the Implementation and Facilitation of Economic Cooperation held its first session. The Committee's main task is to identify the obstacles faced by companies and small businesses, and suggest appropriate solutions for their removal. Furthermore, we have signed a Memorandum of Understanding on Cooperation on Promoting Effective Railroad Traffic. I would also like to point out that 2018 was the year of excellent cultural cooperation with numerous concerts and theatre plays taking place.

creating an atmosphere of trust, dialogue and cooperation in order to find common solutions to unresolved issues from the time of war and the collapse of the common state that are still a burden to our relations. Early 2019, when Romania starts its EU presidency, also marks the beginning of the EU Trio Programme sessions that will be completed when Croatia takes over the EU Presidency beginning of 2020. Croatia strongly supports the European Union's enlargement process for all countries in South East Europe, including Serbia's accession negotiations, and we are going to continue in that direction this year too.

ECONOMIC COOPERATION REMAINS ONE OF THE BRIGHT POINTS OF THE BILATERAL RELATIONS BETWEEN CROATIA AND SERBIA Economic cooperation could certainly be far better because there is a great potential for intensifying activities in agriculture, tourism, IT industry, as well as industry as a whole. In this regard, it is extremely important to ensure the most favourable conditions for doing business, and to resolve, among other things, certain problems such as the non-compliance of certain regulations and procedures with the view of achieving a more equitable and more efficient flow

Considering what you have just said for 2018, what is 2019 going to be like?  In 2019, we must continue to invest in

Main priorities

of goods and services. I find that cooperation in tourism has particularly good prospects, primarily through numerous specialized forms of tourism, such as adventure, oenological-gastronomical, cultural, health and conference tourism. If we linked the tourism offers of our two countries, we would become more competitive and appealing to guests from distant destinations, who usually want to visit more countries at once and as many tourist attractions as possible during their prolonged stay. Despite the fact that economic relations have their own development logic, which primarily includes economic and financial factors, their evolution has a significant influence on the political environment, and it is therefore extremely important for the messages that will come from that direction in the near future to be as positive as possible. How does this complicated situation in the region affect the relations between the two countries?  As an EU member, Croatia plays an important role in this part of Europe and we strongly advocate enlargement. This is one of the major challenges in this part of Europe. The efforts that all countries here are investing in the resolution of bilateral issues, strengthening of good neighbourly cooperation, acceptance of European values and fulfillment of the EU accession obligations all affect the relaxation of political relations in the region. Are you satisfied with the pace at which unresolved issues are being dealt with considering that the relevant negotiations have been going on for years? 

THE RELATIONS WITH THE SEE COUNTRIES AND EU ENLARGEMENT WILL BE SOME OF THE MAIN PRIORITIES OF THE CROATIAN PRESIDENCY OVER THE EU IN THE FIRST HALF OF 2020 CROATIA 2019

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I have to say that we cannot be satisfied with the pace of resolving these open issues, especially the issue of missing persons. Croatia is ready and willing to talk to the Serbian side on resolving all open issues, in good faith and in a rational manner. The overall bilateral relations, however, need not be assessed solely through the filter of historical or political disagreements. Considering the current situation, what would constitute an important diplomatic success in 2019 in your opinion?  As I have already pointed out, that, apart from working on resolving open issues, we want to intensify our activities in many areas of inter-state cooperation that are in our common interest and benefit the citizens of the two countries. The cooperation in the European context and the negotiation process are of particular importance. Bearing in mind Croatia's role in encouraging regional countries to expedite their respective European integration processes, what will Croatia's presidency of the EU bring?  It is in our national strategic interesst to have neighbours that share the same European values and standards. I think there are very few countries in the European Council that advocate cooperation with Southeast European states and enlargement in such a systematic and honest manner as Croatia. Hence, the relations with the SEE countries and EU enlargement will be one of the main priorities of the Croatian presidency over the EU in the first half of 2020. At our initiative, following the Sofia summit, a new EU and Western Balkans summit will take place in Zagreb. Twenty years from the summit also held in Zagreb, which opened the European perspective to Croatia and other SEE countries. This is a powerful message that we want to send our neighbours while helping them on their way.

 The task is certainly challenging because both the EU and the SEE countries are facing issues that often turn their attention away from what is the most important, namely integration of this part of Europe into the EU. This year, the EU will have elections and a new convocation of the European Parliament and the European Commission. It is, therefore, even more important that Croatia immediately shifts the focus back on the enlargement and the SEE countries in general in the beginning of 2020.

How challenging is this task for Croatia considering that ambitions of certain other countries that presided over the EU, like Bulgaria, did not bring any historically important shifts?

Are you satisfied with the treatement of the Croatian community in Serbia? It seems that there have been some positive developments regarding this lately. 

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CROATIA 2019

2018 WAS THE YEAR OF EXCELLENT CULTURAL COOPERATION WITH NUMEROUS CONCERTS AND THEATRE PLAYS TAKING PLACE

When it comes to Croats as a national minority in Serbia, we expect the Serbian side to fully meet the assumed international commitments, as well as the obligations that stem from the European accession process. In the past year, after three years of interruption, the Intergovernmental Mixed Committee for National Minorities continued its activities. Also, there was the establishment of a dialogue between the representatives of the Croatian community in Serbia and the highest government representatives. As the representatives of the Croatian community point out, this dialogue has yielded concrete results in terms of meeting some of their requirements. Both minorities, the Serb minority in Croatia and the Croatian minority in Serbia, should be given the same opportunities to exercise their rights in everyday life. Croatian representatives, as well as the representatives of other national minorities in Serbia, should be actively involved in activities related to the definition and implementation of minority rights in various areas. In Croatia, there is a very high level of political representation of national minorities both in the Croatian Parliament and locally. I am convinced that full implementation of minority rights only enriches our respective societies.

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QUALITY RELATIONS - BETTER COOPERATION PERO MIJAKIĆ

President of Croatian Chamber of Economy in Serbia

In 2019, we expect to see an increase in external trade in goods, but also an improvement in its structure, where products of a higher degree of complexity and higher added value, rather than raw materials, must dominate the trade. In order to achieve this, we need to invest in innovation

lthough one cannot argue that the overall bilateral relations have an impact on the state of economic relations between Serbia and Croatia, it is up to the business people from both countries to work on a continuous expansion of cooperation, as it still has a lot of potential to grow. Our interlocutor, Pero Mijakić, President of the Croatian Chamber of Economy in Serbia, underlines the positive results of the external trade in goods between the two countries, but also also the cooperation with colleagues from the Chamber of Commerce of Serbia which he calls „highly professional“. "Business cooperation is always ahead of politics," says Mr. Mijakić, adding that development of good overall elations in the future should be based on good business relations. This is where the Croatian Chamber of Economy in Serbia sees its role. "We intend to continue working on creating good conditions and the business climate this year too, in order for the Croatian companies in Serbia to preform even better and achieve better business results, as well as to help create a positive climate for Serbian companies investing in Croatia.“ Also, the Chamber plans to organize more business forums with the par-

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ticipation of business people from both countries, to improve the presence at specialized trade fairs, and to continue promoting Croatian products in Serbia. What is your forecast for the Croatian-Serbian business cooperation in the future?  Economic cooperation will improve in all segments in the coming years. This is a normal course for two neighbouring countries which economies have a similar structure. Business people will certainly know how to use comparative advantages stemming from the connec-

THERE ARE SEVERAL CROATIAN COMPANIES WHICH HAVE ACHIEVED A GREAT SUCCESS HERE, PARTICULARY IN THE PROCESSING INDUSTRY AND RAILROAD INFRASTRUCTURE SEGMENT

tivity and proximity of the two markets. What key potentials remain untapped and why is that so?  Business people should be more closely connected in order to have a joint appearance in large third markets. We are familiar with the advantages of the EU membership, while Serbia has certain favourable bilateral agreements with China and Russia. These are big markets which demand cannot be met by individual countries. For instance, we could better compete in large markets and on large projects by working together in the construction segment. Serbia recorded a major leap in construction in the first six months of 2018 - 25 percent growth - and this is also an opportunity for Croatian companies from that sector. This doesn't apply only to builders, but also to furniture manufacturers and manufacturers of other equipment. There is a great potential for cooperation in agriculture and especially in the tourism sector. It also doesn't make any sense that the number of Serbian tourists in Croatia is relatively low, and yet our countries are so close. What trends in external trade in goods

and investments do you expect to see in 2019?  We expect to see an increase in external trade in goods, but also an improvement in its structure. IN terms of external trade and individual competitiveness in the global market, our goal is for products of a higher degree of complexity and higher added value, rather than raw materials, to dominate the trade. In order to achieve this, we need to invest in innovation. To what extent does the complex political situation between the two countries influence the decision of business people to cooperate with each other?  Political situation does affect the decisions of business people to cooperate with each other. However, business cooperation is always ahead of politics and development of good overall elations in the future should be based on good business relations. Economic development is a universal solution for many problematic points in the relations between the countries of the region. Economic cooperation simply has no alternative and this must be clear to everyone who wants good for the people living in this part of the world. In that context, what is the environment in which the Croatian Chamber of Economy in Serbia operates like, and what is your cooperation with the Chamber of Commerce of Serbia?  We do not have slightest problems in our work, and the cooperation with the Chamber of Commerce of Serbia is a true example of collegiality and professionalism. Our two chambers have a great relationship. We exchange experiences and

SERBIAN AND CROATIAN CHAMBERS HAVE A GREAT RELATIONSHIP, EXCHANGE EXPERIENCES AND EXAMPLES OF GOOD PRACTICE WHICH IS VERY BENEFICIAL FOR THE COMPANIES INTERESTED IN MUTUAL COOPERATION AND ENTRY INTO THESE TWO MARKETS examples of good practice with our colleagues from the Serbian chamber which is very beneficial for our companies when they need to obtain certain information or search for a business partner. We are confident that this trend will continue in the future as well. What are your Chamber's goals in 2019?  Our plans for 2019 are to continue creating favourable conditions and business climate in order for the Croatian companies in Serbia to perform even better and achieve better business results, as well as to help create a positive climate for Serbian companies to invest in Croatia. Also, the Chamber plans to organize more business forums with the participation of business people from both countries, to improve the presence at specialized trade fairs, and to continue promoting Croatian products in Serbia. How can chambers and business communities help with mitigating the

We want more tourists from Serbia

problem of a lack of workforce which is becoming increasingly pronounced in the region?  In Croatia, the Croatian Chamber of Economy advocates higher imported labour quotas as an interim solution of this burning problem. However, we have been insisting on harmonizing our education system with the needs of the labour market through dual education. This is a model that has already been successfully implemented in Germany, Austria and Switzerland, where chambers are the mediators between education and business people. Students not only start working during their schooling, but also get the majority of their education in companies, which is only natural for dual education occupations. The opportunity of students having a faster entry into the labour market can certainly contribute to greater attractiveness of such occupations. For their part, business people are already developing measures to attract and retain workers because this situation is not new. For instance, renowned hotels in Croatia provide additional education and accommodation capacities for their workers. But the problem has to be resolved systematically, at its core and in the long run - by reforming the education system. What obstacles do Croatian companies in Serbia come across?  There are no major obstacles for Croatian companies in Serbia compared to other companies. All companies are facing almost identical problems. However, there are several Croatian companies which have achieved a great success here, particulary in the processing industry and railroad infrastructure segment.

THERE IS A GREAT POTENTIAL FOR COOPERATION IN AGRICULTURE AND ESPECIALLY IN THE TOURISM SECTOR. IT ALSO DOESN'T MAKE ANY SENSE THAT THE NUMBER OF SERBIAN TOURISTS IN CROATIA IS RELATIVELY LOW, AND YET OUR COUNTRIES ARE SO CLOSE CROATIA 2019

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A GROWING INTEREST IN MEMBERSHIPS MARIJA RADULOVIĆ

President of the Croatian Business Club Belgrade

To best illustrate the Club's operations, we should mention that, every year, the Club has been gaining more company members. Also, every year, the Club goes a step forward in meeting the needs of its membership

hile the bilateral relations between Serbia and Croatia have been experiencing various ups and downs, the connections between business people from the two countries are becoming increasingly tighter and more diversified, while the community of Croatian companies in Serbia is growing and developing at a rate of 40 percent annually. Thanks to the dedicated work of the Croatian Business Club Belgrade (CBC), members now have more services, activities and modalities of connection with other domestic and foreign companies operating in Serbia at their disposal. That is why, in the conversation with Marija Radulović, the President of CBC, we devoted most of the time exactly to talking about the plans for improving the Club's activities. What kind of ambitions and plans do you have for 2019?  Overall, we have two goals for this year - to provide current members with a quality service and as much as possible versatile gatherings and exchange of business ideas, but also to use the next period to increase our membership, because we are confident that, in addition to the Croatian companies that we

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will contact, there are many other companies interested in cooperating with the Croatian firms. Our plan is also to expand the activities and services we provide to our members. So far, we have been focusing mainly on providing the so-called service information, which is our main task, but we have also organized regular monthly meetings where members are given the opportunity to know each other even better, exchange information, give advice to each other, and establish mutual coop-

WE WANT TO INCREASE OUR MEMBERSHIP, BECAUSE WE ARE CONFIDENT THAT, IN ADDITION TO THE CROATIAN COMPANIES THAT WE WILL CONTACT, THERE ARE MANY OTHER COMPANIES INTERESTED IN COOPERATING WITH THE CROATIAN FIRMS

eration. In the following period, we will try to expand the links with the mixed chambers that operate in Serbia, and to organize joint gatherings, in cooperation with the representatives of the Croatian Chamber of Economy in Serbia, and above all with the Croatian Embassy, which gives us exceptional support in all segments of our business. In regard to increasing our membership, we are thinking of those companies that are just coming or planning to come to Serbia, but also those who are already here but have not yet had the opportunity to get to know the possibilities that the membership in CBC provides. Furthermore, the current structure of our membership indicates that there are many domestic companies but also small businesses that have a business interest in realizing or strengthening the cooperation with Croatian companies in the domestic market through our club. Your membership grew last year. Could you tell us something about the current membership structure and which economic branches do your members come from the most?  Our membership has beens increasing year-on-year, and our estimates show that on average, it has been going up by

40 percent annually in the last few years. We intend to continue with this trend. Now, we have almost 50 member companies, and in regard to the economic branches they come from, there are no set rules - everyone is welcome. Today, we have transport companies, international logistics companies, financial institutions, confectionery companies, IT companies, advocacy and consulting services companies, media, and many others as our members. One should not forget that our Club also provides information and logistics support to companies from Serbia that are starting to operate in the Croatian market. Which of your services do your members appreciate the most and have you been contemplating providing new services?  So far, networking with other chambers was the most popular service. A number of our members attended an EU cocktail, as well as the gathering at the residence of the Croatian Ambassador, H.E. Mr. Gordan Bakota, where the Head of Cooperation at the EU Delegation in Serbia, Mr. Yngve Engström had a presentation titled "EU Financial Instruments and Projects in Serbia”. Over the past few years, we have organized joint meetings with the members of the Hellenic Business Association, the Belgian Chamber of Commerce, the Nordic Business Alliance, and the French-Serbian Chamber of Commerce, and we have a close cooperation with the Slovenian Business Club. In the future, we plan to establish cooperation with other mixed chambers in Serbia -

in which many European companies and businesses operate.

Swiss, Japanese, Canadian.... Our speed business meetings proved to be a rather interesting concept at which the participants briefly present their business to each other. Interestingly, these speed business meetings are organized in cooperation with business clubs from several countries, and are a way to find new acquaintances and new business contacts.

Which economic topics are the most appealing to your members and in which way do you provide information about these topics?  Business people in Serbia are mostly interested in administrative and legal foundations for doing business in Serbia, namely finding out if there are legal limitations and if there are, in which segments, what kind of incentives are available to them, and how they can enter the market as easily as possible with the view of starting a business. Members are informed about this either at their request, or at our regular gatherings. We noticed that there was a need to instigate a discussion about numerous social or socio-economic issues at our gatherings, such as education and youth employment, the position of youth in the labour market, the connections between the different types and ways of education and the employer's attitude towards young employees. These are topics that concern the entire region, but some countries have more positive and some less positive experiences, so the exchange of information is valuable for employers in Serbia who may reject certain practices, but adopt others. The most important thing is that the members of our Club have only positive intentions, that they are focused on the progress of their own businesses through the exchange of know-how and experiences with other members, and that they do not allow any political events to hinder them in that or to jeopardize good relations among members.

OUR SPEED BUSINESS MEETINGS PROVED TO BE A RATHER INTERESTING CONCEPT AT WHICH THE PARTICIPANTS BRIEFLY PRESENT THEIR BUSINESS TO EACH OTHER What will be the most important activities regarding the inter-chamber cooperation this year?  Bearing in mind the fact that, in the early 2020, the Republic of Croatia takes over the EU presidency, our activities will be focused on connecting with the chambers of the EU Member States, and at the end of the year, we plan to hold an event at which we are going to mark Croatia's presidency and on which, I hope, we are going to instigate the discussion about numerous social and economic issues related to the mutual cooperation between the EU Member States and Serbia as a part of Europe and a country

Presidency

WE HOPE THAT DURING CROATIA'S PRESIDENCY OVER THE EU, WHICH STARTS IN 2020, WE WILL INSTIGATE DISCUSSION ABOUT NUMEROUS SOCIAL AND ECONOMIC ISSUES REGARDING THE MUTUAL COOPERATION BETWEEN THE EU MEMBER STATES AND SERBIA CROATIA 2019

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E C ON OMI C C OOPERATION

EVERLASTING ECONOMIC INTERESTS Neighbours relying on each other

roatian products in Serbia and Serbian products in Croatia have always been popular, even when they were considered "forbidden fruit". Although this is no longer the case, there is nothing to prevent the two neighbouring countries to step up their cooperation that can reach the level that the two sides cannot even imagine at the moment. This is not only about the Yugo-nostalgia and a subconscious need to buy certain brands. Even if it is, it is perfect-

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CROATIA 2019

ACCORDING TO THE LATEST DATA COLLATED BY THE CROATIAN BUREAU OF STATISTICS, CROATIA EXPORTED TO SERBIA EUR 616 MILLION WORTH OF GOODS

ly normal – even on Malta, Cyprus and in the Republic of Ireland, British products are more popular than other, and this is, by no means, the result of the geographical proximity between Great Britain and the two Mediterranean islands. Even ice cream is sold in a typical British manner – from a moving ice cream truck. It is no wonder that habit is also called second nature. If this is true, why not utilize it? Secondly, the transport costs are very low since we are talking about two neighbouring states that are connected by fast

roads, as well as slower transport routes, like rivers. Thirdly, Croatian and Serbian markets, in particular Vojvodina, on the Serbian side, have been conjoined for a long time since both Croatia and Vojvodina were a part of the Austrian-Hungarian Empire back in the day. If there were no borders between Zagreb and Veliki Bečkerek (today, the town of Zrenjanin) in 1910, then there is no reason for them to exist today. Bear in mind that we have managed to distance ourselves from Romanian and Hungarian products in less than 80 years.

welcomes any Serbian company that is willing to invest in Croatia and do business with our companies. I believe that Croatia can offer many benefits to them, such as access to the large EU market." It is encouraging to see that capital knows no borders.

WRONG SUMMATION According to the latest data collated by the Croatian Bureau of Statistics, in the period from January to November 2017, Croatia exported to Serbia EUR 616 million worth of goods, which is an annual growth of 30.3%, while Croatian import from Serbia went up by 18.6% and amounted to EUR 532.4 million. As an expor partner to Croatia, Serbia occupies the 6th place on the countries that it exports the most to, with a 4.2% share in overall exports, while, in terms of the countries that Serbia imports most from, Croatia ranks 9th, with a 2.5% share in total imports. According to the data covering the first eleven months of 2017, the trend of reducing the Croatian surplus in external trade with the their eastern neighbour, which was noticeable last year, is no longer. Still, the statistical data about the import and export between the two countries vary greately. Unlike Croatian statistics, which recorded a Croatian trade surplus of EUR 83.6 million in 2017, Serbian statistical data shows that it was Serbia that actually recorded a surplus in the amount of EUR 74.4 million. A similar discrepancy can be seen in data for 2016, in which the Croatian side recorded a surplus of EUR 23.7 million, and the Serbian side EUR 30.8 million. Somebody's summation is wrong here, but let's wait for the data for 2018 to come out.

ECONOMIC FORUM 2018 The most important news for the Serbian-Croatian economic relations in 2018 was the Croatian-Serbian Economic Forum that took place in February, and was chaired by the top state officials Kolinda Grabar-Kitarović and Aleksandar Vučić, presidents of the two countries. "Serbia is a significant economic partner for Croatia, and this is validated by the fact that over 200 of our companies operate in the Serbian market. The result of this is that Croatia's direct foreign investments in Serbia are worth more than EUR 749.3 million, making Serbia the 4th most important country for Croatian investments, "said President of the Croatian Chamber of Economy, Luka Burilović on the occasion, adding that two countries, despite the burdensome past, have everlasting economic interests. The gathering assembled 40 or so companies from both countries, and covered the segments that could advance economic relations like energy, chemical and metal-processing industry, transport, crude oil derivatives, production of locomotives and train cars, agriculture,

THE TRANSPORT COSTS ARE VERY LOW SINCE WE ARE TALKING ABOUT TWO NEIGHBOURING STATES THAT ARE CONNECTED BY FAST ROADS, AS WELL AS SLOWER BUT CHEAPER TRANSPORT ROUTES, LIKE RIVERS tourism, construction, information technology, etc. President Grabar-Kitarović outlined the potentials for cooperation in industry, construction, energy, agriculture, tourism and transport. She also mentioned the cooperation on the revitalization of the Zagreb-Vinkovci-Tovarnik-Šid-Belgrade railway. One of the novelties was also Croatia's readiness to open for investments from Serbia. To quote the Croatian president again: "Croatia

Imports

CROATIA IMPORTS MORE AND MORE FOOD AND AGRICULTURAL PRODUCTS FROM SERBIA TO MEET THE DEMAND OF THE TOURISM SECTOR THAT IS GROWING STEADILY CROATIA 2019

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CORPORATE

Creativity and Innovation are the

KEY TO SUCCESS IVAN PRTORIĆ Director of Podravka Serbia

As we are present in more than 60 countries around the world, like missionaries, we creatively combine traditional and modern, while making sure that Podravka's products find their way to cooking pots all over the world

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ince food industry has a great development potential, innovations are certainly necessary in development of new products and production quality, but according to today's "rules of the game", they are also crucial in the process of communication. Podravka has been present in Serbia since 2001. How important is it to invest in innovation in order to maintain the position of the food industry leader? — Back in 2001, Podravka Serbia's biggest task was to let Serbian consumers know that we were back with the help of strong integrated communication, and to convince them with the same ease and confidence that they should return to purchasing 'the veteran' products from our range just as before, as well as buy new products. Most of our employees have been with us since the company's beginnings, and this synergy contributes to achieveing better re-

sults on a daily basis, as well as in setting new challenges. Upon my arrival in Belgrade, I was awashed with good energy of our team and I quickly became a part of it myself. As the food industry has a great development potential, innovations are certainly necessary in developing new products and in production quality, but according to today's "rules of the game", they are also crucial in the process of communication. In the sea of information and with overflowing shop shelves, creativity in complete business, especially in communication, is a way to get the consumers' attention. No resting on

NEW PRODUCT

Our team in Podravka Serbia embarked on a great adventure and came up with a new product – Kviki Chips

our laurels! We must not rely only on good results, because they need to be fed like a beast, but we also need to invest the same effort every day in building the image of our individual products, brands and the company itself. That is why, through a creative approach, we are present on all fronts - at the points of sale, in partnership with key media outlets, on digital platforms, at the top events. If you inseparably bind all of this with emotions, you will get positive results. „He who believes in miracles, creates miracles!“ Inspired by the words of the iconic writer Duško Radović, our team in Podravka Serbia embarked on a great adventure and came up with a new product – Kviki Chips. This is a brand new experience, one-ofa-kind energy and emotions that fuel the creative process, which resulted in a new product - Kviki Chips, that comes in two flavours and two shapes (salted and pepper, flat and ribbed). Our colleagues from Koprivnica supported us wholeheartedly in this endeavour, and thanks to our intertwined energies, our "miracle" was created. Kviki Chips has been selling in the Serbian market for several days now, and is soon coming to Croatia, Bosnia and Herzegovina, and Montenegro. We have a great product and with creative and strong communication in all markets, we expect a positive reaction from consumers. We believe that we are going to hit the bullseye because that's what Podravka does. How important is it to follow culture, spirit and tradition of a country in which you do business and how do you adapt your product range to individual markets? — This is a huge challenge. Actually, it is crucial. You can have a top product all you want, but if you have not managed to awaken consumers' attention and convince them that your product is the right choice for them, everything is in vain. Our great advantage is that we really have top-notch products. Before our products find their way to consumers' baskets and before our consumers continue to constantly go back to our products, we need to cover a long and arduous road. As I have already said, creative, innovative and integrated communication is the only way. As we are present in more than 60 countries around the world, like missionaries, we creatively combine traditional and modern, while making sure that Podravka's products find their way to cooking pots all over the world.

Apart from local peculiarities, there is also the spillover of modern food trends which is why we mix traditional with modern. Every day, we create new, innovative products that are in line with contemporary culinary trends, where our inspiration comes from the consumers who care about their nutrition, carefully choose groceries and enjoy the richness of natural ingredients. And there are more and more of them all over the world. Your website Coolinarka has millions of followers. What new projects are you preparing and what can we expect in the upcoming period when it comes to this type of communication with consumers? — Our Cool Club currently counts over 180,000 users worldwide, and the number of those who are following Coolinarika is growing day-on-day. Apart from having a growing number of users, recipes and photos, we are also developing a stronger connection between people who share their experiences, knowledge and skills on our website. Every day, millions of people

RECIPES

Every day, millions of people are enjoying the meals prepared thanks to the recipes found on Coolinarika are enjoying the meals prepared thanks to the recipes found on Coolinarika, which is one of the most visited sites in the region. This is where our club members bond as if they were cousins and neighbours, giving each other advice and discovering their culinary secrets. We are proud of the impact and strength of our website, and with creative and innovative approach to communication, we are boosting the connection and emotions shared with end consumers. Brands from Podravka's portfolio are extremely well-established in the Serbian market. How important is to inves in brands so they last for a long time and remain leaders in their respective categories? — As I said at the beginning of our conversation, Podravka has not been present in the Serbian market only since 2001, but for almost 70 years. Of course, the huge task that the team from Podravka Serbia had

was to again attract old consumers and gain new ones from younger generations. The return of our products that marked the lives of generations of people from the ex-Yugoslav market was the right way to prepare the field for all the novelties that the Serbian consumers were not familiar with. The consumer trust in top quality brands like Vegeta, Eva and Lino, on one hand, and investing in creative communication, which we have talked about, on the other, was the right formula for achieving this position. This is not easy! Challenges crop up daily, our competition is very active and the purchasing power has declined. But, as I said, there is no resting our laurels. If you fall asleep, it will be a deep and prolonged one. Podravka is well-known for its socially responsible business and substantially investing in local community. Which projects would you like to single out this year? — Assistance and support that come at the right moment are priceless. One of our slogans and basic ideas is „Always Use Your Heart“. For decades, through the Lino product range, Podravka has been focusing on our youngest consumers. Inspired by child's smile and listening intently to what our hearts tell us, we look for opportunities where we can provide support and help the little ones. We had the opportunity to support an inclusive project launched by organization „Veliki Mali Ljudi“. On several occasions we brought smiles to the disabled children from Sremčica and other institutions that needed help. We were among the businesses that supported the "Pronadjimo Nove Nade" project, which aims to encourage and empower young people with disabilities to start being actively engaged in sports. Since recently, we have been part of a gift-giving project for mothers, and we are really happy that our Lino gift pack is present at the magical moment of childbirth. I believe that, in the future, either alone or with our partners, we will continue to make somebody's lives easier and more beautiful, and we are always here to provide support. What is the future development plan of Podravka in Serbia and the region? — We are continuing to monitor and equally apply the same tendencies in the world of cooking and advertising, while carefully observing our competition, as we continue to strive to be always a step ahead.

CROATIA 2019

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I OUT

ECONOMY

OF THE DARK

Into the Light

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CROATIA 2019

f you are over 30 years of age, you will probably remember that these words are the tile of a song of the famous Austrian singer, Falco, which, by the way, in Latin means falcon. Just like falcon, the Croatian economy has reached impressive heights after a strange and rather unexpected decline. Unlike other countries which have production-based economies that made them almost immune to the world economic crisis, due to a noticeable de-industrialization, Croatian economy took quite a blow, just like those in South Europe. When this happened, Croatia was not an EU member, so nobody could liken it to the countries that were called by rather

humiliating acronyms. Regardless of this, the recession in Croatia lasted for six years – from 2009 to 2015.

UP, UP AND AWAY Only in 2015 did Croatia started recording economic growth again. To illustrate this, let's use the data collated by the World Bank which says: “By 2017, Croatia’s GDP per capita had reached almost US$13,500, or in purchasing power parity (PPP) terms, US$22,000 (63% of the European Union [EU] average). Upon joining the EU in mid-2013, Croatia gained access to the EU internal market, which helped connect part of the economy to global value chains. In addition, tourism has

been experiencing historic highs in recent years.” The World Bank underlines another aspect of the Croatian economy – its non-diversity – which, back in the former Yugoslavia, was a driving force behind the entire Federation. The World Bank says:“Yet these factors are not enough to deliver pre-crisis growth rates, and the country still lags behind the income levels of its peers in the EU. Growth remained solid in the first half of 2018 at 2.7%, and the poverty rate has continued trending downward to 4.6% as the labour market improved and real net wages and disposable income increased.” Solid results, if we may add, but it was foreign investments and above all, stimulating domestic businesses that created a foundation for real growth of production and the GDP; more so than Croatia's role as „the suburbs“ of the EU, only good for tourism and relaxation where there is a lot of cheap labour. Croatia needs to invest in new technologies, because the country, along with Vojvodina and Slovenia, is the core of the most modern and most developed economy that is known for its quality and innovation. This is particularly applicable to the ICT industry that should focus on smaller towns and university centres such as Osijek, since, out of all Croatian regions, Slavonia is the hardest hit by emigration. According to some estimates, the Croatian population will quickly fall below 4 million and some key professions, such as anaesthesiologists, bus drivers, cooks working in seaside towns during the holiday season and others, will become scarce. However, there are some positive developments too – unemployment and country's deficit are down, as the World

on a downward path. However, the accelerated outmigration of labor and slow pace of structural reforms risk undermining Croatia’s growth opportunities and hampering the medium-term convergence process.”

REMEDIES AND ADVICE

SLAVONIA CAN BE REVITALIZED THROUGH IMPLEMENTATION OF NEW INFORMATIONCOMMUNICATION TECHNOLOGIES AND LINKING THEM WITH AGRICULTURE Bank states in its report:“After a surplus for the first time since independence, only a small general government deficit is expected for 2018 and public debt is firmly

Digital nomads

The World Bank also advises what remedies should Croatia use in order to return to the right path, namely:“Croatia could improve its low potential growth by boosting private sector productivity and competitiveness, reforming its justice and regulatory framework, raising the quality of human and physical capital, and modernizing its public services. Without stepping up its reform agenda, Croatia could experience prolonged economic stagnation and a further worsening of social conditions.” It is about time for all of us living in Easten Europe - from Ukraine and Lithuania to Poland and Croatia, from Romania to Estonia to now Northern Macedonia to Bulgaria - to realize that, although the uplifiting slogans are nice and foreign investments are welcome, without real production at the forefront, the use of new technologies, primarily ICT, and their linking to agriculture, as the strongest economic activity in Slavonia, things will not improve and a new crisis will emerge that will hit Croatiaa where it hurts the most. Croatia, with its well-educated population who speaks foreign languages, good education and a long tradition of knowledge and innovation, can become a new hub for outsourcing just like Zagreb is the favourite city for digital nomads. Croatia is just a step away from reaching new heights like a falcon, and to fly up, up and away from uncertainties.

CROATIA, WITH ITS WELL-EDUCATED POPULATION WHO SPEAKS FOREIGN LANGUAGES, GOOD EDUCATION AND A LONG TRADITION OF KNOWLEDGE AND INNOVATION, CAN BECOME A NEW HUB FOR OUTSOURCING JUST LIKE ZAGREB IS THE FAVOURITE CITY FOR DIGITAL NOMADS CROATIA 2019

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CORPORATE

Powerful

WORDS

NATKO VLAHOVIĆ Founder and Managing Director of Vlahovic Group LLC Government Relations

As of January 2020, when Croatia takes over presidency over the Council of the EU, Vlahovic Group policy team will play an important role in explaining how to benefit from engaging with the Presidency’s agenda and priorities. It will be just one of the many delicate tasks the Group has done in the region

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lahovic Group is indeed the first and largest professional government relations firm in Croatia and the Western Balkans. It was founded with the vision that companies need professionals to conduct their government relations and since then accomplished many highly delicate and important tasks for their clients. “I have spent time working in Washington as a commercial diplomat so my understanding of the political process comes from an American background, but my time in Brussels and Croatia provided a broader understanding of how there is a great demand for professional lobbying service in the Western Balkans”, says Natko Vlahović, the Founder and Managing Director of Vlahovic Group LLC Government Relations. Unfortunately, the region is still known

mostly for very difficult and nontransparent bureaucracy. “So far, in our last eight years, VG has conducted projects in almost all of the countries in the region. Naturally, Croatia

EU NEGOTIATIONS

It is beneficial for the non-EU states that the private sector takes active role in the EU negotiations process, as the political elites will have a clearer idea of what they need to accomplish during the eurointegrations

is our biggest market and I am proud to say that we have advised real corporate giants. We have noticed that even large companies do not pay enough attention to national policies and tend to intervene when it is too late. Starting any business is a challenging task and it requires a 24/7 mentality, but when you add the fact that the political process often has specific rules and tricks, you enter a very complex consulting labyrinth”, says Vlahovic at the beginning of our conversation during which we covered many issues the company dealt during the process of the Croatian EU integration and afterwards. What about your role as the founder and managing director of Vlahovic Group and also director of the Croatia-EU Business Council. Are these roles complementary? — I have spent thirteen years around European affairs and EU institutions so the Croatia-EU Business Council was originally a push to help bring EU negotiations closer to private sector interests. We were helping companies navigate quite difficult negotiations between Croatia and the EU. It took us seven years to close all the chapters and get clearance from all member states. It was a unique political challenge and often I felt almost alone in terms of securing the needed dialogue between the private sector interests and EU institutions. Companies from non-EU member states that started the negotiations should have an active role in the process. The sooner the private sector interests come in, political elites will have a clearer view of what they need to accomplish. The role of Croatia-EU Business Council today is to facilitate events and promote dialogue on specific EU topics. Croatia joined the EU as the 28th member and is still learning how the system works. An important next step to mention is that Croatia will be presiding over the Council of the EU in January 2020. This will be Croatia's inaugural Council Presidency and Vlahovic Group policy team will play an important role, explaining what is really going on and how to benefit from engaging with the Presidency agenda and priorities. The announced Western Balkans Summit in Q2 of 2020 in Zagreb will be an opportunity for the region to work on its issues with top political leadership from around Europe.

— There are two types of lobbyists in this field; those that are former officials and those that are trained professionals with years of experience. I have worked with both on various projects and objectives. Former politicians have the ability to provide access and an insight into the political battlefield. On the other hand, trained and experienced professional operatives are sound and deliver deep analysis valuable for the client. In practice, the fact is that a brand name sells, so having both types of expertise could be most beneficial. It takes years to build a sustainable business, and at the end of the day, only those who constantly generate new business in their portfolio can survive.

nies have spent a lot of money on lobbying in the EU and member states, asking for monitoring services, engagement with relevant stakeholders, legislative affairs, procurement issues and arbitration assistance. Professional lobbying business has expended globally and is a thriving industry in every political capital. Sometimes the influencing process can take a long time and results are visible after a year of tedious work. We have noticed that an increasing number of embassies have an interest in stakeholder mapping and monitoring services and in some cases, even hire lobbying firms for outright lobbying to promote their economic and political interests.

What sectors are you most present in? What services do you provide to your clients? — We have worked for the tech, energy, waste, infrastructure, digital and tourism sectors. In the last two years, tech compa-

In January 2020, Croatia will take over the rotating Presidency of the Council of the EU. Do you see this as an opportunity? — The Council Presidency is an excellent opportunity for the national government to show the rest of the EU that it is a serious player and broker. Croatia works within the Trio with Romania and Finland. I see it as an opportunity not just for advocates across the EU to advise and assist their clients to navigate a highly structured policy environment, but also for the business sector to provide their perspective on some of the priorities their government should put on the table. With hundreds of Council meetings and working groups, as well as informal gatherings, it will be an amazing experience for all working in the policy-making industry.

BIGGEST MARKET

In our last eight years, VG has conducted projects in almost all of the countries in the region, but Croatia is still our biggest market and I am proud to say that we have advised real corporate giants here

What kind of a team is needed to work in a professional lobbying firm?

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A C T I VI T I ES OF THE C ROATIA N B USI N E S S C LUB A N D T H E CR OAT I AN C HA MB ER OF EC ONO M Y I N BE LG RA D E

COOPERATION OPENS MANY DOORS

In 2018, the Croatian Business Club (CBC) continued to expand its cooperation with mixed chambers of economy and clubs. Also, the CBC worked closely with the Representative Office of the Croatian Chamber of Economy (CCE) in Belgrade and the Croatian Embassy, on improving the business conditions for Croatian companies in Serbia, and the mutual cooperation between Serbian and Croatian companies

018 was an extremely dynamic year for the Croatian Business Club in Serbia. The Club started the new year with five new members, and throughout the year, it continued to bolster the cooperation between the Serbian and Croatian economies through numerous events and by organizing a series of activities for its members. Also, in April 2018, the Croatian Chamber of Economy in Serbia re-opened its office after a five-year-recess.

ANNUAL MEETING OF CBC ASSEMBLY Close to thirty members of the Croatian Business Club attended the annual session of the Club's Assembly, held on January 25th at the Belgrade Falkensteiner Hotel.

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While discussing the meeting's agenda, which was unanimously adopted by all members, the CBC President, Marija RaduloviÄ&#x2021; presented a detailed report on the Club's activities in 2017 and its plans for 2018. At the beginning of 2018, the Club got five new members. The Club also decided

APART FROM WORKING DILIGENTLY, LAST YEAR PROVIDED OPPORTUNITIES FOR SOCIALIZING AND PRESENTATION OF THE BEST CROATIAN PRODUCTS

to continue working on increasing the number of members throughout the year via direct communication with companies, as well as through cooperation with regional and local chambers of economy. It was also decided for the Club to continue expanding its cooperation with mixed chambers and clubs, and carry out additional activities focused on the cooperation with the Croatian Chamber of Economy in Belgrade and the Croatian Embassy, through providing mutual support and joint improvement of the business conditions for Croatian companies in Serbia, and the cooperation between Serbian and Croatian firms. At the Assembly meeting, the Deputy President of the CBC, Mr. Stanko Krstin and the minister plenipotentiary of the Croatian Embassy in Serbia, Mr. Stjepan Glas addressed the Assembly members. They relayed their good impressions of the work done by the Croatian Business Club, with a special emphasis on a series of activities and doubling of the Club's membership in the last two years.

CROATIAN WINES PRESENTED AT TATAMATA RESTAURANT IN BELGRADE Nine Croatian wineries, that were exhibiting at the Belgrade Fair, at the BEOWINE 2018 Trade Fair, presented their wines to restaurateurs and media representatives at the TataMata restaurant. The presentation, which was organized by the Croatian Chamber of Economy in Serbia, took place on Thursday, February 22nd. Somelier Igor LukoviÄ&#x2021; presented the wines of Vino San Martino, Kutjevo dd, Vinoplod dd, Belje dd, Degras-

si doo, Iločki Podrumi dd, Dingač-Skaramuča doo, Dalmacijavino Split doo and Osilovac doo. Apart from hearing about the geographical and historical origin of wine, the guests also had the opportunity to get acquainted with wine and food matching methods.

CBC REPRESENTATIVE AT „FAMILY BUSINESS - PILLAR OF ECONOMIC DEVELOPMENT" BUSINESS FORUM One of the members of the Croatian Business Club and President of the Serbian Employers Union, Stanko Krstin spoke at the "Family Business - Pillar of Economic Development" business forum, organized by Color Media Communications and the Pro Educa Educational Centre, on Wednesday, March14th, at the Holiday Inn Hotel in Belgrade. The topic of family-run businesses is an important one because 75 percent of new jobs globally are created by family companies.

INTERNATIONAL NETWORKING COCKTAIL 2018 Over 200 representatives of the business sector and influential economic

figures in Serbia gathered at the most important annual meeting of the chambers of commerce - International Networking Cocktail 2018 - held on May 24th, on the Vizantija ship in Belgrade. In a pleasant and informal atmosphere, 11 chambers of commerce got together to so their members can network and work on improving the cross-border cooperation. This unique event was organized by the Italian-Serbian Chamber of Commerce, in cooperation with their counterparts from the German-Serbian Chamber of Com-

AT THE BEGINNING OF 2018, THE CLUB GOT FIVE NEW MEMBERS WHICH HAD THE OPPORTUNITY TO PRESENT THEMSELVES TO THE CLUB'S MEMBERSHIP AT DIFFERENT EVENTS THEY ORGANIZED

merce, the French-Serbian Chamber of Commerce, the Hellenic Business Association, the Nordic Business Alliance, the Slovenian Business Club, the Croatian Business Club, the Belgian-Serbian Business Association, the Japanese Business Alliance in Serbia and the Canadian-Serbian Business Association.

FRANCE - BALKANS BUSINESS FORUM Along with 400 other business people from the region and France, the representatives of the Croatian Business Club attended the France – Balkans Business Forum, where potential investors from France were presented with investment opportunities in the Balkans. The forum was opened by the Serbian Prime Minister, Ana Brnabić who said that the Forum was an announcement of a new tide of French investments in Serbia and the region.

AUTUMN GATHERING OF MEMBERS The autumn gathering of the Croatian Business Club members took place Belgrade's wine bar Vino Bar & Shop. On the occasion, this catering facility was pre-

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sented as a new member of the club. The gathering was pleasant and the guests also engaged in wine tasting. Over the course of the evening, they exchanged information about their experiences during the past summer, and plans for cooperation for the following period.

EU INVESTMENT OPPORTUNITIES IN SERBIA The presentation titled „EU Investment Opportunities in Serbia“, which took place at the residence of the Croatian Ambassador to Serbia, H.E. Goran Bakota on October 25th, attracted a great deal of attention from the representatives of business communities - chambers and business clubs – who were invited to this gathering. The event was organized by the Croatian Business Club together with the Belgian Chamber of Commerce, the Hellenic Business Association and the Nordic Business Alliance. The Head of Cooperation at the EU Delegation in Serbia, Mr. Yngve Engström, also had a presentation on the topic.

EDUCATION AND EMPLOYMENT - THEMATIC GATHERING OF CBC IN NOVEMBER

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The November meeting of the Croatian Business Club was marked by a brief introduction of the MONS Platform Monitoring the Social Situation in Serbia, presented by the Club's guest, Olivera Vuković, Executive Director of SeConS – Development Initiative Group, one of the creators of the MONS. At the presentation, Ms Vuković talked about the education in Serbia in relation to the countries in the region, job training for young school grad-

IN THE LAST TWO YEARS, THE CROATIAN BUSINESS CLUB HAS DOUBLED THE NUMBER OF ITS MEMBERS, A SUCCESS THAT IS A RESULT OF HARD WORK AND A SERIES OF ACTIVITIES THAT ATTRACTED NEW COMPANIES

uates, employers' expectations for young workers and should education be viewed as business.

CHRISTMAS AND NEW YEAR GATHERING The Croatian Chamber of Economy and the Croatian Embassy to Serbia held the traditional Christmas / New Year cocktail at the residence of the Croatian Ambassador to Serbia, H.E. Mr. Goran Bakota.

OPENING OF CCE OFFICE By official unveiling of the plaque on the building in Topličin Venac, the Belgrade office of the Croatian Chamber of Economy officially re-opened on April 18th, after a five-year-recess. In their statement apropos the opening, the presidents of the Serbian and Croatian chambers of economy, Marko Čadež and Luka Burilović respectively, underlined the importance of further developing the economic relations between the two countries. President Burilović also said that Serbia was Croatia’s sixth biggest trading partner, adding that he hoped that both countries would improve their respective economic potential through the cooperation between the two chambers and business communities.

lthough, territory-wise, Croatia is a relatively small country, it has a very diverse cultural heritage. With many material remnants that are a testament to the continuous presence of humankind in this part of the world, Croatia has succeeded in preserving a lot of its intangible heritage, which is known for its complexity. Croatia is a land of living remains of ancient customs and beliefs, and their transformed and revived forms. The presence of many nations have resulted in the abundance of traditional customs in Croatia, and, in this article, we are going to talk about one of them â&#x20AC;&#x201C; drinks.

MARASCHINO Maraschino is the name for a liqueur produced from marasca â&#x20AC;&#x201C; a Cherry Pomegranate (Prumus hemaetceraus), which grows along the Croatian coast. Maraschino from the town of Zadar is the original product of the Croatian Dalmatian region

MARASCHINO WON OVER ONE OF THE GREATEST CONQUERORS OF THE 19th CENTURY, NAPOLEON BONAPARTE, WHO ENJOYED IT VERY MUCH, ESPECIALLY AFTER LUNCH OR DINNER

T R ADI T I ON

IN DRINKS, THERE IS TRUTH! Croatian drinks and spirits

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and a symbol of economic wisdom, a long-standing experience, and the diligence and love that the Dalmatians have for their karst. The recipe for this authentic liqueur from Zadar was created at the beginning of the 16th century in the Dominican monastery in Zadar. The liqueur was first prepared by the pharmacists from the Zadar monastery under the name "Rosolj" (from the words "ros solis" - "sunny dew"). Later it was renamed MARASCHINO, since it was obtained from the essence of ripe fruits of the Dalmatian cherry marasca and the leaves of its young branches.

This noble liqueur of fine taste was initially available only to the privileged classes, and had therapeutic properties attributed to it. The secret of Maraschino's taste began to spread with the emergence of the first industrial distilleries in Zadar in the 17th century (Rota, Mola and Calcenigo). In the 18th century, when the industrial production of liquors started developing in Zadar, Maraschino began taking on the world and via sea routes, was delievered to all major European ports and cities. It was soon favoured by many European courts (Vienna, Berlin, Bavaria, English, Italian, Belgian, Danish...), only to later expand to the US, Canada, Australia, South America, South Africa, etc. The Zadar liqueur is slowly but surely gaining global popularit. Before the Second World War, there were as many as 33 different companies, such as Drioli, Luxardo, Romano Vlahov and Maraschino Stampalia, that had produced it. In Zadar itself and its cafes on Kalelarga and Nova Riviera, people drink Maraschino mixed with many other spirits - gin, rum, tequila, pear, or vermouth. Maraschino is found in ice cream, sweets and fruit cups too. The liqueur lso won over one of the greatest conquerors of the 19th century, Napoleon Bonaparte, who enjoyed it very much, especially after lunch or dinner. It was admired by the French kings Louis XVIII, Charles X and Louis Philippe, and the Russian Emperor Nikolai I. King George IV sent his warships to Zadar to load hundreds of crates of Maraschino desinted for the royal palace in London and for the governors of Malta and Corfu. In 1871, Maraschino was boarded on English ships on the orders from the English Queen Victoria at the Zadar port. On Septem-

Hard liquors

THE SECRET OF MARASCHINO'S TASTE BEGAN TO SPREAD WITH THE EMERGENCE OF THE FIRST INDUSTRIAL DISTILLERIES IN ZADAR IN THE 17th CENTURY ber 26, 1887, the Prince of Wales, who later became King George V, was passing through Zadar and on the occasion, personally visited the Zadar liqueur factory

where he handed in the order for a large quantity of Maraschino.

RAKIJA Brandy (rakija) is considered a national drink of many Slavic nations, including Croatia. The most famous type of this fruit brandy is made from plum (Croatian: Ĺ ljivovica), which is produced by the method of roasting or distillation of sprinkled (fermented) plums. Quality-wise, the best rakija is made in Lika and Slavonia. Apart from grapes and plums, rakija is also made from apricots, pears, apples, figs, quinces, walnuts and other fruit. If you are in a mood for Croatia's strong spirits, try some of the Croatian hard liquors. You will love them!

IF YOU ARE IN A MOOD FOR CROATIA'S STRONG SPIRITS, TRY SOME OF THE CROATIAN HARD LIQUORS. YOU WILL LOVE THEM! CROATIA 2019

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CULT U R E

INTANGIBLE, BUT ASTONISHINGLY VALUABLE! The richest of all

ut of all European countries, Croatia has the highest number of intangible elements of cultural heritage under the UNESCO protection, along with Spain, and has managed to protect 65 of them. Croatia is abundant in cultural assets, both tangible and intangible, i.e. those that can be experienced with other senses which look wonderful on photographs, which is so important in the era of social media. UNESCO made sure that all of these cultural assets are well preserved, with Croatia doing a lot in that regard too by tirelessly protecting and promoting its heritage. Here is the UNESCO list of Croatia's protected cultural assets, and more details about them.

THE UNESCO LIST According to the UNESCO Intangible Heritage List, the Croatian Intangible Cultural Heritage is particularly rich. As of 2015, fourteen Intangible Cultural Heritages have been added to the UNESCO list: • A nnual carnival with bell ringers’ pageant from the Kastav area • Gingerbread craft from northern Croatia - Licitar • Ojkanje singing • Lacemaking in Croatia • Za Križen (Following the Cross) Procession on the island of Hvar • Sinjska Alka, a knights' tournament in Sinj • Spring procession of Ljelje/Kraljice (queens) from Gorjani • Festivity of Saint Vlaho, patron saint of Dubrovnik • Traditional manufacturing of children’s wooden toys in Hrvatsko Zagorje • Two-part songs and dance, in the Istrian scale

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• Bećarac songs and dance from Eastern Croatia • Nijemo Kolo, silent circle dance from the Dalmatian hinterland • Klapa, traditional group a cappella singing from Dalmatia, southern Croatia • Mediterranean diet, shared with Cyprus, Spain, Greece, Italy, Morocco, and Portugal Fantastic, right? Having in mind that some of these cultural assets are shared, and not yet registered, their number

might increase further, like in the case of gusle. The Republic of Croatia has so far registered 65 intangible cultural heritage items with the National Registry. How much more culture can anyone want!? As it happens, although the more developed countries had the luck of living in happiness, they did lose their traditions for the most part, unlike Croatia, which, due to rather harsh living conditions, has managed to preserve a lot of them.

SINJSKA ALKA

We have all heard of the famous Sinjska Alka [siɲska alka]. This is an equestrian competition that has been held in the Croatian town of Sinj since 1715, on every first Sunday in August. It commemorates a Croatian-Venetian victory over the Ottomans from August 14, 1715, when the local Christian population of around 700 Croatsm, together with fewer Venetians, managed to defend Sinj against 60,000 Ottoman soldiers led by Mehmed-Pasha Ćelić. Because of this victory, the Venetians retained control over Sinj and integrated it into the Venetian Dalmatia,

DURING SINJSKA ALKA, THE COMPETITORS, GALLOPING ON THEIR HORSES, AIM TO DRIVE AN IRON-POINTED SPIER THROUGH THE MIDDLE OF ALKA (A METAL LOOP POSITIONED HIGH ABOVE THEM)

Alka consists of several other segments, including a competition, where the competitors, galloping on their horses, aim to drive an iron-pointed spier through the middle of alka (a metal loop positioned high above them).

ZA KRIŽEN according to the terms of the Treaty of Passarowitz signed in 1718. The people of Sinj believe that the Lady of Sinj miraculously drove away Ottomans and helped them to defend their town. On the national holiday of the Assumption of Virgin Mary (Velika Gospa) on August 15, in honour of the Lady of Sinj, a procession takes place during which horsemen in full regalia ("Alkari") parade a painting of Our Lady of Sinj in the town streets.

sion participants walk for 25km. Gospin Plač (Croatian: Weeping of the Virgin Mary), octosyllabic Passion text from the 15th century that is sang by the chosen singers, the so-called kantaduri, is the central part of the procession.

KLAPA

Za Križen (local vernacular Croatian for "Following the Cross") is a night procession that happens every Thursday on the island of Hvar, Croatia. The event has a centuries old tradition. The procession is a unique ceremony of a special piety, and an expression of a religious and cultural identity of the inhabitants of the middle part of the island of Hvar that has been held for five centuries. It lasts for 8 hours during which the proces-

Klapa music is a form of traditional a cappella singing in Dalmatia. The word klapa translates as "a group of friends" and traces its roots to littoral church singing. The motifs in general celebrate love, wine (grapes), country (homeland) and sea. Main elements of the music are harmony and melody, with rhythm taking a back seat. It is also present in the neighbouring Montenegro, in the Boka area, and in the Slovenian Littoral.

Preserved heritage

AND NOW, THE MORE DEVELOPED COUNTRIES HAD THE LUCK TO LIVE IN HAPPINESS AND TO LOSE THEIR TRADITIONS, BUT DUE TO THE HEARSH LIVING CONDITIONS, CROATIAN HERITAGE WAS PRESERVED! CROATIA 2019

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H I S T OR Y

CROATS IN VOJVODINA Slavic Catholics of Southern Pannonia

roats came to Vojvodina in four big groups, over the course of several transmigrations, under the names Šokci, Bunjevci, Karašovci, and Klimenti, with the latter becoming Croats at a later date. Some came from Bosnia and Slavonia, some from Herzegovina and Dalmatia, some from Timok Region, while some from Kosovo and Albania. Each group (and this is the least pronounced in Šokci) had several identities which, for the most part, have merged into a single one – the Croatian national being. The most known of all Croats was Ban Josip Jelačić.

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BUNJEVCI

BUNJEVCI GAVE AN IMPORTANT CONTRIBUTION TO TAMBURITZA SONGS AND VOJVODINIAN ROMANTIC SONGS, AND THEIR MOST FREQUENT SURNAMES ARE VOJNIĆ, TUMBAS, SKENDEROVIĆ, STANTIĆ...

Bunjevci came to Bačka and Hungary in the first half of the 17th century (sometime around 1620) under the leadership of a Franciscan friar Andrija Dubočac (2,700 people in total), Mihovil from Velika (2,300 people), Ivan Seočanin (1,500 people), Ilija Dubočac, Josip Rančanin and Šimun from Modrič (4,500 people plus their cattle), Grga Zgonščanin from the area around today's Mostar (4,500 people) and Jure Turbić (5,300 people). Almost 23,000 members of the Bunjevci group settled around the Danube and Tisza region. They settled in towns and villages in the area stretching from Deronje and

Sombor and further on to Pest and Esztergom. In the old manuscripts these people were called „Dalmatians“, and were said to had come together with Bunjevci from Herzegovina, under the helm of the Franciscan order. Despite the difficult political situation at the time, Bunjevci in Bačka region managed to preserve their language, culture, songs and written word. Bigger migrations started right after the battle of Vienna in 1683, with one taking place under the leadership of the 18 Franciscan friars who came to Bačka in the autumn of 1686. Bačka, at that time, was already populated with close to 150 Bunjevci families, including the Prčići family. The migration to Bačka ended in 1687 under the helm of Marković, Vidaković and Franciscan friars, via Croatia and Slavonia. At the same time, another migration happened – that of Bunjevci from Bosnia, Herzegovina and Dalmatia, under the leadership of the six Franciscan priests. Today, this particular segment of Bunjevci lives in the area around Sombor and Subotica and have managed to preserve their own dialect – the so-called ikavica – as well as their customs. Quite a few of them think of themselves as separate nation from Croats, while the rest declare themselves as Croats. It is interesting to note that Bunjevci inherited this stubborness from their ancestors since they descend from the Vlachs, i.e. they are a mixture of Slavs and Slavicized Vlachs, hence they often have double-barrelled surnames – the first one being tribal and the second family's surname. For instance, the biggest Bunjevci tribe is Vojnić, with families that have surnames like Vojnić-Hajduk, Vojnić-Purčar, etc. They also gave an impor-

tant contribution to tamburitza songs and Vojvodinian romantic songs, and their most frequent surnames are Vojnić, Tumbas, Skenderović, Stantić...

ŠOKCI Althought the 1910 census in Austria did mention “Bunjewatzen und Schokatzen” as separate nations, independently from

KARAŠEVCI HAVE BEEN THE LEAST SUCCESSFUL IN PRESERVING THEIR NATIONAL BEING – YOUNG PEOPLE HERE ARE TURNING TO ORTHODOXY, WHILE THE ELDERLY ARE REMAINING CATHOLIC. THEY NEVER HAD A MAJORITY, OR SCHOOLS OR ANY SUPPORT

to name the area around the left bank of the Sava River. Matija P. Katančić believes that Šokci are of Illyrian-Pannonian origin whose name is connected with the mountain Succus, and thus to the tribe Succi. With the arrival of the Turks to today's Bosnia and the Adriatic coast, a new population emerged in these parts that, at first, were not considered to be Šokci, but have, subsequently, mixed up with them. It is still believed that the name was derived from the word "šaka" (fist in the Croatian language), since Šokci did the sign of cross with their whole fist, in the Catholic fashion. In any case, most of the Šokci population today lives only in four towns and villages in Bačka County - Bački Monoštor, Sonta, Sombor, and Bački Breg, while in Srem County, they are merged with a large group of Croats, and the term Šokci is only used colloquially. They also have their culture clubs of symbolic names like „Vesela Šokadija“ („The Joyous Šokadija“). They are excellent farmers and are considered to be much more joyful than the "sad" Bunjevci who are more prone to introspection.

KARAŠEVCI Croats and Serbs, Šokci seldom declare themselves today in such way – they consider themselves to be Croats. According to the 2011 census, there was 607 Šokci living in Vojvodina who declared themselves Croats. The widely accepted and probably the most realistic theory of how the name „Šokac“ (or Šokci) came about is that they are the descendants of the tribe Succi. Topographically speaking, Succi were named after the Succus Mountains (nowadays Ikhtiman Pass). The old Slavs brought the name Succi here, and used it

The dual surnames of Bunjevci

Karaševci (also called Krašovani, Krashovans) are a mystery in Romania too, where they reside in biggest numbers, and in Vojvodina, where only few of them live. Their origin is completely unknown. There are half a dozen theories about their ethnicity, which all contribute to this great confusion. In any case, these Catholic Slavs have a solid footing in Romania, while here they are almost completely assimilated, having socialized with Serbs, Germans, Hungarians, and Romanians. Their language remains their most

BUNJEVCI OFTEN HAVE DOUBLEBARRELLED SURNAMES – THE FIRST ONE BEING TRIBAL AND THE SECOND FAMILY'S SURNAME. FOR INSTANCE, THE BIGGEST BUNJEVCI TRIBE IS VOJNIĆ, WITH FAMILIES THAT HAVE SURNAMES LIKE VOJNIĆ-HAJDUK, VOJNIĆ-PURČAR, ETC. CROATIA 2019

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interesting feature to this day. Karaševci are one of the smallest and most mysterious ethnic communities. They are, in fact, a sub-ethnic community, since they are generally considered Croats. To make things even more complicated, no-one knows for sure where they came from. They are talking in the Torlakian dialect, like Zone Zamfirova. Croats that are also Torlaks? Well, we should tread carefully with theories about their origin. One theory says that they are original Croats from Bosnia, from the town of Kreševo, and that from the very beginning they were Catholics who moved far east to Banat. But this does not explain their East Serbian dialect. The second theory claims that they came from the area surrounding Prizren and that they are the descendants of merchants from Dubrovnik or the Saxonian settlers, like Janjevci, and that they accepted Prizren's dialect on their way to Banat. According to the third theory, they are Bulgarians who became Catholics and came to Banat, just like Palćani. The fourth theory, however, says that they are Serbian Catholics from Northeastern Serbia who came to Banat, across the River Danube. Cvijić states: "Krašovani in Eastern Banat are very old immigrants originating from Crna Reka (the Timok river basin in Serbia) and they became Catholics in the 17th century." And there is a theory that they are something entirely different. Krista Zach believes that Karaševci are "a strange relic of the Balkans, where the Serbs, Macedonians, Bulgarians and Vlachs along with Albani-

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ans, created a unique new ethnic group". Anyhow, Karaševci are Slavs that speak in Eastern Serbian dialect, they are Catholics and they live only in Banat County, on the both sides of the border. Mario Bara

ŠOKCI ARE EXCELLENT FARMERS AND ARE CONSIDERED TO BE MUCH MORE JOYFUL THAN THE "SAD" BUNJEVCI WHO ARE MORE PRONE TO INTROSPECTION

writes:“ Guided by economic reasons, as well as state needs, at the beginning of the 19th century, the Karaševci from the area of seven Karaševci villages started migrating to other parts of Banat. Some settled in its western part, i.e. in today's Vojvodina, and in the Republic of Serbia (Karlsdorf, Uljma, Izbište, Nikolinci, Vršac, Potporanj, Veliko Središte, Gudurica, Belo Crkva, Starčevo and others). They were minority in their new places of living in comparison to the Romanians, Germans or Serbs already living there. Their share in the total population did not exceed one third anywhere, which influenced the use of language in churches, schools and public life. Due to their low numbers, and without intellectual representatives or clergy from their own ranks, they were subjected to rapid assimilation. Their descendants in Vojvodina today are mostly assimilated into other nations, while only the very few descendants of Karaševci are considered Croatian. Some of them had a more tragic destinty than other groups of Croatian population precisely because of the assimilation. Those who became Germans eventually disappeared, because after 1945 they were expelled from Vojvodina. Over 40% of Uljma's inhabitants originate from Karaševci, but statistics say that young people here are turning to Orthodoxy, while the elderly are remaining Catholic. They never had a majority, or schools or any support. Their interesting dialect is forgotten, and it seems that their origin and name share the same destiny as their dialect.

S MYTHS |

TOURISM

AND PIECES

Reinventing yourself in response to criticism

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ome ten years ago, Zagreb was given a horrible title – „The Most Boring City in Europe“. Soon enough, the city took this criticism to heart and transformed itself into one of the most interesting tourist centres in the Old Continent. Films like „Mamma Mia! 2“ and TV series like „The Game of Thrones“, plus its revitalized history, have positioned Croatia high on the tourist map. To quote the wise Nevena Rende-

li-Vejzović:“Zagreb has become an attractive tourist destination, first as a city break destination on your way to the seaside, and now, as the main destination because of Advent. However, the most interesting thing is how the city went through a cultural renaissance. Considering that Zagreb was once branded as „the most boring city in Europe“ for several consecutive years, the latest achivement is not bad at all. Obviously, the criticism has yielded results.“

CRITICISM LEADS TO IMPROVEMENT In the last 14 years, Zagreb created a counterpart to Sziget and EXIT festivals, which have been around for a bit longer, called INmusic, a festival that takes place at the perfect location for it – Jarun, and which has quickly become the leading price-to- quality ratio festival in the region. INmusic even surpassed EXIT in the eyes of Indie music fans following EXIT's U-turn in 2013 when the festival started focusing more on electronic music. Many people, who have never been to Zagreb before, decided to spend 3 days there only because of INmusic. Zagreb became „the second Prague“ on the account of the night life in Gornji Grad, located further down in the south and with a lot more temperament, offering the taste of Dalmatia, the Mediterranean and the Balkans via Mittel Europa. After being a part of Yugoslavia for decades, it must have been hard for Zagreb to hear being called „boring“ particularly when, in ex-Yugoslavia, it was known as one of the most interesting and cultured cities. Now, things have changed and Zagreb is one of the most exciting towns in the EU. And then there is Advent! Advent in Zagreb is no longer the best Advent in Europe, since it was surpassed by the Estonian capital of Tallinn, but it stands firm in the second place. Zagreb was the first for many years, justifiably so. Zagreb's tourist board made sure to amalgamate all of the Croatian civil traditions – from Agram to Purger – in a European metropolis and offer them in one event that soon became a known brand. Maybe you noticed billboards all over your town depicting the words „Advent in Zagreb“

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and your reaction was „Whaaat?“. Come next year, your reaction changed to: “Oh, yes, Zagreb has an excellent Christimas celebration“. Third year, your curiosity got better to you and you simply had to go. That's how you build a brand. Well done, Zagreb!

TO CASH IN ON A MYTH OR POSSIBLE REALITY Zagreb created a new festival literally out of nothing, but having good regional role models. Other parts of Croatia relied on imagination, history, myths and somewhat less to safe history. Split started branding itself as an ancient imperial Roman town that was home to Emperor Diocletian who reigned from his namesake palace in the town. Of course, nobody is too keen to mention that this was a man who persecuted Christians and fed them to lions. Hold on! Maybe the new generations will not find this fact awkward, but rather in-

ZAGREB'S TOURIST BOARD MADE SURE TO AMALGAMATE ALL OF THE CROATIAN CIVIL TRADITIONS – FROM AGRAM TO PURGER – IN A EUROPEAN METROPOLIS AND OFFER THEM IN ONE EVENT THAT SOON BECAME A KNOWN BRAND

THE INMUSIC FESTIVAL TAKES PLACE AT THE PERFECT LOCATION FOR IT – JARUN, AND HAS QUICKLY BECOME THE LEADING PRICE-TO- QUALITY RATIO FESTIVAL IN THE REGION, EVEN BECOMING MORE POPULAR THAN EXIT WITH INDIE MUSIC FANS

Photo: Julien Duval

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teresting?! Well, if you don't think that this historical fact is awkward, picture, for a moment, a bunch of downtrodden people, their hands tied to crosses, being devoured by lions. Dalmatia was also advertised under the slogan „The Mediterranean, as it used to be“, and, poor persecuted Christians aside, in Split we can probably feel what Spain and Italy have already lost. Dubrovnik profitted nicely as a set location for „The Game of Thrones“, with hundreds of thousands of tourists eager to visit the place where their favourite TV series was filmed. Korčula is branded as „the home of the Polo family that (allegedly) the famous adventurist and travel writer, Marco Polo originated from”. Although, his eponymous book stirs the imagination of many Europeans to this day, we still don’t know how much of it is just an exaggeration of the life in the Orient, and how much of it is actually

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true. Even a Wikipedia entry in the Croatian language says:”It is long believed that he (Polo) was born on the island of Korčula (or originates from Korčula, as a

ZAGREB'S TOURIST BOARD MADE SURE TO AMALGAMATE ALL OF THE CROATIAN CIVIL TRADITIONS – FROM AGRAM TO PURGER – IN A EUROPEAN METROPOLIS AND OFFER THEM IN ONE EVENT THAT SOON BECAME A KNOWN BRAND

15th century document states), although there is no overall consensus about this information. According to some sources, the Polo family comes from the town of Korčula.“ Whichever might be true, the fact is that there is the Marco Polo House in Korčula today, and many believe his Korčula roots to be true. Last but not least, Croatia has profiled itself as a film location too, and we all know how much boost tourism can get when people want to visit a film location. After the release of the first „Mamma Mia!“ movie, which was made on the Greek island of Skopelos, and its sequel „Mamma Mia! 2“, which was filmed on the Croatian island of Vis, both islands profitted greatly from it. Now, everybody is eager to visit Vis, just like, back in the day, the island was popular with tourists because Tito spent some time there. This is what an excellent use of given potential is all about. Again, well done, Croatia!