May 2021 | ISSUE No. 63 | Price 350 RSD
13 APR
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RETURN TO GREECE
Serbian – American Relations Facing the COVID -19 Challenges
HARRY THEOHARIS Greek Tourism Minister
HUGE BREAKTHROUGHS H. E. ILIR BOÇKA
Ambassador of Albania
DEVELOPING E-COMMERCE IS ONE OF THE MAIN GOALS TATJANA MATIĆ
Serbian Minister of Trade, Tourism and Telecommunications
Israel
WHEN THE SIRENS WENT SILENT Reportage by Robert Čoban
OUR SUPPORT IS IMPORTANT TO REFUGEES AND ASYLUM-SEEKERS FRANCESCA BONELLI
UNHCR Representative in Serbia
S P E C I A L
E D I T I ON
Mining & Energy FOCUS ON
H.E. YAHEL VILAN Ambassador of Israel to Serbia
ZORANA MIHAJLOVIĆ Deputy Prime Minister of the Republic of Serbia and Minister of Mining and Energy
Day After Tomorrow FOLLOW US TO STAY UPDATED
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YOUTUBE
TANJA BANKOVIĆ Editor in Chief tanja.bankovic@color.rs ILIJA PETROVIĆ INDIGOCHILD Art director indigochild.ilija@gmail.com JOVANA MARKOVIĆ Advertising manager jovana.markovic@color.rs NATAŠA NEŠIĆ Advertising director natasa.nesic@color.rs DRAGANA RADOVIĆ Advertising manager dragana.radovic@color.rs JELENA RANDJELOVIĆ Advertising manager jelena.randjelovic@color.rs NEVENA KUVELJIĆ Journalist nevena.kuveljic.cpg@ gmail.com VANJA KOVAČEV PR&Event support Nord Communications vanja.communications @gmail.com
RUŽA VELJOVIĆ Magazine director ruza.ristanovic@color.rs
FOREWORD
ROBERT ČOBAN Director
wo years ago, we launched the Austrian edition of Diplomacy&Commerce magazine and gathered a large number of diplomats, businesspeople and the local "high society", including Camilla Habsburg-Lothringen, at a reception at the residence of the British ambassador in Vienna. More than a year has passed since the last diplomatic receptions were held in the cities where we publish our magazine, that is Vienna, Belgrade and Zagreb. Diplomats are connected with their colleagues and home countries through various online applications, while the braver ones dare to go to restaurants
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Photos GORAN ZLATKOVIĆ GETTY IMAGES
HARRY THEOHARIS
Print ZLATNA KNJIGA Jagodina Bagrdanski put bb
RETURN TO GREECE Greek Tourism Minister
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OUR SUPPORT IS IMPORTANT TO REFUGEES AND ASYLUM-SEEKERS FRANCESCA BONELLI UNHCR Representative in Serbia
”Color Media Communications” LTD, 21132 Petrovaradin, Štrosmajerova 3 TIN 107871532 Matriculation number 20887303 Phone: +381 21 4897 100 Fax: +381 21 4897 126 Office: Vase Čarapića 3/IV/38, Belgrade Phone: 011 4044 960 CIP - Katalogizacija u publikaciji Biblioteke Matice Srpske, Novi Sad 33 Diplomacy & Commerce / glavni i odgovorni urednik Žikica Milošević, 2016, br. 1 (mart)-.Novi Sad: Color Media Communications, 2016 - , -33cm Mesečno. ISSN 2466-3808 = Diplomacy & Commerce COBISS.SR-ID 303269895
the world will be like on August 15th. What will the life of diplomats in Vienna, Belgrade, Zagreb and other cities look like when all this is over? Are we going to hold conferences at hotels again or are we going to stick to the much more efficient and cheaper format - online events? How will we manage to reconcile the human need for socialization, drinking coffee or beer together, shaking hands and hugs, with the newly established standards of behaviour? I would like to congratulate my colleagues from Diplomacy&Commerce Austria on the magazine’s 2nd birthday. Two months ago we celebrated our 5th birthday in Serbia, and in November, it will be the 4th birthday of Diplomacy&Commerce Croatia. This year, we are celebrating birthdays only ‘with the nearest and dearest', no big parties, but with one important message - we are alive! And we will continue to communicate with our readers waiting for the Day After Tomorrow.
OLD WORLD: Launch party of Diplomacy&Commerce Austria at the British Ambassador Residence in Vienna
CONTENTS
ROBERT ČOBAN Director robert.coban@color.rs
Translation SNEŽANA BJELOTOMIĆ
for lunch. A month ago, I was having lunch with an ambassador at his residence. While we were eating, a transparent panel was positioned between the two of us that prevented any possibility of possible infection, although we were both revaccinated. Diplomats participate in our online conferences and respond to calls for outdoor activities such as planting trees in parks. However, diplomatic receptions are still on hold and none will take place this summer. This year, judging by the current situation, we are probably going to mark the birthday of the British Queen Elizabeth II, the Bastille Day and the American Independence Day, with "appropriate" online concerts. India Day falls on August 15th and every year, we were celebrating it with our friends, the diplomats from this wonderful country. When we look at the terrible news about the pandemic and the new "Indian strain of the virus" killing the population of this country, I can't imagine what
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HUGE BREAKTHROUGHS H. E. ILIR BOÇKA Ambassador of Albania
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DEVELOPING E-COMMERCE IS ONE OF THE MAIN GOALS TATJANA MATIĆ Serbian Minister of Trade, Tourism and Telecommunications
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20 YEARS OF THE COUNCIL OF EUROPE OFFICE IN BELGRADE
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PEOPLE WHO BELIEVE IN IDEALS DARKO BAJIĆ
TOBIAS FLESSENKEMPER
Film and theatre director
Head of the Council of Europe office in Belgrade
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WE NEED RESPONSIBLE MANAGEMENT OF PUBLIC FINANCES ALEKSANDAR VLAHOVIĆ President of Serbian Association of Economists
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ONE YEAR LATER: SERBIAN – AMERICAN RELATIONS FACING THE COVID -19 CHALLENGES Conference
EVERYTHING YOU ALWAYS WANTED TO KNOW ABOUT BRAZILIAN FOOD MONIQUE M. BARBOSA Spouse of Ambassador of Brasil
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REFLECTIONS FROM THE "LAND OF THE BRAVE" MARIJA ALEKSIĆ Director of the Museum of African Art
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WHEN THE SIRENS WENT SILENT Reportage by Robert Čoban
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INTERVIEW
by Vanja Kovačev
Return to Greece We are extremely happy that our friends from Serbia mainly choose Greece for their holidays, every year
HARRY THEOHARIS Greek Tourism Minister
reece is the leading tourist destination in the region of Southern Europe and the Mediterranean. Serbia is the leading country in the region when it comes to the vaccination. Hopefully these two points of excellence will create a good summer synergy that was disrupted severely in 2020 due to pandemic. For the May issue of Diplomacy&Commerce, we spoke with Greek Tourism Minister Harry Theoharis about readiness for summer 2021, opening for the Serbian citizens, and predictions for this year.
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Mr Theoharis, do you think that Greece ready for the 2021 summer season? — As soon as the pandemic broke out, the Greek government and the Ministry of Tourism devoted all their efforts to the continuous monitoring and evaluation of this challenging situation. Today, just before the tourist season starts, we have already adopted our strategic plan, the focal point being the general restart of tourism on 14th May. For this purpose, we have already determined the parameters that will ensure the safety of both the visitors and the local population and at the same time, ensure that they have a great summer. The Green Digital Vaccination Certificate - a proposal made by the Greek Prime Minister, Mr Kyriakos Mitsotakis, to our partners in the EU - was approved by the European Commission and will soon be a formal process for entering a European country. With this certificate in place, we have simplified travelling procedures, while ensuring the health and safety of all. The Certificate will confirm that the holder has been vaccinated; alternatively that he/she has to show a recent negative test or antibodies to the virus. All of the above make Greece a safe travelling destination and prove that we are ready for a beautiful summer.
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AT THE PRESS CONFERENCE AT THE ITB BERLIN INTERNATIONAL TOURISM EXHIBITION, THE GREEK TOURISM MINISTER, HARRY THEOHARIS, HIGHLIGHTED THE POWERFUL MESSAGE “RETURN TO GREECE!” What Serbian tourists have to do on their side to enjoy again the breathtaking natural attractions in Greece, the abundant cultural heritage and the joie de vivre that the Greeks are known for? — We are extremely happy that our friends from Serbia usually choose Greece for their holidays every year. With the Green Digital Vaccination Certificate, Serbian tourists will be able to visit Greece and spend their holidays in our country without any delays. The certificate means that for a visitor to enter the country,
they are required to have proof that they have vaccinated or a fresh test showing that they are corona-negative or have developed immunity as a result of the recovery from the virus. At the same time, special units will perform sampling rapid tests. We are convinced that, like last year, tourism will not aggravate the health situation in our country further. Having said that, it is important to note that we are considering the possibility of starting this year’s tourist season before the official restart on May 14th
by allowing people from certain countries to come to Greece earlier. Serbia is one of them. The majority of Serbian tourists stayed “behind” Greek borders last summer. This did not go down well in the Serbian public. What do you think about the negative effect that caused and is Greece doing something special to appeal to the Serbs to come again? — With the strategic plan for the resumption of Greek tourism, we have invested significant effort,
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in line with the situation, to create the ideal conditions for entry into our country. For this reason, I am confident that there will be no problems from now on, and also that an occasional glitch will be easily resolved, thus minimizing any inconvenience. How many tourists from Serbia usually visit Greece during one season? — Greece is a popular destination for Serbs, and Serbia is a very important market for Greek tourism. In recent years, before the pandemic, the trend had been steadily increasing. In 2019, more than 1 million Serbian tourists visited Greece. We believe that we will soon recover and that our Serbian friends will continue to trust
BEFORE THE PANDEMIC, OVER 1 MILLION SERBS CHOSE GREECE AS THEIR HOLIDAY DESTINATION EACH YEAR Greece as their ultimate holiday destination. 2020 has been a challenging year for tourism worldwide. You have said that Greece has been updating last year’s health protocols. What does that practically mean for foreign tourists? — Last year, the health protocols were a great tool that helped us to develop the tourist season without problems and without exacerbating the pandemic figures. Hotels and generally all companies involved in tourism have implemented these protocols in an ex-
emplary manner; by taking responsibility they contributed to limiting the transmission of the virus. We are currently in close contact and cooperation with companies and professionals regarding the renewal of the health protocols. To this effect, the experience we have gained so far will play a crucial role. This year we will try to be more flexible, to make room for the best accommodation experience. For example, guests will be able to choose the food from a buffet using disposable gloves. Utilizing
the know-how we have acquired so far, we will be ready to present these changes very soon, in order to strengthen our position and our defence against the pandemic. How many tourists visited Greece in 2020 compared to 2019? — Last year, we played host to over 6 million tourists. May I remind you that, last year, we did not have vaccines or advanced and sufficient rapid tests. This year we have all that. Also, this year, the Ministry of Tourism has already proposed that tourist workers should be vaccinated as a priority. Nevertheless, I would not dare make a prediction. I am optimistic that 2021 will be better than last year and that will set Greece on a path of future growth and recovery.
GREECE AND SERBIA SIGN TOURISM AGREEMENT TO RESUME TRAVEL The Greek Tourism Minister, Harry Theoharis, Telecommunications, Tatjana Matić, have agreed Covid-19 pandemic’s impact on the tourist flow signed a joint declaration in Belgrade and compliance to related tourism legislation in each countries have pledged to invest strong effort by Covid-19. One of the solutions to ensure the recognition of both countries’ digital Covid-19 The Greek Tourism Minister underlined that understanding” between the two countries. Acters will be in constant contact to exchange inforand the latest developments of the epidemiolognew measures to facilitate travel and tourism, Also, the international obligations and synergies be harmonized with the procedures that regu-
and Serbian Minister of Trade, Tourism and to closer cooperation aiming to counter the between Greece and Serbia. The two ministers pledged mutual respect to health measures and other’s country. In the joint declaration, the two into finding solutions to the problems caused health protection of travellers is the mutual health certificates. the joint declaration “seals the friendship and cording to the joint declaration, the two minismation concerning the progress of vaccinations ical situation in Greece and Serbia, to propose provided that the relevant conditions are met. of Greece and Serbia in the field of tourism will late the entry of tourists in both countries.
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INTERVIEW
by Vanja Kovačev
Our Support is Important to Refugees and Asylum-Seekers Serbia knows what that means because many people here were refugees themselves come from Afghanistan, Pakistan, Syria, Bangladesh and Iraq. Sixty-three percent of all arrivals in 2020 originate from refugee-producing countries (70% in 2019) and stand good chances to be recognized as persons in need of international protection if they were to submit their applications in the EU member states and indeed in Serbia following a substantive asylum procedure.
FRANCESCA BONELLI UNHCR Representative in Serbia
n April 2021, there are 5,500 refugees in Serbia. Serbia is still a transit country for refugees and migrants who come and go in an attempt to reach northern Europe. D&C had the honor to speak to Francesca Bonelli, UNHCR Representative in Serbia who underlined that UNHCR must promote the true image of refugees because they are people like us.
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How many migrants and refugees does Serbia host at the moment and how was it before? — Since 2015, when refugees from Syria and other countries started moving along the Western Balkan route, over a million refugees have passed through Serbia, especially in 2015 and 2016. Of course, the global COVID-19 pan-
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demic and local crisis in Serbia reduced the scope of their movement but did not halt it. Even in 2020, despite all the challenges brought on by the pandemic, refugees and migrants kept coming to Serbia. According to the data of the Commissariat for Refugees and Migration, more than 56,000 refugees and migrants were registered in 19 centres in Serbia. Now
tween these two groups because migrants are people who have left their country in search of better living conditions and they can return home whenever they want and their lives are not in jeopardy. A refugee, according to the definition of the Geneva Convention from 1951, is a person who is at risk of persecution and cannot return to their country because
Serbia was one of the first countries in Europe to start vaccinating refugees — Yes, including refugees and asylum seekers in the vaccination plan is a great sign of solidarity and protection of refugees in Serbia. This shows that Serbia is inclusive of the most vulnerable groups in society and committed to protecting each individual, as well as that discrimination in terms of protection from COVID-19 does not exist. We cannot feel safe if every individual is not safe. UNHCR recognized Serbia's humane approach to refugees. We are grateful to the Government of Serbia for the vaccination of refugees and the expressed sense of solidarity and empathy, care and commitment, ensuring that these people would be protected. UNHCR provided interpreters because many refugees do not speak Serbian and need to be informed in their native languages. They also needed masks, equipment and disinfectants, so together with the Commissariat for Refugees and Mi-
IN 2021, THERE ARE 80 MILLION DISPLACED PEOPLE IN THE WORLD. THIS IS THE HIGHEST NUMBER EVER AND 50 % OF THEM ARE CHILDREN I.E. 40 MILLION DISPLACED PEOPLE IN THE WORLD ARE UNDER AGE there are 5,500 of them in Serbia. This shows that Serbia is still perceived as a transit country for refugees and migrants who come and go in an attempt to reach northern Europe. At the moment, Serbia is in the middle of a "mix" of movements of refugees and migrants. There is a difference be-
of the life-threatening risks. Both migrants and refugees have the same human rights, but refugees also need international protection and countries and the international community are committed to adhere to the 1951 Convention and uphold refugee rights. In Serbia, most migrants and refugees
grants, the Batut Institute and the Ministry of Health, we gave our support to the process of inclusion/vaccination. Before this, together with UNICEF, UNDP and the World Health Organization, we have been strongly advocating that refugees should be included in the National Vac-
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cination Plan, and we are very pleased that they are part of the third phase of that plan. Opinion polls show a worrying level of xenophobia, especially among young people. What can Serbia do change this negative attitude towards foreigners? — We, at UNHCR, are deeply concerned about the growing xenophobia and hate speech against refugees and migrants. Unfortunately, this trend is not only noticeable in Serbia but also in many other countries and is often based on fake news, unrealistic numbers, news aimed at creating fear and using refugees and migrants as scapegoats to create an atmosphere of social insecurity and fear. Therefore, as a vulnerable group, refugees are exposed to attacks which is not only unfair but it also puts people, who are the most vulnerable, seek international protection and security and have fled wars, into risky situations while they are not a risk to society at all. It is especially important to fight against this trend firstly by providing true information and real numbers and figures. Reality shows that the numbers are not alarming, and this is not an invasion. Europe has accepted a small number of refugees, considering the total number of refugees which is much lower in Europe than in Africa, Asia and South America. Countries like Lebanon, Jordan and Turkey are hosting the majority of the total number of 6,6 million Syrian refugees, while in the whole Europe, in all the countries there are less than 2.5 million refugees, which is incomparable with other countries in the world. E.g. Venezuela crisis - 5.5 million displaced Venezuelans who escaped to neighbouring countries like Colombia, Peru and Brazil. So, there are countries that have taken on many more refugees than Europe, demonstrating very strong solidarity and social inclusion. It is therefore important that the quoted numbers are expressed transparently. As mentioned, Serbia has cc:a 5,500 refugees and migrants who mainly transiting. Only around 200 people have been officially recognized as refugees in Serbia, and they came here to seek protection and start new life. They are now involved, actively participating and positively contributing to Serbian society. We must fight xenophobia and hate speech by communicating realistic numbers but also working with young
people in schools and universities to develop empathy, eliminate the fear of refugees and show that refugees are people like us, but the only difference being that they had to flee their countries and seek security and protection. We had several meetings where we talked directly with the students about who refugees really are and what is the current situation with refugees in the world. Most im-
He told the students a story about his destiny, how he left Afghanistan and was very affected by the war. But now he has found a new life in Serbia. These are examples that are very important to show to people that refugees are not dangerous, that they need our support and that they have human potential that can be very important for this society. Childcare is very important, con-
ples with these children becoming victims of trafficking, being exploited and abused. Child protection is one of the most important functions of UNHCR worldwide. Since 2015, UNHCR, has been committed to provide support and work closely with the Commissariat for Refugees and Migrants, the Ministry of Labour and Social Affairs, the Ministry of Interior and civil society. We have
REFUGEES CAN CONTRIBUTE TO OUR SOCIETIES WITH THEIR TALENT. THE MORE WE SUPPORT THEM, THE BETTER THEY CAN GIVE US BACK AND CONTRIBUTE TO CREATING A BETTER WORLD – JUST A REMINDER ALBERT EINSTEIN WAS A REFUGEE portantly, we gave the refugees a chance to tell their peers their life story. We had, for example, two boys from Afghanistan with one of them coming to Serbia in 2016 as a small child and is now in early adulthood. He came to Serbia because he lost his parents in Afghanistan, he was alone, desperate and in danger of being recruited by the Taliban, so he decided to flee. After several years of travelling during which he was exposed to many risks, he came to Serbia, planning to just pass through the country and continue his journey, but then he said that he met good people in Serbia, found refuge, was given a roof over his head and felt protected. He could neither read nor write but he subsequently learned. Now, the school he attends in Serbia has discovered that he has a talent for art and he enrolled in an art school.
sidering that refugee and migrant children are a particularly vulnerable group. UNHCR is very engaged in this field? — That is a very important issue. In 2021, there are 80 million displaced people in the world. This is the highest number ever and 50 % of them are children i.e. 40 million displaced people in the world are under age. This is also noticed in Serbia because unaccompanied children make 13% of the people who come here. Children are the most vulnerable refugees, because of the war they have not been able to get an education, have no refuge and are exposed to multiple risks and abuse, even the prostitution. Unaccompanied children are the most vulnerable as they don't have parents with them which means that they are exposed to the risk of prostitution. We have seen such exam-
cooperated with 11 NGOs with some of them specialized in child protection. We work together as a team. Those children need shelter, a place where they feel safe, the opportunity to join the education system. Providing education for these children is a very good example for Serbia, just like vaccination, because here, refugee children have been attending school since 2016. This is a very successful and strong example of child protection because children attending primary are safer, have the opportunity to be educated and thus better integrate better into civil society. Some children learned Serbian quickly and became translators for their parents. We are grateful to the Ministry of Education and schools for providing education to refugee children in various parts of Serbia where they are situated.
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POLITICS
by Žikica Milošević
Enigma Called Biden Is this a real Biden, or an avatar? the world have done too. 2) The American Jobs Plan is already a step forward. Biden clearly noted that he would push it even if it was not bipartisan, which Obama always avoided and which, in the end, resulted in half-hearted and widely unacceptable solutions. This plan will be worth as much as $2.3 trillion, will follow the example of China, or Spain, Germany or the EU as a whole, and will renew the complete infrastructure of the USA, because Biden believes that the USA can be the champion of infrastructure again, just like it was up until 1970. 3) The American Families Plan is the third step, very social-democratic in nature and reminiscent of the plans of the Brazilian president Lula or European countries. The third plan would make America an ideal country to live in and it would resemble more Canada or Scandinavian countries in that.
ven the American media are surprised by Joe Biden breaking away from Obama's policy and even more by the speed with which that policy was broken. It was to be expected for Biden to eliminate Trump's legacy, which he did - quickly and decisively. However, the man who seemingly betrayed progressive forces and used their support to beat Trump, became an even bigger progressive than them.
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BIDEN IS SURPRISING Withdrawal from Afghanistan by September 11 and withdrawal from Iraq, albeit in part, printing money to pump into the economy, $1.8 trillion in state aid, determination to invest massively in U.S. infrastructure despite the Republicans (American Jobs Plan, $2.3 trillion) ), determination to help families (American Families Plan), i.e. investments in "human infrastructure", increase in corporate taxes, mass vaccination, refusal to send more ships to the Black Sea, inviting Putin to talk ... What's next? A proposal to Putin to make a new Dayton-like agreement for Kosovo, Abkhazia and South Ossetia? What happened to this man? He is too good to be true. Is it maybe that aliens entered Joe Biden's body and changed his personality? Or does he suddenly have an urge to be charitable, at a rather old age, to please his conscience? Even the American media are surprised at how much more radical he is than Obama, who was a great disappointment, by the way. Maybe it is too good to be true.
MAKE AMERICA GREAT AGAIN... FOR REAL! In 2016, Trump promised a lot but failed to deliver. Biden is hellbent on doing it alone, without the Republicans, so that the United States would have a strong infrastructure again and continue perpetuating its leading role in the world. This move is believed to be inspired by the desire to catch up with China in infrastructure development if it is not too late. It is a well-known fact that every economic leap is closely related to having good in-
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EVEN THE AMERICAN MEDIA ARE SURPRISED AT HOW MUCH MORE RADICAL HE IS THAN OBAMA, WHO WAS A GREAT DISAPPOINTMENT frastructure (think of Great Britain and railways in the 19th century, America and railways in the 19th century, the Russian Empire and the USSR, America and highways after World War II, Spain after Franco, Italy and Germany after the Second World War, China from the 1990s ...). And the American infrastructure has collapsed. Cynics would say that Biden was inspired by Aleksandar Vučić, but Vučić recognized early that building roads, railways, subways, etc., is the only way to move forward. Although, he was inspired a little bit by China and a little bit by southern EU countries. The economic situation in the world is near a breaking point. If you are late now, you’ll be late for eternity, in the way that China failed to catch on to the Industrial Revolution in the early 20th century, subsequently closed up and
lost two whole centuries. America has woken up and does not want to become a second-class power because of its inertia. It is paradoxical to think that Biden will actually “Make America great again”, and not Trump, who coined the phrase. Trump promised infrastructure, but delivered only reduced regulations and taxes. He has failed to provide largescale state interventions in repairing bridges, railways, roads and the rehabilitation of the Rust Belt, which in the end, cost him a second term, more than the coronavirus. Biden will try to make America a superpower again that is one step ahead of everyone. And he plans to do that with a three-step plan: 1) the coronavirus stimulus worth $1.8 trillion, which is something that both the EU and Serbia and many other countries around
WHAT LIES BEHIND BIDEN'S REVOLUTIONARY EFFORTS? First, he called Putin “a killer”, then he spoke with him and decided that, after all, he would not send military reinforcement to the Black Sea and then imposed new sanctions on Russia. No one knows whether this "schizophrenic" move is accidental or a part of a deliberate plan. Some say that all this is part of the deal between Biden and the progressives, according to which they would support him in the presidential election, albeit not so openly, so that after the inauguration, Biden would push through their agenda. This is called the intelligent avatar theory. There is also the catatonic character theory, i.e. the weak avatar who "will sign anything that is put on his table", as Trump mockingly said. The fourth theory says that Biden is indeed a man of the establishment, but that in old age, he developed a conscience regarding the working class and the underprivileged so he decided to redeem himself for everything that was done to help corporate America get rich. It remains to see what is at stake here, but one thing is certain, a very interesting period is ahead of us.
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INTERVIEW
by Žikica Milošević
Huge Breakthroughs We are building on culture, tourism and our similarities H. E. ILIR BOÇKA Ambassador of Albania
lbania and Serbia have been "unpleasant”neighbours to each other for decades, but in the last few years, they have realized that they are actually very close. Initiatives like the so-called Mini Schengen have contributed to better understanding, while the aspirations to become an EU member drew the two countries closer. Because of the pandemic, Serbs discovered the Albanian Riviera, which became a summer hit in 2020, and will be so in 2021 too. We spoke about these and other topics with H.E. IlirBoçka, the Ambassador of Albania to Serbia.
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After almost 100 years of tension, Serbia and Albania are entering a new period of good relations. Despite some ongoing disagreements, there are huge breakthroughs, like the Mini
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Schengen Area. How would you rate the current relations between Serbia and Albania? — I agree with your definition of 100 years of sometimes turbulent relations, but in recent years, there have been breakthroughs and positive changes in the relations between the two countries. Also, there is a tendency to move forward. If I had to define them, I would say that we are moving towards normal standards of European relations be-
that it's time to go forward and to build up the relations. This is a positive trend. Our countries have concluded a multitude of agreements. Now, these agreements need to materialize every step of the way. This is the job that we are doing at the moment, namely, we are nurturing bilateral relations and good cooperation. Furthermore, we are also engaged in regional initiatives. Our two countries are active in many different aspects, over 77 of
forward. The initiative is also open to the other three Western Balkan countries (Kosovo, Montenegro and Bosnia and Herzegovina) which have been somewhat sceptical about it until now. We have invited them to fully join the initiative and have been talking with them so they can have a full picture because this idea has been inclusive since the very beginning. What are the greatest benefits of Mini Schengen?
IN THIS PART OF THE WORLD, WE WANT TO CREATE THE SAME CONDITIONS FOR ALL COUNTRIES, FACILITATE FREEDOM OF MOVEMENT OF PEOPLE, IDEAS, CAPITAL AND SERVICES AT THE SAME TIME tween two countries. Our relations are like a construction site - they are a "Work in progress". Although we are making steps forward every day, we also sometimes come across problems. However, the important thing is that both our countries and their political leaders have understood
them. There is Regional Youth Cooperation Office (RYCO) which is an important tool in implementing various projects. Then we have a brand new initiative called Mini-Schengen, which involves Albania, Serbia and North Macedonia as the most active partners that have been working on it to move it
— In this part of the world, we want to create the same conditions like in the EU - Area, facilitate freedom of movement of people, ideas, capital and services at the same time. We have been regularly working with Serbia on this. The last thing that we did was in January this year, name-
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ly, we have enabled our citizens to enter each other’s only with a valid ID Card, just like everywhere in the EU. Also, this is a new thing in our relations with the Republic of Serbia. We have created a big economic area with fewer borders, have better communication, and are open to ideas and movement of goods and services. That’s what this is all about. We also want to demonstrate to our partners in the European Union that we are capable of performing in such a climate and providing such services. The benefits are clear. Let's take, for example, roaming charges which will be reduced in both of our countries. There are many other possibilities like the cooperation that we had during the first phase of the pandemic. I hope that the other partners, Kosovo, Montenegro or Bosnia and Herzegovina, will have a better understanding of our initiatives in due time. We are working on making this more inclusive. Is the mutual trade following in the footsteps of improved political relations? What more can we do in the economy? — I would say it is intense. The movement of goods and people has been facilitated and the trucks will not have to wait at the borders as long as they are waiting now. More Serbian goods are coming to Albania. On the other hand, last year, more Albanian agricultural products were exported to Serbia, meaning fresh fruits and vegetables which are quite popular in Serbia. Our succulent tomatoes or cucumber are seen in green markets everywhere in Serbia and most of them come from South Albania. Plus, I have to mention our oranges and orange honey, also grown and made in the south of the country, which have great export potential. Serbian agricultural produce is also quite well-known in Albania. There are over 40 Serbian companies that have strong cooperation and business partners in the Albanian market and this number is growing. In the future, we should maybe make more direct investments in our respective countries, because the cooperation between the two countries is still based on trade for the most part, but not on production. This will be something that we should think about in the future. We have very good cooperation with our Chamber of Commerce that is doing a real-
ly good job and are leading in this field of commerce. Serbs have discovered the natural beauty of the Albanian Riviera. I have personally been there three times. Next year promises to be even better, tourism-wise. Can we boost mutual understanding through tourism? — Last month, I realized that many Serbian citizens have been travelling to the Albanian coastline during the pandemic lockdown without any problems. When they got there, they discovered beautiful villages, very friendly people and excellent food. Tourism is a success story in relations between our two countries. During the pandemic and overall isolation, travelling
I think that Albania is going to be one of the favourite tourist destinations for Serbs in 2021. When the usual Serbian tourist goes to Albania this summer or an Albanian comes to Belgrade, I am confident that their experiences will always be positive. I am an advocate of encouraging people to come to our respective countries since they form the bridges between us. We are two of the closest nations in the Balkans, but the people seem to overlook that fact. This is especially true of the Orthodox Albanians who are close to the Orthodox Serbs and the Muslim Albanians to the Serbian citizens of the Muslim faith. Also, we should mention national minorities in this context. Can we
I THINK THAT ALBANIA IS GOING TO BE ONE OF THE FAVOURITE TOURIST DESTINATIONS FOR SERBS IN 2021 between Albania and Serbia never stopped and that was what connected the two countries. Also, both countries don’t require a negative PCR test to enter either country. This was maybe the reason why a big group of Serbian tourists went to Albania last autumn, over 35,000 of them. The best thing from this example is that they have all had a great time in Albania and they conveyed their experiences on the media and social networks. Speaking in concrete terms, tourists coming from Serbia make up some 2% of the total visits. Still,
use these facts to build bridges between our two nations instead of focusing on the past wounds? — You are right. We have similarities, I think that is a beautiful thing. For instance, Dositej Obradović visited Albania in his younger years, during his journey to Greece. He travelled through Albania and wrote beautiful things about the Albanians. Our libraries stock books written by Ivo Andrić, David Albahari, Filip David and other Serbian writers. In Serbia, you can find books written by Ismail Kadare or Fatos Kongoli and other Albanian writers. Al-
though this is not sufficient, we should build on it. Art, dance, music, sport – these are all segments that we can build our relations on. I agree with you that we should demonstrate our values in, for instance, the existence of Orthodox tradition in Albania. We are proud of that and we have shown that in practice – there are many beautiful Orthodox churches in the eastern and southern part of Albania. These are the treasures of our tradition, and we should make them known to a wider public. On the other hand, we should also be proud of the fact that the Albanians have a very high degree of religious tolerance. Talking to an ordinary Albanian, you wouldn’t be able to tell if they are a Muslim, Catholic or Orthodox.
That is not that important in our life. It’s a personal thing and has nothing to do with the relations between people of different faiths. We are very proud of tolerance of each other’s religions and this is especially important for us. We have the same good relations with the Catholic Italians and Orthodox Serbs. We don’t make a difference. What can we do in culture to bring our nations closer? Maybe we should organize festivals (film, music) together? — We can have all sorts of festivals, not only film but also classical, rock or pop music festivals. We can mix and match because culture is the best link between people. Also, I think that we need more positive advertising.
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NATIONAL DAYS
ARRIVALS & DEPARTURES
MAY
H.E. PETKO DOYKOV New Ambassador of the Republic of Bulgaria to Serbia
Ambassador Petko Doykov was born on 31st January 1964 in Bulgaria. His career started at Ministry of Foreign Affairs Arab Countries Directorate as Expert. Before he become an Ambassador Extraordinary and Plenipotentiary of the Republic of Bulgaria to the Republic of Serbia on April 5 2021, he was Ambassador in India, concurrently accredited to Nepal, Bangladesh, Sri Lanka and Maldives, then Mauritania and Tunisia. He has Master's Degree in Business Administration (MBA) United Business Institutes in Brussels and after that, he Post-Graduated in International Law
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& Diplomacy The Indian Academy of International Law and Diplomacy in New Delhi. In addition, he worked as Deputy Minister in Ministry of Foreign Affairs. In his career so far he has received several accolades among which are "Outstanding Ambassador of the Year" Award of the Unity International Foundation in India in 2018 and Golden decoration of honor of the Minister of Foreign Affairs for long and impeccable service to the Ministry of Foreign Affairs in 2015. Ambassador Doykov is married to Radosveta and they have three children - Mario, Kalina and Alexander.
POLAND
ational Day N (Constitution Day)
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ICRC, IFRC
I nternational Red Cross Day
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H.E. CARLOS I. FELIX CORONA New Ambassador of Mexico to Serbia Mr. Carlos Isauro Felix Corona is career diplomat graduated in International Relations from the National Autonomous University of Mexico, with specialized studies in Diplomatic Affairs in the Matias Romero Institute, Mexican Diplomatic Academy of the Ministry of Foreign Affairs of Mexico. H.E. Felix Corona joined the Foreign Service in 1982 and was promoted to the rank of Ambassador in May 2009. He served as Consul General of Mexico in San Francisco, California USA, (Nov. 2007 toSept.2013), with jurisdiction in Northern California and the States of Oregon, Washington, Alaska and Hawaii. Ambassador extraordinary and
H.E. HAMI AKSOY New Turkish Ambassador to Serbia
ISRAEL
Independence Day
plenipotentiary to Malaysia, concurrent to Nauru and Kiribati. (Jan. 2014-Feb. 2021). He served as Minister for Political Affairs in the Embassy of Mexico in the United States of America (2001-2007); Deputy Consul General of Mexico in San Diego, California, USA (1995-1999);Deputy Consul General of Mexico in Los Angeles, California, USA (1994-1995); Charge d’ Affaires a.i. Embassy of Mexico in the Federal Republic of Yugoslavia (1992-1994) and Deputy Head of Mission in the Embassy of Mexico in the Republic of Korea (1987-1991). He is married to Mrs. Eun Hai Kim and has two children, Daniel and Mariana.
Prior to arriving in Belgrade, Ambassador Hami Aksoy served as the Spokesperson of the Ministry of Foreign Affairs of the Republic of Turkey (2018-2021); Consul General at the Turkish Consulate General in Milano (2015-2018); Head of Department at the Deputy Directorate General of Treaties (2012-2014) and Senior Foreign Policy Advisory to the President (2014-2015); Counsellor at the Turkish Embassy in London (2008-2012); First Secretary in the Office of the Deputy Undersecretary for Administrative-Fiscal Affairs (2007-2008); Second Secretary at the Turkish
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NORWAY
Constitution Day
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ARGENTINA
Primera Junta Day JUNE
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ITALY
Festa della Repubblica
Embassy in Stockholm (2003-2006); Vice Consul at the Turkish Consulate General in Komotini (2001-2003); Attaché at the Deputy Directorate General for EU Economic Affairs (1998-2000). Ambassador Aksoy holds a Bachelor’s Degree in International Relations from the Faculty of Political Science at the Ankara University and a Master’s Degree in International Relations and European Studies from the University of Kent at Canterbury. He attended the Oxford University Foreign Service Programme (2008-2009). He is fluent in English.
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DENMARK
Constitution Day
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SWEDEN
National Day
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RUSSIA
Russia Day
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ICELAND
Republic Day
H.E. JOOST REINTJES New Ambassador of the Netherlands in Belgrade
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H.E. Theodorus Antonius REINTJES Ambassador of the Netherlands in Belgrade was born Ubbergen on 17 June 1961. In 1988 he graduated Management/Arabic at University of Leiden, before that, in 1985 Arabic, University of Nijmegen and in 1981 Mining Engineering, University of Technology, Delft. Mr. Reintjes joined the Ministry of Foreign Affairs in 1989 and from 1989 to 1998 was posted at the Dutch Embassies in Cairo and Caracas, and at the
ational Day N (St John the Baptist)
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Ministry of Foreign Affairs in The Hague (Asia Department). His previous ambassadorial positions was in Riyadh, Islamabad, Nairobi and Baghdad. During his career he was Chargé d’Affaires in Moscow, Director Western Hemisphere Department at the Ministry of Foreign Affairs in The Hague, Deputy Head of Mission in Rome Chargé d’Affaires in Baghdad, Counsellor in Amman and Coordinator Middle East, Migration and Consular Affairs Department.
MALTA
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CROATIA
Statehood Day
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SLOVENIA
Statehood Day
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A1 Serbia has Now Completed the A1 Brand Family Behind A1's energetic, concerted brand identity are the expertise and innovative power of a large, international group of companies
THOMAS ARNOLDNER Chief Executive Officer of A1 Telekom Austria Group
IP has been for years a part of A1 Telekom Austria Group which has more than 25 million users in 7 countries, and as of this year Vip continues the story under the name A1 in Serbia. We talked about this significant change with Thomas Arnoldner, Chief Executive Officer at A1 Telekom Austria Group.
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With regard to your single-brand strategy now also implemented in Serbia: what can we expect from an international brand such as A1 to bring to our national market? — First of all, I would like to express my delight that A1 Serbia has now completed the A1 brand family. Great respect for our team in Serbia, which has mastered this rebranding excellently even under particularly challenging conditions. As in its entire CEE footprint, A1 now also presents itself in Serbia as a preferable, particularly reliable and trustworthy digitalization partner – for customers, businesses, the public sector and the society in general. A clear commitment to actively assuming ecological and social responsibility rounds off this positioning. We are convinced that the now even more visible embedding in a strong international Group, including the associated synergies e.g. in product and service innovations, will also promote the positioning and growth targets in the Serbian market. At the same time, proven core business values as well as local expertise and presence will of course continue to retain their indispensable importance. Austria and Serbia have a long history of good business cooperation, and Austrian companies belong to the most relevant
in the digital age. Our operations in Serbia showed stable, continuous growth in both revenues and the number of customers – even during the pandemic crisis we are facing and in an increasingly competitive market.
ments in digital infrastructure, we are building the foundation for future economic growth and prosperity in the region. In addition, the A1 brand is explicitly linked to our decidedly responsible attitude toward the environment and society, backed by clear objectives, and to be a central driver of sustainable digital transformation in Serbia and the entire A1 Group footprint.
What are your future plans towards expansion of the A1 Group in Western Balkan region and the rest of Europe? — Alongside measures for fostering organic growth, the A1 Group will continue to expand its sphere of activity with targeted, value-accretive M&A activities in line with its conservative finance strategy. Its focus remains on in-market consolidation in its existing markets, pursuing e.g. its convergence strategy, and subsequently expanding into new geographical areas in CEE. Additionally, the Group is also expanding its portfolio and exploiting new growth areas in the field of digital services. With our continuous invest-
A1 Group has been present in Serbia for over a decade. Do we learn from each other and what? — Learning from each other and growing together alongside dynamically changing requirements holds enormous potential. This is one of the distinct strengths of the A1 Group: behind A1's energetic, concerted brand identity are the expertise and innovative power of a large, international group of companies. Building on this, successfully tested new solutions can also be implemented in other operational areas or regions with a rapid time to market in the interest of customers, thus promoting the growth targets of the respective companies and the Group as a whole.
OUR OPERATIONS IN SERBIA SHOWED STABLE, CONTINUOUS GROWTH IN BOTH REVENUES AND THE NUMBER OF CUSTOMERS investors in our country. What kind of economic environment and governmental support are crucial for gaining international investors’ interest? — When evaluating options for future investments, investors consider not only the current situation on the respective national markets – especially with a view to the economic and regulatory framework conditions. Additionally, social openness to innovation in general as well as the willingness and readiness of local partners to support further development play a decisive role in this respect. Such parameters are, of course, crucial when it comes to strategic planning. Started in 2007 as the country's largest greenfield investment, our company In Serbia has undergone dynamic development in recent years. Now as A1 Serbia, it will offer an even more compelling digital customer experience by providing convincing services and solutions for life, work and entertainment
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Innovation Opens New Perspectives Behind Štark's oldest brands is almost a hundred years of tradition and only this year is investing 8.5 million euros in a new, state-of-the-art, chocolate line expansion of food preparation, especially desserts, in households. Specified changes were reflected differently in individual segments of our portfolio, especially negatively in the categories of chocolate, biscuits and waffles. The identified challenges and opportunities were responded to by integrated marketing and sales efforts with a foothold in the brands of already built stable credibility with consumers. Increased consumption in the household inspired the launch of larger packages (Smoki and Bananica) and more nutritionally attractive products (Prima grissini). Difficult buying conditions required tactical defence at the point of sale with enhanced positioning supervision, and competitiveness was supported by price-motivated actions.
MARKO NJAVRO Head of Atlantic Stark and the general director of this Strategic Business Area Sweet and Salty
year ago, shortly before the beginning of the biggest health crisis in the world, Marko Njavro became the head of Atlantic Stark as the general director of this Strategic Business Area Sweet and Salty. On that occasion, we talked to him about what the past year looked like, but also what are the plans for the future.
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You have become the new GM of Atlantic Štark, which operates as the Strategic Business Unit Sweet and Savoury of the Atlantic Grupa - in the year of the biggest health crisis globally that affected all activities of the company. How did Atlantic Grupa react to the crisis? How have you adapted your business to the new circumstances? — I believe that we are from this strange, difficult, challenging, but somewhere good business year for us, because we realized sales revenue almost at the level of 2019 - we learned a lot. As a company, we came out stronger because of the optimization of our processes and the confirmation that our strategy is crisis-resistant, but we also managed to stay connected as employees. Looking back now, I would say that this very unity, with the previous stable financial position, business optimization and quality strategic planning, has brought us business continuity, job security, but also profitability under minimum negative consequences on revenues and record low indebtedness. First of all, what has been set as a priority is preserving health and safety of all our employees, but also regular supply of the market. Now, from this perspective, I can say that I am happy that we succeeded in that, but we also succeeded much
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THE ATLANTIC GRUPA HAS ALWAYS TAKEN CARE OF THE COMMUNITY IN WHICH WE LIVE AND WORK more. We have preserved the company's business, as well as regular income, but we have also paidup annual bonuses to employees, which are regular benefits at the end of each year, and even bonuses. We also helped employees through various psychological protection programs, in order to have the most easily adapt to the new working conditions, whether they worked from home or in production that functioned regularly all the time. We provided as well additional financial support to employees affected by the earthquakes in Croatia, as well as pecuniary and commodity donations to national crisis staff in the com-
bat against corona, in all markets in which we operate. How did the pandemic affect Atlantic Štark (SBU Sweet and Savoury), but also the confectionery industry itself? — Restrictive measures regarding the pandemic have significantly changed consumer habits in the purchase and consumption of confectionery products. Consumption outside the household is reduced, as well as impulse shopping, the frequency of purchases is lower, the time dedicated to shopping is shortened and the focus is on basic foodstuffs. Simultaneously, there has been an
Close to 40 percent of your products are marketed in foreign markets - how the pandemic affected that business segment, given that each country had some specific measures to overcome the current crisis. — The geographical structure shall remain without significant alteration under dominance of the Serbian market with a value share of 65%, where the success of Smoki is reflected in the improvement of the market position with the increase of the value market share. Also, excellent results were achieved by products suitable for making homemade desserts, such as cooking chocolate - Menage and Petit Beurre. Bars and Sticks in the last few months of 2020, also, recorded an increase in sales compared to the previous year. Essentially, the year behind us was the most difficult in markets that due to the pandemic had (or still have) very restrictive measures, as well as in markets that are highly dependent on the tourist season. Thus Serbia, Croatia, Bosnia and Herzegovina, Montenegro… while on the other hand, growth was achieved in the markets of Slove-
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nia, Austria, Macedonia and the rest of the world, i.e., ROW. We are also looking forward to the commencement of the sale of Smoki on the Russian market, it is a huge market that offers great opportunities… We will continue to work on this this year too, as well as to return to the former turnover in the Kosovo market, with which we started working again in the middle of last year. Throughout the preceding year, and in particular at the beginning thereof, you set aside large donations for faster and easier overcoming of the pandemic tell us a little more about it and about the social responsibility of the Atlantic Grupa. — The Atlantic Grupa has always taken care of the community in which we live and work, equally in all markets of the region, where in each of them we operate as a socially responsible, home company. The crisis caused by the COVID-19 virus pandemic in the wider environment has not affected this to change, except in the manner to have us further intensify our efforts in helping both employees and the environment. We are actively involved in the joint combat against coronavirus and the company has set aside about 3.7 million euros for total assistance to local crisis staff and institutions that coordinate infection control and population protection activities. The largest part of the cited amount refers to donations intended for the procurement of medical equipment, especially respirators, and materials necessary for the efficient operation of health institutions in Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Northern Macedonia and Montenegro, and one part includes donations of products to associations within the coordination of national staffs. By the way, we have strategically incorporated the obligations of socially responsible business and sustainable development into our business, and we strive to act in such a way that sustainable development is actually a process of creating new opportunities and development possibilities for our business, as well as better future for forthcoming generations. With the aim of improving environmental, social and economic goals, we recognize risks and opportunities for sustainability, and thus we act in several directions: in the field of new product development, tech-
dustry, which is basically a monoproduct industry, to a company that has a good, rich and diversified portfolio and in essence I was glad that after 15 years I decided to change my job, because it represented a big and new challenge for me. Empirically, you pass through a lot and bring it in a new company, but the ability to adapt is crucial for any business, especially in emerging circumstances, and it is important to understand the role your brands play in people's lives. It is true that the original plans had to be adapted to the newly created situation, but in the past year we have initiated a lot of changes, some of them are already showing good results, and some are of much longer-term-character, so I am satisfied with what has been achieved.
WE CONTINUE TO STRENGTHEN OUR FOUNDATIONS BY INVESTING IN OUR CORE BRANDS, INNOVATION AND CONSUMER EXPERIENCE nological processes, employee development, communication with customers, consumers, investor relations, supply chain management. Smoki, Bananica (banana cream chocolate bar), chocolate Najlepše želje (Best Wishes) are products that many generations are attached to - how difficult it is to be innovative and achieve new successes, particularly in the confectionery industry, in which there has been constant investment in recent years. — If I just mention the fact that behind Štark's oldest brands is almost a hundred years of tradition, that we currently have about 100 million euros of annual turnover, that our range is in 6 product categories, that we have 8 MEX brands and only this year investing in a new, state-of-the-art chocolate line of 8.5 million euros, it is clear what respectable brands we are talking about, which of course was once recognized by Atlantic Grupa. Štark's tradition and quality are an excellent basis that we will in the future, with new projects, intensively upgrade with at-
tributes such as innovation, success, trust of new generations. It is certainly not easy, but we invest in technology and development, and create a dynamic environment that adapts quickly to market changes and consumer expectations, with a desire to be different, to be creative, to inspire innovation, and to open new perspectives for our brands. Štark’s core brands and the expansion of their portfolio is an obvious example that creativity leads to new perspectives, in particular when you innovate brands already well-known. We are developing new recipes and Limited-Edition items, based on the "inspired by" principle in response to consumer curiosity and the modern trend of synchronously combining different flavours, textures, types of products. Prior to your position at Atlantic Grupa, you used to be the Regional President at Molson Coors Brewing. How much has your previous, many years of experience helped you better manage the sector you are in now? — I came from the brewing in-
What are your goals in general on your new position and plans for the forthcoming period? — Atlantic Grupa entered the current year with the announcement of strategic priorities for the next period of three to five years, which basically include strengthening the foundations of our business, further growth, but also improvements in all business segments, while maintaining the leading position of regional distributor of course. The essence is that we continue to strengthen our foundations by investing in our core brands, in production processes, innovation and consumer experience, but also in human resources and corporate culture. To ensure sustainable growth and the expected contribution of brands that rely on a rich tradition, investments will be increased in their marketing needs and related system capacities. Success in these areas will also certainly contribute to the improvement of financial results. Within Štark's brands, we continue to strengthen and improve our leading positions in chocolate and flips, we have prepared a series of innovations that will surprise consumers this year, we are also working intensively to improve the Biscuit and Waffle categories in a more innovative manner, and we are working too on expanding into new markets and generally improving our business processes. All of this is embraced by our new Operational Model that we introduced at the end of last year and pursuant to which we are going to operate in future, in order to realize our Vision.
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NEITHER PREDATOR NOR PAL
What 100 Contracts Reveal About China’s Development Lending Loans are not obviously predatory; secrecy is sometimes a condition hat do the following have in common? Subway cars in Argentina; digital TV in the Republic of Congo; thermal power in Kyrgyzstan; turboprop planes in Vanuatu; and the Queen Elizabeth II quay in Sierra Leone? All have benefited from Chinese lending, which has helped finance transport, power and telecommunications projects across the developing world. China insists it is helping poor countries follow in its own debt-financed footsteps, offering the kind of patient capital other lenders are now too wary to provide. China’s critics instead accuse it of drenching countries in red ink, then grabbing strategic assets, such as ports or mines, as collateral when a country defaults. Judging these claims can be tricky because the terms and conditions of loans are mostly hidden from view. Mostly. An enterprising team including Brad Parks at AidData, a research centre at the College of William and Mary in Virginia, has scoured parliamentary websites, official registers and debt databases in over 200 countries, looking for any loan documents that might have slipped out into the open. They have found 100 contracts signed by 24 borrowing countries, mostly with two state-directed “policy banks”, the Export-Import Bank of China (China Eximbank) and China Development Bank. The contracts suggest China’s loans are not conspicuously expensive. China Eximbank’s commercial loans charge a rate of 0.54.5% above a floating benchmark rate (the London Interbank Offered Rate, which averaged about 1% over the past decade). These are “in line with market terms”, say the authors. Nor are the loans obviously predatory. In 99 out of 100 cases, China does not require the borrower to pawn a physical asset as collateral. This should not be a surprise. Taking possession of physical assets is “a pain”, points out Anna Gelpern of Georgetown University, one of the study’s au-
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CHINA LENDS MORE THAN MOST TO INHOSPITABLE CORNERS OF THE WORLD. THE 100 CONTRACTS INCLUDE LOANS TO SOME COUNTRIES WITH AWFUL CREDIT RATINGS (VENEZUELA) AND SOME WITH NO RATING AT ALL (SIERRA LEONE) thors. (The one potential exception is the port loan to Sierra Leone, which mentions “equipment and other assets” detailed in another, unlocated document.) China’s lenders are, however, keen on less painful forms of collateral. They sometimes insist that countries maintain a separate bank account that the lender could seize or block in a dispute. When combined with unusually broad confidentiality clauses (in some cases, borrowers cannot even reveal the existence of the loan), these accounts make it harder for a country’s other creditors, or indeed its citizens, to keep
track of the government’s financial standing. Chinese lenders do not play nicely with other creditors. They typically insist on being left out of any broader efforts to provide debt relief to a stricken borrower (although any demand for special treatment may not be enforceable in practice). Chinese banks do, however, show solidarity with their compatriots. They can recall a loan if the borrower damages the interest of any Chinese entity, including, but not limited to, other banks. China lends more than most to inhospitable corners of the world.
The 100 contracts include loans to some countries with awful credit ratings (Venezuela) and some with no rating at all (Sierra Leone). Countries like this sometimes struggle to borrow because they have too much freedom to default and cannot convince a lender otherwise. The unusual terms in China’s loan contracts make it harder for countries to bilk it. But that presumably also makes it easier for countries to borrow from it. From The Economist, published under licence. The original article, in English, can be found on www.economist.com
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E-COMMERCE IN SERBIA 2021
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by Nevena Kuveljić
DEVELOPING E-COMMERCE IS ONE OF THE MAIN GOALS
The Government has adopted the Electronic Commerce Development Programme in the Republic of Serbia, which is the first public policy document in the segment of e-commerce TATJANA MATIĆ Serbian Minister of Trade, Tourism and Telecommunications
he Ministry of Trade, Tourism and Telecommunications has been working intensively for years on improving regulations, building consumer confidence, as well as educating vendors about e-commerce. We talked with the Minister of Trade, Tourism and Telecommunications, Tatjana Matić, about everything that has been done so far and the plans for the development of e-commerce in Serbia.
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We will continue to boost people’s trust in online shopping
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What specifically has been done so far, and what has contributed to the development of e-commerce in Serbia? — The Ministry of Trade, Tourism and Telecommunications has been primarily working on harmonization with the Acquis Communautaire in the segment of consumer protection, transposing relevant EU directives into the Consumer Protection Law, thanks to which we have made formal progress in joining the European Single Market and facilitated a high level of consumer protection. In the strategic document called ‘2019-2020 Consumer Protection Strategy’, e-commerce is especially targeted and one of the measures mentioned in the document increasing the awareness of vendors about their legal obligations. Certainly, the development and improvement of e-commerce and e-business in Serbia are some of the priority goals of the line Ministry. The new Commerce Law, amendments to the Law on Electronic Commerce, and the Law on Postal Services were also adopted. Also,
following the proposal of our Ministry, the Government adopted the Electronic Commerce Development Programme in the Republic of Serbia, which is the first public policy document in the segment of e-commerce that prescribes a set of measures and activities, including consumer protection, logistics processes, online payments, cross-border trade. customs procedures, etc. In parallel with legal and programme-related activities, in cooperation with USAID CFG, the Ministry has implemented the project titled "Strengthening E-commerce in the Republic of Serbia" which resulted in several activities implemented to boost people’s trust in this type of shopping, as well as to solidify the position of e-vendors when offering their goods and services online. Along with the media campaign, the E-commerce Consumer Guide was published, which educates people about their consumer rights on the Internet, as well as the E-Vendors Guide which is intended for both beginners and businesses that want to reorient to e-business or to add e-commerce as a new sales channel in addition to the existing offline sales. The guides are free and can be smartly and safely downloaded from the Ministry's platform www.pametnoibezbedno.gov.rs .
How much has e-commerce affected the overall development of the economy so far? — The expected growth of e-commerce over the past few years experienced a revolution during the coronavirus pandemic, which saw
a double increase in online sales and the number of online outlets. Thanks to the new laws regulating e-business, e-commerce and information security, it was possible to abruptly redirect many activities to the online environment, and as a result and despite the circumstances caused by the pandemic, society continued to function as did the economy to a large extent. According to the data collated by the National Bank of Serbia, the number of electronic transactions in dinars, paid with debit or credit cards on the Internet jumped from 7 million in 2019 to 14.3 million in 2020, while the value of e-transactions increased from 17.8 billion dinars to 32.38 billion dinars. The number of virtual points of sale at the end of 2019 stood at 1,139 and grew to 2,013 in late 2020.
To what extent is the shadow economy present on the Internet and what is your Ministry doing to combat it? — It has been estimated that the shadow economy’s share in the national GDP is around 14.9%. The Ministry has been continuously working on informing and educating consumers to redirect them to buy from legal vendors, which is in their best interest since they will not exercise their consumer rights if they buy goods or services from unregistered individuals. In addition, the Ministry and its market inspectors are working on combating the shadow economy following the Commerce Law and the Inspection Supervision Law. One of the measures that have been implemented is the organized sup-
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pression of online advertising and the sale of goods by unregistered entities. We did this by searching online sales platforms, social networks and supervising postal operations to identify unregistered vendors and take legal action against them. Also, the new Commerce Law authorizes market inspectors to conduct "covert shopping" and thus obtain the necessary evidence of illegal sales. The Ministry of the Interior provides us with support in this fight with its High-Tech Crime Department. In 2020 and the first quarter of 2021, 125 inspections were executed in this segment, and after violations of law have been identified, 44 requests for initiating misdemeanour proceedings were submitted, as well as two criminal charges due to illicit trade.
The existing Commerce Development Strategy in the Republic of Serbia was valid until the end of 2020. Are you planning to have a new strategy? — A new Commerce Development Strategy in the Republic of Serbia, that will cover the period until 2025, is being drafted, along with an Action Plan, which should include an analysis of the situation and level of development of the commerce sector in Serbia, wholesale, retail and e-commerce and multichannel sales. The Strategy will draw parallels to the development trends in Europe, and will especially focus on the development of small and medium-sized enterprises. How have the amendments to the Electronic Commerce and the new Commerce Law contributed to the development of online commerce in Serbia? — The new Commerce Law has introduced the concept of the electronic store and electronic platform, which have not been regulated in domestic legislation so far. A clear distinction is made as to who is the seller of the goods (webshop) and who is only the link between the consumer and the vendor (the platform as an "intermediary"). This is important from the aspect of consumer rights protection because it should be unambiguously clear to the buyer from whom they are buying the goods, with whom they are entering into a contractual relationship and to whom they can turn in case of product complaints. This does not exclude the possibility that the vendor, who owns the platform, will also be the seller of the goods, which means that they will assume all legal obligations related to the seller. Also, a
special form of e-commerce - dropshipping - has been recognized and regulated, thus enabling the display of product prices in foreign currencies, as an important legal novelty, which additionally makes it easier for domestic vendors to make their offer available to foreign markets.
Are consumer rights equally protected during online and offline shopping? — The Consumer Protection Law prescribes the rights of consumers in both online and offline shopping, and it refers to the consumer’s right to ask for pre-contractual information, the right to complain, the vendor's responsibility for the conformity of sold goods that lasts for two years, exercising rights under the agreed warranty, etc. However, it is important to point out that the key thing in protecting the rights of consumers in online shopping is the consumer right to change their mind and withdraw from the concluded contract within 14 days without consequences. The right to withdraw is valid for online shopping, while in offline shopping, it is only an option that the vendor does not have to agree to. The withdrawal right allows consumers to return the goods and get their money back without having to explain why. This is popularly called the "right to change one's mind." The vendor is obligated to refund the consumer within 14 days of receiving the consumer's statement that they are withdrawing from the contract. The 2019-2024 Consumer Protection Strategy focuses on activities related to the development of consumer protection in e-commerce. Are there any incentives for e-vendors to help them solidify their
market position? — The importance of e-commerce is largely recognized, but lack of information on the establishment and management of an online store, which is especially pronounced among smaller retailers, being ignorant of the set of e-commerce laws and insufficient knowledge of customs procedure related to export are the main obstacles. The mentioned Guide for e-vendors is intended primarily for micro, small and medium-sized enterprises. The survey conducted among companies late last year, in which as many as 82% of the survey participants rated their web shops as equally important or more important than the traditional sales format, speaks volumes about how much the perception of e-commerce has already changed. Also, the Ministry has been participating in education for businesses which was organized by various vendor associations. What else needs to be done, i.e. what will the Ministry do in the future, to contribute to the development and boosting the security of e-commerce in Serbia? — In the coming period, we will continue to carry out activities that are primarily intended to further enhance people’s trust in online shopping. We will conduct information and educational campaigns and intensify cooperation with the media, considering that the role of the media is crucial in the perception and understanding of e-commerce. Also, the plan is to continue with the implementation of a series of webinars for businesses on the topic of presenting and implementing legal solutions and promoting the practical use of the Guide for e-vendors in the following few months.
The expected growth of e-commerce over the past few years experienced a revolution during the coronavirus pandemic
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E-COMMERCE
by Nevena Kuveljić
WORLD E-COMMERCE IN THE NEW NORMAL
Online retailing is among the sectors best placed to succeed in 2021 ccording to the report by The Economist Intelligence Unit after a year of exponential growth, online retailing is among the sectors best placed to succeed in 2021. However, with the coronavirus (Covid-19) pandemic persisting in many countries, companies will not find it easy to capitalise on the opportunities presented by the new retail environment. As well as responding to changed consumer needs, companies will need to explore which markets offer most potential, all the while navigating increased regulatory barriers, as well as cyber-security and labour risks.
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KEY FINDINGS ARE: • While the pace of growth in online retailing will slow from 2021, the sub-sector will continue to expand its share of total retail sales—rising from about 10% in 2019 to nearly 20% by 2025. • Much of this growth will come from emerging markets in Asia, Latin America and the Middle East. • Retailers will need to devise winning strategies in three key areas: adoption of next-generation technologies; warehousing and fulfilment; and harnessing a new generation of digital entrepreneurs.
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Global online retail sales expanded by 32% in 2020 years to US$2.6trn
• Maintaining profitability and data security will be the biggest challenge facing online retailers, while labour relations and increased regulatory scrutiny threaten to increase costs. • Many franchise business operators and in-store employees are likely to find themselves on the losing side of the retail transformation.
WHAT TO EXPECT IN 2021 The pandemic transformed retail in 2020. We estimate that global online retail sales expanded by 32% in that year, to US$2.6trn, even while the overall retail market contracted by over 2%. After such a record year for online retail, growth will inevitably slow from 2021, but online retailers will not easily give up the ground they have gained. The uncertainties over the rollout of coronavirus (Covid-19) vaccines and the emergence of new strains of the virus will keep social distancing measures in place in many countries in 2021. Moreover, the ease of online shopping and home delivery has made them attractive options to many consumers, who will continue to use these methods even when they can walk into shops again. Combining data and forecasts that cover 58 markets worldwide, The Economist Intelligence Unit forecast that global online retail sales will increase their share of total retail sales to nearly 20% by 2025, up from 10.3% in 2019.
Much of this growth will be driven by two factors - developing markets and online food and grocery delivery. The pandemic has helped to narrow the gap between Asian and North American consumer markets and has shown the former to be more resilient. Outside Asia, there will be opportunities for expansion in the Middle East and Latin America, where online retail surged in 2020 but much of these markets remains in the hands of unorganised players. In a year that led to a decline of nearly 4% in global consumer spending, expenditure on food and beverages still rose by 5%. We expect online grocery to retain its momentum over other categories of goods until at least 2023, when non-food retailing will start to accelerate again.
HOW TO BUILD WINNING STRATEGIES? Success will be underpinned by several factors, including competitive product positioning and pricing strategies, user-friendly digital platforms, efficient inventory management and fast and efficient fulfilment processes. Beyond thinking about their customer bases and product offerings, retailers will need to devise new strategies in three key areas: next-generation technologies, commercial real estate (this creates opportunities to turn vacant shops or shopping centres into warehouse spaces used for clickand-collect or online fulfilment), and the power of platforms (social media, applications..).
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Car:Go offers innovation & efficiency for its growing client network
VUK GUBERINIĆ INSTAGRAM
CEO of Car:Go
ning, but also when people use the app in the future. We build bridges little by little, then the word of mouth was also an important factor as well as the taxi strike everyone witnessed. That brought a lot of attention to our service and we used it to the best of our ability.
aving the biggest amount of online transactions in Serbia, and the first ever company to introduce registration of personalized data and online automatic payment, Car:Go is the leading innovator in the country. Our journalist Mina Vucic has had a chance to interview Vuk Guberinic the CEO and Founder of Car:Go Technologies under the E-Commerce DC theme and get a sneak peak at the company’s future projects and greatest successes.
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According to the latest data, CarGo has had the biggest online transactions in Serbia, more than any bank, which is an amazing statistic. What does this mean for the future of the company? — We started off slow but then all of a sudden we kicked in the fifth gear, accelerating the number of transactions. From day one we wanted the best customer experience and that is what we made within our application. Users can register their name and enjoy the required details for the transactions without worrying about the pin numbers or swiping the card and so on. We believe we are just at the beginning of our journey and the best innovations are all ahead of us, expanding our service throughout the region. In your opinion, how did you build trust between the app and your customers? — Six years ago when we started, it was very difficult and challenging because we couldn’t reach a lot of people at once, as we didn’t have the funds for the marketing. It took a lot of time, devotion, energy and work in order to educate the market and the customer and build that trust not only in the begin-
We always like a good challenge and we are out there ticking, getting more deliveries, customers and partners who are willing to ride with us.
How would you say the pandemic has influenced your industry, and company? Did you need to adapt or even change certain plans with Covid, and did it push you to create new projects? — The Covid-19 pandemic created a lot of challenges, in most businesses worldwide, so it was definitely difficult for us as our concept and target market is based upon movement and mobility. However, with every problem comes a solution. We looked for ways to stay competitive and to provide differentiation in the market. We introduced full protection within the cars, and did a lot of volunteering work in the toughest times, helping the medical community. In the middle of the pandemic we decided to move ahead and build another feature and service to provide food delivery through Cargo Butler Service. The idea was to have a personal butler for all our customers. A right hand assistant, that can bring anything within the customer’s city in less than 2 hours. This is the goal we are going towards. Here in Belgrade, the place is full of international players, so it was definitely a challenge for us, but nevertheless, we always like a good challenge and we are out there ticking, getting more deliveries, customers and partners who are willing to ride with us. What are you targets and goals in the next year or two? And which sectors are on your development list?
— Within the new app that we are preparing, we will immediately be offering 7 services, so customers will be able to lend money to friends and pay for their services by phone with the help of a QR code or camera, this is something that worked very well in other markets, and we want to make it work here. Another thing which we are planning for our customers is an insurance possibility, and numerous other possibilities one of which is playing video games. This is a sector a lot of people underestimate, however, it has a huge interest and potential. We will be the first company to offer mobile game playing while our customers wait for their food or even while enjoying their ride. We also launched CarGo medical, which is the first real loyalty program in Serbia, we partnered with a company who is signed up with almost 2000 medical institutions throughout Serbia. It is a 20-euro membership card which provides our customers with unlimited discounts in all medical institutions which are available on the app.
Are electric and hybrid vehicles a concept that you will develop further? Is there a goal for an all electric vehicle system in the future? Do you have any other sustainable plans? — You hit the nail with this question. We are actually preparing a huge project with electric cars, although I can’t give away too many details, it is something that we have been working on for over a year. We already did a long pilot project with 8 electric cars and the results were more than amazing. Our company is working really hard to obtaining super fast chargers, and a good number of electric cars in different models and sizes. Definitely stay tuned, it is going to be very exiting!
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INTERVIEW
by Ruža Veljović
WE ARE CATCHING UP WITH GLOBAL TRENDS
The establishment of the E-Commerce Association of Serbia (ECS) coincided with the incredible development of awareness in this field among customers and the entire population. Things we have been working on unofficially for a very long time and under the auspices of the ECS for the last two years, have finally been heard about ZORANA MILIDRAG President of the E-Commerce Association of Serbia
he Association’s key activities are based on the development of awareness and education. The market cannot develop without customers understanding the benefits of this type of shopping and their rights, and, on the other hand, without the digital ecosystem factors failing to raise the quality of their services. We, at the ECS, have been investing a lot of effort into developing micro and small enterprises because we cannot base the e-commerce market only on large companies.
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It has been evident so far that just because we lagging behind trends does not mean that we will not reach that level very quickly
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You have been trying to improve the e-commerce market in Serbia. How developed is e-commerce in Serbia at the moment? — The fact is that the awareness of the development of digital, and therefore e-commerce, came later in Serbia compared to most of Europe, China and America. While these parts of the world are currently dealing with artificial intelligence for personalized offer or robots for last mile delivery, we, on the other hand, are dealing with the problems related to the functioning of web shops and on time delivery. Developed markets have embarked on the third generation of e-commerce called Q-commerce which entails fast (quick) commerce, while we are still on the first generation. It has been evident so far that just because we lagging behind trends does not mean that we will not reach that level very quickly. I am very optimistic that the same will happen in this situation and that our market will be able to jump over several levels and very quickly catch up with global trends. Many people trivialize e-Commerce. Could you explain to us what an online
store actually entails, how familiar are shoppers with the possibilities offered by e-commerce and how familiar are companies that sell online? — E-commerce is much more than an online store. There is a common misconception that the two mean the same. It is this misconception that leads limits the potential of e-commerce. E-commerce represents the entire ecosystem and if you look at e-commerce from the standpoint of an ecosystem, there is unlimited potential. You need to equally, if not more, based focus on the organization, the team, the processes, the content, the incoming traffic, and the services like delivery and payment. Many people think that dealing with e-commerce is simple. It can be only if you are an independent vendor with minimal turnover. If you want to deal with e-commerce in a way that generates serious results, you have to be very dedicated to it and have a lot of knowledge and a big investment. As far as customers are concerned, they are becoming increasingly demanding, which is the whole point of the future of commerce, i.e. the customer-centric approach. In our country, customers still base their expectations from e-commerce on a cheaper offer. This is not the point. The idea is that digital saves time and you get better service, all by using your mobile phone. I expect that after e-comm service providers develop, shoppers in our country will have a different view of online commerce. Online commerce has grown so much during the coronavirus pandemic both in Serbia and the rest of the word. To what extent have companies adapted to it, and what lessons can we learn from this experience?
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— One positive thing that came out of the so-called ‘new normal’ is the incredible boom of e-commerce in the whole world, but even more importantly, this trend has come to Serbia as well. At the time of the total lockdown, many people who did not think they would have to shop online did so and most importantly, saw for themselves the ease of shopping through this channel. All the companies that had been working on improving this commerce channel for years, experienced a growth of several hundred percent and managed to retain their customers. In 2021, they recorded higher growth than in 2020. Unfortunately, many companies did not believe in this channel or took it lightly which led them plunging into a deep crisis. In 2020, both the E-commerce Association of Serbia and I personally strongly appealed that everyone should start working seriously on this channel because I assumed that we would not return to the old way of life and way we shop so quickly. It turned out not only that I was right, but I now believe that we will never go back to the "old" way of thinking and shopping. Now, the only question is who will have a better customer approach and create a habit of customers shopping in their web shop.
E-commerce in Serbia has been recording historical results, which implies many changes. What are the biggest challenges for the further development of e-commerce? — One of the biggest challenges for such a rapid growth of e-commerce in Serbia, but also for the further development that is yet to come, is the lack of experts in this field. It is a normal thing that there are no senior experts in this field immediately available, but we need a large number of people with knowledge and understanding of the digital ecosystem. That is why the E-Commerce Association of Serbia launched the E-Com-
merce Academy, with 25 lectures and over 20 lecturers who are all top experts in various fields of e-commerce. Each ECS member is also given the opportunity to attend this online Academy with additional interactive Zoom workshops. It is very important to change the awareness that one person, who is not educated in this area, can cover all the processes of online commerce. If companies see things that way, they will not be able to use all the potentials of this channel. Customs regulations are another area that is an obstacle and which limit this channel only to our country, while everywhere in the world, the e-commerce market has no barriers. The idea is to create a CEFTA-like market for e-coommerce, and we hope that, in the future, we will completely transcend Serbian borders with the help of online commerce.
Annual e-commerce awards are being prepared, as an incentive for all of us to work better, and thus be more focused on what the customer wants
What are plans and goals of the E-Commerce Association of Serbia? — One of our key projects in 2021 is do e-commerce market mapping. Relevant data are of key importance to us for mapping legal stores, both for monitoring development and developing security with consumers by defining a trustmark and directing consumers where it is safe for them to buy. The Level Up Academy is another one of our endeavours aimed at people who graduated from our elementary E-Commerce Academy last year. Digital trends are changing very fast and we, as a very business-oriented association, try to react quickly and selflessly share our knowledge. All members of the ECS Board have been investing a lot in their knowledge through various training sessions and in practice. We desire to transfer the know-how to the widest audience possible. The only way to have a competitive e-commerce market is to team up and share experiences.
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Online shopping is already a large part of the everyday life of people worldwide. Ananas was launched with the idea of transferring this practice to our part of the world RAJKO MANDIĆ Director of ANANAS E-COMMERCE d.o.o.
nline commerce has experienced expansion during the coronavirus pandemic. The Ananas platform started developing before the pandemic-induced crisis when people in Serbia had very little trust in online shopping. We talked with Rajko Mandić, director of ANANAS E-COMMERCE, about the platform's plans, the online store, as well as the motives that prompted the launch of this platform. "We believe that the ability to recognize and predict trends is one of the important prerequisites for success. With the latest technology, innovations and experts from various fields, we want to provide our customers with an outstanding user experience and to take the online shopping process to a whole new level. We are confident that, during this journey, our partners will develop together with us, which means that we have the opportunity to initiate a significant improvement and make a big step forward for the domestic and regional economy,“ Mr. Mandić says.
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Various factors make Ananas unique, such as being an intuitive platform, easy to navigate and completely secure for transactions
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The Ananas e-commerce platform is supposed to be launched in the summer of 2021. How are the preparations going and what development are you at now? — All our efforts are focused on ensuring that our users can enjoy the benefits of the Ananas platform come this summer. At the same time, we are negotiating with vendors, creating an attractive offer and developing technical solutions. Initially, we will launch the Ananas platform as a functional and secure version, and then over time we will further refine it and add functionality. The goal of all these activities is to offer the Ananas customer the same experience as the biggest global online stores. A large investment, combined with the know-how,
experience, energy and top partners, with Delta Holding as the main investor in the Ananas project, give us strong reasons to believe that we will soon establish ourselves as the absolute leader in this segment.
Tell us a bit more about what the Ananas platform will look like and who is working on its development? — We started to prepare for the launch of an online store almost a year ago. During its development, we hired consultants from the Boston Consulting Group, with whom we collaborated in creating business models, as well as experienced managers from major global online stores. To achieve everything we set out to do and start an e-commerce revolution in our region, ready-made solutions were not an option for us. We have partnered with HTEC, a global consulting and development company based in San Francisco and one of the best in the IT industry which also operates in this region, to develop a platform specifically tailored to the needs of our customers, while applying the latest global solutions. When we talk about a "completely new user experience", we are referring to various factors that make Ananas unique, such as being an intuitive platform, easy to navigate and completely secure for transactions. What were your main challenges during the project development and how did you overcome them? — Putting together a project of this size certainly brings various challenges with it. We had to define and develop functionalities for the initial phase, all in a short period. We are aware that people have high expectations from us and that all eyes are on us, but we are confident that we have chosen
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partners whom we can completely trust, as well as an internal team who has experience working in the biggest national and international companies. This allows us to overcome any challenge we have identified so far.
What is going to be sold on Ananas and in which countries will the platform be available? — With over twenty categories, the Ananas platform will provide shoppers with everything they need - from electronics, clothing and footwear to tools and small home appliances. We will be selling everything apart from food. Also, we are going to offer only new products from various producers and retailers. Ananas will first be available to people in Serbia, after which we will launch in Bosnia and Herzegovina, Montenegro and Macedonia, followed by Croatia and Slovenia. In the end, we think that our concept of modern commerce will come to life in Bulgaria and Albania as well. In the last year, e-commerce has become a very competitive market in our part of the world. How will you overcome the competition and how will you motivate producers, who already have their online stores, to sell on Ananas? — Although the market has become quite competitive, we believe that there is always room for quality competitors. Our sales team is already negotiating with vendors from all segments, and we often receive inquiries from vendors themselves who are interested in cooperating with us. The size and attractiveness of the project, Ananas Fulfillment Centre, as well as the fact that Delta Holding is the majority owner of the platform, are very strong motives for many vendors and producers. Many people single out logistics as one of the biggest problems of online commerce. How will you resolve potential
We have been giving a lot of thought to how to achieve the best combination of elements like speed, comfort, flexibility and price, which will guarantee shoppers a superior experience
logistics issues? Will the Ananas Fulfillment Service contribute to that? In which way is it going to be useful to shoppers and vendors alike? — We believe logistics is not a problematic issue for shoppers, but rather it is bad delivery experiences they have had. To change that, we assembled a team of experts in this field, including the former director of logistics at Mercado Libre, the largest online store in South America. Our team is working hard on developing a warehousing facility that will ensure a world-class delivery standard. Thanks to this type of service, we provide benefits for both vendors and shoppers. As far as vendors are concerned, thanks to this service, we take over the entire process of storing and sending packages, thus greatly facilitating their operations. On the other hand, our delivery times are shorter and our delivery is simplified and more efficient, the result of which is the best user experience for our customers. New technologies and digitalization are advancing every day. Can we expect some technological innovations when it comes to the Ananas platform? — As I mentioned earlier, we have been developing the Ananas platform for months with the end goal to offer something unprecedented in our part of the world. Sophisticated design, an intuitive way of using the platform and easy search of the desired products, are just a part of the functionality that will make Ananas stand out from other e-commerce platforms. We are planning to implement other novelties regarding the delivery of goods, but we cannot talk about the details yet. However, we can say that we have been giving a lot of thought to how to achieve the best combination of elements like speed, comfort, flexibility and price, which will guarantee shoppers a superior experience. Keep your eyes on us and see for yourself that we will do exactly what we have promised.
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E-COMMERCE
by Nevena Kuveljić
E-COMMERCE IN SERBIA BREAKS RECORDS
In 2020, 14 million e-commerce transactions were realized, twice as many as in 2019
nly ten years ago, e-commerce was a nascent market while today it dominates. The coronavirus pandemic, which has engulfed the entire world, has accelerated the process of digitalization in many segments of society, as well as changed consumer habits and behaviour but also the business and organization of numerous companies. According to the data collated by the National Bank of Serbia (NBS), e-commerce in Serbia, in the part where the goods were paid online with cards in dinars, recorded a growth of over 100 percent in 2020 relative to 2019. In 2020, e-commerce in our country developed and expanded greatly while online shopping in Serbia is breaking records. The NBS data show that as many as 14 million e-commerce transactions were realized in the past year, which is twice as many as in 2019. Also, the data show that the value of online shopping transactions last year amounted to about 33 billion dinars, while in 2019, that amount was about 17 billion dinars. However, the average value of an online order has been declining in the last years of the observed period, so the average value of online transaction in dinars during 2020 was 2,271.85 dinars, while in euros it was 36.63. According to Ivan
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In 2020, online shopping transactions amounted to about 33 billion dinars, while in 2019, that amount was about 17 billion dinars
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Tanasković, a member of the Board of Directors of the E-Commerce Association of Serbia, the decline in the average value was expected especially because this year we gained a large number of new customers online, and the practice showed that online purchases of new customers where quite small. Therefore, increasing the average value of the order is one of the many goals of every (online) merchant. Online shops which sell sports equipments and props recorded the biggest growth during last year's pandemic-induced crisis in Serbia, followed by online shops that sell small household appliances and food, but also delivery services. Besides, the number of virtual sales outlets increased, amounting to 1,139 at the end of 2019, to 2,013 at the end of last year. Regardless of these record-breaking results, the Ministry of Trade, Tourism and Telecommunications believes that there is still a lot of room for boosting e-commerce. The Minister of Trade, Tourism and Telecommunications, Tatjana Matić, said that, along with e-commerce, the number of money transactions via online payments has been growing, which is due to people trusting online transactions more, but also due to a positive experience they had with e-commerce during the pandemic. Matić stated that the
lack of trust o before the pandemic was the main reason why e-commerce did not come to life earlier. According to the results of "Survey of 1,000 companies", conducted in late 2020 by USAID's Cooperation for Growth Project, shows there was an e-commerce revolution and a major shift in the perception of the importance of web shops. The absolute majority, as many as 82 percent of the survey respondents, rated web shops as equally important or even more important than the traditional ones. The research also states that those vendors who were the most affected by the crisis (seeing their revenue decline over 70 percent) are very aware of the importance of e-commerce, both globally (92%) and in Serbia (80%). Also, companies that grew faster than the other ones were usually export-oriented, engaged in finance management and digital readiness. The representative of the E-commerce Association of Serbia, Mihailo Ponjavić, points out that e-commerce is the fastest growing segment that has proven to be more resistant than traditional commerce. "It is a concept of the future," he underlined. According to him, the forecasts he saw for this year show that the total investment in e-commerce consumption in Serbia will exceed 400 million euro.
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Mining & Energy D I P L OM AC Y
&
C OM M E RC E
FOCUS ON
2021
P R E S E N T S
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MINING & ENERGY
by NEVENA KUVELJIĆ
Green Serbia is Our Vision
Our goal is to have at least 40% of energy coming from renewable sources by 2040
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ccording to the Deputy Prime Minister of the Republic of Serbia and Minister of Mining and Energy, Zorana Mihajlović, energy in Serbia has been dormant for a long time, but it did not stagnate but rather regressed. Following her appointment as Mining and Energy Minister, she announced major reforms and investments in this area. We talked with Minister Mihajlović about that, as well as about the new laws and plans for the mining and energy sectors.
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What is the current energy situation in Serbia like and what is your starting position for reforms? — Energy has been dormant for a long time, and when energy is at a standstill, it causes many problems and adversely affects the security of supply. That is why this year is, in many ways, crucial for Serbia's energy future. On the one hand, projects, that will be implemented fast, have been launched
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SPECIAL EDITION
ZORANA MIHAJLOVIĆ Deputy Prime Minister of the Republic of Serbia and Minister of Mining and Energy
This year is crucial for Serbia's energy future
which should ensure energy security for the country, while, on the other hand, we are adopting a new regulation and starting to draft strategic documents that will give a new direction to our energy policy. Today, Serbia needs an investment boom in the energy sector, i.e. investments in the amount of billions of euro in the next few years in order to catch up with other European countries that have invested faster than us, and further advanced in decarbonisation, increasing energy efficiency and facilitating greater use of renewable energy sources. Our goal is to have at least 40% of energy coming from renewable sources by 2040 and 50% by 2050. In addition to the new laws we are passing, this year we are also starting to draft strategic documents. They focus on the integrated national plan for climate and energy until 2030, which should be completed by the year-end, as well as the new strategy for energy development until 2050. Earlier this year, you announced major reforms in the mining and energy sectors. What exactly will they entail and what will be the focus of investments? — The new investment plan, that we are putting together, includes projects that cover all segments of the sector worth close to 16 billion euro and reflects our strategic goals. Nothing more can be done in the field of energy and mining and no decision can be made without involving the Ministry of Environmental Protection and without fulfilling the highest environmental protection standards. In terms of electricity production, the planned investments will amount to around 6.6 billion euro, in mining around 3 billion euro, and around 3.4 billion euro of renewable energy resource projects, primarily in solar power plants and wind farms. The plan is also to invest
over half a billion euro in the gas sector, more than 200 million euro in the crude oil sector, and about 400 million euro in the thermal energy and energy efficiency sector. The investment plan directly relates to the energy transition that Serbia has been undergoing, because our energy security will depend on the construction of new large and medium-sized hydropower plants, gas power plants, and the use of RES. That is why this plan is both a plan for green energy and for green Serbia, which bases its future development on clean energy and is focused on development that is climate neutral. We will soon put all these projects in one place, in the project book, where all interested investors will be able to see what our priorities are, which public investments we plan to make, and where we expect active participation of the private sector. In addition to legislative changes, reforming the most important public energy companies has begun, with the approval of reorganization plans for Srbijagas and the Electric Power Industry of Serbia (EPS). In the electric power industry, the production of electricity is already separated from the management of the power distribution system. It is also important to mention that in the gas sector the transmission system operator has become independent from Srbijagas, which had to be done in line with the relevant Serbian and European laws. Four new mining energy laws have been passed. What will these laws change? — Two of those laws are completely new - one of them is the law that regulates the use of RES, which will, for the first time, allow all of us who consume electricity to become its producers. By installing solar panels on the roofs, each of us will be able to produce electric-
ity for our own needs, and thus reduce our electric bill. For the average household, a 3 kW solar panel costs between 2,500 and 3,000 euro and it only takes 8 to 10 days for the investment to pay for itself after which the household will start saving both energy and money. We will also simplify the procedure to the maximum and it will take only several steps to complete it. These steps include obtaining technical documentation, getting approval to commence works instead of obtaining the standard building permit, the installation of panels and two-way electricity meters and signing a contract with Elektrodistribucija Srbije and the supplier. Also, the new law on the use of RES introduces market premiums instead of the current feed-in tariffs, which means that we will have more competition and lower costs for individuals and businesses. Another important novelty is that this law also introduces a ban on the construction of hydropower plants of any type and power in protected areas. With the Law on Energy Efficiency and Rational Use of Energy, we want to raise energy efficiency to the level of a national project, because Serbia today consumes about four times more energy than the EU average for the same unit of GDP. The most important novelty is the establishment of the Directorate for Financing and Facilitating Energy Efficiency that will work under the Ministry of Mining and Energy, which will make it easier for people to obtain subsidies for the replacement of windows, doors, get front wall insulation and heating systems in their households. They will have up to 50% of their costs covered through a subsidy from their local authorities and will have to pay the 50% themselves. Incentives will be allocated through public calls for citizens, and they also could be used for the installation of efficient biomass and gas boilers, which should help reduce the pollution that comes from individual fireplaces. After these measures are implemented, energy in Serbia will no longer be the same. Green Serbia is our vision, and all of us, as citizens of this country, can contribute to its realization while working in their best interest. In addition to these two new laws, amendments to the Law on Energy are being adopted, which are important for harmonization with EU regulations and security of energy supply, as well as the amendments to the Law
on Mining and Geological Research.
Serbia bases its future on clean energy and climate-neutral development
When can we expect digitalization in the mining and energy sector to take place, i.e. the implementation of e-energy and e-mining? — NALED has declared an electronic building permit, created by the Ministry I helmed before, as the reform of the year. Thanks to this reform, Serbia advanced from 186th to 9th place on the World Bank's Doing Business List in the segment of building permits. When I took over the Ministry of Mining and Energy, I saw that many permits and notices have been waiting for more than six months to be issued. Therefore, we have decided to digitize procedures through amendments to the relevant law and the adoption of new laws, so we could also minimize the time needed to obtain all kinds of permits, consents and other documents issued by the Ministry. In addi-
tion to creating a legal basis, this year, we will work on securing finances and procuring software for the implementation of these reforms, and we believe that next year we will have e-mining and e-energy up and running. Also, the amendments to the Law on Mining and Geological Research have created the foundation for the introduction of electronic business in this area, which will contribute to more transparent and efficient procedures. The approval procedure has also been simplified and shortened from the current 150 to an average of between 15 to 20 days. What are Serbia's goals when it comes to connecting with the region in the gas sector and diversifying suppliers? — The main goal in the gas sector is
to have a safe energy supply. To have that, we need to diversify not only gas routes but also suppliers. Earlier this year, Serbia got an additional gas supply route, but our goal is to diversify sources and to be linked via gas interconnections with all neighbouring countries. Serbia-Bulgaria, i.e. the Niš-Dimitrovgrad gas pipeline, is the first interconnection we are going to build. The construction should start his year and the interconnection should become operational by 2023. This gas pipeline will allow Serbia to get natural gas from other suppliers - from LNG terminals in Greece and the TAP and TANAP gas pipelines which are part of the Southern Gas Corridor that transports gas from the Caspian and the Middle East region. In the future, and after the completion of the Eastern Mediterranean project, it will be possible to receive gas from the coastal reserves of the Leviathan field in Cyprus and Israel, which is important for Serbia and the region’s energy security. Mining is our great chance. What are Serbia’s mining potentials like and how are we going to develop and use them? — The value of the confirmed mineral reserves of Serbia is more than 200 billion U.S. dollars, and the goal of the amendments to the Law on Mining and Geological Research is for the state to better care for this natural wealth. It’s in Serbia’s best interest to have a modern mining sector, in which the interests of the state will be protected, and the management of mineral resources will be sustainable and efficient. One of the expected effects of this law will be an increase in the share that mining has in the national GDP. The sector’s current share is only 1.9 percent, and we believe that it can go up to 4-5 percent in the next five years. We should be much more mindful of environmental protection, both by improving the work of inspectors and regulations, as well as by reacting to every piece of information that the environment is being abused somewhere. We don’t want to allow in the 21st century is for someone to alarm people by spreading rumours and half-information about projects that have not yet begun, without a decision on their implementation, even being made and without all relevant studies completed. Even the people who tell such untruths are aware of that.
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MINING & ENERGY
by RUŽA VELJOVIĆ
80 Years of Diplomatic Relations Between Serbia and Canada
Canada and Serbia have positive and dynamic bilateral relations, with the potential for these relations to become even stronger
his year, Canada and Serbia are marking 80 years of diplomatic relations. Relations between this two country quickly returned to a positive track after October 2000, and continue to expand and deepen. Canada strongly supports Serbia’s aspiration for EU membership. We talked about the relations between these two countries with the Ambassador of Canada to Serbia H.E. Giles Norman.
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You came to Belgrade in the year when Serbia and Canada are celebrating a significant jubilee - 80 years since the establishment of diplomatic relations. Is this an opportunity to improve political dialogue between our countries? — There is always room for more political dialogue in relations between countries. We were pleased to host the Special Envoy of the Prime Minister of Canada in Belgrade in 2018, but political dialogue is not a pre-condition for many of the cooperation activities that are already taking place in commerce, culture, education and defence. Canada and Serbia have positive and dynamic bilateral relations, with the potential for these relations to become
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even stronger. Canada is deeply committed to multilateralism, so in addition to healthy bilateral relations between our two countries, we can step up our cooperation on issues of mutual relevance in multilateral forums, such as the OSCE and the Francophonie. We strongly support Serbia’s EU accession process, as we do for our Embassy’s two other countries of accreditation, Montenegro and North Macedonia. Due to the Canada-EU Comprehensive Economic and Trade Agreement (CETA), accession to the EU would automatically mean closer economic relations with Canada. Canada’s priorities in Serbia include increased bilateral commercial and economic co-operation. We also aim to promote democratic reform and good governance; rule of law and the fight against corruption; and respect for human and minority rights. Media freedom, for example, remains a serious concern in the region, and this is why we are glad that Serbia is a contributor to the Global Media Defence Fund, and a member of the Media Freedom Coalition, which Canada co-chairs. There are a number of examples of our successful cooperation. For instance, Canada supported Serbia’s successful ef-
I N T E RV I E W
H.E. GILES NORMAN Ambassador of Canada to Serbia
Canada’s priorities in Serbia include increased bilateral commercial and economic cooperation
fort to upgrade its membership status from observer to associate member of the Organisation internationale de la Francophonie (OIF) during the organization’s summit in Armenia in 2018. Canada supported Serbia’s successful candidacy to be re-elected to the UNESCO Executive Board for the 2019-2023 term. Serbia wants to boost all forms of cooperation with Canada, given its international influence, the size of the Serbian diaspora in Canada etc. What is your assessment of overall relations between our two countries? — Our relations are positive and solid, with the potential for further growth. Recently, we have organized initiatives to promote cooperation in book publishing, and we have supported projects in Serbia to boost gender equality and combat gender-based violence, in support of our common values. There are 97,000 Canadians who self-identify as being of Serbian origin. However, this
number is probably higher, as we assume that many Canadians self-identifying as Yugoslavs are likely of Serbian ethnic origin. Our friendship is evident at many levels, and I must reiterate my gratitude to Serbian authorities for facilitating the repatriation of Canadians in the context of the COVID-19 pandemic, including on an Air Serbia charter flight one year ago. We have established a strong framework for cooperation through a number of bilateral agreements that are in force, covering taxation, social security, investment, air transportation and other areas. Through our Canada Fund for Local Initiatives, the Embassy supports projects with civil society organizations and NGOs, with a focus on gender equality, the empowerment of women and girls, peace and security, and inclusive governance and the rule of law. Our cultural and academic cooperation remains vibrant despite challenges posed by COVID-19 and continue to be a bridge between our two countries. We are proud of our regular Days of Canada program outside the capital of Belgrade, continuing presence of Canadian dance the-
atre, film and music at local festivals, as well as of the visual art exhibitions and over 300 Canadian titles translated into Serbian. Many of the internationally acclaimed Canadian artists are of Serbian origin. Our defence relations also open doors to cooperation, and we regularly welcome members of the Serbian Armed Forces on various Canadian defense and security courses. Canadian investments in Serbia are growing, especially in the mining and energy sectors. How important is it for these segments to be properly regulated by laws and regulations and to apply innovative solutions and digital technologies? — Transparency, predictability and efficiency of the legislative framework is crucial for investments in any industry, especially in mining and energy having in mind the long-term nature of the project lifecycle in these industries. After adopting the new Law on Mining in 2015, which relies on the best international practices from countries such as Canada or Australia, Serbia was ranked very high in the international mining community for its regulatory
framework. We welcome the intention of the Ministry of Mining and Energy to further develop mining regime and adjust it to the needs of the most important stakeholders: citizens of Serbia and the mining industry. Canada is committed to support that process and we will continue to discuss details of that cooperation with the Ministry.
We have much more to offer to Serbia and especially in the sectors such as clean technologies and renewable energy sources
What can we learn from Canadians in terms of sustainable development and environmental protection? — Canada has the second largest territory in the world, rich in wild, untouched nature and diversified natural resources. Our population of over 37 million people represents a unique mixture of inhabitants living in modern, urban areas such as big cities of Ottawa, Toronto or Vancouver, as well as in distant territories such as Nunavut. Whether living in Toronto or in Iqaluit, people have the right to clean air, water and soil and Canadian companies and associations, especially in mining and energy, are recognized for their leadership in developing sustainable business models and practices in these industries.
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MINING & ENERGY
The Mining Association of Canada’s Towards Sustainable Mining (TSM) standard is a globally recognized sustainability program that supports mining companies in managing key environmental and social risks. TSM was the first mining sustainability standard in the world to require site-level assessments and is mandatory for all companies that are members of implementing associations. Through TSM, eight critical aspects of social and environmental performance are evaluated, independently validated, and publicly reported against 30 distinct performance indicators. Increasingly, other mining associations, governments, investors, and manufacturers are looking to TSM as global best practice in sustainable and responsible mining. In recent years, mining associations in Spain, Finland, Norway, Botswana, Argentina, Brazil, and the Philippines have adopted the program. We hope to work with Serbian mining authorities on adoption of the standard in this country as well. Are there any Canadian companies interested in investing in other economic branches and what can we do to make Serbia more attractive for the arrival of as many Canadian investors as possible? — Although Canada is mostly recognized for its past and current investments in the mining industry in Serbia, we have much more to offer to Serbia and especially in the sectors such as clean technologies and renewable energy sources. Canada and Serbia have both committed to climate change mitigation and adaption under Paris Agreement and we are looking forward to working together on issues such as decarbonizing local energy production and introducing more renewable energy sources. Canada’s experience in water management, decarbonisation of district heating systems or introduction of large solar plants can add value to Serbia’s goal of reducing carbon-dioxide emissions by 2050 and coping with increasing problems with air pollution. The adoption of the four laws on energy and mining in April created a solid ground for acceleration of investments in these sectors and we will be looking forward to promote Serbia as a good investment location to Canadian companies. I trust that subsectors of water and wastewater management and renewable energy sources will be
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The introduction of a direct flight between Canada and Serbia would be highly welcomed by the large Serbian and regional diaspora in Canada
of particular interest to our companies and I expect to see more Canadian projects in Serbia. Continuity and predictability of and respect for enhanced regulatory framework will be of essential importance in attracting and maintaining interest of international investors in looking into Serbia as a potential destination for their future projects. There has been a lot of talk about introducing direct flights between Canada and Serbia? How much would that contribute to economic cooperation? — In May 2018 Canada and Serbia have signed an Air Transport Agreement as part of the on-going process of acquiring the necessary permits to allow direct Air Serbia flights between Belgrade and Toronto. The Embassy of Canada supports the Serbian national air carrier’s efforts in receiving these permits, but the decision on further developments is with Air Serbia. The introduction of a direct flight between Canada and Serbia would be highly welcomed by the large Serbian and regional diaspora in Canada, as well
as by businesses from both countries as it would encourage the further expansion of growing economic ties between the two countries. What are your first impressions of Serbia and what do you especially like here? — Positive. The Serbian people have lived up to their well-deserved reputation for warm hospitality and my family and I have been made to feel very welcome. The pandemic situation has limited my ability to travel outside Belgrade but I am hoping to change that soon and see more of this beautiful country. The scale of the investment activity in Serbia from a range of countries was something I hadn’t appreciated before my arrival and is impressive. I have also been struck by how many Serbs have relatives and family in Canada, almost everyone I meet from all walks of life know someone living in Canada. It will be a priority of my time in Serbia to use these people-to-people links to broaden and strengthen the relationship between our two countries.
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The Future Mine Will be Safe for People And the Environment All parties should value - or there will be no mine
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C O R P O R AT E
NENAD GRUBIN B.Sc. geology
ho brought Rio Tinto to Serbia? Rio Tinto came to Serbia attracted by the mineral potential of our country. I participated directly in that, the story is interesting, but too long for this text. Rio Sava will turn twenty in May. The company started operating in a 12 m2 office in New Belgrade with one employee. It now has 140 employees. I have always said that the Rio Sava will either go big or be gone. They laughed at me. And that was neither funny nor fanatical, but logical. When you look for gold in Alaska, you'll either find it or you won't, and you'll quit. Such is the nature of mineral exploration. It is irrational for them to last too long. They are exciting and fun, but only until discovery is made. Then they are too serious.
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Progress pioneer, whose success has encouraged others
What makes geological exploration successful? Is it a team made up of ingenious scientists, money, good organization, superior technology, luck? All of that played a role in finding the "Jadar" deposit. And there is more. For example, “first mover advantage”. Be the first in an area. Rio Sava was a pioneer of commercial geological exploration in Serbia. Our presence and our success have incentivized and encouraged many other mining companies to come to Serbia. Everyone used Rio Tinto as an example. Looking at all those competitors, some dear to me personally, I always thought of the Chinese saying, "let a thousand flowers bloom". Then there are the laws. Without a legal link between exploration and the right to exploit, no one would invest in geological exploration. The purpose of the exploration is not to satisfy scientific ambitions, but to find new mineral deposits and open mines that will in turn contribute to human progress. When we first started out, we were looking for borates. Rio Tinto is one of the two globally significant borate producers. Jadarite, which is a borate mineral also contains lithium. And lithium was not what we set out to find. But we did find it. And coupled with Borates, we decided to progress with the project. We are now focused on completing the feasibility stage of the project. At the same time, we are collaborating with leading Serbian and international experts in mining, processing, engineering and design, communities and environment to deepen our understanding of the project. And working through the permitting process. At the end of this study phase, an approval decision will need to be made.
This is the Serbia in which our children should live. Supermodern, yet conservative, full of knowledge, emancipated, busy, smiling, militarily capable, wellintended, attractive
of mineral resources must be profitable. The ore body can only be mined once. It is senseless to mine ore without creating new value, including value for our communities. All parties should value. Mining risk for the investor also needs to be understood. In addition to all imaginable technical, political, environmental risks, there is also the ordinary, economic one. What if the prices is significantly lower, or significantly higher than planned?
The most important value of the "Jadar" project is knowledge and innovation
In 1970, historian Danica Milić published the paper "Foreign Capital in Serbian Mining until 1918." In a study published in socialist Yugoslavia, she analyzed the impact of foreign capital invested in copper and coal mines in the Kingdom of Serbia. She described foreign capital as necessary for the greater good. Historian Milić consid-
ered the Serbian experience gained in foreign investment in Serbia to be very valuable. Most important, she argues, is the access to European technology and the knowledge which otherwise would not have been gained. For me, that is the best value of the Jadar Project. Money is of course important, but opportunity for our engineers and technicians to work with the most modern technologies, to cooperate with domestic and foreign universities and scientific and technical centers, is even more important. We have all the key resources. First of all, we have smart kids and good teachers. We also have lithium, boron, copper, nickel. So why shouldn't we be the country where electro-mobility and other best technologies of this century are being created? We can do it. This is the Serbia in which our children should live. Super-modern, yet conservative, full of knowledge, emancipated, busy, smiling, militarily capable, well-intended, attractive.
ABOUT THE AUTHOR I am Nenad Grubin, B.Sc. geology, a proud member of the Serbian Geological Society and the European Federation of Geologists. Also, I was the first director of Rio Sava Exploration in the first 11 years of the company's operation. I am one of the four geologists who discovered the Jadar deposit. Before Rio Tinto, I worked as an assistant at the Faculty of Mining and Geology, University of Belgrade.
The future mine will be safe for people and the environment, or there will be no mine
We appreciate that there are opponents of the Jadar project and we respect this. What is important to realize is that we too take our obligations to the environment seriously. Rio Sava have the same task: if we find fatal flaws, the project cannot go further. The future mine will either be safe for people and environment, or there will be no mine. This should also be said: exploitation
Rio Tinto, Resolution Copper
20 YEARS Rio Sava will turn twenty in May. The company started operating in a 12 m2 office in New Belgrade with one employee. It now has 140 employees.
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MINING & ENERGY
by TANJA BANKOVIĆ
Mineral Resources – Serbia’s Strategic Potential
There is a high depletion of mineral resources in the EU, which is why Serbia should adequately valorize them
I N T E RV I E W
ining has been done in this part of the world for 8,000 years, and it was the backbone of progress, cultural development, and the economic, political and military power of the medieval Serbian state. After the Second World War, the mining sector played a significant role in the reconstruction and economic development of the war-ravaged and devastated country and was the leading economic branch. Stagnation occurred in the period after the wars from the 1990s and NATO bombing, but today, this sector is on the rise again. We talked with the director of the Mining Institute in Belgrade, Milinko Radosavljević, PhD, about the potential and the future of mining, but also the environmental protection in the mining sector.
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How developed is mining in Serbia and what kind of potential and reserves does our country have?
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MILINKO RADOSAVLJEVIĆ PhD, mining engineer, research associate and director of the Mining Institute
We need to find a model of strategic partnership between the state and foreign capital
— Numerous mineral raw materials, and metal ore deposits (copper, lead, zinc, silver, gold, nickel, antimony, cadmium, iron, chromium, manganese, molybdenum, cobalt, bismuth, magnesium, lithium, etc.), coal, crude oil, gas and oil shale have been registered on the territory of Serbia, as well as over 50 non-metallic mineral raw materials (asbestos, barite, magnesite, feldspar, quartz, clay, kaolin, decorative and technical stone, marl, gypsum, zeolite, graphite, pine, etc.), 17 types of raw materials used for making jewellery, over 160 natural thermal water springs, about 300 mineral water springs, etc. In active mines, by digging out the ore, the determined reserves change, decrease, remain unchanged or increase depending on new geological research. Given that, for almost three decades, there has been no precise data on what has been excavated and explored, we can only talk about potential reserves, and they are undoubtedly significant. The exploitation of mineral raw materials used in power production is one of the strategic economic pillars of our country in terms of preserving energy stability, bearing in mind that over 70% of electricity is obtained by burning coal. Despite the unfavourable environmental trend and the great campaign against the use of coal, in the next few decades, this will continue to be the most important energy resource, of course with the gradual introduction of renewable energy sources, which in my opinion are still limited. I would also like to point out
that the Electric Power Industry of Serbia (EPS) has around 2.5x109 tonnes worth of exploitation reserves of coal, which ensures the safe supply in the energy sector in the next 50 years. We should not forget the large reserves of lignite in Kosovo and Metohija, over 12x109 tonnes. Mineral resources are a real, strategically significant potential of Serbia, which is not renewable and is of even greater importance given the high depletion of these resources in the EU, which is why they should be adequately valorized in Serbia. Many experts believe that mining could be the main trump card of our economy. What else needs to be done to make that happen? — This is a segment that can significantly increase the economic growth of our country in the long run. The most important thing is that it requires substantial investments. I won’t focus on the problems in the legislation at this point, because the Law on Mining and Geological Research, which is currently in force and expected to be amended, is no longer an obstacle for the owner of capital to invest money in research and then in opening mines. My dilemma is how much the state directly benefits from each such project. On the one hand, mineral wealth is our potential and it would be best for the state and our companies to take part in it. However, bearing in mind that huge investments are needed for that, the only solution is to create
space for foreign capital. This is frequently happening today. In addition to the ore rent that the state collects, which should be higher, and all other benefits, we need to find a model of strategic partnership between the state and foreign capital, so that most of the profit remains in this country, while the interests of foreign investors are respected. That balance must be found for the state to preserve its interests, without selling its mineral wealth for nothing. Of course, sustainable development and environmental protection must be the priorities. How much attention has been paid so far and how much attention we should continue paying to environmental protection in the mining sector? — In addition to being a mining engineer, I have been dealing with ecology for many years in various ways. I think that environmental protection deserves a lot more attention. I would like to point out several aspects in the process itself, where the Ministry of Mining and Energy has relevant competencies and issues work permits, and the Ministry of the Environment, which gives consent for protection measures and monitoring. However, the question remains whether everything binding for the project developer is implemented in practice. I think that we have a big problem here and that both Ministries, each in their domain of responsibility, do not have the appropriate human resources to monitor that to the end of the project. We simply do not have enough inspectors to control the implementation of mandatory environmental protection measures. The Mining Institute has its place and role in this issue. One of our laboratories deals with environmental protection, primarily by measuring ambient air quality and noise levels in the environment. I would like to especially highlight the references we have when it comes to measuring the emission of pollutants into the air. This primarily relates to large furnaces, i.e. thermal power plants, with which we have extensive experience. I would also like to mention the calibration of continuous pollutant metres at our power plants. Of course, we also do studies by which we assess the impact of mining facilities on the environment, remediation and reclamation projects, etc. Furthermore, our experts are members of several committees working on relevant laws and regulations.
The Mining Institute marked its 60th anniversary in 2020. Although, this is quite a lengthy period, could you tell us how did the Institute contribute to Serbian mining? — The Mining Institute has authorized more than 5,500 studies, investment programmes and projects for the mining economy in the country and abroad (over 10 countries around the world). There is almost no significant mine in the former Yugoslavia (including Serbia, of course), where our
Ecology has no alternative while mineral raw materials are not renewable and limited
institute has not contributed to the improvement of production, technological modernization, increased efficiency, environmental protection and work safety with its project solutions. Based on our projects, new mining technologies were introduced, as well as over 70 mines with complete infrastructure were opened, more than 40 plants for the preparation of mineral raw materials and coal cleaning were put into operation, and more than 30 ash and slag dumps were built. The institute has also implemented more than 60 scientific research, development and innovation projects and patented 11 technologies and procedures. Many of these projects have been implemented in Serbia. We have also made an important contribution to Serbian mining by publishing books on mining, mining geology and the like. I would also like to mention that the Mining Institute has been yielding experts for decades, with many of them becoming distinguished university professors. I'll stop here because
it’s really hard to list all of our activities over the past 60 years. What is the future of the mining sector (mining industry) like and the future role of the Mining Institute in the sector’s development? — Mining is a branch without which all that we have today and all the benefits of new technologies that have become an integral part of every human life on this planet are simply unimaginable. The problem is that mineral resources are not renewable and there will be a shortage of many of them in the future. Our mineral wealth is certainly substantial and in that sense, we should be extremely rational in its exploitation, while keeping in mind future generations. In the future, this activity will simply continue to develop, and following our country opening to foreign investments, new deposits will be explored and conditions will be created for the opening of new mines. I must once again mention that we should be careful here and protect, above all, our country’s strategic interests by forging partnerships, precisely so that the bulk of the profit remains in Serbia. Another important thing for the future to mention, which is already happening, is that the public, non-governmental organizations and environmental movements are exerting more pressure, trying to stop projects that are potentially damaging to the environment. This will be a big problem because the current mistrust that prevails and is directed towards every investor, must be taken into account. There should be a compromise and measures that should be acceptable to the interests of the local community, on the one hand, and the state, i.e. the owner of the capital, on the other. This means that ecology has no alternative and that a lot will be done to implement protection measures for any project in question. Of course, state institutions need to do their job too. First of all, there should be adequate supervision by inspectors who should be efficient and timely, because all projected measures relating to protection and monitoring of the state of the environment must be binding and applied without compromise. The Mining Institute will play its role as before, by creating new solutions following the needs of mining companies. Also, scientific research work should not be neglected, for which our institute is accredited.
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MINING & ENERGY by NEVENA KUVELJIĆ
Serbia has Diverse Mineral Resources
The value of Serbia's mineral wealth is more than 200 billion U.S.dollars M I N I NG
ining in Serbia has been developed since ancient times. This is confirmed by numerous archeological sites, which are also considered cultural monuments such as Krivo Polje near Ramaća, Rujnik near Niš, Rudna Glava near Majdanpek and others. The value of Serbia's mineral wealth is more than 200 billion U.S. dollars, and that wealth should be used sustainably, i.e. contribute to economic development and growth, but also be used in an environmentally responsible manner. The Republic of Serbia has diverse mineral resources which include copper, lead, zinc, gold and silver, but also the resources of raw materials used in construction, magnesite, refractory and ceramic clays, as well as quartz. Serbia also has resources of secondary economic importance that are of lower potential and they include molybdenum, antimony, nickel, tin, uranium, bauxite, iron, manganese, tungsten and some rare elements. Mineral resources of tertiary economic importance have not been sufficiently explored, and these include mercury, arsenic, group of platinum-based elements, asbestos, graphite, phosphates, chalk, talc, piezooptic quartz and sepiolytic clay. Serbia lies on about two million tonnes of lead and zinc, more than a million tonnes of copper, about 20 tonnes of gold and four billion tonnes of coal. According to experts, Serbia mostly exploits iron, chromium, manganese, molybdenum, cobalt, cadmium, copper, antimony, lead and zinc. Most of the deposits were discovered by Serbian geologists (except for lithium), and foreign companies that are now present in Serbia have expanded their research with ad-
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Mining should be about using resources in the most optimal way
ditional investments. Having in mind the wealth of deposits, the abundance of ores (as many as 50 types) and the fact that mineral raw materials are currently being explored in about 200 locations in Serbia, experts estimate that mining in Serbia could be the main trump card of our economy in the coming years. Large foreign companies have already expressed their interest in the mining sector and have invested large funds in researching and evidencing the country's mineral potential. The Canadian company, Erin Ventures found reserves of boron in the area of Piskanj, not far from the abandoned coal mines near Baljevac on the Ibar River. According to a preliminary feasibility study, this mine could be in operation for 21 years. According to the estimates of the Canadian company, Nevsun, which deals with various medium-level ores, the Bor mine contains about 15 million tonnes of copper and about 370 tonnes of gold. This mining and smelting basin has been digging and smelting copper ore for more than 100 years. Also, great deposits of jadarite have been recently found in western Serbia near Loznica, which exploitation could start in 2023. This is one of the world's largest deposits of jadarite which is used to extract lithium. It is believed that 20 other jadarite ore deposits stretch to the town of Zaječar. The results of the initial research in those locations are even more impressive. The new EU raw materials strategy, which envisions Europe returning to its own mineral resources to ensure the security of supply, will put Serbia in the position it had in the past as an abundant raw material base. Mining must be using resources in the most optimal way, it must not harm local communities, and it must be environmentally and socially acceptable.
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epi + roc epi in Greek at, close, upon
rocca in Latin rock
Tools & Attachments
Epiroc is a 148-year old start-up. We have a strong heritage with proven expertise since 1873, while also having the benefits of being a young company. We have passionate employees in a decentralized organiza- tion, which enables quick decision making, benefitting both customers and results. Our name Epiroc comes from Greek and Latin roots meaning “at the rock” – epi, Greek for “at, close, or upon,” and roc, Latin for “rock.” It reflects our core business, our proximity to customers and the strength of our partnerships well. Epiroc was part of the Atlas Copco Group, founded in 1873, until June 18, 2018, when Epiroc was distributed to the shareholders of Atlas Copco and listed on Nasdaq Stockholm.
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Sustainable Management of Mineral Resources Should be Ensured
The proposed legal framework for the mining and geological research sector will improve the operations of companies in the energy sector
MIROSLAV LUTOVAC, energy advisor to the President of the Chamber of Commerce and Industry of Serbia
PETKO ŠIŠOVIĆ, the Energy and Mining Association’s Secretary-General
Dr MIROSLAV IGNJATOVIĆ, senior advisor in the Energy and Mining Association
I N T E RV I E W
arlier this year, the state authorities announced major reforms in mining and energy, while the adoption of 4 new laws is in progress. We talked with experts from the Chamber of Commerce and Industry of Serbia (Energy and Mining Association), energy advisor to the President of the Chamber, Miroslav Lutovac, Association’s Secretary-General, Petko Šišović and senior advisor in the Association, Dr. Miroslav Ignjatović about the effect of these changes on the economy and improving the mining and energy sectors in Serbia.
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What needs to change in the mining and energy sector for the sector to improve? Lutovac: Given the need to build new mining capacities and revitalize the existing ones, as well as the fact that production and consumption improve the country's economic balance, it is important to increase productivity, efficiency and safety. The proposed legal framework in the mining and geological research sector will facilitate better operations of the companies in
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For the development and construction of new RES to gain real momentum, subsidies (min. 20%) are required
the energy sector, boost employment and create the prerequisites for a wide range of positive effects. To best achieve these effects, we need to control the implementation of regulations, primarily through carrying out inspections during the execution of mining works. Also, strict implementation of terms and conditions of tenders is required. The state authorities, companies and experts want to see relevant laws drafted and to properly define a coexistent, valid and realistically applicable platform for mining and geological research activities that should ensure sustainable management of mineral resources based on solutions acceptable to all stakeholders. Four new energy and mining laws should be passed soon. How will they affect businesses? Lutovac: The Law on Energy Efficiency and Rational Use of Energy and the Law on Renewable Energy Sources are of the greatest importance for the business community. We expect that the Law on Energy Efficiency will help to improve the
overall efficiency of the economy and its competitiveness, through the establishment of a sustainable mechanism for financing energy efficiency. The Directorate for Funding Energy Efficiency Incentives is in the process of being established. It will deal with the allocation of energy efficiency incentives and will monitor the implementation of projects and generated savings, as well as provide information on funding opportunities for energy efficiency improvements. In terms of the Law on Renewable Energy Sources, which is being passed for the first time, the most important thing for businesspeople is the opportunity to engage in the production of electricity through a simplified procedure. The law introduces the concept of PRO-BUYER (natural or legal person who produces energy for their own needs), which allows companies to produce electricity, despite that not being their core business activity. The law also removes obstacles to achieving a balance in producing energy (the supplier, with whom the businessperson has concluded a contract, is obligated to acquire electricity surpluses
and at the same time, provide the missing quantity of energy when needed). Businesses who choose this option will have a stable price of electricity for a longer period (it is estimated that the lifespan of such a solar power plant is between 20 and 25 years) and ensure predictability in their business, at least when it comes to the price of electricity consumed. Without any additional incentives, while bearing in mind the costs of the investment itself and the current price of electricity, the payback period is 8 years. In addition to this category of electricity producers (producing for own needs), the law also prescribes the possibility of stimulation for electricity production for the electricity market through the FEED-IN tariff modality (for production capacities below 500 KW) and the market premium system. These two modalities are primarily intended for those businesses whose main activity is related to the electricity market (producers, traders, suppliers...), but there are no obstacles for other kinds of businesses to join these programmes. However, they need to meet certain administrative prerequisites (registration, permits, licenses ...) but also be aware that this is a new, rather complex, business activity. For the development and construction of new RES to gain real momentum, it would be necessary to determine certain financial resources in the form of subsidies (min. 20%). This would lower the payback period to 5 to 6 years, which would be acceptable for most businesses, i.e. potential investors. Without additional incentives, the available funds of businesses would probably be directed to other projects with a higher rate of return. Which initiatives and results of the Association for Energy and Mining Energy would you especially like to single out which have contributed to the development of this sector in Serbia? Šišović: The Law on Amendments to the Law on Value Added Tax has been adopted following the group's initiative under the Chamber's auspices to reduce VAT from 20 to 10% for pellets and briquettes, as well as other biomass products obtained by agglomeration of sawdust, chips and other residues. These changes enabled further growth of the pellet and briquette market in Serbia, reduction of the shadow economy and had a positive impact on the
The Law on Renewable Energy Sources allows businesses to engage in electricity production
environment. A set of proposals was forwarded to the Government in order to adopt effective measures as a response of the Serbian energy sector to air pollution in urban areas. The set contained 12 proposals, most of which were adopted. Enabling the purchase of highly efficient combustion devices with a lower VAT rate and subsidies, the formation of an independent budget fund for energy efficiency in all sectors, prescribing the obligation of "green" public procurement, as well as the proposal to declare 2021 the year environmental protection in Serbia will accomplish quick results. Other initiatives have been adopted too that contribute to maintaining liquidity during the economic crisis, such as the initiative of the Renewable Energy Group to extend payment terms for delivered raw materials by public companies. The request to reduce the price of the wood used for energy purposes was welcome by public forest management companies.
for their own needs, one company for biogas cogeneration of 250kW capacity while others applied energy measures efficiency. The Chamber of Commerce and Industry of Serbia’s Energy and Mining Association, as a subdomain of the CCIS website, has launched the Green Energy web portal, which provides information on renewable energy sources and energy efficiency. We expect that the portal will contribute to building and raising capacity in the field of renewable energy sources and energy efficiency, improve competition and connect participants in the biomass market investors, project design companies, contractors, equipment distributors, banks, government and the civil sector. Companies and small businesses that operate in this area can also advertise themselves on the portal. Also, the Chamber’s expert teams are participating in the drafting of the law while public hearings were held in cooperation with the line ministry. The Law on Energy Efficiency and
How can we boost the energy efficiency of our industry and increase the share of renewable energy sources in final energy consumption? Ignjatović: The Chamber of Commerce and Industry of Serbia (CCIS) also contributes to the improvement of energy efficiency through training programmes for energy efficiency and energy managers, such as the EUREMnext project. Regarding renewable energy sources, the results can be presented through an overview of project implementation – in terms of the energy concept in the RES segment, four companies decided to build a rooftop solar power plant
Rational Use of Energy envisages the establishment of Public Records of Energy Service Providers - ESCO companies, which will be managed by the Chamber of Commerce and Industry of Serbia based on the entrusted public authority. The creation of this database aims to make information on energy service providers publicly available, together with references that energy service providers will get from service users in the case where the provision of a particular public service has been completed. Registration is on a voluntary basis. Submission of requests will be digitized which is yet another service that the CCIS provides.
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MINING & ENERGY
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by NEVENA KUVELJIĆ
Mining Can Contribute to GDP Growth
Mining is based on its own resources and employs the local population. This always has a positive effect on the development of secondary branches of the economy I N T E RV I E W
he Geological and Mining A s s o c i at i o n of S e r b i a (GRAS) represents the majority of foreign companies that are active in the mining sector in Serbia. We talked with Branko Zečević, Chairman of the Board and President of GRAS - Metalfer Group, about the changes in the law regulating mining, the impact of the pandemic, but also the development of the mining sector in Serbia.
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The adoption of the new Mining Law is in progress. You took part in drafting this law. What issues did you want to see covered by this law and what changes should this law bring about? — GRAS has been involved in the work on the amendments to the Mining Law since the beginning of the public debate because as a professional association, we have a large professional capacity and our members have plenty of experience. We insisted that the law should not contain ambiguous provisions and should provide continuous legal security for geological and mining companies that are investing large funds in this economic branch. Thanks to our well-explained stances based on the experience of the real sector, we have contributed to harmonizing the text of the amendments to the Mining Law which has substantially improved the law and will make Serbia an even more attractive investment destination. Mining and Energy Minister Zorana Mihajlović has announced significant reforms in the energy and mining sector. What do you think should
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BRANKO ZEČEVIĆ Chairman of the Board and President of GRAS Metalfer Group
The pandemic has slowed but not completely stopped investments in mining worldwide
be done to improve the mining sector in Serbia? — The faster development of the mining sector is hampered by the various procedures which need to be completed to obtain approvals and permits of various types. There is a lot of inconsistency between the different laws that are implemented and investors are forced to turn to different state bodies to collect documentation which slows down and complicates the whole process. A change that would significantly facilitate this process would be for investors to have the possibility to apply only in one place that is in charge of geological and mining matters. Otherwise, mining has a significant development potential that can contribute to a noticeable increase in GDP. Mining is based on its own resources and employs the local population. This always has a positive effect on the development of secondary branches of the economy in the areas where the mines are located. How did the pandemic affect the operations and development of the mining sector in Serbia and other countries? — The pandemic has slowed but not completely stopped investments in mining worldwide. In the past year, there was a drop in metal prices and that had a negative impact on the entire mining sector. However, the recovery of our sector and the growth of metal and mineral prices are already taking place as a result of the increased economic activity in the whole world. Serbia follows global trends. By definition, mining uses non-re-
newable resources. What else needs to be done to ensure that the exploitation of minerals is in line with the environmental protection postulates? — Mining has changed a lot compared to what the average person thinks about it. Almost all mining companies today are much more concerned with protecting the environment and the impacts that their operations can have on both the immediate and distant environment, as well as on local communities. Modern mines are planned by starting from the end of mining operations, i.e. mine closure. Each mine has its own estimated lifespan because they exploit non-renewable resources. We need to think about that moment and what remains after mining operations subside. That site must be rehabilitated and its condition reinstated so that it can be used for other purposes and be safe. How does GRAS contribute to the development of mining in Serbia? Which activities would you single out? — GRAS is a professional association through which our members realize their interests, exchange experiences and receive advice and guidance. Almost all mining companies in Serbia, whether domestic or foreign, are members of GRAS. By acting together with third parties, we ensure that our opinion is heard and respected. We actively cooperate with all relevant state bodies, as well as international professional associations. Our strategic interest is to improve and develop mining in Serbia, which we wholeheartedly support.
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IRM’s Tradition is Over 60 Years Long The Institute has over 300 accredited methods applied in all laboratories and is a leader in this part of Europe in terms of the quality of equipment and work results C O R P O R AT E
MILE BUGARIN PhD, Director General of IRM Bor
erbia has great potential in energy, polymetallic ores, lithium and boron ores, non-metals, crude oil, etc. Mineral resources in Serbia have a great potential for sustainable economic development and boosting the national GDP as the main factor of the economic progress of the country.
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The Institute of Mining and Metallurgy Bor (IRM Bor) was founded more than half a century ago. Could you tell us more about your services, resources and qualities? — IRM Bor is 100% state-owned, employs about 250 workers, of which 27 are doctors of sciences, 43 have a master’s degree and are pursuing doctoral studies, 80 are engineers of all technical professions, while the remaining employees are laboratory staff and technicians. As a scientific research institution, IRM has its own science and research & development, project and laboratory centres. The Institute offers engineering and consulting services that cover all segments of mineral resources - metals, non-metals and coal - from geology, mining, metallurgy, and environmental protection to categorization of mining waste, remediation and reclamation of degraded areas. It has the latest equipment for chemical testing of mineral raw materials - metal ores, alloys, precious metals, concentrates, coal, non-metals, water, soil, air, waste, the state-of-the-art software for modelling and design of all types of ore deposits, their optimization for surface and surface exploitation, processing of mineral raw materials landslide mass and modelling, laboratory for geomechanics and preparation of mineral raw materials, semi-industrial plants for ore flotation, hydrometallurgical processing of precious metals, plants for pro-
cessing special precious metal alloys, non-ferrous metal alloys, and production of precious metal networks for reactors in nitrogen plants and laboratories. Which projects are you especially proud of ? Which were the most demanding? — The Institute closely follows global trends in technological and scientific development, and is at the top of technological development, shoulder-to-shoulder with the most developed companies in the world today which perform similar activities. This is the only institution in this part of Europe that provides at least 90% of engineering and consulting services and solutions in mining and metallurgy - from ore exploration, exploitation, processing and environmental protection to the processing of commercial semi-finished or finished products.
In the last nine years, the Institute has invested a total of 12.5 million euro in laboratory equipment and design software, with all the money generating from the Institute’s work Today, IRM Bor has strong cooperation with scientific institutions in the country, the region, Europe and the world. It provides laboratory, project design and scientific services to numerous companies such as Zijin Copper and Zijin Mining, Kolubara, Kostolac, Eliksir, Pljevlja Mine, Gacko, Ugljevik, Metalfer, Metro Belgrade, Rudnik Brskovo, Šuplja Stijena, and others. How did you manage to position the Institute on the market and to transform it into a very profitable institution considering how indebted it was? — After IRM separated from Smelting and Mining Basin Bor (RTB Bor) in 2007, due to the re-
structuring and preparation for the sale of RTB, it had huge debts and financial obligations, and it was only a step away from being liquidated. At that time, the Institute owed close to 7 million euro to creditors and in public liabilities. It also owed huge amounts of money towards covering interest rates that accrued because RTB Bor had not been settling its financial obligations, plus it owed five back salaries to its employees and decades-worth of payroll contributions of unrelated, as well as had very outdated technical equipment. Back then, the average salary at the Institute was equivalent to 250 euro and there were so many financial liabilities that we had to settle. Thanks to the great effort, good management skills and hard work of all our employees, to the surprise of many, including us at IRM, we managed to transform the Institute into what it is today. Year-on-year, the Institute continued to develop and invest, both in equipment and staff, and that is a sure guarantee of sustainable development. Many believe that mining creates a great opportunity for Serbia. What potentials does Serbia have and what else needs to be done for these potentials to be valorized? — Mining is one of the most important economic branches of Serbia and it creates a great opportunity for future development. Serbia has huge copper and gold potentials, which, considering today’s level of exploration of mineral resources, in the Bor district alone, are estimated to be worth about 200 billion USD at the current prices and with a lifetime of exploitation between 30 and 40 years. Today, the price of copper and gold is extraordinary and it enables progressive investments in sustainable development and growth of copper ore production. Environmental protection is an absolute must in the production of mineral resources, and with the application of modern technologies and their disciplined management, sustainable production of mineral resources is not questioned because all legal standards will be met.
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MINING & ENERGY by NEVENA KUVELJIĆ
Energy is the Backbone of Economic Development Energy is expected to rely as much as possible on renewable energy sources and as little as possible on depleting resources S T R AT E G Y
ccording to the Energy Development Strategy of the Republic of Serbia until 2025, during the last two and a half centuries, energy has been and remains the driving force and key factor of economic change, as well as the backbone of economic development. If energy is made into a stable, modern and well-organized sector, it will certainly generate benefits for the entire economy of the country. Also, if energy is not given enough attention from the point of view of strategic planning, a poor position and weak prospects of the economy as a whole are certain. The Republic of Serbia's energy resources and potentials consist of fossil, conventional fuels, such as coal, oil and natural gas, unconventional fuels (oil shale) and renewable energy sources. For a relatively long period, the energy sector will have the task of providing the economy and society with significant amounts of energy and energy sources, but with a tendency to
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reduce energy intensity, i.e. consumption per unit of money product. Further global development implies an economy based on the efficient use of relatively "clean" and available energy from various sources. It is crucial to expect energy to rely as much as possible on renewable energy sources and as little as possible on depleting resources. The strength of the Serbian energy sector lies in the potential of renewable energy sources, but at the same time, insufficient use of this potential is the country's weakness. Serbia has made progress since 2015, primarily following the construction of seven wind farms with a total capacity of 398 MW. According to the projections of the Energy Development Strategy of the Republic of Serbia, the total potential of renewable energy sources in our country is 5.65 million tonnes of oil equivalents (toe) per year. The use of the potential, according to the latest data from 2019, is 2.06 million tonnes of RES oil. Also, in the structure of the
Although the Republic of Serbia has renewable energy sources, they are still underused
planned total domestic production of primary energy for 2020, renewable energy sources participate with only 20 per cent. Also in this structure, the largest share is that of solid biomass is 56%, followed by hydro potential 37% and wind energy 5%, while biogas, solar energy and geothermal energy participate with 1%. Although the Republic of Serbia has renewable energy sources, they are still underused. Aspects of saving and conserving natural resources are numerous if the emphasis is placed on the use of renewable energy sources. About 30% of greenhouse gas emissions come from the use of fossil fuels in the energy sector. Today, renewable energy sources have a growing importance in the electricity grid, which is why developed countries give them a priority because their use reduces emissions of harmful gases into the atmosphere, increases the safety of energy supply, reduces dependence on imported energy and also significantly develops domestic industry and creates new jobs. Certainly, the installation of renewable energy plants requires initial investments, but after installation, they are cheap to operate, i.e. operating costs are significantly lower. In the long run, this can lead to more stable energy prices because energy independence in use is quite pronounced.
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MINING & ENERGY by NEVENA KUVELJIĆ
Power of Water and Wind Energy In the structure of total domestic energy production, renewable energy sources participate with 20%, of which hydro potential makes 37% and wind energy 5%
R ECOU RC E S
he growing need for energy, but also the preservation of the environment, is a basic problem that most countries in the world have been facing. Energy from renewable sources, such as water, wind, solar or biomass, can facilitate access to clean and safe energy for all of humanity. According to the Energy Balance of the Republic of Serbia for 2020, in the structure of the planned total domestic production of primary energy for 2020, renewable energy sources participate with 20%, of which hydro potential makes 37% and wind energy 5%.
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WATER ENERGY
Water is the most common and oldest renewable energy source. However, if it is not developed in a way that takes into account the needs of the environment, so generating electricity from hydropower can lead to significant environmental damage. Serbia has a great tradition in the field of hydropower. According to the projections from the Republic of Serbia's Energy Development Strategy, the total theoretically available hydropower potential of waters flowing into watercourses on
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the territory of Serbia is about 25,000 GWh/year. The technically usable potential is about 19.5 TWh/year. About 80% of electricity from renewable sources in Serbia comes from hydro potential. Serbia has hydropower plants of 2,466 MW of installed capacity. Large hydropower plants operating in the system of the Electric Power Industry of Serbia (EPS) have renewable producer status with a capacity of 2,355 MW and annual production of close to 10 TWh. Hydroelectric power plants produce about 30% of the total electricity generated by PE EPS, of which HPP Djerdap produces over two-thirds. Due to the impact of hydropower plants on the environment, the Draft Law on Renewable Energy Sources envisages a ban on the construction of small hydropower plants in protected areas, unless the Government allows their construction because it is in the public interest. The data is provided by the Association "Renewable Energy Sources of Serbia", and published on the site oie.rs.
WIND ENERGY
In recent decades, in all developed economies of Europe and the world, investments in the construction of
About 80% of electricity from renewable sources in Serbia comes from hydro potential
wind farms have been on the up. As stated on the site oie.rs, the development of wind farms in Serbia began at the end of the first decade of this century, but the appropriate conditions for their construction were created only in 2015 and 2016. The construction of the largest wind farms, such as Čibuk1, Kovačica, Alibunar and Košava, was financed by loans from international financial institutions and commercial banks. Except in the South Banat District, known for its strong Košava wind where all existing wind farms are located, wind energy potentials can also be found in eastern Serbia, as well as in the area of Zlatibor and Pešter plateau. So far, 8 wind power plants with a total capacity of 398 MW have been connected to the electricity system of the Republic of Serbia. Wind projects with a total capacity of 4 GW are under development. According to the energy balance of the Republic of Serbia, in 2020, a total of 1,079 GWh of wind energy was used, which is 30% higher than the estimations from 2019. Some of the advantages of using aeolian energy include renewability, availability, competitiveness in the energy market, environmental justification, and the absence of waste and harmful gases, while the main disadvantages are the uneven wind direction and strength, noise, landscape disturbance and negative impact on birds and insects.
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INTERVIEW
20 Years of the Council of Europe Office in Belgrade I am proud that the Council of Europe has continued to stand for a democraticsociety, with all the ups and downs of the past 14 months by Nevena Kuveljić
TOBIAS FLESSENKEMPER Head of the Council of Europe office in Belgrade
he Council of Europe Office in Belgrade was opened by the then Secretary General Walter Schwimmer in 2001. Its main activities are aimed at promoting democracy, the protection of human rights and the rule of law. We talked with Tobias Flessenkemper, Head of the Council of Europe Office in Belgrade, about the last 20 years of work and many realized projects. As well as how he sees the relation between the Council of Europe and Serbia.
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The Council of Europe’s office in Belgrade was opened on March 16, 2001. How would you rate the cooperation between Serbia and the Council of Europe all these years? — When the Council of Europe decided to open an office in Belgrade it was set up to work both in Montenegro and Serbia, then both part of Federal Republic of Yugoslavia which had applied for membership in the Council of Europe at the end of 2000. The State Union of Serbia and Montenegro then became our 45th member state in April 2003. Later, they became independent countries, and Montenegro joined again in 2007. During this momentous phase, the Council of Europe office in Belgrade facilitated the work on the new Constitution of Serbia, adopted in 2006, and laws on many other aspects of the reform, from the protection of national minorities to local self-government, from fighting discrimination to fostering the autonomy of the judiciary. Over time, Serbia has become a committed member-state of the Council of Europe, actively participating in the work of all of its bodies, including in the Parliamentary Assembly in Strasbourg. This was reflected in our cooperation, which
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IN SUCH DIFFICULT TIMES, HUMAN RIGHTS REMAIN AS IMPORTANT AS EVER gained a new quality when Serbia became a candidate for EU membership in 2012. Both the EU and the Council of Europe agreed in 2007 that Council of Europe, its principles and standards will remain the benchmark for human rights, the rule of law and democracy in Europe. They are first and foremost important for people in Serbia who want to fully exercise their fundamental rights and freedoms. The co-operation within the Council of Europe has helped citizens, Parliament and the government to make this objective a living reality. To illustrate these achievements and to mark the 20th anniversary of our office with, we will hold a series of events throughout 2021.
The Council of Europe has implemented numerous projects in Serbia. Which ones would you like to single out? — The “Living Library” project jumps to mind. I have learned about this idea implemented in other countries, and it has been a great success in Serbia. The Living Library works like an ordinary library: readers come and borrow a "book" for a limited period of time. The difference is that the “books” in the Living Library are actually people, human beings who enter into a personal dialogue with the readers. The “books” in the Living Library represent groups frequently confronted with stereotypes, who are often victims of discrimination, prejudice or social
exclusion. It is a beautiful project that helps to challenge prejudice and discrimination, to experience first-hand that discrimination is more than a theory, and to understand that fighting it is not a matter of ideology, but of real lives of real people who suffer from it. We hope to launch it again as we are supporting Serbia to reform its anti-discrimination legislation. Our common goal is to ensure equal rights and respect for persons belonging to national minorities, including Roma; people affected by disability; lesbian, gay, bisexual, transgender and intersex persons; socially marginalized people, who experience difficulties in accessing their political, economic, social and cultural rights: all of them should be able to safely, consistently and fully enjoy their fundamental rights and freedoms, and hate speech against should be
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countered. This message also runs like a golden thread through the report on hate speech in the media in Serbia we have launched in April 2021. Too often do we face incitement of xenophobia, racial hatred, antisemitism, islamophobia, anti-gypyism and intolerance in the public discourse. It targets many groups - national minorities, immigrants, women and LGBTI people. That’s why we launched, together with the European Union, the joint campaign Block the Hatred, Share the Love (BHSL). I invite you to join us alongside personalities such as the singer Sara Jo who volunteered to become a BHSL-Ambassador in the Western Balkans region. The main activities of the Council of Europe are aimed at improving democracy, protecting human rights and the rule of law. How much do you think these areas are developed in Serbia and what still needs to be improved? — Let me use the example of protecting human rights. The Council of Europe started with setting standards: the European Convention on Human Rights outlining these standards was signed in 1950. However, one of the lessons from the first half of the 20th century was standards alone mean little if their application is left entirety to the discretion of the states, not followed up and monitored. That’s why already in the Convention a process to control the implementation of the human rights standards by European states was foreseen. Our most well-known and most important monitoring mechanism is undoubtedly the European Court of Human Rights, the Strasbourg Court. The results of its “monitoring” are basically its judgements which identify gaps, propose ways for bridging them and together form the case-law on which national courts of all other European states can rely in their work. For instance, here in Serbia important work is being done to execute the European Court’s judgment on the so-called “missing babies” case which concerns the disappearance of the applicants’ newborn children in state-run maternity wards in the 1980’s. Serbia continues to work on the execution of judgments in the European Court, but by the end of 2020, Serbia was still to fully implement 33 judgments. The number of new complaints arriving at the Court
is also an indicator of the human rights situation in the country. It is no secret that the number of cases from Serbia remains rather high, in absolute and proportional terms: in 2020, the Court in Strasbourg has received some 1,800 new applications against Serbia. The work of democratic institutions is very much the focus of the Parliamentary Assembly of the Council of Europe, another important part of our organisation.
Serbia were put on hold. Through 2020 we sought to maintain access for everyone to the information about the Council of Europe’s work in more innovative ways through the internet. The consequences of the pandemic and the related crisis for the society, democracy, culture, the rule of law, economy and European co-operation are shaping our lives and work today and well into the future. In such difficult times, hu-
memories that I cherish. In Turija, I visited the elementary school Veljko Dugošević and had the privilege to discuss with the children and young people their lives and their participation in our project developing competencies for democratic culture. In Niš, I met with the Roma community members, and we reflected how improving their rights will help the city to prosper. In Novi Sad, I had the opportunity to meet the
Mr Tobias Flessenkemper (center) with Ms Gordana Čimić (left), Minister of Human and Minority Rights and Social Dialogue and Ms Jasna Dimitrijević (right), Director of the Ilija M. Kolarac Endowment, opening the exhibition on the occasion of the 70th anniversary of the European Convention of Human Rights
IT IS NO SECRET THAT THE NUMBER OF CASES FROM SERBIA REMAINS RATHER HIGH In January 2021 the Parliamentary Assembly has request an opinion of the Venice Commission on the constitutional and legal framework governing the functioning of democratic institutions in Serbia. The Venice Commission, our expert and advisory Commission for Democracy through Law, will present its analysis of the situation later this year. How much has the coronavirus pandemic affected your goals and plans last and this year? How did you adjust your projects to the new circumstances? — The pandemic has affected Europe in an unprecedented manner. Immediately, in March 2020 we applied all precautionary measures. Most of our usual activities, such as public events, conferences, seminars, workshops with many governmental and non-governmental partners in
man rights remain as important as ever. I am proud that the Council of Europe has continued to stand for a democratic society, with all the ups and downs of the past 14 months, and I am more than ever convinced that the aims of international cooperation and European unity must be our guiding principles in Serbia and elsewhere, to overcome the effects of the pandemic together. You have been the head of the Council of Europe mission in Belgrade since 2018. What are your impressions of Serbia? How do you feel living here? — My time, my life in Belgrade has been cut in two parts: “before” and “during” the pandemic. I was lucky to have one and half years to move around freely and get to better know the country before the lockdown in March 2020. This first period is full of
Mayor an exchange ideas about the value of cultural heritage for society and their preparations for the European Capital of Culture. In Novi Pazar, we launched our project on improving human resource management in local authorities and I also had the opportunity to meet with the Bosniak National Council and learn more about the multinational and multicultural nature of Serbia. In October 2019, I spoke at the opening of the Conference of Judges, which also gave me an invaluable opportunity to explore Vrnjačka Banja and its inspiring surroundings. In Belgrade, I have been enjoying the cultural live, which unfortunately was hit so hard by the COVID19. I am very much looking forward to attending again concerts at the Kolarac, a place which I find particularly enchanting because of its significance and the many interesting activities usually taking place there - activities showing the diversity and beauty of lives and people in Serbia.
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INTERVIEW
by Tanja Banković
We Need Responsible Management of Public Finances The current year has brought ongoing uncertainty, and I believe that economic growth and the budget as a whole should have been planned more restrictively for having a more comprehensive definition of monetary, fiscal and industrial policy in the COVID and post-COVID times. Continuing the usual trend, which has existed for the last ten years, this year’s Forum topics concern the entire region of the Western Balkans, and, consequently, the Forum’s conclusions will greatly help the governments of these countries.
ALEKSANDAR VLAHOVIĆ President of Serbian Association of Economists
resident of the Serbian Association of Economists Aleksandar Vlahović considers that successful inoculation is a prerequisite for the resolution of the health crisis, so it is good that the government has paid a lot of attention to the procurement of the necessary contingent of vaccines. In the interview, he also talks about the organization of this year's Kopaonik Business Forum, as well as economic measures and the impact of Covid-19 on the country's economic development.
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Business Forum will change location this year. Will the Forum actually take place, and if it will, in which kind of format and when? — This year, the Kopaonik Business Forum (KBF) is being held in
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rather extraordinary circumstances. Serbia, Europe and the whole world have been hit by the COVID-19 pandemic. In such conditions, the Serbian Association of Economists was forced to change the usual date and place of the Forum, and we hope that this year alone, this gathering will be held in Belgrade from May 24 to 27. When we decided to postpone the 28th KBF in the autumn of last year, we sincerely hoped that
year's event will be held in the socalled hybrid format. This means that the programme participants will be physically present in the foyer of the Metropol Hotel, while everyone else will be able to watch the Forum live on YouTube. The media will cover the panels and plenary speeches, and I hope that the Forum will get full visibility. Even though one of the main dimensions of this traditional event is lost in the hybrid format (that is
What do you think was the key negative impact of COVID-19 in our country in 2020? — I think it is too early to make a conclusion about the damage caused by the COVID-19 pandemic. This is because the health crisis is not over yet, and in the best case, according to the forecasts of global experts, only in late 2021 or early 2022 we can expect that this plague would be finally subdued. Therefore, we will be able to assess the realistic results of negative effects on the still unfinished economic transition in Serbia, and thus on the economy as a whole, only then. But if I had to define the key negative impact right now, then I would single out the interrupted continuity of GDP growth. I would like to remind you that only in the last two years have we achieved significant economic growth of 4%, as well as the mentioned continuity, so it is a great pity to break this positive streak, which in the long run, ensures higher living standard. We should add to this the fact that the direction of pub-
IF 6% GROWTH IS NOT ACCOMPLISHED, IT WILL INCREASE THE FISCAL DEFICIT AND CONSEQUENTLY INCREASE THE PUBLIC DEBT MORE THAN PLANNED IN THE BUDGET the epidemiological situation in May would allow the Forum to be held in the traditional face-to-face format. Unfortunately, come April, it was clear to us that gathering a large number of people in the planned time slot would not be possible, so we decided that this
direct contact, participants meeting face to face and exchanging their arguments in the lively and dynamic discussion, as well as have the opportunity to present projects and companies), I am confident a large number of topics covered by the programme will be useful to economic policy makers
lic debt and the fiscal deficit has changed, which is a direct consequence of the fiscal programme of economic assistance during the pandemic. Provided that we achieve significant growth of 5% this year, which is questionable, it will take us several years to reduce public debt and the fiscal deficit
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to the level it was in early 2020. What do you think of the government measures which implementation started in April 2021? Are they balanced out and do some economic sectors need more help? — The shake-up caused by the COVID-19 pandemic led to an economic shock that was both external and internal, affecting supply and demand. Therefore, fiscal policy measures required expansion, i.e. allowing a larger fiscal deficit to relieve the economy. More or less all countries have had this kind of response to the pandemic-induced crisis, with developed countries having much greater parallel support in expansionary monetary policy. This is evidenced by the measures applied by the European Central Bank and the Fed in the United States. In the first flurry of the crisis, in late March last year, Serbia devised an economic assistance programme that was predominantly based on fiscal incentives, coupled with adequate monetary policy measures. According to the scope of fiscal intervention, Serbia belongs to the group of countries with the most generous economic support. I would like to remind you that the direct budget incentives plus the postponement of the payment of payroll tax and contributions cost the state budget around 8% of GDP. When we add to this the guarantee scheme created in cooperation with commercial banks, in the amount of 2 billion euro, we come to the total amount of the fiscal support programme which is tantamount to 13% of GDP. Having in mind the structure of the Serbian economy and the present overall uncertainty regarding the duration of the crisis, in the beginning, it was justified for the measures to be linear and general. However, the second assistance package, implemented in September, as well as this year's measures, had to be directed exclusively to the sectors that suffered the most due to the COVID-19 crisis (small and medium-sized enterprises from the HORECA, transport and service sectors). The lack of selectivity is my first complaint. Applying the selective principle would avoid the dilemmas that the government’s Crisis Response Team has had and delaying the decision to close catering facilities at the peak of the infection.
I would also like to object to the allocation of a certain sum of money to all adult Serbian citizens, the so-called helicopter money. I cannot think of an economic justification for such a measure. If the goal was to encourage personal consumption and increase demand and thus contribute to economic activity, it is completely wrong, because experience teaches us that this only deepens the external deficit. Of course, it is commendable to directly help the most financially jeopardized part of our population but only in regular conditions, i.e. for the help to be part of the overall social policy, while ad hoc actions must be based on the socalled social cards.
industry), or rather the inherited high base. Any failure in agriculture will negatively affect growth this year. If 6% growth is not accomplished, it will increase the fiscal deficit and consequently increase the public debt more than planned in the budget. This year’s fiscal support to the economy is likely to generate a bigger deficit than planned and this will further push public debt to over 60%. One of the evident risks is reduced private, especially domestic, investments. Therefore, to maintain the project level of economic activity, providing that the fiscal deficit throughout 2021 is above the planned level, we must not cut back on capital investments - especially not on
ANY FAILURE IN AGRICULTURE WILL NEGATIVELY AFFECT GROWTH THIS YEAR Is it realistic to expect the GDP growth in 2021 to be 6% and what are your projections? What are the biggest challenges this year? — The current year has brought ongoing uncertainty, and I believe that economic growth and the budget as a whole should have been planned more restrictively. The forecasts of international financial institutions are diverse but are all lower than the projected budget growth rate. Given that the crisis caused by COVID-19 is both internal and external, the speed at which the EU countries, especially Germany and Italy, is very important for our future growth. We are witnesses that this recovery is not going as planned from the onset of the crisis. The planned growth of 6% is very optimistic, again having in mind the structure of the Serbian economy and the exceptionally good results we achieved in key branches in 2020 (agriculture and processing
investments in green technologies, sustainable energy sources, digitalization and boosting the capacity of businesses to respond to the challenges of the 4th Industrial Revolution. We need responsible and careful management of public finances, such as the one we had at the beginning of the implementation of the fiscal consolidation programme. Adjusting to the post-COVID world: New sources of growth under great economic reset’ is the main theme of this year’s Kopaonik Business Forum. In the changed business conditions, what can be a new source of growth for the Serbian economy? — Our main advantage today is the speed and scope of inoculation of the population. One should not expect a quick return to the pre-pandemic state. More precisely, it will not be possible to return to the old ways. I sug-
gest that government activities should aim at improving the quality of institutions, not only those that regulate the market but also institutions that guarantee legal security and the protection of property and creditors' rights. According to the World Bank report, this has been a serious constraint for many years in terms of attracting large investors from developed countries in Europe and the world, but it is also an obstacle to the stronger development of small and medium-sized domestic enterprises and growth of private domestic investments. This is not just a job for this year alone. Rather, continuous and visible progress is needed in building an economic environment in which there are clear rules of the game, which will encourage individuals and entrepreneurs to save more, invest, introduce innovations, take risks; namely, engage in all activities that generate economic growth and boost employment. The crisis caused by the COVID-19 pandemic, in addition to huge damage, has also created new opportunities. Serbia will be able to utilize these opportunities only if it has an efficient management system, has completed the economic transition, and has a competitive and transparent state administration system. What will the world look like after the COVID-19 pandemic? — The disruption of global supply chains will certainly affect the relocation of the capital of large companies from Asia to Europe. The advocates of protectionist policies could become much more prominent, which will lead to a further slowdown in global trade and, consequently, lower global GDP growth. It is likely that, at some point, there will be a "pumping out" of stock market indices, which in some segments, recorded incredible growth during the COVID-induced crisis. Despite the huge monetization, primarily in the United States, but also in the EU, there are no indications that, in the foreseeable future, there will be an increase in the so-called demand-pull inflation. However, cost-pull inflation is already present given the strong rise in commodity prices and increased transport and logistics costs. In general, big changes will take place. I am afraid that the periods of continuous growth without major oscillations and shakeups are behind us.
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READ THIS ON WEB CORPORATE
We Create New Banking Experience for Our Customers We have made truly dedicated efforts in order to support and take care of our customers in times of crisis and uncertainty
SUZAN TANRIYAR Board Member, CFO and CRO of Erste Bank Serbia
e continued spending time with our customers, which, despite all protective measures we implemented, still raised the risk of infection for our employees; we enabled remote pension pay out, we opened thousands of accounts for one-off state assistance for existing and non-clients within a very short time. We disbursed money from the State Guarantee Fund to our SME and micro clients in a responsible manner, implemented moratoria 1, 2 and 3 for helping our troubled clients, issued the first real private corporate bond in record time… These and many other achievements make me very confident and optimistic. Our business model is proven to be crisis-resistant; our team is motivated and unbeatable. For two years in a row, Erste Bank Serbia is bank number 1 in terms of customer experience of private individuals. It seems to me that we are on a very good track” said Suzan Tanriyar, Board Member, CFO and CRO of Erste Bank Serbia.
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You have finished the year of great challenges in the first place according to customer experience of individual clients. What does this mean for you and does it motivate you to constantly improve your services? — Since Erste Group Bank AG’s establishment in 1819 as the first Austrian savings bank, we have always aspired to be more than a bank to our customers. Unlike other commercial banks, our main shareholder is still the ERSTE Foundation (the biggest Austrian savings bank foundation), which allows us to be truly purpose-driven, with our customers’ financial health and sustainability at the heart of our strategy. I believe that our customers feel, understand and value our business
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IN ALL COMPANIES, TALENT IS THE FOUNDATION TO BUILDING AN IDEAL TEAM CAPABLE OF FACING NEW CHALLENGES AND ENSURING GROWTH model. They are especially satisfied with the personal relationship and the advisory service we provide them, and they view very positively our offer, flexibility and response speed, when choosing one of the products and services that are available to help customers manage every aspect of their financial life. For us, this means that we are succeeding in our intention to build prosperity of our customers. In the coming years, our goal is to confirm this position, offering various innovations, especially in the field of digital products, improved customer journeys
and end-to-end digital lending. To give additional arguments to our customers to see us as the bank that provides the best experience, not only in the segment of private individuals but also legal entities and entrepreneurs. How important are stability and preparedness in a crisis, as well as flexibility and customer support? Please let me quote here the CEO of Erste Group, Mr. Bernd Spalt: “We’re in this together – and we’ll get through this together!” In practice, this means we will support economic recovery with continued lending – this
is our commitment as a systemically important bank, and we will retain our customers during this challenging period and offer tailor-made business restructuring models. Furthermore, we will continue offering innovative products and support legal entities in obtaining equity on capital markets by issuance of corporate bonds and promote the idea of channelling private money into SMEs. This will help SMEs to deleverage and, at the same time, to be an attractive investment. What do you think of the macroeconomic situation today, and what challenges will the financial market in Serbia face? — For sure, Serbia is moving on the right track. This is not only our opinion as bankers – it was also confirmed recently by the most significant rating agencies
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Photos: private arhive
globally. GDP decrease of one percent in 2020 compared to 2019 is a significantly better result than in neighbouring economies. It is one of the smallest declines in economic activity in the world. The fact that Moody’s has raised Serbia’s credit rating to Ba2 while assessing its outlook as stable, is a thumbs up and a great achievement in the year of the pandemic. We expect that the government authorities will certainly go for obtaining the investment-grade rating, which means that they will be on a par with the most advanced countries and have access to lower financing prices. Further investments, both private and public, as well as a recovery of household consumption, should be the main growth drivers in the second half of this year. That is why our analysts have not revised their previous growth forecast, set at five percent for 2021. Nevertheless, all projections in the time of pandemic should come with a kind of small asterisk – we must be careful, because there is still an increased level of uncertainty when it comes to the duration of the pandemic. For us, some of the biggest challenges are those related to attracting and retaining talent. In all companies, talent is the foundation to building an ideal team capable of facing new challenges and ensuring growth. That is why it is essential to have the best employees possible. In order to do so, we continuously encourage creativity, invest in the development and education of our employees and foster an inclusive, inspiring and healthy working environment. We often like to say, ‘The Bank is the People’, so our people are in our focus in many aspects. Our wish is to be the employer of first choice, not only for those with years of experience, even more for those who are about to enter the workforce, young people who wish to learn and grow, who believe in themselves. We are constantly reminding ourselves that generating a
post-COVID-19 challenges. Starting with the third quarter, when the grace period for the State Guarantee Scheme loans expires, banks will get a clearer picture of Covid-19 impact on our customers’ activities in different industries.
IN THE COMING YEARS, OUR GOAL IS TO CONFIRM THIS POSITION, OFFERING VARIOUS INNOVATIONS, ESPECIALLY IN THE FIELD OF DIGITAL PRODUCTS
good work environment, providing development opportunities, having a motivated, unified team and offering flexibility are conditions highly valued by the new generations. Can we expect new moratoria on the repayment of corporate and retail loans in 2021? — We do not expect new moratoria. During the COVID-19 pandem-
ic, the Government and National Bank of Serbia successfully employed various mechanisms and tools to facilitate and sustain economic activity, statutory moratoria just being one of them. In 2021, we expect a more focused and tailor-made approach to supporting distressed sectors and borrowers, with the State Guarantee Fund certainly being one of the most important pillars to weather the
You are well acquainted with Belgrade and Serbia. What were your first impressions in 2008 as an Austrian in Serbia and what are your impressions now? How do you like to spend your time after work? — As a Turkish/German person, who has been living in Austria since the 80ies, Serbia is for sure the best fit for me. During my first assignment, I spent most of my leisure time exploring the country and its people. My first trip was a “monastery tour” in a cold November, followed by many hikes to Serbian mountain peaks. I learned fly-fishing at the Gradac river, visited hidden archaeological sites, did „pečenje paprika” (traditional pepper roasting) with locals and celebrated „Slava” (Patron Saint’s Days) with friends. Very often I wondered why Serbian people are not as aware of the natural beauty and cultural richness of their country as foreigners like me often are. Travelling habits will for sure change after the pandemic. Travelers will seek quality over quantity and avoid mass tourism and large crowds, preferring road trips rather than long-distance flights. Therefore, Serbia has a great potential for outdoor activities and sustainable tourism. At the same time, I wish Serbian people attached more importance to environment protection and sustainability. Waste separation and responsible prevention, recycling or energy efficiency projects are still in the early stages of development. Erste Bank Serbia offers sound knowledge and tailor-made financing in these areas. Happy to support both well-established businesses, but also start-ups with innovative ideas, let’s fight together for a better future.
SIGNIFICANT EXPERIENCE WITH EBS AND SERBIA You were a part of EBS Management Board from 2008 to 2014, then you had an important role in Erste Group’s data management and reporting, and now you are EBS’s CFO/CRO. What were the Bank’s major accomplishments during your first period here, and what kind of accomplishments are you looking forward to now? — During my first period in Serbia, I think the new Board laid the foundation of today’s Erste Bank Serbia with a healthy portfolio, innovative prod-
ucts and highly skilled and motivated team. It was a challenging but interesting journey with many achievements, but I am still the proudest of us being the first bank that successfully issued and placed a private bond on the Serbian capital market and that we were the forerunners in renewable energy project financing. The goal in my current period is clear: to become one of the top 3 banks in Serbia, not only in terms of asset size, customer satisfaction but also in terms of being the “employer of first choice”.
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PEOPLE & EVENTS
16 APR
PARTNERSHIP AGREEMENT
Serbian Minister of Trade, Tourism and Telecommunications, Tatjana Matić, and the Ambassador of the United Kingdom to Serbia, H.E. Sian MacLeod, signed the Partnership, Trade and Cooperation Agreement between the Republic of Serbia and the United Kingdom. The agreement sets a new legal basis for regulating bilateral trade, which was previously defined by the Stabilization and Association
Signing the Partnership, Trade and Cooperation Agreement
22 APR
PETAR DOBROVIĆ GALLERY OPENED
H.E. Sian MacLeod and Tatjana Matić
The Petar Dobrović Gallery was opened in Belgrade. At the opening, Serbian Culture and Information Minister, Maja Gojković, said the Coloristic Vision exhibition showcasing 30 works of Petar Dobrinović shows an abundant artistic opus of the painter and shows his legacy in a new spirit, as well as that the state of Serbia and Serbian society owe a lot to this great painter. The Petar Dobrović Gallery was founded by the Belgrade City Assembly in 1974, thanks to the ef-
Maja Gojković, and Zoran Radojičić, Mayor of Belgrade City
22 APR
EARTH DAY CELEBRATED
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forts of his wife Olga and son Djordje, who donated a collection of the great painter’s body of work to the Serbian capital - 360 oils on canvas, 14 watercolours, 19 pastels, 29 tempera paintings, 955 drawings, as well as 30 works by other authors, Beoinfo reports. From its establishment until 2016, the Petar Dobrović Gallery was under the care of the Museum of Contemporary Art, and in 2017, this space was allocated to the Heritage House (Kuća Legata).
Petar Dobrović Gallery
This year, there was little reason to celebrate Earth Day and we should not lose any more time to put the ever-growing awareness about climate change into action and prevent or mitigate its effects. The Belgian Ambassador to Serbia, H.E. Koenraad Adam took part in several events on Earth Day to promote the Green Agenda. He was also present when the Deputy Serbian Minister, Zorana Mihajlović, signed a collaboration agreement with the
First Lady, Tamara Vučić and H.E. Koenraad Adam
Agreement between the European Communities and their member states and the Republic of Serbia. Both sides expressed satisfaction with the successful completion of negotiations and the formal provision of continued successful cooperation in the political and economic segments. The first temporary bilateral trade agreement was signed between the United Kingdom and Serbia in March 1879.
Renewable Energy Sources Association in the presence of top Belgian wind energy producer Elicio. The expertise of innovative green companies such as Elicio is crucial both in policymaking and meeting renewable energy goals. Also, Ambassador Adam was a keynote speaker at the Serbia Goes Green conference and he attended a tree-planting ceremony at the Residence of Princess Ljubica, in the presence of the First Lady, Tamara Vučić.
Danijela Isailović and Zorana Mihajlović, signing of collaboration agreement with the Renewable Energy H.E. Koenraad Adam and Zorana Mihajlović Sources Association
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PEOPLE & EVENTS
22 APR
HOLOCAUST REMEMBRANCE DAY MARKED
The day of remembrance of the victims of the WWII genocide is commemorated on April 22, in remembrance of the same date in 1945, when a group of detainees of the Ustasha-ran concentration camp Jasenovac-Donja Gradina in the so-called Independent State of Croatia broke through. On that occasion, wreaths were laid at the monument to the victims of genocide in the complex of the former Nazi death camp, Staro Sajmište in Novi Beograd. The wreaths were laid by Minister of Labour,
Darija Kisić Tepavčević, laying wreaths
23 APR
Employment, Veteran and Social Affairs, Darija Kisić Tepavčević, Secretary-General of the President of the Republic of Serbia, Suzana Paunović, the Speaker of the Belgrade City Assembly, Nikola Nikodijević, and representatives of the diplomatic corps. The survivors of the death camp, the representatives of the Association of Jewish Communities of Serbia, the Council of the Roma National Minority and members of the victims’ families also paid their respects.
Suzana Paunović, laying wreaths
INDUSTRIAL One of the possible solutions and the vision of Novi Sad’s LEGACY OF Shunting Station’s future were presented at the City Hall to mark the European Year of Rail, in the presence of the SerbiNOVI SAD an Deputy Prime Minister and Minister of Culture and Information, Maja Gojković, Minister of Construction, Transport and Infrastructure, Tomislav Momirović, and Miloš Vučević, Mayor of Novi Sad. The Shunting Station is part of the valuable industrial heritage of Novi Sad, the Province of Vojvodina and Serbia. The Shunting Station project was designed by the Gustave Eiffel Studio, exactly 110 years ago. The conceptu-
al solution was presented by the Creative Consortium, which consists of the Foundation for the Protection of Cultural and Industrial Heritage from Novi Sad, Coworking, ICT Hub corporate accelerator from Belgrade and the Zabriskie architectural studio. In 2021, which the EU declared the European Year of Rail, Serbia will see the completion of the most important infrastructure project, the new Belgrade-Novi Sad railway, so this is the right moment to start thinking about the future of steam locomotive depots on Bulevar Evrope in Novi Sad as possibly a new community centre and pedestrian zone.
Maja Gojković, Miloš Vučević and Tomislav Momirović
23 APR
THE EXHIBITION "IDENTITY(S)" OFFICIALLY OPENED AT THE MATICA SRPSKA GALLERY
The Identity(s) - Representation of Women in Serbian Painting (1918–1941) exhibition was officially opened at the Matica Srpska Gallery. Nikola Ivanović, a young doctoral student and the author of the exhibition, Tijana Palkovljević Bugarski, the director of the Matica Srpska Gallery, and Maja Gojković, the Minister of Culture and Information of the Republic of Serbia, spoke at the opening. Until July 4, visitors will be able to see over 70 exhibits from the collections of the Matica Srpska Gallery, the Nation-
The Identity(s) - Representation of Women in Serbian Painting (1918–1941) exhibition
Nikola Ivanović, Maja Gojković and Tijana Palkovljević Bugarski
al Museum in Belgrade, the Museum of Contemporary Art in Belgrade, the Museum of the City of Belgrade, the Heritage House and the Milena Pavlović Barili Gallery from Požarevac, as well as artwork from many private collections. Every Friday, during the exhibition, the Gallery will have an event dedicated to (in)equality and diversity present in all epochs of Serbian painting. Also, a family guide for the youngest visitors, specially created for this purpose, is available every day.
Nikola Ivanović, Tijana Palkovljević Bugarski and Maja Gojković
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CONFERENCE
One Year Later: Serbian – American Relations Facing the COVID -19 Challenges
H.E. Anthony Godfrey, Zorana Mihajlović, Ivica Dačić, Vladimir Marinković, Mirsad Djerlek and Robert Čoban
ifficult year is behind us during which we found ourselves in a situation where the same threat knocked on the door of both the rich and the poor. We were all exposed to the same danger, and in such moments there is little that can help except joint fight and solidarity,” said Ivica Dačić, Speaker of the Serbian Parliament at the opening of the conference ONE YEAR LATER: Serbian – American relations facing the COVID -19 challenges“, held on 13th April at the National Assembly. President of Color Press Group, Robert Čoban addressed the guests and said that a year later at this conference will be summarised the relations between the U.S. and Ser-
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H.E. Anthony Godfrey and Vladimir Marinković
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bia in 2021, at a time when it seems that both countries are moving fast with vaccination and the opening of their economies. Speaking about the relations between the U.S.A. and Serbia, Deputy PM Zorana Mihajlović, pointed out that she believed that their further development was possible in areas that have key importance for the future, such as climate change, environmental protection, green energy, but also many others. The U.S. ambassador to Serbia, H.E. Anthony Godfrey, stated that, this year, the two countries are marking the 140th anniversary of the establishment of diplomatic relations and have managed to establish significant cooperation in economy, poli-
tics and culture during that time. The founder of the SAFC Vladimir Marinković assessed that Serbia managed to improve relations with the U.S. at a time when both countries were fighting a difficult battle with the pandemic. Zorana Mihajlović, Deputy PM and Minister of Mining and Energy, Vladimir Marinković, founder of the SAFC, H.E. Anthony Godfrey, the U.S. Ambassador to Serbia, Robert Čoban, President of CPG, Mirsad Djerlek, State Secretary, Steve Stivers, Co-Chair of the Serbian caucus, and Derek Mitchell, President of NDI took part in the conference, which was organized by The Serbian-American Friendship Congress and Color Media Communications.
Vladimir Marinković, Zorana Mihajlović, Robert Čoban, Mirsad Djerlek and H.E. Anthony Godfrey
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CORPORATE
Generali’s Prize Game
CLICK ON ICON
As a lifelong partner of its clients and promoter of the importance of insurance, Generali Osiguranje Serbia is running a prize game called ‘Generali Rewards’ which will last until May 11, 2021
YOUTUBE
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ny person who purchases Generali’s vehicle insurance in the period from February 10th, 2021 to May 11th, 2021 has the opportunity to win some of the valuable prizes.
THE PRIZE FUND INCLUDES: • BMW 520d - first prize • Volkswagen Golf Trendline 1.0 TSI - second prize • 2 cars Renault Megan INTENS Tce 140 - third prize • 4 electric Scooters SUNRA HAWK lion Black • 10 XWAVE E-BIKE bikes • 10 Xiaomi MI ESSENTIAL BLK scooters • 20 computers LAPTOP DELL Vostro 3591 15.6 "i3-1005G1 8GB 256GB SSD 1TB ODD black Win10 Pro
• 20 Samsung A51 4/128 mobile phones • 300 household insurance policies - package B, lasting 12 months • 250 travel insurance policies - individually, 15 days
HOW CAN YOU REGISTER? The registration page is on Generali’s official website www.generali. rs/fizicka_lica/auto_i_putovanja.3432.html After entering your information, you will receive an email confirming that the registration for participation in the prize game was successful. Please note that the information on the insurance policy must match the information on the ID card. Registration can be made no earlier than 24 hours after purchasing the policy.
ABOUT Generali Osiguranje Serbia is the largest insurance company with foreign capital in the domestic insurance market and a leader in life and health insurance. The company operates under the Generali Group, one of the largest global insurance and asset management companies. Founded in 1831, the Generali Group now operates in 50 countries around the world. Its premium income in 2019 amounted to 69.7 billion euro. With almost 72,000 employees and 61 million customers, the Generali Group occupies a leading position in Europe and is becoming increasingly present in Asia and Latin America. Through its regional office in Prague, the Generali Group operates in Austria, Central and Eastern Europe and Russia and is one of the three leading insurers in the region. The Generali Group's ambition is to offer customers innovative solutions tailored to their needs through a developed distribution network and thus become their lifelong partner.
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BUSINESS NEWS
01
EINEKEN LAUNCHES 2030 BREW A H BETTER WORLD AMBITIONS 03
HEINEKEN today announces its 2030 Brew a Better World programme, a new set of ambitious commitments aimed at driving a positive impact on the environment, social sustainability and the responsiblemconsumption of alcohol. As an important part of the company’s EverGreen balanced growth strategy, the 2030 ambitions build on progress made since the Brew a Better World programme was originally launched in 2009. “For over 150 years, we’ve been passionate about making a positive impact on the world around us. We know that we can only thrive if our people, the planet and the communities around us thrive,” said HEINEKEN’s CEO and Chairman of the Executive Board Dolf van den Brink. “Our Brew a Better World vision for 2030 raises the bar and enables faster progress towards a net zero, fairer and healthier world. Our new commitments are woven into the fabric of our balanced growth strategy, EverGreen, putting sustainability and responsibility front and centre as we write our next chapter”.
StarTech, three-year project, supports innovation and technological transformation of the Serbian economy, through the award of grants to micro, small and medium enterprises, entrepreneurs, and startup teams, on the path to the introduction of digitalization and innovative technol-
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IO TINTO: WE ARE OPEN FOR R DISCUSSION
About 80 representatives of the non-governmental sector and the general public attended an open online meeting that Rio Tinto organized with the aim of providing all stakeholders with relevant information about the Jadar project and maintaining an active and open dialogue on issues of public interest. The two-hour meeting focused on the process of obtaining permits for the construction of mines in Serbia, which is the current phase of the project, and the progress of the environmental impact assessment studies including how the public can be involved in the further development of the project. For Rio Tinto, transparency, information and dialogue with all stakeholders on issues of interest throughout the project development process are of great importance. The company has so far organized over 30 meetings with representatives of the local community and the civil sector and will continue with this practice throughout the development process of Project Jadar and beyond.
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TARTECH –SUPPORT FOR S MICRO, SMALL AND MEDIUM BUSINESSES
BRD AND EU SUPPORT E SME COMPETITIVENESS
The European Bank for Reconstruction and Development (EBRD) is providing a €20 million loan to UniCredit Leasing Serbia to support local small and medium-sized enterprises (SMEs) in investing to boost their competitiveness. More than half of the total loan amount will finance investments in green technology and energy efficiency. The loan will give SMEs in Serbia access to finance, enabling them to go be-
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ogies in business. The project worth five million dollars is implemented by NALED, in cooperation with the Government of the Republic of Serbia, provided by Philip Morris International. As part of the first public call, approximately 30 grants ranging from 15,000 USD to 100,000 USD will be awarded in 2021. ‘’In support of the Serbian government on the path towards systemic reforms and transformation of the Serbian economy, the StarTech project provides motivation and financial support to domestic small businesses to keep pace with the world of innovation, while it helps the state to build an ecosystem suitable for attracting new investors and doing business with innovative companies in our country’’, announced Ivan Miletic, Director of Corporate Affairs for the region of Southeast Europe at Philip Morris International. Domestic micro, small and mid-size enterprises, entrepreneurs and startup teams, can apply independently, or in collaboration with universities or research centers, until June 4th. More information: www.startech.org.rs.
yond their day-to-day operations and invest in upgrades with a view to reaching EU standards. SMEs can use the funds to upgrade technology, processes or services, particularly those related to product quality, health and safety and EU environmental requirements. These investments will be channelled through the Western Balkans SME Competitiveness Support Programme, to which the EBRD provides loans and the European Union contributes incentive payments and technical assistance. The programme is implemented in cooperation with the Ministry of Economy of Serbia.
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BIOLOGY AND ETHICS
The Creation of Part-Human, PartMonkey Embryos Will Discomfit Many But the potential benefits outweigh the risks hysics is famous for mind-bending ideas. Subatomic particles can be in many places at once. The flow of time depends on how fast you are moving. But because such ideas are confined to the realm of the invisibly tiny or the inhumanly vast, most people regard them as little more than diverting curiosities. Biology has mind-bending ideas, too. Since they may concern the everyday world of living bodies, their impact is often felt much more viscerally. One example is “chimeras”, organisms which, a bit like the mythological beast, are formed from cells of two distinct species. Scientists have already produced goat-sheep and mouserats. Now a group of American, Chinese and Spanish researchers has reported significant progress in the quest to create chimeras using human cells—in this case, combining them with cells from monkeys to form functioning embryos. It is another example of humanity’s growing power to tinker with the basics of life, a power which makes many people uncomfortable. The work leaves the very idea of a species looking at least a little blurry at the edges. Experiments involving human cells can break deep-seated taboos about human dignity, human exceptionalism and—among the religious—stir up worries about interfering with God’s creation. There are also more practical concerns. The human-monkey embryos were not intended to grow to maturity. But it is right to wonder what might have happened if they had—and what should be done if, or when, someone decides to try. What is the moral and legal status of an organism with one human genome and one non-human one? What effect, if any, might the human cells have on the animal’s brain? Mindful of such worries, many places, including America and Britain, tightly regulate what is allowed. Much of the latest work was done in China. Despite those concerns, the
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ETHICAL DEBATES AROUND CHIMERAS HAVE BEEN GOING ON FOR YEARS, BUT MOSTLY IN SCIENTIFIC JOURNALS AND ACADEMIC CONFERENCES— PLACES WHERE OUTSIDERS RARELY VENTURE potential benefits outweigh the risks. Such research should always be done cautiously, and be properly monitored. But it should also be encouraged, because the rewards it brings could turn out to be significant. Chimeric embryos may offer a way around ethical problems that make experiments on human embryos difficult. That could lead to new treatments for congenital diseases. This particular bit of research was inspired by a desire to grow human organs in the bodies of animals, from where they could eventually be used for transplants. Easing the long-standing worldwide shortage of transplantable organs could save many lives. In America alone, more than 100,000 people are on
transplant waiting-lists. The best way to ensure that such research can proceed is to talk about it with the public, not just among scientists and expert regulators. Ethical debates around chimeras have been going on for years, but mostly in scientific journals and academic conferences—places where outsiders rarely venture. If dramatic demonstrations of this kind of scientific advance take people by surprise they are likely to create a backlash. Scientists should also work to ensure that international rules are harmonised, to the extent that is possible. History offers grounds for optimism. Many biological technologies that were at first de-
cried as reckless meddling with the natural order of things ended up proving much less frightening in practice than they once seemed in theory. In vitro fertilisation was once seen as unnatural; these days it is routine, at least in the rich world. Genetically modified crops provoked street protests and dire warnings about “Frankenfoods”. Billions of meals later, the technology has proved both safe and effective. Ultimately, however, scientists need to convince not just each other but the public, too. From The Economist, published under licence. The original article, in English, can be found on www.economist.com
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INTERVIEW
by Sonja Ćirić
People Who Believe in Ideals "Let the state subsidize advertising of films in the media and put theatres, exhibitions, and concerts on the front pages of newspapers instead of participants in monstrous reality shows - maybe this is an opportunity to beat the reality show virus once and for all" DARKO BAJIĆ Film and theatre director
he television series „The Name of the People“ („Ime Naroda“), directed by Darko Bajić and written by Milovan Vitezović, was recently aired while the eponymous film had its premiere in cinemas late last year. „The Name of the People“ is a biographical/historical drama about Svetozar Miletić, a respected lawyer and lifelong fighter for the rights and independence of Serbs in Austro-Hungarian Vojvodina, as well as one of the key figures in Novi Sad and 19th-century Serbian history. Also, this is the story about his daughter, Milica Tomić, the first journalist in Serbia, and her husband Jaša Tomić, who was Miletić's successor in the Serbian People's Liberal Party, and who declared the annexation of Vojvodina to the Kingdom of Serbia in 1918. Darko Bajić is a film and theatre director, who directed a long list of iconic films including Direktan Prenos, Crni Bombarder, Balkanska Pravila, Rat Uživo, Na Lepom Plavom Dunavu, O Gringo, Bićemo Prvaci Sveta, Linija Života and last but not least, Sivi Dom, a television series that made him famous. As far as his theatrical accomplishments go, he directed the play Klaustrofobična Komedija. Darko Bajić has been a professor of film directing at the Faculty of Dramatic Arts in Belgrade for almost four decades. Ime Naroda is one of the several Serbian historical films that were screened this year. The impression is that the state wants to present itself and its history to the world through a film. Do you agree? — On the eve of the TV premiere, I said that I would be extremely glad that, once the audience finished watching the film, they would contemplate whether they had stopped believing in ideals. We live in a world of hatred, division, perverted values, fabricated lies produced by the media, social networks and public discourse at
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Photo: Marko Rupena
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the global level. There is no vaccine for this kind of "pandemic". The glorification of the values created by money and encouraging mediocrity and its media promotion have upheld a film hero of the new century - a man who has no hope for a better tomorrow, who is devoid of ideals, a loser. Thus a rebel in me made a decision - I will make films about peo-
Bićemo Prvaci about our basketball underdogs who managed to beat the American national basketball team and who made winning world championships and medals a matter of national pride to be followed by the future generations. The film Linija Života is about my brave father, the painter and university professor Miloš Bajić, who survived the monstrous
FOR THE FIRST TIME IN THE 21ST CENTURY, THANKS TO FILM, HUMANITY COULD SEE THE REALISTIC PICTURE OF THE LAST CENTURY ple who believe in ideals. This is how the documentary about the football star Dejan Petković Rambo was made, a Serb and the only European who became the best football player and icon in Brazil thanks to his strength and ideals. After that, I directed a feature film and TV series called
crimes committed by the SS in the Mauthausen concentration camp in the Second World War. The film Ime Naroda about Svetozar Miletić is a continuation of my search for idealistic heroes. Judging by the awards that the film won, including the Audi-
ence Award at the Palić Film Festival, do you think that people are still eager to uphold the aforementioned values? — Yes, that's why I make movies for them about fighters and heroes that they can identify with. During the Serbian-Turkish war, Svetozar Miletić was convicted of high treason in a rigged political trial. It was extremely important that the most prominent political figure in the community of European states, the then Austria-Hungary, should be removed from the political scene, at the time of the first annexation of Bosnia and Herzegovina by the Berlin Congress in 1878, and after the withdrawal of the Turks from Bosnia. The Monarchy had been planning this for a long time and did not want a rebellion among Serbs, the majority of whom lived in Bosnia. That's how it all started and has been going on for centuries.
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Shooting a historical film implies at least two mandatory components - a present view of the past and a faithful presentation of the events that are the film's theme. How did you reconcile these two extremes? — The author talks about his view of the world and thus becomes a witness to the time in which he lives. It is not easy for directors to deal with historical topics in the new age when appetites for various revisions of history have grown. On the one hand, there is the danger of nationalism, so for that not to occur it is recommended to look to the future and not the past. On the other hand, Europe will have to recognize that an important and indisputable part of its own historical heritage lies in Serbian history. Each cut between the two frames is a new challenge for the viewer. The audience's expectations disappear and start again with each new frame. This is why a film director is also a researcher since he is expected to discover hitherto inaccessible truths, but also oppose lies. In the last century, while taking on the idea of Pan-Slavism, Illyrianism and Yugoslavism, Serbia lost its character and personal integrity somewhere along the way and we suddenly woke up and realized that instead of liberating our own and other peoples in the Balkans, after Yugoslavia fell apart, we became occupiers, aggressors, the only culprits and bad guys in the eyes of the world. This is why it suited Europe for the representatives of that nation to be seated in the back at the celebration of the centenary of the Great War in Paris, even though our ancestors, all 1,247,435 of them, a third of the then total population, did not live to see the end of the war in 1914. The Serbian army went to hell and back, fighting alongside the allies, as the only Balkan army. This is one of the important reasons why we need to make films about our history. With today's popular revision of history, who knows in which row we will end up being seated at the next celebration. When filming Ime Naroda, were you weighed down by the fact that many viewers will think of Svetozar Miletić and the time he lived in based on your film and not on historical lessons? — For the first time in the 21st century, thanks to film, humani-
ty could see the realistic picture of the last century. The history that was written during communism in the Socialist Federal Republic of Yugoslavia (SFRY) largely neglected Serbian history, and perhaps that is why our films that frequently cover the life experiences
der equality in the 19th century. — Once I, so to speak, discovered Milica Tomić, the daughter of Svetozar Miletić, while preparing to shoot this very complex film, which begins in the mid-19th century and ends in the second decade of the 20th century, the film
THIS HAS BEEN A DIFFICULT YEAR FOR ALL OF US, WITH SEVERAL FILMS STILL WAITING FOR THEIR PREMIERE
of famous people and their significance for the history of Serbia have become more noticeable. It was a great adventure for me to let my imagination take me back to the 19th century. The uniqueness of your film is that you shed light on Milica Tomić, a rather obscure figure in our history, even though she was one of the first advocates of gen-
took the right direction. I found out that Milica was an exceptional heroine, important not only for Novi Sad but also Europe. You are no stranger to research in your work. In that regard, I would like to single out the documentary Linija Života, as a special type of research, considering that the topic was the life of Miloš Bajić, our great artist and
your father. What do you usually look for when researching? — Miloš said that "human creativity and the trace that leaves in time are the most valuable parts of human civilization." The film showcases my relationship with Miloš, my father and the artist. Miloš Bajić, who was assigned camp number 106621, created his authentic signature in the Mauthausen concentration camp, for fear of being discovered and shot. He drew and hid drawings that thus became a testimony to crimes, but also a warning "that the youth should try to reach the most distant stars, but never go back to that time again." It was there that his painting line was created, which later resulted in him making the first abstract paintings in socialist Yugoslavia and a kind of "a journey into the cosmos" in honour of magnificent life The cinema premiere of Ime Naroda took place at the height of the coronavirus pandemic. And yet, if I'm not mistaken, the viewing figures were quite big. — This has been a difficult year for all of us, with several films still waiting for their premiere. I am confident that they will have excellent viewing figures too because they have been directed by fantastic directors. Since I was a professor to most of them, I can say with conviction that a good film season is ahead of us. With Ime Naroda, we have heroically defended cinema and now it is up to the state and media to provide a concrete stimulus and promote the cinematic life of the movies that come after Ime Naroda. Let the state subsidize advertising of films in the media and put theatres, exhibitions, and concerts on the front pages of newspapers instead of participants in monstrous reality shows - maybe this is an opportunity to beat the reality show virus once and for all. If there is one thing we have learned during quarantine, it is that the abundant film and cultural programmes on TV and online platforms helped us survive isolation and ward off depression. Should I even ask you about your next project or is it implied that you will wait for more stable times? — I am making a new film based on the book by Vladimir Kecmanović called 'Siberia'. Fighters never sleep.
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DIPLOMACY
by Žikica Milošević
The World has Changed Since We Left In each issue Diplomacy & Commerce magazine, among other things, features the members of the diplomatic corps and officials, as well as events in the diplomatic community in Serbia. In this issue, we will show you where former ambassadors to Serbia are working now and what are they doing. Today we are pre-
I
01.
WHAT HAVE YOU BEEN DOING SINCE YOU LEFT BELGRADE?
02.
WHAT DO YOU MISS THE MOST ABOUT SERBIA?
senting the former ambassador of one country, Bosnia and Herzegovina, and an EBRD official. We asked them what they did after leaving Belgrade, what they miss the most about Serbia and how much the pandemic has changed diplomacy and the daily life of a diplomat and an official.
03.
HOW MUCH HAS DIPLOMACY CHANGED IN THE CONDITIONS OF A PANDEMIC AND AS WELL AS THE EVERYDAY LIFE OF YOUR PROFESSION?
Adventurism After Banking!
DANIEL BERG World traveller, board advisor, and consultant for sustainability and strategy
ber 2018 after 3 fantastic 01. years. At the time, I also decided
I left Belgrade in Novem-
to leave EBRD after 25 years for a life of consulting and partial retirement. Pre-pandemic, my plan seemed a success. Early on, I travelled to St Thomas to rebuild houses destroyed by hurricanes a year earlier. Through 2019 and early 2020, I took on interesting consulting assignments in Belgrade, Priština, Tirana, Vienna and even Tajikistan, for both public
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and private institutions. I had moved back to my “American” home of the past 17 years, a holiday house in the Pocono Mountains of Northeast Pennsylvania – about 1.5 hours from NY City. From here, I could reconnect with American friends and family, including my two daughters who were both in university in North America. While this may turn out to be a temporary pause in a wandering life, the Poconos do offer great hiking, biking and boating, and this past year (with more than a meter of snow) even some decent skiing. You are welcome to visit anytime! To “get away” from the Poconos, and suffering a small midlife crisis, I purchased a 5-meter travel trailer and set off on American adventures with my wife and
dog. The first, for nearly 50 days, covered the southeast, from Pennsylvania to Eastern Texas. Returning 9 March 2020, the world had changed, as Covid had arrived on US shores; from then, I was rarely closer than 6 feet from anyone. But, despite the pandemic and restrictions, I was determined to keep developing personal and professional experiences. Professionally, I continued to consult from afar – not as much fun, but still some rewarding opportunities, including on important projects in Serbia. The whole world is now working remotely, so I took this to the next level and set off again in the trailer – this time for 85 days – and crossing the entire USA, to San Francisco and back again. We visited America’s amaz-
ing national and state parks and experienced the diverse geography and culture; we even visited friends and relatives, setting up the trailer in driveways for Covid-safe reunions. 2020 was also the first year I was in the USA for a Presidential election since 1992! And, also the first time I cared so much about the outcome. I am pleased to have played a small part as a party volunteer to ensure that Pennsylvania voted for truth and science and justice. And I am pleased to see the USA normalizing its place in the world. These past couple of years have also seen increased (or renewed) attention to social and environmental issues. The Black Lives Matter movement, the Me Too
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movement and the Green New Deal all have taken root despite (perhaps because of) an administration trying to divide America into "us" and "them" and to undermine science and justice. The country remains divided, but having and worked with so many people involved in these issues, I feel renewed optimism and will continue to advocate for progressive policies both in my personal and professional life. and the Serbian joy of 02. life. Having lived around the Obviously, the people
globe, I can honestly say that Serbia is the place that has the best work-life balance – Serbs work hard, but they also love to enjoy a day off. The music, culture, restaurants, sports and outdoor life are fantastic and Serbs know how to take advantage of them. And, then, when it is time to get to work, a few extra rakijas are
not going to slow you down. My family and I miss Belgrade every day and I am so glad that my consulting work and my friendships keep me in touch with Belgrade and Serbia regularly. Not a day goes by when I don’t hear from a Serbian friend – for work or even better just to say hello.
03.
Well, I have not been able to travel to the Bal-
kans since January 2020 and therefore my work life has changed a lot. I have continued to work on projects which are ongoing in Serbia and around the globe, but it is just not the same when you cannot visit your projects and meet with your friends and work colleagues face to face. I can’t say I miss long-distance travel…but now that I have been vaccinated, I am looking forward to being in the
field at least a few times a year and reconnecting more fully. From a policy perspective, I believe the Pandemic has made humans more aware of the delicate nature of Life on Earth. Already in my first years at EBRD (back in 1995), I advocated for a Greener bank. As I watch my former colleagues now from afar, I am pleased that EBRD is seen as a leader in sustainable lending. And here in the USA, climate change is getting the attention it deserves. Last year, even as Serbia and the Balkans were impacted by Covid, Serbs called upon their leaders to work for a cleaner, greener environment. As we return to more normal work, I am hoping to continue helping Serbia achieve its sustainability objectives, and look forward to working with the government, diplomatic community and local stakeholders. In other words, see you soon!
The Danube was my Sea!
ZORAN PERKOVIĆ oreign Ministry, Bosnia F and Herzegovina
lomatic service in Bel01. grade, in January 2020, I returned
After completing my dip-
to the headquarters of Bosnia and Herzegovina’s Foreign Ministry in Sarajevo, where I was assigned to the position of Minister Adviser in the Multilateral Sector - NATO Department. After the pandemic was officially declared in Bosnia and Herzegovina, together with a colleague from the Ministry, I took
over the leadership of the Crisis Response Team in our Ministry. In that capacity, I was appointed a member of the Protection and Rescue Coordination Team. At the beginning of 2021, I took over the position of Head of the Department for Visa and Passport Affairs at the Foreign Ministry of Bosnia and Herzegovina.
02.
I made a lot of friends in Belgrade. I miss seeing and hanging out with them the most. Due to the proximity of Sarajevo and Belgrade, I wanted to come and see them more often, and then the coronavirus hit our
face-to-face contacts were reduced. My wife and I also miss the walks along the Danube shores at sunset. We lived near the promenade and got into the habit of enjoying those walks almost every night. All this evokes nostalgia and memories of several wonderful years we spent in Belgrade. I think these changes 03. are significant. Overnight, a "diplomatic routine" disappeared. Receptions, celebrations on the occasion of various holidays and events, cultural events, etc. have stopped, basically, everything that enabled infor-
mal gatherings and contacts of diplomats both with the representatives of the receiving country and each other. Formal contacts and meetings have been replaced by online conferences, which in no way can completely replace face-to-face meetings and contacts. We are witnessing a kind of "electronification" of diplomacy. I sincerely hope and believe that these trends are only temporary and that, with the end of the pandemic, diplomatic activities will continue to be carried out in the usual way.
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FOOD PLANET
by Vanja Kovačev
Everything You Always Wanted to Know About Brazilian Food Interview with Monique M. Barbosa, the spouse of H.E. Eduardo Botelho Barbosa, Ambassador of Brazil to Serbia
MONIQUE M. BARBOSA Spouse of Ambassador of Brasil
DC continues to explore the cuisines of the world and in May we “stopped by” Brazil and asked Monique M. Barbosa about the wonders of Brazilian gastronomy. What are the main characteristics of Brazilian cuisine? — Brazilian cuisine is as vibrant and diverse as Brazil itself. Brazil is one of the largest countries in the world and stretches over 4,000 km from North to South, from the Amazon jungle, in the North, to the Pampas, in the deep South. Our cuisine varies considerably from region to region. Brazilian cuisine has been influenced by its indigenous population and by the people
from all over the world, who settled in Brazil over the centuries. Which part of Brazil do you come from? — I come from São Paulo, the largest city in Brazil, with over 12 million inhabitants, which is in the South of country. What are the most known Brazilian meals and sweets from your region? — The most well-known dish from my region is feijoada, which is a hearty stew made with different cuts of pork and black beans. Feijoada is served with rice, collard greens, vinaigrette and farofa (a tapioca flour with bacon bits). Another savory specialty is coxinha (deep-fried chicken cro-
quettes), which are very tasty indeed. In my region, we also love cheese breads (pão de queijo), which are made from cassava flour and cheese from the Minas Gerais region. Other widely popular Brazilian dishes, that nowadays one can find all over country, are: Moqueca is a seafood stew served in a clay pot, which is incredibly popular, especially in the North of Brazil. Moqueca is often served during the Easter season. Barbecued meats (churrasco) are often part of the Brazilian culinary experience. They gave origin to the “churrascaria rodizio”, a formula present in many countries outside Brazil, which allows the client to select meats presented on a skewer. Our favorite dessert is brigadeiros, which are truffles made from sweetened condensed milk. They are often chocolate, coconut or pistachio flavored. We also love quindim, which is a delicious dessert made from egg yolks, sugar, and ground coconut.
What is your favorite Serbian dish and why? — My favorite Serbian dish is pljeksavica with kajmak on the side. We have sampled this dish all over Serbia and it is always delicious. How do you like living in Belgrade? Which regions/cities have you visited, and which is the one you would recommend to your expat friends and why? — We are incredibly happy living in Belgrade and are fortunate that our Residence is in the center of the city and we can walk everywhere. We have travelled all over Serbia and are especially fond of the Fruska Gora region. Our favorite day trip includes a visit to the Krusedol and Grgeteg monasteries followed by lunch beside the Danube in Sremski Karlovci.
RECIPE FOR CHOCOLATE BRIGADEIROS
Do you like to cook and who taught you how to cook? — I enjoy cooking and was taught by my mother. What are the Brazilian meals you prepare in Serbia? — Our Serbian friends love to eat feijoada, accompanied by farofa. We often prepare Brazilian desserts to serve at our diplomatic receptions.
INGREDIENTS FOR 8 SERVINGS • 1 tablespoon butter • 400 grams sweetened condensed milk • 30 grams of cocoa powder • chocolate sprinkles, as needed
PREPARATION • In a pot over low heat, melt the butter, condensed milk, and cocoa powder, stirring continuously until you can see the bottom of the pot for 2-3 seconds when dragging a spatula through. • Pour onto a greased plate, then chill for 1 hour. • Shape and roll the chilled mixture into balls. • Roll the balls in chocolate sprinkles.
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CORPORATE
Contemporary Role of Economic Diplomacy Economic diplomacy refers to protection of national interests in international economic relations Prof. Dr BORIS CIZELJ
∙ Properly monitor and assess credit-worthiness of countries and evaluate business potential of sectors, individual companies and groupings; ∙ Skills to initiate, facilitate and support networking for their country’s companies; ∙ Facilitate or skilfully conduct international negotiations in multicultural contexts; ∙ Skills to effectively represent their country and companies in various bilateral and multilateral communication; ∙ Ability to lobby successfully in multicultural environments, particularly in the countries of their accreditation and in relevant international bodies; ∙ Mastering at least 2 major languages (English obligatory). The European Center for Peace and Development, ECPD in Belgrade – established by the UN University for Peace – created in 2019 a Program for Economic Diplomacy, Lobbying and Negotiations, EDLN and offers specialist, master, doctoral and post-doctoral programs, addressing relevant competencies and skills for current and future economic diplo-
Head, ECPD Economic Diplomacy, Lobbying and Negotiations Program, Belgrade
hat made recently economic diplomacy more important than before? It is primarily: (a) globalisation and increased interdependence among national economies; (b) bigger role of governments in economic processes internally and internationally; (c) intensified international economic regulations; (d) higher involvement of civil society actors in public affairs; and (e) easier cross-border communication thanks to modern ICT. Since early 1970-ies the process of globalisation, and indeed closer interdependence among national economies, have reached the highest level in history: share of global GDP created through exports has increased during 1990 – 2016 from 19.4% to 28.5%, and share of FDIs in global GDP has jumped during 1990 - 2017 from 0.6% to 2.5%. Modern economic diplomats are therefore increasingly involved in: export promotion, attracting incoming and outgoing foreign investment, as well as in migration flows management. Consequently, Ministries engage more “non-diplomats” (particularly with business background), being aware that modern economic diplomats require a whole set of new interdisciplinary knowledge, competences and skills, which are not easy to acquire. This is being addressed by internal diplomatic academies and training centers, but to do it properly remains a major challenge. Only a few universities worldwide are covering these subjects adequately, which makes it difficult for young people interested in following this career – which by its very nature, requires also some practical experience. Which are the most important competencies and skills of modern economic diplomats: ∙ Understanding the entire
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THE MAIN ADVANTAGE OF ECPD IS NOT TO BE RESTRAINED TO ITS OWN ACADEMIC STAFF, BUT RELYING ON AN INTERNATIONAL EXPERT POOL OF OVER 200 GLOBALLY RECOGNIZED SPECIALISTS context and landscape of international trade, knowledge transfer, finance and investment, and recognizing the role of key actors, standards, regulations, and institutions; ∙ Ability to act as promoter of their country’s economic potential and interest for stronger involvement in global economy; ∙Understanding the changed
structure of international business: global competition and strive for excellence, role of innovation and protection of IPR in digital environment, modern protectionism, global value chains, discriminatory business practices, etc. ∙ Capability to identify business opportunities, and facilitate initial communication among potential partners;
mats of all ages. Besides constantly updated programs, the main advantage of ECPD is not to be restrained to its own academic staff, but relying on an international expert pool of over 200 globally recognized specialists with rich practical experience and top academic qualifications – who coach and mentor our students intensely on an individual basis.
ABOUT Prof. Dr. Boris Cizelj studied economics and political science at University of Ljubljana. He is a holder of MSc in Development Studies at Institute of Social Studies, The Hague, and PhD on Regional Integration Processes among Developing Countries at University of Belgrade. He is a former ambassador, professor of Lobbying at DOBA Business School, ECPD and Alma Mater Europaea. He is also the chairman of Knowledge Economy Network, KEN. His recent areas of interest include knowledge economy policies and innovation ecosystem, innovative learning environments, and legitimate interest representation and ethical lobbying strategies.
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INTERVIEW
by Tanja Banković
Reflections from the "Land of the Brave" With the "Reflect" exhibition, the Belgrade-based Museum of African Art built a bridge over seven thousand kilometres long and created space for permanent cultural dialogue, exchange and intertwining of artistic practices of Serbia and Namibia. Neither the pandemic nor geographical distance is an obstacle to improving understanding and cooperation with other peoples and cultures MARIJA ALEKSIĆ Director of the Museum of African Art
he Museum of African Art (MAU) in Belgrade is a unique institution of culture in Southeast Europe. Since its founding (in 1977), at a time when the Non-Aligned Movement and anti-colonialism brought on a new spirit in political, economic and cultural relations between nations, to date, this museum has promoted and popularized the cultural and artistic creativity of African peoples. Just before the pandemic outbreak, the museum’s team had a one-of-a-kind opportunity to travel to the capital Windhoek for a working visit to the National Art Gallery of Namibia (NAGN), which resulted in a memorable experience and an exhibition called "Reflect - Namibia After 30 Years of Independence" This project of exceptional international and inter-institutional significance, which additionally strengthens the decades-long friendly relationship between our two peoples, was initiated by the Honorary Consul of Namibia in Serbia, Vasilije Bošković, and his wife Draga. We have talked with the director of the Museum of African Art, Dr Marija Aleksić, about the exhibition and the museum in general.
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Thanks to the decades-long diplomatic engagement of the Bošković family, Serbia and Namibia have forged unbreakable ties, while the MAU and NAGN established official partnership. How did this collaboration come about? — Namibia, first a German colony, and then under the South-African "mandate", was one of the last African countries to gain freedom which happened in 1990. Our historical ties date back to the time of the struggle for independence and are still very strong and lively in the collective memory of the
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The whole team at the closing of the exhibition
WE BELIEVE THAT WITH THIS EXHIBITION WE HAVE SHOWN THE IMPORTANCE OF OUR MUSEUM AS AN INSTRUMENT IN ACHIEVING THE GOALS OF CULTURAL DIPLOMACY Namibians. The Honorary Consul of Namibia in Serbia, Vasilije Bošković, has been persistently promoting cooperation in the political, diplomatic and economic segments for a long time, but the idea for forging cultural ties came from his wife Draga. Her idea was to include Belgrade in the celebration of the 30th anniversary of Namibia’s independence. Thanks to her perseverance, inexhaustible enthusiasm and energy, we had the privilege to travel to the "Land of the Brave" and then stage the first exhibition of contemporary Namibian art in Serbia. The days spent in Windhoek and Draga’s warm personality and hospitality, as well as her insatiable desire to contribute to Serbia and Namibia - two distant and friendly countries and cultures that have a big heart and a lively predisposition -
getting to know each other better and drawing closer to each other will always remain one of our fondest memories. The "Reflect - Namibia After 30 Years of Independence" exhibition was the reason for your stay in Windhoek. What are your impressions of this country in South Africa? — The uniqueness of this exhibition is reflected in the way it was staged – it showcases the artwork of contemporary Namibian artists which they created following a joint invitation by the MAU and NAGN, a pioneering experience in our practice so far. We selected the artwork when we arrived and as a result of the cooperation with colleagues from the NAGN. The curators of MAU and NAGN, Ana Knežević, Ndeenda Shivute
and Desiree Dibasen Nanuses, are the authors of the exhibition’s concept and the accompanying catalogue. The historical context, Namibia’s present, as well as the thoughts, fears and hopes of not only artists but also ordinary people about the country’s future, would certainly be far less clear to us if a two-week study visit did not take place, during which we had the opportunity to visit the most important cultural institutions in the country - numerous galleries, museums and cultural centres and meet some of the artists whose work was exhibited (Erik Schnack, Alfeus Mvula, Barbara Piron, Michelle Isaak, Frans Nambinga, Kabelo Kim Moodise and others), but also to experience a part of Namibian everyday life by walking around the city streets.
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We will remember the visit to Spitzkoppe and its grandiose granite rocks which preserved the prehistoric drawings of the San people. Then there were the sand dunes of the Namibian Desert the oldest desert in the world, exploring Swakopmund, its museums and unique architecture, a visit to Katutura, a Windhoek suburb where the vitality of Namibian multiculturalism, but also the brutality of Namibian history were shown to us in their entirety, etc. In addition to this memorable experience, our visit was marked by an intensive exchange of knowledge and joint activities with the NAGN team – we had a creative workshop with students from Windhoek schools, which resulted in the walls in front of the Gallery being permanently decorated with murals bearing the inscription "Museum of African Art, Belgrade". We also got to present our museum’s activities in front of a large and engaged audience and had a meeting with the conservators of the National Museum of Namibia, which further enriched our knowledge of the distinct characteristics of the materials originating from the African continent and ways to protect them. During your stay in Windhoek while you were preparing the exhibition, did your team have important meetings that laid the foundations for future collaborations? — Given the legacy of the NonAligned Movement and friendship with African peoples that our museum carefully nurtures, interest in the MAU, as the only an-
ments and words addressed in the letter of gratitude are extremely encouraging, but also oblige us to continue to work on strengthening and nurturing our cooperation and unity of our peoples.
Prehistoric images of the San people on the rocks of Spitzkoppe
OUR HISTORICAL TIES DATE BACK TO THE TIME OF THE STRUGGLE FOR INDEPENDENCE AND ARE STILL VERY STRONG AND LIVELY IN THE COLLECTIVE MEMORY OF THE NAMIBIANS ti-colonial museum of African art in Europe, has not waned at any point or place. The Speaker of the Namibian Parliament, Peter Katjavivi, with whom we had a very cordial meeting at which he expressed his very fond memories of his previous visits to Belgrade, gave his support to the implementation of this project. We also had meetings with the Executive Director of the Ministry of Education, Arts and Culture, Ervast Mtota, and the advisor, M'kariko Amagulu. We owe a lot of gratitude to Snobia Kaputu, the director of the NAGN and the great
team of the institution she helms, for the organization and realization of this visit, which yielded numerous and immeasurable benefits for our museum. Last but not least, and as the peak of this cooperation, just before their recent return to Belgrade, Vasilije and Draga Bošković had the opportunity to personally give the exhibition catalogues and accompanying materials to two former Namibian presidents - the legendary Sam Nujoma, the first president and "father of the Namibian nation", and his successor, President Pohamba. Their com-
This past year, despite the obstacles caused by the Covid-19 pandemic, was marked by successful cooperation that demonstrated that the MAU realized an important cultural and diplomatic mission. Will your plans be on the trail of previous experiences? — We believe that with this exhibition we have shown the importance of our museum as an instrument in achieving the goals of cultural diplomacy. These two branches, perhaps not so close, can and must work together to, on the one hand, contribute to the promotion of national culture and identity and improving the country’s image, but also facilitate better understanding and knowledge of cultures, customs and arts of other nations and countries. This will pave the road to other economic and political activities and exchanges. The pandemic may have slowed us down somewhat, but it did not stop us from achieving our goals. We are glad that this concept of cooperation was well received by both the audience and the media, but some new ideas for future projects have crystallized. We are currently preparing an online conference dedicated to contemporary African art during the pandemic, and we have established cooperation with similar cultural institutions in Angola, initiated by H.E. Miloš Perišić, the Serbian Ambassador to Luanda.
Draga Bošković, Sam Nujoma, First President of Namibia and Vasilije Bošković, Honorary Consul Vasilije Bošković, Marija Aleksić and Draga Bošković of Namibia
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REPORTAGE
by Robert Čoban
When the Sirens Went Silent The demographic and architectural history of Bor, as well as the vision of its future, were also the inspiration for the work that will represent Serbia at the 17th Venice Architecture Biennale in 2021, which theme is "How will we live together?", curated by Hashim Sarkis unčica Dimitrijević, Edvard Ernek, Xu Rui and Aneta Mirković Makulović are just some of the top nominees for the 2018 Best Individual Award, as featured on a large billboard put up by the Chinese company Zijin in front of the mine’s office building. Zijin acquired Mining and Smelting Basin Bor (RTB) in 2018. The names on the billboard speak of the dramatic demographic history of this mining place, which attracted the Czechs, Germans, Slovenes, Croats, Albanians, Belarusians and, as of three years ago, Chinese. The demographic and architectural history of Bor, as well as the vision of its future, were also the inspiration for the work that will represent Serbia at the 17th Venice Architecture Biennale in 2021, which theme is "How will we live together?", curated by Hashim Sarkis. The work of art titled "Eighth Kilometre: Survey Competition" was created by a group of authors - Iva Bekić (the group’s representative), Irena Gajić, Dalia Dukanac, Stefan Djordjević, Snežana Zlatković, Mirjana Ješić, Hristina Stojanović and Petar Cigić. The exhibition commissioner Slobodan Jović, the authors Iva Bekić and Stefan Djordjević and I came to Bor last week to better understand the possibility for the national and international promotion of this fascinating project before the opening of the Venice Architecture Biennale on May 22. I was working on my laptop in the back seat of the car and looked up when we were passing Donja Mutnica, after getting off the motorway near Paraćin. When we left Belgrade it was beautiful spring weather, yet when we arrived in this part of the country everything around us was covered in snow. Climate change and terrain configuration heralded future "surprises". At the entrance to Bor, from the direction of Šarbanovci, on a pedestrian island between two roads, a huge mining truck called dumper, produced by the American manufacturer, Euclid,
The French Society of Bor Mines built a church dedicated to the Holy Martyr George in 1912 for the miners of Orthodox faith. It was smaller in size and due to the expansion of mining operations, it was relocated in 1937 to the village of Brestovac, not far from Bor. The new Orthodox Church of St. George in Bor was also built by the French Society of Bor Mines in 1939 and designed by Andrei Klepinin, a Russian emigrant. Representatives of the French Society of Bor Mines, i.e. its director, Emile Pialat, were the founders of this church. Andrei Klepinin was not the only White Russian who found his happiness in Bor. Speaking through an anti-covid mask, Suzana tells us that many Russian emigrants came here between the two wars, most of them were older men who left behind their wives in Russia. They were not allowed to break the rules of their Orthodox faith, so they converted to Islam en masse so they could marry local girls.
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A CURSORY GLANCE GIVES THE IMPRESSION THAT THE CORONAVIRUS EPIDEMIC TOOK MORE LIVES IN BOR THAN TURKISH, BULGARIAN AND GERMAN BAYONETS AND BULLETS COMBINED was parked. The dump truck has a load capacity of 170 and a net weight of 105 tonnes. People in Bor gave this exhibit a nickname – Gulliver - because its height and width exceed 12 metres, the tire diameter is 3 metres, while the fuel and oil tank can take 3,200 and 650 litres respectively. We arrive in front of the Mining and Metallurgy Museum in the centre of Bor. The Museum’s façade, built in the socialist realist style and also houses the National Library, bears the following inscription: "This building is dedicated to those people who gave their lives for the revolution." Suzana Mijić from the Museum’s Ethnological Department shows us an anode cast made from Bor’s copper in 1961 by Josip Broz Tito, who, although visited the town only on three occasions, was and
remains the favourite historical figure of the Bor locals. An exhibition of photographs from Bor’s history, which testifies not only to the history of the mine but also to the social life of miners, is staged in front of the Museum. Among the photos is the one depicting a race that took place in the 1950s with locals keenly watching a barefooted boy running through the town streets. There is also a photo of the May Day celebration with a closeup of a father and son playing chess, closely observed by street hustlers. Since the Museum is undergoing reconstruction, Suzana shows us the photos from an earlier exhibition in the part hidden by the screen. A small church that used to in Bor, but was later relocated, piques our interest.
ONLY ‘FERDINAND’ REMAINS According to the last census from 2011, Vlachs make up 14% of the population of the town of Bor. There are also between 9 and 13 villages near Bor with a Vlach majority. The Vlach burial customs and their practice of black magic are widely known, but few people had the opportunity to see Vlach weddings which features "Govija Mika" (the Fake Bride), usually played by a ten-year-old girl. If a census were to take place this year, it will show that the town, in addition to the nations listed at the beginning of the articles, is also home to hundreds of Chinese, if they are going to be included in the census at all. Members of the Muslim faith in Bor have their own house of prayer, but they are not allowed
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to build minarets. Catholics gather in the Church of St. Ljudevit, which was built in 1928, and since most of the believers at that time were French, it is not surprising that the first priest was the French assumptionist, Privat Bellard. After the Museum, we went for a walk around the town, wanting to get to the edge of the old surface mine. We pass a large empty billboard. I cross the road to photograph the obituaries posted on a large board next to the monument to the victims of the 1912-1918 wars. A cursory glance gives the impression that the coronavirus epidemic took more lives in Bor than Turkish, Bulgarian and German bayonets and bullets combined. The only billboard in the town that is not empty is located right above the Petković Mile Milan Law Firm. It’s partially torn but we can discern that it says “A Happy New Year and Merry Christmas 2021 from the Bor public enterprises and administration”. Somewhat further down the road is the building that used to house the bankrupt Belgrade Department Stores, which is now divided into smaller shops. Across from it, on the dilapidated fa-
cade of a once beautiful modernist building, there is an inscription "Prenoćište Srbija". The lights were turned off a long time ago in this "inn", as the locals call it. From the main street named after Djordje Weifert, the initiator of mining in this area, we turn to the side, onto Djura Djaković Street, where the Zvezda cinema occupies the building from 1961. In the deserted hall next to the museum exhibit of the old cine-
has 622 seats and a screen measuring 16x7.5 metres). I asked the cleaning lady if the cinema is getting ready for re-opening. "Since October 23rd last year, when the state of emergency was declared in the municipality, no films or plays have been shown and staged here. We are now preparing this for the session of the Bor Assembly which is tomorrow." It is held in this giant hall in line with the current epidemiological measures.
their clocks according to the siren throughout the 20th century, and after the bombing in 1999, the siren was silenced because it reminded locals of the unpleasant events that had just transpired. In 2009, this tradition was renewed following the initiative of the locals, but the Chinese, the new owners of the mine, stopped it again two years ago. We pass by the new office building of the Zijin Company.
MOTHER GAVE BIRTH TO SEVEN SONS AND ONE DAUGHTER. THOSE WHO DIED WERE BURIED SOMEWHERE FAR AWAY - FRANCE, THE USA, BELGRADE... ma projector, the only thing we can see is the advertisement for the cartoon "Ferdinand" which reminds us that films used to be screened here. One of my Facebook friends commented the following on the related post:” "After FEST, the Zvezda cinema in Bor was the next stop where the newest films were screened. We used to come from Zaječar, in the middle of the winter, to watch the best domestic and foreign movies.” Those days are long gone. I was slightly confused by the hum of the vacuum cleaner in the huge cinema hall (it
URBAN LEGENDS Apart from billboards and plays, there is one more thing that people in Bor are missing - the traditional mining siren is no longer heard. It used to sound off five times a day for almost a century. It served as an ‘alarm clock’, going off at 06.00, followed by 06.45, then at 07.00 which announced the beginning of the first shift in the mine, followed by 15.00 one, marking the beginning of the second shift and the last, heralding the beginning of the third shift at 23.00. People from Bor set
I look at the names of awarded workers from the beginning of the story. We did not find out whether, in 2019, the first year after the Chinese acquired the mine, the rewards stopped, or the pandemic did its thing. We cannot help but notice that the entrance to the Zijin headquarters is modestly decorated, like a Chinese restaurant in Novi Beograd. Even more inconspicuous is the red-and-yellow paper sign with an inscription in Chinese, hung on the lavish gate of the old entrance to the F.D.B.R. (the French Society of Bor Mines)
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which was erected by the French. We also come across dilapidated houses, each resembling the next, which the French built for miners (I saw similar ones in Beočin, built for cement workers, and in Vrdnik for local miners). A special type of house was built for single miners and was different to those for miners with families. I had the same impression I got in Beočin and Vrdnik - pre-war "capitalist exploiters" paid more attention to the stylistic and aesthetic moment of living of their workers than many modern tycoons cared about the aesthetics of their villas, worth millions of euro. We come to the end of Djordje Weifert Street and to “the end of the world”. This is the abyss, or "the journey to the centre of the Earth", as in the novel by Jules Verne or the song by Djordje Balašević. At the very edge of the abyss, there is mud covered with rubbish, and behind an old mine abandoned almost a decade ago with the mine floors and a tailings dump, there is a large hill created as a result of the exploitation of the Veliki Krivelj surface mine. To the right of this unofficial lookout, where we cleaned our muddy shoes on the remaining piles of snow, there are buildings built by Zijin, surrounded by a high wall with barbed wire. In Zrenjanin, stories are circulating about how another Chinese company, Linglong, employs convicts to build its production plant in exchange for reduced sentences, with two of them sleeping in the same bed because their shifts last 12 hours. Similar "urban legends" are retold in Bor, but there is no official confirmation. As our hosts tell me, the locals generally live in peace with the Chinese because they are aware that despite all the
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THE ONLY BILLBOARD IN THE TOWN THAT IS NOT EMPTY IS LOCATED RIGHT ABOVE THE PETKOVIĆ MILE MILAN LAW FIRM objections they have, if it weren't for them, the situation would be even worse and the mine would probably close.
CHRONICLE OF THE BOR CEMETERY Next, we drive to Vidikovac, one of the biggest tourist attractions in Bor. There is no mud here. The road is made of stone gravel
which leads to a large canopy surface from which you can see the huge abyss of the old mine, which is now largely filled with tailings. It is interesting to note that in 2010, two domestic feature films were made which story takes place in Bor. Tilva Roš, the debut film of screenwriter and director Nikola Ležaić, won the best feature film award "Heart of Sarajevo"
at the Sarajevo Film Festival that year. The film "Beli, Beli Svet", directed by Oleg Novković and written by Milena Marković, was also shot in 2010. At the Locarno Film Festival, Jasna Djuričić won the Silver Leopard for the role of Ružica. I recommend watching both films to better understand the atmosphere of this mining town waiting for a new Truman Capote or Jo Nesbo to make it the central location in their books. As we were leaving to go to the Ćira restaurant, where we will reflect on our impressions of Bor with plum brandy, aspic and roasted veal liver, I saw an old Orthodox cemetery and asked my companions to wait for me for a few minutes. I went down to the mounds, some of which look like ancient tombstones and are hundreds of years old. On average, every tenth grave is taken care of. It looks like abandoned German and Jewish cemeteries in Vojvodina, where members of the nations who had disappeared from this area are buried. But Serbs still live in Bor! Where are the descendants of these people? The answer to the question is written on the back of a headstone. I see a bunch of names, all members of one family: "Mirko 1939-2006 (France); Milinko 19401995 (the USA); Milosav 1942-2014; Mašan 1945-1999 (Belgrade), Milivoje 1948-20. .; Miodrag 1949-2015; Milica 1952-20...; Milan 1956-20... " Mother gave birth to seven sons and one daughter. Those who died were buried somewhere far away - France, the USA, Belgrade... It is highly likely that the children and grandchildren of those who are still alive no longer live in Bor. If the census takes place this year, the statistics will certainly reflect what I saw in the Bor cemetery and on the town streets.
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TRAVELOGUE
by Vanja Kovačev
It is SAFE with a capital S to travel to Turkey! I am sure that while you read these lines you agree with me that we all need a break from 2020 sad, non-travel, stay at home routine. Flash news - It is possible to enjoy holidays in Turkey just like before, perhaps even better, safer o travel or not – that is the question now. Travel! Do not feel the guilt – you are only human. So turn your ships towards East and allow Turkey to pamper you with luxuriate and whisper to you the ancient stories that smell like carnation and taste like kadayif. Rich in flavour and with an opulent scent this holiday destination has everything your heart desires. My father says: “Vanja, it is the call of the Orient, you can't resist it! - Yes, it was always calling me. We are all called by it. Because of the oriental mystique, exotic and diversity. In case of people from Balkan, it is definitely because of the history and trans centurial connection and mixed emotions about being “under” the Ottoman empire for 500 years. Orient rings with a special cling in our inner dome of our Balkan souls. When you decide to explore Turkey in April like me, you can experience everything from half a meter snow in Cappadocia - the country of fairy chimneys, volcanic ash chiselled caves, underground cities, and hot air balloons to the beautiful Sun&Sea feeling in Antalya and Alanya. Plus prices are very good, and holiday Meccas are not overcrowded - Pure enjoyment!
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CAPPADOCIA- THE LAND OF THE BEAUTIFUL HORSES Like an EXPO of mother nature’s geomorphological artwork Cappadocia is breath-taking, so different from everything an average European has seen, packed with so many stories about the past times, the cradle of civilization - Mesopotamia. The tales of the ancient Hittite people and their crafts become alive when Erkan Akburak from the Venessa Seramik in the Cappadocian city of Avanos showed me the Sun worshiping wine jug and other almost magical handmade ceramic artistic creations with the typical motifs of the tree of life, tulips and carnations on the turquoise or dark blue and white painted surface. A walk in the openair museum in the Göreme valley is a must see with its Dark and Amazing Blue or Buckle (Toka-
Epic view over the Cappadocia valley decorated with as many as 300 balloons floating gently up in the air
li) Church with frescoes dating to early 9th and 10th century. These churches tell tales of the first monastic practice established here. The view from the Pigeon valley to the Uçhisar castle is still in front of my eyes couple weeks after the journey. I loved the matchless towns like Nevşehir, Avanos, Göreme and Ürgüp and its Cave hotel Kayakapi – the first boutique hotel in Cappadocia licenced by the Ministry of Tourism. The hotel looks surreal - chiselled in stone i.e. volcanic ash. It provides one with unique cave stay experience that hides comfort of a mini private hammam, bathrooms with heated floors and comfortable beds that enchant you and take to the land of Cappadocia dreams. All cafes and restaurants are also
“tucked in” caves with wide terraces that provide epic views over the Cappadocia valley decorated with as many as 300 balloons floating gently up in the air. One of restaurants is in an 800-yearold cave – Freco cave where food tastes amazing because of the unique experience in this Moon surface looking like region. All Cappadocian hotels that used to be shelters from invaders are now equipped with Wi-Fi, TV sets and other modern world amenities that make your stay in Cappadocia so comfortable while you walk its ancient roads. Riding horses through the hills and valleys of Cappadocia is a great way to finish a day full of adventures. One of the must visits in Cappadocia is also the underground city of Kaymak-
The view from the Pigeon valley to the Uçhisar castle
li opened to visitors in 1964, consisting of 8 floors below ground - 4 of them are open to the public. On the road from Cappadocia to the Mediterranean Sea some 550 kilometres distance, you will cross the amazing Taurus Mountains - a mountain complex in southern Turkey, separating the Mediterranean coastal region from the central Anatolian Plateau. The journey on Konya and Aksaray road takes you also to the famous Sultan Hani Caravanserai, the biggest masterpieces in Seljuk period and one of the largest caravanserais in the world. This ancient popular stop on the Silk road offered free lodging with a food and freshwater fee for ancient traders and their camels. Once you have left the snow behind you, Antalya and its amazing seashores welcome you with the touch of the gentle Mediterranean breeze and sun that is tenderly cuddling your skin and inviting you to relax in one of hundreds of hotels of Antalya, Alanya, Belek and Side beach towns that decorate the sea cost of this holiday paradise like pearl necklace. The Turks truly deliver the safe travels promise, so what are you waiting for - pack your bags and @goturkiye. This story continues - read more about Turkey on www.diplomacyandcommerce.rs in DC travelogues by Vanja K.
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CULTURE NEWS
by Vanja Kovačev
KOLARAC
Programme
Sunday, 9th at 11.00 Concert Hall BELGRADE'S PROM CONCERTS Memorial dedicated to Živan Šarčević French Music for winds and piano The Belgrade Philharmonic Wind Quintet
Sunday, 9th at 19.00 Concert Hall CHOIR FENEČKI BISERI
Wednesday, 19th at 19.00 Concert Hall STUDENTS OF THE FACULTY OF MUSIC BELGRADE The Vocal Studies Department
Thursday, 20th at 19.00 Concert Hall NEDA NIKOLIĆ, pipe
Saturday, 15th at 19.00 Concert Hall BELGRADE SOUL SEXTET
Saturday, 22nd at 16.00 Music Gallery INTERNATIONAL CENTRE FOR MUSICAL ARTS „EVA“
Sunday, 16th at 11.00 Concert Hall BELGRADE`S PROM CONCERTS/ TRIO ARATOS
Saturday, 22nd at Concert Hall KAROL BEFFA/The French
Katarina Popović, violin Mihailo Samoran, clarinet Vanja Šćepanović, piano Programme: A Khachaturian, I. Stravinsky
Sunday, 16th at 19.00 Concert Hall ALEXANDER SINCUHUK,
piano Programme: Chopin, S. Božić
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Annual Concert
composer and pianist Production: French Institute & CEBEF
Sunday, 23rd at 11.00 Concert Hall BELGRADE`S PROM CONCERTS FAMILY UHDE’S CONCERT Michael, piano, Katharina, violin Gabriel, viola, Sanja, cello
Sunday, 23rd at 19.00 Concert Hall KOLARAC YOUR MUSIC WORLD Belgrade Early Music Festival Production: Music Centre
Saturday, 29th at 11.00 Concert Hall SMALL SCHOOL OF BONTON – How to Listen to the Concert Music Workshop Magic Flute Host: Miloš Milovanović Production: Music Centre
Saturday, 29th at 20.00 Concert Hall CONCERT/STUDENTS OF THE FACULTY OF MUSIC BELGRADE Poly-Instrumental Department Production: Music Centre
Sunday, 30th at 11.00 Concert Hall BELGRADE`S PROM CONCERTS/ MUSIC FOR VOICE AND STRINGS Zemun Chamber Orchestra Jana Milišić Križak, sopran Production: Music Centre
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