Diplomacy&Commerce
The National Day of
Norway
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04 01
FJORDS RULE
Norway is the European country (Russia excluded) with the longest coastline - 53,199 km Paal Audestad www.fjordtours.com
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NO SUN, MANY BOOKS
As of 2011, 37% of Norwegians have completed postsecondary education, making them the best educated people in Europe.
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05 RICH AND MODEST
Norway is the country with the highest nominal GDP per capita after Luxembourg, approximately 100,000 US$ per person
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STATE IS THE KING
Norway is one of the few countries that still practices state capitalism. State-owned companies represented over 30% of the Oslo stockmarket.
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SPORTY SPICES, ALL OF THEM
Norway has won more Winter Olympic medals than any other country on Earth, with a grand total of 303 medals
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I NTE RV IEW
Making a
DIFFERENCE Arne Sannes Bjørnstad Norwegian Ambassador to Serbia
Norway supports Serbia continuously in the establishing of an efficient and professional public administration, as one of the key elements in the success of overall reforms. This is just one of many examples of successful bilateral relations between the two countries
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lthough Norway’s domestic economy was hit hard by falling oil prices, the country will continue to provide help and assistance to those countries where the needs are the greatest and where Norway is particularly well placed to make a difference. In the case of Serbia, Norway is focused, among other things, on continuous support to the reform of the Serbian public administration, but it is also active in helping Serbia deal with refugees and in supporting mutual trade. In this interview for D&C, Arne Sannes Bjørnstad, Norwegian Ambassador to Serbia, talks about these and many other topics related to bilateral cooperation between the two countries.
ian aid in the budget for 2016 more than compensates for this fall in the value of our currency. We do, however, need to be more efficient, and Norwegian humanitarian efforts are focused on countries where the needs are the greatest and where Norway is particularly well placed to make a difference.
To what extent could the first ship from Serbia ordered by a Norwegian buyer be considered a symbolic sign that Serbian companies are managing to find new niches in economic cooperation with Norway?
How far do you think we have progressed along the road to securing a systemic solution to the migrant crisis? — Serbia has shown a high level of humanity and commitment to European values in dealing with the refugee/migrant crisis. We have also seen good cooperation between NGOs and the government in dealing with this challenge. As many as 651,000 migrants entered Serbia in 2015, and 100,000 more have arrived since the beginning of this year. They were all registered and provided with accommodation, healthcare services and protection. However, with the closure of the so-called Balkan route on 8th March, the refugee/migrants crisis has merely been postponed, but not resolved. This means that in the future governments should develop mechanisms in an effort to create societies with more tolerance.
You recently signed a new agreement with the Serbian government on assistance in training for public administration personnel. What are the key objectives of this new programme and how reliant is it on previous Norwegian support programmes? — Norway has for years supported the establishment of an efficient and professional public administration in Serbia through different projects. The most recent project is Delivery of
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Will the change in Norway’s economic policy, prompted by oil prices, influence the volume of donor support in the region, and what will be Norway’s priorities in this context? — With oil prices now a third of what they were just two years ago, the Norwegian economy is facing a difficult
Recent examples of successful business endeavours prove that SerbianNorwegian economic cooperation is growing slowly but surely
As a major donor to the Western Balkan countries in their response to the migrant crisis, what do you now consider as being the priorities of Serbia’s policy in this area? — This calm period should be used to improve the laws and standards on asylum and foreigners, as well as implementing programmes for the integration of those refugees who will stay in Serbia. This will require cooperation among different sectors. Our grantee, Group 484, is already working on improving the quality of assistance and developing a wider scope of assistance and protection activities.
and elsewhere – fail because the mentality of those involved remains the same as before, as does their approach to their tasks.
Change, which enabled the Ministry of Public Administration and Local Self Government to change its organisation after conducting a thorough analysis. When driving forces for reform come from within institutions, reforms are more flexible and more sustainable. Training is fundamental, because so many reforms – in Norway
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time. More than 30,000 oil related jobs have been lost since prices started dropping. Due to the fall in the price of oil and gas, the Norwegian Krone has lost a quarter of its value against the euro over the past two years. Despite this, Norway will continue to provide help and assistance to those in need. In fact, the increase in total humanitar-
— The photo from the handover ceremony with the Norwegian and Serbian flags on the vessel hit the media in April. Previously, we also saw Serbian companies making prefabricated houses for Norwegians, as well as parts for the world-famous Norwegian Stokke chairs, and Serbian honey on the Norwegian breakfast table. All this proves that Serbian-Norwegian economic cooperation is growing, slowly but surely. This proves that there is huge potential that has yet to be exploited. The Embassy, from its side, is investing its efforts to further develop these relations.
In the current media reform in Serbia, what lessons could be drawn from the Norwegian approach to preserving democracy through state subsidies for the free press? — A free press plays a vital role in democratic societies. A monopoly in the press potentially leads to a monopolising of opinions. Therefore, Norway has developed a press support system to ensure the diversity of voices in the public sphere. The Norwegian media market was undergoing rapid change in the 1960s, benefitting from the larger newspapers to the detriment of smaller, usually local or “alternative” papers. This gave rise to Direct Press Support. Almost 40 million euros in support is now distributed according to set criteria. The subsidies are divided mainly between two groups of newspapers; those that are the biggest or the only paper in a local municipality with a small edition, and those that are the second largest in their municipality, independent of size. In addition to support provided directly, the Norwegian press are also exempt from sales tax.
I NTE RV IEW
Leading Means
CONTINUOUSLY INNOVATING
In the last ten years Telenor has invested a total of two billion euros and showed how much it believes in the potential of the Serbian market. The company continues to work on creating better opportunities for everyone, while digitising Serbian society and being a reliable partner of the Republic of Serbia
Ingeborg Øfsthus Telenor Serbia CEO
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ngeborg Øfsthus, the new CEO of Telenor Serbia, has been with Telenor since 1998 and has amassed international experience in Germany, Thailand, Norway and Serbia, which enabled her to really get to know the company intimately. “Of course, cultural differences are huge, but what I also learnt is that people are truly the same,” says Øfsthus. “They are engaged and involved, passionate and skilled, and that is the main precondition for successful operations”. In this interview the Telenor CEO speaks about the company’s goals and ongoing projects in Serbia.
What targets have you set for yourself as the CEO of Telenor, and how much does the knowledge you’ve gained within the organisation help when it comes to overviewing business priorities? — In the last 3.5 years, my family and I have settled in Belgrade, which was driven by my job opportunity as CTO, and it has made it possible for me to truly get to know the organisation. What I see as an advantage is that during that time we have worked on IT as an enabler for business. We made quite a way, brought the customer into the focus of our digital positioning, became the first operator to provide our customers with 4G mobile internet and invested into the new spectrum in order to continue with the network expansion. After we covered the whole population of Serbia with fast 3G mobile internet, there is a mobile phone signal everywhere and we are continuing to expand our network in order to ensure a consistent superior customer experience. We are going to invest more than 40 million euros in Serbia and that is mostly intended for expansion of the 4G network, which will ensure we cover 50 per cent of the population of Serbia.
What will be Telenor’s key sources of revenue in the coming period, considering the continued strong macroeconomic constraints in the country? — Telenor is the biggest single foreign investor in Serbia and this year we are celebrating the 10th anniversary of our
to note that when it comes to penetration and access to the most advanced services and the internet, we are, to a great extent, on an equal footing with developed markets, and selling handsets is not an exception. But we have gone a step further and used the potential driven from the synergy of telecommunications and financial services in our joint offer. That is how we became the first operator in Serbia to introduce flexible post-paid contracts. That enabled our customers to purchase a mobile phone at any time, via the Telenor Banka device loan, in interest-free instalments. With this type of flexible contract, Telenor is trying to meet the needs of its customers who follow the trends and need to change mobile phones frequently.
operations here. During that time, Telenor invested a total of two billion euros and showed how much it believes in the potential of the Serbian market. Going forward, we continue to provide the best network experience by providing a quality network that can ensure seamless use of digital services for all. We also established Telenor Banka in 2014, the first mobile online bank in the region, which has over 150,000 opened accounts. Then we entered the
business, improve lives and contribute to the development of societies. In order to be the leader and to keep that position, we need to be very innovative. And there everything comes back to the customer: what does the customer need? The world in 2020 will look radically different to what it looks like today. This “future” customer is what drives our business the most. As a leader of innovation, we were the first who used the synergy of
After we covered the whole population of Serbia with fast 3G mobile internet, we are going to invest more than 40 million euros for expansion of the 4G network, which will ensure we cover 50 per cent of the population Quad play game this year, thanks to partnership with SBB, and together we offer joint benefits for customers of mobile and fixed telephony. Moreover, the fixed telephony we offer our business customers is also increasing.
telco and banking and completely changed the banking sector in Serbia. We will continue to be at the forefront of all innovations, not just in the pure telco sector, but also through synergies with other sectors.
What does it mean to you to maintain a leading position on the market and which segment of customers are you targeting in particular?
How much is financial support for users in the procurement of devices an important factor for attracting users?
— Maintaining a leading position on the market means enabling people to drive
— When it comes to the Serbian mobile telephony market, it’s important
How does Telenor contribute to children’s online safety? — As a telecommunications company, we enable millions of people to be connected and therefore feel the obligation to make our services safe, especially when it comes to our youngest users. One example of our involvement includes the “Stop digital bullying” campaign that Telenor, UNICEF and the Ministry of Education implemented in 2013, in cooperation with schools and young people from Serbia. This four-year project involved more than 10,000 children and 4,000 teachers directly, while the Facebook page devoted to the project received more than 15,000 likes. In 2015 we created the Facebook app - SOS platform to help victims of digital bullying. This is a unique channel that enables victims and witnesses of bullying to report incidents and receive the necessary expert help online. We also organised a Cyber Dictionary, which is an educational and entertaining event on safe internet for 4,000 primary school kids, which took place at the Sava Centre this March. Telenor Serbia received an award and recognition from the American Chamber of Commerce for its long-term contribution to the development of society within the strategic initiative ‘Internet for All’ and its commitment to make the internet a safer place.
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SE RBIA N-NORW EGIA N T R A DE
Slow but
STEADY PROGRESS Norway is ranked second in terms of the value of foreign direct investments in Serbia, at €1.36 billion, thanks primarily to the investments of company Telenor. Every step Serbia makes towards membership in the European Union provides an additional incentive for Norwegian businesses to look into possible investments in Serbia
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verall trade between Norway and Serbia is stable. Serbian exports grew slightly in 2015, while Norwegian exports posted better results than in 2014. According to preliminary data from Norway’s Statistical Office, Serbia’s export to Norway reached a value of NOK 206 million (about €22 million) in 2015, while Norwegian exports to Serbia were worth around NOK 168 million (about €17.9 million). These results are slightly better on the Serbian side compared to 2014, when exports to Norway reached a value of NOK 164 million (about €19.1 million), while imports from Norway almost doubled in comparison with 2014, when they stood at around NOK 78 million (about €9.1 million). In 2013, Serbia’s exports to Norway amounted NOK 183 million (around €19.1 million), while Norway’s export to Serbia were NOK 64.8 million (around €7 million). According to official Serbian statistics, trade with Norway reached €47.1 million in 2015, which is far less than with other Scandinavian states. For example trade totalled €208.6 million with Sweden, €170.7 million with Denmark and €84.5 million with Finland. However, Norway is the only Scandinavian country with which Serbia had a surplus in both 2013 and 2014. Although that trend was not sustained in 2015, the shortfall remained minimal compared to the trade ratio deficit with other Scandinavian partners, standing at €1.7 million. The Norwegian market is a challenging one, which is why it is essential that Serbian companies are prepared to deliver high-quality products, thereby fulfilling all the required standards. However, markets of Scandinavia are not unattainable and when meeting all necessary conditions in terms of quantity, standards and packaging, the
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way to their customer is provided without any obstacles. The good examples of cooperation between the Norwegian and Serbian companies are several success stories over the past decade, with sizable Norwegian investments in Serbia and the growing Serbian exports to Norway. Serbia mostly exports to Norway: winches (29.03% share of total exports), transmissions and their parts (9.29%), frozen raspberries without sugar (6.84%), natural honey (6.65%),
Norway in 2015. Apart from these, Serbia also exports parts for hydraulic turbines and waterwheels, jet fuel, men's trousers and work overalls, other food products, diesel trucks up to five tonnes, frozen blackberries and mulberries, scaffolding and support elements, iron and steel products, other ammunition and parts, other wood products, wooden furniture. At the same time, the leading goods imported from Norway to Serbia are: active organic anion (21.10% share of
Exports of Serbian natural honey to Norway continue to represent a success story, with a consecutive rise in exports of this product (€1.226 million in 2013, €1.413 million in 2014 and €1.493 million in 2015
plastics in other forms (4.15%), plastic-coated paper and cardboard (3.91%), prefabricated wooden structures (3.39%), gear friction laptops (3.05%), parts and accessories for motor vehicles (3.04%) and machinery parts from group 744 (2.87%). These ten categories of goods accounted for over 72 per cent of Serbian exports to
Diplomacy&Commerce
total imports), fresh or chilled salmon (15.83%), unclassified goods (13.88%), polyethylene (9.79%), mackerel (5.28%), mechanically pulped wood (4.91%), writing paper (3.27%), machines for the reception, conversion and transmission of data (2.97%), chemical wood pulp soluble ( 1.56%) and ploughs (1.34%). These ten categories of goods
accounted for 80 per cent of Serbian imports from Norway in 2015. Exports of Serbian natural honey to Norway continue to represent a success story, with a consecutive rise in exports of this product (€1.226 million in 2013, €1.413 million in 2014 and €1.493 million in 2015. During the last couple of years, the Norwegian Embassy Fund supported the projects: “Honey Production – Export Chance for the Braničevo Region” and “Save her Majesty - The BEE”. Serbia’s free trade agreements, such as those with the EU, Turkey and Russia, enable further access to various markets. These aspects have resulted in many EU companies recognising the capacities and potentials for various new establishments in Serbia. Serbia’s economic cooperation with Norway and other Scandinavian countries has significant potential, but has yet to be exploited. Serbia has great potential in agriculture, organic food production, as well as in the field of renewable resources and ICT, which are areas with the possibility of future cooperation between Serbia and Norway. The broadest range of cooperation with Norway has been achieved in the field of investment. Norway is ranked second in terms of the value of foreign direct investments in Serbia, at €1.36 billion, thanks primarily to the investments of company Telenor in the telecommunications sector. This is also the largest single foreign investment ever recorded in Serbia. Every step Serbia makes towards membership in the European Union provides an additional incentive for Norwegian businesses to look into possible investments in Serbia. According to the new methodology used by the National Bank of Serbia, net foreign direct investments from Norway in 2014 amounted to €1.675 million, while in 2015 this figure was €1 million.
NORWE GIAN ECCONOM Y
Adopting to
FALLING OIL PRICES
The Norwegian economy, once one of Europe's brightest, ground to a halt in late 2015, and Statistics Norway expects this economic downturn to last until the end of 2016. According to the OECD forecast, growth is projected to recover gradually in 2016 and 2017
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orway produces 1.5 million barrels of oil per day. This is more than the entire EU, and equates to the world’s 5th biggest production per capita. As Western Europe's top oil and gas producer, Norway has been hit by the 70 per cent fall in crude prices since mid2014. With oil prices now just a third of what they were only two years ago, little profit, if any, is being generated by the industry these days. The resulting labour and cost cuts have an impact on those who have been employed in oil and gas related industries, but also the society as whole. Moreover, the value of the Norwegian currency, the Krone, NOK, is being strongly affected by current low demand for Norway’s primary export. A 25 per cent drop in the NOK’s value against the euro over the last two years has had a major impact on what Norwegians and Norway can spend abroad; be that on common goods, investments or financial aid. Overall unemployment has reached a 10-year high of 4.6 per cent, which, although low by global standards, is far above the 3.2 per cent level that Norway recorded in mid-2014.
The Norwegian economy must adapt to considerably reduced demand from the oil sector and rely more on other sectors. Underpinning the necessity to transition towards non-oil industries, the labour cost level in Norway must again be brought more closely into line with those of the country’s trading partners or the NOK has to slide even more. The weaker krone has been a key factor in making non-oil exporters more competitive, but not enough to boost the economy as a whole. Statistics Norway expects the economic downturn to last until the end of 2016, after which it should pick up slightly. According to the OECD forecast, growth is projected to recover gradually in 2016 and 2017, with non-oil investment picking up in response to higher exports and some new oil investment projects being launched. The good news is that Norway has never relied on oil as a single source of growth. The Government Pension Fund Global, commonly known as the oil fund, has very strict rules when it comes to using the money it has accumulated, and preserves funds for the future. Such a policy has enabled other industries to grow, like fisheries, fish-farming and the mechanical
industries, which have improved their export potential with the drop in the value of the currency. However, this is still not enough to offset the negative trends in the shipping industry, which is suffering from falling oil prices and lagging global trade. In the ‘Maritime Outlook Report’ for 2016, the Norwegian Ship-owners Association indicates that 2016 will be an extremely difficult year for many segments of the maritime industry and that between 4,000 and 4,500 employees are expected to be laid off, compared to 7,300 in 2015. Nevertheless, the technology developed by Norway for the oil industry is now making contributions to other business endeavours. Norwegian geologists, for example, study oil reservoirs from the “inside” using 3-D glasses and the world's most advanced computers. Now Norwegian surgeons are adapting that oil technology to map brain tumours before operations. Surgeons using the technology say it's like being inside the patient's head. The country’s offshore expertise also provides an advantage to developing renewable energy. Solar energy will be a robust and sustainable business for Norway long after its petroleum activities decline.
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P E OP L E AND CUST OM S
C U LT U R E
Working for a
GREATER CAUSE
From Munch
TO MUSIC
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oluntary organisations, or non-governmental, non-profit organisations, or civil society organisations, are an important part of Norwegian society. Some of them were established as far back as the mid-19th century and have their roots in the temperance, missionary and labour movements, but also organisations dedicated to cultural heritage, outdoor life and combatting poverty. These grassroots organisations received their funding largely from donations and membership fees. At the beginning of the 20th century, organ-
Norwegian NGOs have around 10 million members, meaning that the average Norwegian is a member of around two organisations isations started focusing on health, social care and humanitarian work. After World War II, the number of voluntary organisations in Norway increased dramatically. The growth of the welfare state led to changes in the relationship between the state and organisations, where voluntary organisations became responsible for health, children and youth, culture, sports and cultural heritage. With societal changes, the voluntary organisations also evolved. People are currently more issue-driven and less likely to be a member of an organisation for their whole life. Young people are increasingly mobilised through campaigns and events, rather than the
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traditional work of organisational structures and within associations. However, volunteerism still plays an important part in the life of the average Norwegian, with the country boasting around 80,000 volunteering organisations. Around 80 per cent of Norwegian citizens are members of at least one organisation and almost 50 per cent define themselves as “active”. The level of volunteerism in Norway is one of the highest in world, with the total effort estimated to equal the effect of 115,000 full time jobs.
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lthough it has a small population, Norway has an incredibly rich, accomplished and varied culture scene. Don’t just think about Grieg, Munch, or Ibsen, but rather also about the country’s great jazz scene, rock and pop scene, as well as popular novelists including Jon Fosse, Jostein Gaarder and Lars Saabye Christensen. There are many world-renowned Norwegian artists and one of them is certainly Edvard Grieg, Norway’s greatest composer, whose music relies on Norwegian folk music to create beautiful, modern impressionistic pieces. Norway also has some internationally renowned classical performers, such as pianist Leif Ove Andsnes and cellist Truls Mørk, both well-known international performers of Grieg’s music. Norway has one of Europe’s most interesting jazz scenes, with each successive generation of musicians reinventing and creating their own musical language, from the world-influenced, almost-ambient “mountain jazz” of the ‘80s and early ‘90s, through to the electronica-based period of the late ‘90s and into the hard-bop and free improv-influenced styles of the younger generation. The previous years have also been good to Norwegian popular music. The so-called “Bergen Wave”, in particular, brought great popularity both at home and abroad for a number of bands from the city of Bergen in Western Norway. Other parts
Norway has one of the most interesting jazz scenes in Europe, with each successive generation of musicians reinventing and creating their own musical language of the country have also produced a lot of popular rock and pop bands and artists in the past. The Norwegian heavy metal and death metal scene, meanwhile, is universally acknowledged as superior to all other such scenes worldwide. Norway has produced more than its fair share of great poets, playwrights and novelists, such as Henrik Ibsen, Sigrid Undset, Knut Hamsun and Bjørnstjerne Bjørnson, but also very good contemporary writers, such as Jon Fosse, Jostein Gaarder and Lars Saabye Christensen.
Leif Ove Andsnes
For Norwegians, volunteering is not a thing of the past. The Norwegian word “dugnadsånd”, translatable as the spirit of will to work together for a greater cause, has always been strong in Norwegian communities and is translated into a strong, vibrant civil society sector
T OURISM
Lifelong
WELLBEING
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urope's northernmost country, the Kingdom of Norway, enjoys one of the world's highest standards of living, thanks largely to the discovery of offshore oil and gas in the late 1960s. There is broad agreement in Norway that the state should contribute actively to ensuring the wellbeing of its inhabitants from cradle to grave, and that the public sector is partly responsible for compensating for inequities. With this in mind, the Norwegian state is constantly searching for better models for healthcare, education, pensions and social security systems, which are continuously subjected to reform. Developments within the Norwegian welfare system are undertaken jointly by state
and local authorities, in collaboration with research communities, business groups and other organisations. New programme ideas are studied continuously and all key welfare mechanisms have been subjected to to some degree of reform in recent years. The state also uses legislation and other instruments to stimulate change. One example is a law specifying that 40 per cent of the board members of Norway’s largest companies must be women. Another is a set of rules that reserves a substantial portion of the period of parental leave for fathers after a child is born. In 2012, Norway was also ranked by the World Economic Forum's Global Gender Gap Report as the country with the third highest level of gender equality.
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DENTAL CENTER NORDENT
T OU R I S M
Norwegian Smiles
MADE IN SERBIA
Dental center NorDent from Subotica celebrating 10 successful years as founder and leader of “dental tourism” in Serbia
Svalbard – Only
FOR THE BRAVE Unique natural surroundings have resulted in Svalbard becoming a popular tourist destination. The climate is tough, and tourists are advised to participate in organised groups with qualified guides, to ensure their own safety while they explore one of Europe's last remaining wilderness areas
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he Svalbard islands are located in the Arctic Ocean, halfway between Norway and the North Pole, and this archipelago has fascinated travellers for a long time. Unique wildlife, arctic nature and old mining towns are all found on the islands, which have a stark and eerie beauty that’s all their own.
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uring its development the founders and the staff have succeeded in applying all relevant experiences and information affecting our high quality and efficient service for the purpose of meeting the needs of every potential patient from any part of the world. The standards in providing the highest quality of dental service were set by the most contemporary technological and technical dental equipment, dental devices and materials, hygienic procedures, constant doctors educational and professional improvements. NorDent has empathic approach to every patient, beginning with the initial contact with the agent, travel and transfer from the airport, hotel and clinic reception, ending with the precise diagnosis, therapy plan and recovery. A vast net of trained and highly educated agents in the largest countries in EU and Scandinavia, provide a high quality communication in the native language between the potential patients and the doctor. The patient can get fully familiarized with all the details of the potential health treatment by the team of our doctors, amount of time optimally spent in Subotica, means of travel, health insurance, accommodation and stay in Subotica and most importantly, the prices, before the planed trip to NorDent. Today, with 11 dental offices for mobile and fixed prosthetics, dental technical “cad-cam“ laboratory, central sterilization and digital x-ray diagnostic unit, Nordent was intended for the most demanding medical interventions in the field of dentistry and maxillofacial and plastic (aesthetic) surgery.
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Diplomacy&Commerce
Nearly two thirds of Svalbard is protected and consists of several nature reserves, national parks, bird sanctuaries and even a geo-topical protected area Ever since Willem Barents discovered Spitsbergen in 1596, the archipelago of Svalbard has been known for its rich whaling, trapping and fishing resources. The islands were
considered a no man's land and activities in the area centred primarily on the exploitation of natural resources. However, today there are ever more tourists interested in this northernmost region of Norway and the northernmost society in the world. Svalbard is an incredibly fascinating and interesting archipelago and it attracted 60,000 tourist visitors last year, up from 41,000 in 2008. However, not every tourist is fit to visit Svalbard. The climate is harsh and tourists must bear in mind that there is risk associated with touring the harsh Arctic nature of one of Europe's last remaining wilderness areas. As such, most visits are organised and have qualified guides, for the sake of their own safety. Svalbard is also an important international research station, with the village of NewAalesund representing the centre of focus on Arctic research. Climate research has been conducted in Svalbard for generations, while Norway pays special attention to preserving the natural environment – not just for current scientists, but also for future researchers.
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