America - 2021 -
AMERICA & SERBIA
140 YEARS OF DIPLOMATIC RELATIONS ZORANA MIHAJLOVIĆ
Deputy Prime Minister of the Republic of Serbia and Minister of Mining and Energy
H.E. ANTHONY F. GODFREY
U.S. Ambassador to Serbia
AMALIJA PAVIĆ AmCham Deputy Director
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THE SOPRANOS
The best TV show of all time is The Sopranos. The American crime drama television series focuses on the life of New Jerseybased Italian-American mobster Tony Soprano. The Sopranos premiered on HBO on January 10, 1999, and ran for six seasons totalling 86 episodes.
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J ACKSON' DANCE MOVE
Neurosurgeons have described in detail how Michael Jackson achieved biomechanically impossible dance moves in his music video Smooth Criminal, in which he leans from the ankle at a 45 degree angle, while keeping his body straight as a rod. The illusion was thanks to specially designed shoes and the artist's core strength.
A MERICAN WINES
There are wineries and vineyards in all 50 states -- even Hawaii and Alaska. About 55% of the wine sold in the U.S. is purchased by women. California produces almost 90% of the wine made in the U.S. and nearly 75% of the wine sold here.
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POPULATION IN NYC More people live in New York City than in 40 of the 50 states and comprises over two-fifths of New York State's entire population. New York City has grown by over 1 million people since 1990. The median age in NYC is 35.8 years.
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THE LIBRARY OF CONGRESS
The Library of Congress contains approximately 838 miles of bookshelves—long enough to stretch from Houston to Chicago. It is the oldest federal cultural institution in the United States.
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LAS VEGAS
It would take 288 years for one person to spend one night in every hotel room in Las Vegas. The Las Vegas Strip is the brightest place on Earth when looked at from outer space. There are over 300 weddings per day in Las Vegas.
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DENVER AIRPORT
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The entire Denver International Airport is twice the size of Manhattan. It is the largest airport in North America by land area and the second largest in the world. The airport features a bronze statue of Denver native Jack Swigert who flew on Apollo 1.
OKLAHOMA'S MEAL
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Many states have official state foods, but only Oklahoma has an official state meal: Squash, cornbread, fried okra, barbecued pork, grits, biscuits, sausage and gravy, corn, strawberries, chicken-fried steak, black-eyed peas, and pecan pie.
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INTERVIEW
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SERBIA WANTS THE BEST POSSIBLE RELATIONS WITH THE UNITED STATES Professor ZORANA MIHAJLOVIĆ, PhD
Deputy Prime Minister of the Republic of Serbia and Minister of Mining and Energy
American companies have invested more than 4 billion U.S. dollars in Serbia and employ about 20,000 people here
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between the two countries have significantly improved both politically and economically, with important initiatives, devised by the Serbian-American Friendship Congress.
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e talked with the Deputy Prime Minister of the Republic of Serbia and the Minister of Mining and Energy, Zorana Mihajlović, who is also the Vice President of the Serbian-American Friendship Congress, about the development of relations between Serbia and the USA, as well as the work of the Ministry she helms. In the interview, she pointed out that the relations
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THE FIRST AGREEMENT THAT THE TWO COUNTRIES SIGNED BACK IN 1881 WAS THE AGREEMENT ON TRADE AND NAVIGATION
This year, Serbia is celebrating 140 years of good bilateral diplomatic relations with the U.S. How would you rate the overall relationship between the two countries today? 140 years of diplomatic relations between Serbia and the U.S is an important jubilee and an opportunity to assess the current state of our relations, how much we have improved them in previous years and what we can do to elevate those relations to an even higher level. By the way, the first agreement that the two countries signed back in 1881 was the Agreement on Trade and Navigation, which makes Serbia one of the very few countries in the world with which the United States has such a long tradition of contractual regulation of economic cooperation. In the last few years, we have achieved significant results and improved our cooperation both politically and economically. Among other things, the President of Serbia and the U.S. President met last year and signed an economic treaty in Washington.
I believe that these relations can be even better, not only in the political sense but also in the economy and other areas such as gender equality, energy transition and the fight against climate change. We had several cooperation memorandums in previous years. What else can be done to boost the relations between the two countries? In previous years, infrastructure and traffic have demonstrated the potential for cooperation, which was not sufficiently utilized before. The Belgrade-New York flight was re-established in 2016 after almost a quarter of a century. It turned out that the Memorandum of Understanding, about infrastructure, which Serbia and the United States signed in 2018, was an important step in strengthening cooperation in infrastructure, given the arrival of large American companies, such as Bechtel, which is currently constructing the Moravian Corridor, i.e. the Pojate-Preljina motorway segment. A memorial complex with a small airport was built in Pranjani, on the 76th anniversary of the heroic rescue of allied pilots who were captured behind enemy lines in World War II, during the Halyard mission. Last year, the Washington Agreement was signed, which creates many opportunities for investments and facilitates faster development of the region, through connections in transport and energy, and joint projects. I believe that the next step that would greatly benefit the cooperation between Serbia and the U.S. would be to conclude a special agreement on strategic partnership with the U.S. like Serbia already has with the Russian Federation, the People's Republic of China and some other countries.
power distribution sector by building the Trans-Balkan Corridor, but we also have a strong presence in the gas sector, because the diversification of suppliers, in addition to diversification of routes, is key to energy safety not only in Serbia but also in the region. Serbia plans to use gas interconnections to connect with all neighbouring countries, and the first project in that direction is the construction of the Niš-Dimitrovgrad gas interconnection. We have already launched a tender to find a contractor and the plan is for this interconnection to become operational in 2023. This gas pipeline will create an opportunity for Serbia to get natural gas from the LNG terminals in Greece, as well as from the TAP and TANAP gas pipelines, which are part of the Southern Gas Corridor, which transports gas from the Caspian and Middle East region. In the future, after the completion of the East
What our country still needs to do to make the doing business environment as attractive as possible for investors, not only those who come from the US but everyone else too? American companies have invested more than 4 billion dollars in Serbia, and today they employ more than 20,000 people here. This is the result of good political relations, but also of everything that Serbia has done in the previous period regarding fiscal consolidation and achieving macroeconomic stability, as well as getting higher credit rating and improving conditions for doing business. The best evidence of the progress we have made in securing a better environment for doing business is that we used to occupy 186th in the world on the World Bank's Doing Business list in issuing building permits, and today, Serbia ranks 9th in the world. We hope that we are going to see even more American investments in Serbia, that is, that investors will recognize everything that the Government of Serbia has been doing to improve the business environment. In terms of energy, following the example of e-permits that we have introduced in construction, the new set of laws prescribes implementation of e-mining and e-energy services, which means that all related procedures will be shorter and more efficient, whether we are talking about mining, electricity or renewable energy sources. You have said that the mining and energy sector can contribute much more to the national GDP. What development strategies will be implemented in this sector in 2021? Serbia has drafted a new legal framework in mining and energy, which lays the foundation for a new energy policy based on green energy, higher energy efficiency, decarbonisation and moving towards climate-neutral development. The new law on renewable energy sources, which is in the process
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The region's future is closely tied to the region's country better connecting with each other and economic development, and I believe that this is
A STEP IN FURTHER IMPROVING OUR RELATIONS WOULD BE TO CONCLUDE A STRATEGIC AGREEMENT THAT WOULD FACILITATE COOPERATION IN VARIOUS SEGMENTS
Mediterranean (EastMed) project, Serbia will have an opportunity to get gas from the coastal reserves from the Leviathan field, i.e. Cyprus and Israel.
AMERICA 2021
How important is good cooperation for the stability of the region, in which Serbia plays a leading and very important and responsible role?
the way to achieve political stability not only today but also for years and decades to come. Serbia occupies the central place in the region and in that sense, it is an unavoidable stakeholder when it comes to forming links in transport and energy. The U.S. support is also very important here, primarily in the shape of investments and projects aimed at regional integration. In that sense, the Washington Agreement is an important document and the projects it covers are important for the future of the region. In terms of energy, Serbia's goal is to connect with all its neighbours so that, besides transport, we can become a regional energy hub. We are connecting with our neighbours in the
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of adoption, will create a much more favourable regulatory framework that should attract companies that want to invest in RES. Among other things, the law introduces market premiums instead of the current feed-in tariffs, which will expose producers to market and competition rules, while reducing costs for individuals and businesses. Also, at the same time, investors have guaranteed stability and predictability of the legal framework. Our goal is for RES to participate by up to 50% in energy consumption by 2050, which means that we need new investments in both wind farms and solar power plants, as well as geothermal energy and biomass. New investments are necessary because of the energy security of Serbia in the decades ahead of us, but it is also important for increasing the share of energy in the national GDP, which could be significantly higher than it is today. Regarding mining, the goal of the new law is to create prerequisites for more efficient management of mineral resources, which will facilitate new investments, and for which we need to implement the environmental protection highest standards. We expect that the new regulations and investments that will result from the new laws will increase the share of mining in GDP from the current 1.9% to between 3.5 and 4%.
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What direction will the economy now take given that we experiencing a new pandemic wave?
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Health and economic security are currently the biggest concern of all countries in the world, and they are inextricably linked to the pandemic. Serbia was among the first countries to ensure vaccination for its citizens who can choose between vaccines from several different manufacturers. We have also shown that the pandemic does not mean less solidarity. Following the initiative of the President of Serbia, we have donated vaccines to neighbouring countries so they can start vaccinating sooner rather than later. For economic recovery, which will be neither easy nor simple, to be sus-
THE REGION'S FUTURE IS CLOSELY TIED TO THE REGION'S COUNTRY BETTER CONNECTING WITH EACH OTHER AND ECONOMIC DEVELOPMENT tainable, we need to implement vaccination quickly and efficiently, and that is why we all must show responsibility to ourselves, our families and our country which made it possible for its citizens to get vaccinated. Success in vaccination and achieving collective immunity is important in order to preserve our economic stability and economic growth Given that you are the Vice President of the Serbian-American Friendship Congress, do you think that the Serbian public awareness of our relations is changing for the better?
I believe that it mostly depends on us, that is, on how well we manage to connect and together accomplish concrete results that will convince citizens that Serbia is on the right track, to continue developing, and to have the U.S. support when it comes to political stability, economic development, and new investments. Political relations are the most important and visible part of that, but the initiatives launched by the Serbian-American Friendship Congress are also very important in terms of solidifying the ties between the two countries in terms of civil society, business people and business associations, scientific and research institutions, and the academic community. We must not forget that the relations between the two countries are not only the relations between the two governments but that what we have today, as the best tradition in Serbian-American relations, is largely due to the effort invested by scientists, athletes and business people who are responsible for raising Serbia's recognizability in the U.S.A. and vice versa.
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140 YEARS OF DIPLOMATIC RELATIONS BETWEEN SERBIA AND USA H.E. ANTHONY F. GODFREY U.S. Ambassador to Serbia
The United States government has invested about $1 billion in economic assistance to Serbia over the past 20 years
he United States and the Republic of Serbia enjoy a partnership that began over 140 years ago when the United States recognized the newly proclaimed independence of the Principality of Serbia and the first U.S. ambassador, Eugene Schuyler, arrived in Belgrade. That friendship has endured throughout the years, and today USA seeks to reinforce Serbia’s efforts to advance its European aspirations.
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This year, we are marking a very significant jubilee - 140 years of diplomatic relations between Serbia and the United States of America. How would you rate the overall relations between our two countries today?
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The United States recognizes the importance of building a stronger friendship with Serbia, and I am doing my best everyday to ensure that this happens, and that we can move this to a level not yet seen in our 140 years of official relations. Standing shoulder to shoulder in the fight against COVID-19 provided even more proof on why this matters. We will not forget Serbia’s assistance in returning American citizens who were stranded when air travel was stopped by the pandemic, and we hope re-
newed American leadership in global health will help not just Serbia, but the entire world to conquer this pandemic as soon as possible. The history of our relations must guide our path, not just the successes of World Wars I and II, and now COVID, but also the difficult times. Our diplomatic ties started with trade -a simple treaty to help with the export of Serbian plums – and has certainly evolved. U.S. firms now employ about 20,000 Serbians, American companies work with the government on infrastructure projects, and even our elite special forces are training side by side. Serbia has an excellent Ambassador in Washington who has really injected new energy into the relationship, and I am doing my best to continue to rejuvenate and strengthen a special connection between our two nations. I am grateful that President Vucic has clearly placed this as a priority in his administration. We share a belief in the importance of being honest about past challenges, and in realizing that both nations are stronger when we stand together. What can Serbia expect from the new president Joseph Biden and his team regarding Serbian interests and the continuation of the EU accession process? President Biden truly understands the importance of a stable, peaceful and prosperous Western Balkans. During his election campaign, he spoke about the need to continue moving the region forward. This cannot happen without a successful Serbia. Frankly, he also knows that longterm success and stability cannot happen without a return to the EU-led Dialogue and a lasting agreement between Belgrade
and Pristina. In addition to building on the work of the previous President, I believe you will see a stronger emphasis on cooperation with the European Union. My Embassy’s top priority continues to be to assist Serbia on its stated strategic goal of joining the EU. Adding Serbia’s star to the EU flag makes sense – Serbia is a European nation, Serbians share European values, and the EU is the largest and most successful trading bloc in history, with a strong commitment to human rights, rule of law, and innovation.
U.S. FIRMS NOW EMPLOY ABOUT 20,000 SERBIANS The new U.S. Secretary of State, Antony Blinken, stated that he wanted the relations between Serbia and Kosovo to normalize and for the region to move forward. How important is the stable region for the progress of all Western Balkan countries? The frozen conflict blocks Serbia’s EU path, and I believe it also chills the entire region. A free and unified Europe will only be made stronger with the addition of countries of the Western Balkans. We know from world history that instability and unfinished conflicts in the Balkans are bad not just for the region and for Europe, but the entire world. The United States wants Serbia to succeed. We want to give young citizens of Serbia reasons to stay and help build and realize their dreams at home.
What is the current situation in the USA and what are the plans of the US Government relating to the fight against COVID-19 and the ongoing crisis? The situation remains severe, with more than 540,000 Americans killed by the virus. But I see strong reasons for hope: President Biden reached his goal of 100 million vaccinated weeks ahead of schedule, schools are starting to reopen, and our Congress just approved a historic economic stimulus package. Our businesses have proven remarkably resilient, but we are seeing the government take strong actions to ensure our economy continues to rebound as the nation heals. President Biden’s first initiative was to greatly intensify America’s focus in the fight against COVID-19, including increasing our cooperation with other nations. The U.S. has made the largest commitments of any nation towards the global vaccine initiative, COVAX, worth roughly $4 billion. The U.S. and Serbia improved their friendly relations and partnership during the crisis in 2020. The U.S. investors have invested over $3 billion in Serbia so far and Serbia provided transportation for 300 American citizens back to the US. What can we do together to further strengthen our ties? The Embassy is actively working to expand trade and investment between our nations. We are also closely engaged with our European partners to continue helping Serbia work on further reforms in its EU accession process. These reforms might sound abstract -- stronger rule of law, more efficient trading procedures, a cleaner
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We share a belief in the importance of being honest about past challenges, and in realizing that both nations are stronger when we stand together.
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environment, a safe and free press – but they will also help attract more business and slow Serbia’s brain drain. In January, the two countries signed the Investment Incentive Agreement which is a prerequisite for the DFC launching its activities in Serbia. What does this mean for the economy and companies in Serbia? The United States government has invested about $1 billion in economic assistance to Serbia over the past 20 years. DFC is a continuation of this commitment to Serbia’s success. This agency brings a variety of new tools to help increase our economic relations, including access to risk insurance, loan guarantees, and even direct loans and other financing. We hope DFC will help attract even more American companies to invest in Serbia, as well as help Serbian businesses to grow.
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American companies in Serbia employ close to 20,000 people and while the trade between our two countries amounts to about $900 million. What can we do to attract more American companies and investments to Serbia?
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When you look at the government’s aggressive and serious approach to providing vaccines and quality medical care, combined with the relative resilience of the economy, Serbia has been doing an excellent job in navigating the uncharted waters of this pandemic. The conditions for more success are here: Serbia has a talented and hard-working labor force combined with an ideal location near major European markets. To truly unleash Serbia’s economic potential, however, I believe a normalization agreement is needed: Investors want stability and predictability. What challenges await us this year, and do you think that inoculation and the introduction of so-called COVID passports is a way out of the pandemic’s vicious circle? We’re still very much in the middle of the battle with this virus, though,
A FREE AND UNIFIED EUROPE WILL ONLY BE MADE STRONGER WITH THE ADDITION OF COUNTRIES OF THE WESTERN BALKANS thanks to scientists, we now have a variety of effective vaccines and this will help us win, so long as enough citizens understand the importance of widespread vaccination. I believe public education on the extreme importance of getting vaccinated is our next major challenge. At the same time, we need to protect and restore our small businesses, which are the foundation of both the Serbian and American economies. All businesses have been hit hard by the crisis, but especially the smallest entrepreneurs and family businesses. We must work to not just protect our bodies, but also our livelihoods. Restoring safe travel is another key element, both for businesses and for people who deserve a chance to relax and enjoy life a bit. I hope there is a way to make travel eas-
ier for those who make responsible choices and get vaccinated. We can't help but ask you what is your favourite Serbian dish, beverage and restaurant in Belgrade? Well, that’s not fair. Do you also want to ask me if I have a favorite child? Belgrade has some excellent restaurants, but I must admit that my preferences are more for traditional Serbian kafana food. Serbian Southern barbeque is really tough to match, and I have yet to have a bad meal in the countryside. I think this is a reflection on the quality of your farmers and the Serbian climate: whether we’re talking roast Manguilica pork, homemade kajmak on cevapi, ajvar and corn bread, or sweets like fresh raspberry jam and Bagrem honey. These are true delicacies. Serbs have a right to be proud of their farmers and their food and I want to do what I can to help spread the word. Hopefully, this will also help bring more business and sales, because I know their work is not easy and comes with little reward. As far as drinks, I also think Serbian wines deserve more attention outside of your borders. If I can help with this, I am happy to continue with my research.
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135 YEARS OF A LADY LIBERTY ince first arriving to New York as a gift from the people of France, the Statue of Liberty has become one of America's most well-known and iconic symbols. Lady Liberty has undergone some updates and changes over 135 years she has presided over New York Harbor. The statue’s full name is Liberty Enlightening the World. The robed female figure represents Libertas, the Roman goddess of freedom. She holds a torch and tablet upon which is inscribed the date of American Declaration of Independence (July 4, 1776). The seven spikes on the crown represent the seven oceans and the seven continents of the world, indicating the universal concept of liberty.
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INTERVIEW
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20 YEARS OF LEADING CHANGE AMALIJA PAVIĆ
AmCham Deputy Director
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e spoke with Amalija Pavić, Deputy Director of AmCham Serbia, about the 20th anniversary of AmCham, the attitudes and results of the research they conducted in late 2020, as well as the significance of the overall U.S. investments in Serbia. „Speaking from our experience, we can say that American investors are not looking for anything different from other investors. They want efficient public administration, expeditious administrative procedures for resolving disputes and the rule of law. Something that AmCham members pointed out in the latest research is the predictability of regulatory reforms which is especially relevant during the pandemic. Unlike digitalization and some radical reforms that require institution-building and financial resources, it is quite easy to consult businesses when a law is being drafted or regulation amended,“ says Ms Pavić.
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We are a year into the COVID-19 pandemic. Do you think that the economy and businesses are now better prepared than in March 2020? That is completely natural as compa-
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In the 20 years since AmCham was founded in Serbia, we have done a lot and a lot still needs to be done. We have a lot of energy and enthusiasm to continue to improve the business environment
nies now know what awaits them. Three rounds of the pandemic wave have passed, and companies now know what measures can be implemented and what corona does to supply chains and employees. They know how they can adapt and that they achieved growth during the pandemic, especially in the second and third quarters. Of course, most companies know that they are no longer faced with something unknown, hence are better prepared.
I THINK THAT THE SERBIAN ECONOMY HAS DONE WELL; BETTER THAN EXPECTED COMPARED TO THE ENVIRONMENT IN 2020 Now, if you are in the other group of companies that have been particularly affected by COVID-19, such as hospitality, air transport and the automotive industry, then the situation is much
different. The companies know what awaits them but since they started with much lower financial reserves, despite state aid and other types of aid they got last year, they are financially exhausted and new epidemiological measures affect them much harder now than last year when it was thought that "the May sun would kill the virus". How did the crisis affect the Serbian economy and the companies that are AmCham members in 2020? Did they fare better or worse than expected at the end of the day? I think that the Serbian economy has done well, i.e. better than expected compared to the environment in 2020. We finished the year fifth in Europe with the national GDP declining only one percentage point. Let's say that we did better than most other countries and this is partly due to the very structure of our economy, as well as state aid and the structure of benefits. As a country, we do not depend on tourism where the decline has been significantly greater. Every year, AmCham conducts a survey called 'Lap Time' among its members and at the end of 2020, the results
showed that over 65% of companies recorded declines in business. Most companies said planned investments, that were delayed, saw the biggest decline. Fortunately, most of the members sustained their existing level of business even without state aid. Only about 40% of our members took state aid. In general, our members did not record drastic decline which went up to 10% primarily due to the faster growth in the second and third quarters, even in the industries that were particularly affected by the coronavirus such as tourism, transport, trade. In what macroeconomic condition did Serbia enter 2021 and face new challenges? Like all the countries hit by the pandemic, macroeconomic outlook in Serbia was much better at the end of 2019 than it is at the end of 2020. Remember that in 2019 we had particularly stable finances, a good public debt of about 52% (of GDP) and a stable and healthy growth rate. In 2020, the state aid amounted to about 12.5% of GDP and there were strong monetary policy measures in place, focusing on liquidity. We are not a huge economy so that we can easily overcome any shock that comes our way. With the new package of measures this year, the fiscal space is quite narrow and, according to economists, threatens to increase the deficit to more than the projected 3.5 percent, even 6%, according to some estimates, while public debt could creep up to 60% of GDP, which is certainly worse than a year before. Last year, we were one of the countries with the smallest GDP decline in Europe but the continuation of mass vaccination, which has started real-
ly well, is crucial here because GDP growth in the second half of the year depends on the inoculation pace, as according to economists and the Serbian government, GDP growth should be between 4% and 6%. According to AmCham, what are the most important measures for maintaining the set goals of economic growth this year? We asked the same question in our survey too. The first and basic measure is to enable full electronic communication between the authorities and the business community. The state of emergency has shown that that could
WE HAVE COME A LONG WAY IN THE 20 YEARS SINCE THE ESTABLISHMENT OF AMCHAM, FROM 11 FOUNDING COMPANIES TO 211 MEMBER COMPANIES THAT WE HAVE TODAY be done, and we do not see why we should return to a previous method of communication. The second most important thing is improving the health care system, its digitalization, and better connection with the private sector. This proved to be important because now, at the peak, the public sector is under huge pressure. Therefore, if there is a better synergy with the private sector, we can achieve better results. Companies also say that simplifica-
tion of foreign exchange administration is quite important to them, because they had to take out loans from their mother companies, and in a situation when you need funds and have someone to borrow from, you have to deal with a very complicated and difficult procedure. Finally, one of the important measures that can be improved this year relates to justice, i.e. the introduction of e-court. The relevant working group is currently working on amendments to the Law on Litigation Procedure, in which we are also actively involved. We hope that the amendments will significantly impact the efficiency of judicial proceedings. How does the recently announced implementation of the agreement relating to the DFC office affect opening up prospects for American investments in Serbia? The good and much-needed thing this year is that, together with the Government of Serbia and local banks, the DFC has already launched guarantee schemes to help businesses. This is an absolute priority and a necessary thing for liquidity which I believe will significantly help our economy. Generally speaking, the DFC provides a wide range of services to investors such as political risk insurance, additional financing, conducting feasibility studies and the like. In fact, in line with their internal policy, they decide which range of funds and services will be allocated in which region of the world, i.e. who will be able to use what. It remains to be seen what kind of assistance will be available in our region so that we can more clearly assess the potential impact on additional investments. Certainly, the DFC's
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We are not a huge economy so that we can easily overcome anything. With the new package of measures this year, the fiscal space is quite narrow.
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presence in Serbia and the whole region is great news for American investments and is kind of a seal of approval that the region is good for investing and that it is possible to get help if necessary. This year marks the 20th anniversary of AmCham in Serbia. What are you most proud of and what would you like to single out? We have come a long way in the 20 years since the establishment of AmCham, from 11 founding companies to 211 member companies that we have today, from one committee that was tax and finance, to ten that we have today, from being involved in amending just one law to over 50 a year today. We have done a lot of work so far. In the meantime, we have developed some new areas and activities such as professional development. This year, the AmChamps program will welcome the 7th generation of students and young managers. The program has become a landmark not only among our members but also among wider business community which is very important to us. We celebrate our birthday in October and we secretly hope that we will be able to have the celebration just like before, pre-pandemic, but we'll see how the epidemiological situation will develop. There will always be plenty to celebrate about but health remains the most important.
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What will be the biggest challenges this year for both AmCham and its members?
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According to the results of our survey, and I share the same view, the biggest risk this year is associated with the pandemic and how the pandemic will evolve while the mass availability of vaccines and how quickly the vaccination will take effect remain the most important issues. It is also important to know how long will the current measures remain in place and what form will they take after the current pandemic peak subsides. Everything else comes under what we usually deal with like the efficiency
THE BIGGEST RISK THIS YEAR IS ASSOCIATED WITH THE PANDEMIC AND HOW THE PANDEMIC WILL EVOLVE, AS WELL AS THE MASS AVAILABILITY OF VACCINES of public administration. That's what matters every day and is especially important in the pandemic, i.e. that there are no deviations during emergencies. Also, there is the issue of the difficulty of obtaining permits and the like. In that sense, I think that there is no special difference in what is otherwise important to the economy. The efficiency of the state administration and judicial apparatus remain the biggest challenges, and perhaps the pandemic has only brought this to the fore. Do you think that we are nearing the
end of the crisis and when will that happen? I really don't know. It is a very delicate thing to give any predictions. We are all closely following what Israel is doing, and how quickly vaccination has been implemented there and how quickly the economy is recovering after the vaccination. I think, by summer, we will know what we can expect and what is the best-case scenario. It is important to us that the inocculation pace remains fast, as it was at the beginning. We expect that the crisis will have ended by the year-end which is how long it will take to have a full effect. I also think that life and work, in general, will not return to the same pre-pandemic framework. You and I may not have to look at each other through Zoom, or Teams or Webex any longer, but we will have more freedom to organize our working hours more flexibly and to work remotely. Companies now know what kind of work hinges on physical presence in the office and which one does not, and I think everything will be much more flexible.
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Three in four adults agree that governments should consider the role smokefree products can play in tobacco harm reduction
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past in many countries within a decade to a decade and a half,” says Olczak. The survey shows that 73 percent respondents agree that governments should consider the role alternative products can play in making their country smoke-free. Also, 77 percent of them believe that adult smokers should have access to accurate information about smoke-free products, which are scientifically proven to be better than continued smoking.
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The best choice every smoker can make is to quit both nicotine and tobacco altogether
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“The best choice every smoker can make is to quit both nicotine and tobacco altogether. Results of this survey show that the general public is willing to openly discuss all options leading to the resolution of the cigarette smoking issue, which we know threatens the health of both smokers and people around them,” said Sandra Skurić Jelisić, MD, a general medicine specialist. ‘We also know that it is important for people to have right information and an opportunity to
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AMERICA 2021
here is a public appetite for new approaches to reduce the societal harm caused by cigarettes, according to a global survey commissioned by Philip Morris International (PMI). Up to 71 percent of respondents believe that encouraging adult smokers who would otherwise continue to smoke to switch to smoke-free alternatives can complement other efforts to reduce harm, according to the results of a survey conducted by independent research company Povaddo. 67 percent of respondents say that, if it is possible to end cigarette sales in their country within 10 to 15 years (through smokers quitting tobacco or switching to better, science-based alternatives), their government should dedicate time and resources to making that a reality. The results of the survey, commissioned by Philip Morris International, of 22,507 adults in 20 countries, explore attitudes regarding the role of smoke-free alternatives in improving public health. “Smoke-free products can play an important role in lowering smoking rates,” said Jacek Olczak, Chief Operating Officer (COO) at Philip Morris. “With the right regulatory encouragement, support from civil society, and the full embrace of science, I believe it is possible for the public’s call to be answered and for cigarette sales to be a thing of the
make decision based on scientific evidence and findings. Therefore, every initiative leading towards protection and promotion of public health should be taken into consideration by all stakeholders, with an encouragement for dialogue,” concludes Skurić Jelisić. When asked about the importance of key challenges in today’s world, respondents placed ensuring quality and affordable healthcare for all on a par with improving the economy and expressed their support for governments to explore new approaches to reducing the number of smokers. The public doesn’t believe more regulation and taxation alone can achieve a smoke-free future Current strategies are not viewed as being sufficient, the survey suggests, with less than one in four respondents believing that increasing regulation and taxation on cigarettes is all that is needed. A majority of those asked, 58 percent, believe these measures alone will not achieve a smoke-free future. Clearly, smoking is a problem society wants to be addressed, with 76 percent of respondents believing it’s important for governments to dedicate time and resources to reduce smoking rates.
CORPORATE
SUPPORTING NEW APPROACH TO REDUCING SMOKING RATES
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CORPORATE
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THE BRIGHTEST STAR IN THE BANKING SKY
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Excellent results of OTP Group in Serbia as an overture to integration
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n May this year, the integration of OTP banka Srbija and Vojvodjanska banka will be completed, and the two banks will merge under the single name of OTP Banka Srbija. This will finalize the most complex integration process seen so far on the domestic and regional financial market. It will also mean realizing the aspiration and implementing a strategic move of the OTP Group to form a leading banking institution in Serbia.
THE NO. 1 BANK IN SERBIA IN LENDING The 2020 results of the OTP Group in Serbia have also contributed to this goal,
which welcomes this historic moment with an annual growth of 15 percent on the credit market, i.e. more than 500 million euro. At the end of 2020, the total granted net loans of both banks amounted to
NUMBERS
The total net operating income at the end of 2020 amounted to 102 million euro, which is a 5.6% increase compared to the previous year
SCHEME
To date, the OTP Group in Serbia has granted more than 259 million euro worth of loans through the guarantee scheme be given to clients themselves, who, in the new circumstances, have demonstrated an ability to adapt and an exceptional willingness to change user habits. The practicality, simplicity and security of online banking contributed to the fact that in the 48 days of the state of emergency, clients used the digital services of Vojvodjanska and OTP banks 80 percent more than in the previous period. This change in habits was an additional incentive to invest in the digitization of products and services, while clients were directed to use online banking as much as possible. Thus, the pandemic also proved to be an accelerator of changes in the habits of clients in the banking sector. The joint collaboration of the corporate and government sectors also played an extremely important role in successfully overcoming the challenges. The agile reaction of the financial sector, with the support of the Government of Serbia's programme, was the wind in the sails for businesses and citizens, while during this period, the assistance pro-
INNOVATIONS AND NEW PROJECTS Innovations are an inspiration for the OTP Group, both regionally and in Serbia, and our clients' needs guide us in terms of our daily activities. With that in mind, we strive to be unique and contribute in the best possible way not only to own business success but also to the business success of our clients. We are especially proud of the fact that the OTP Group has been recognized as a pioneer in innovation and digitalization, and that, through our Generator project in Serbia, we have managed to transfer that to domestic entrepreneurship. The Generator project marks the fifth anniversary this year. It provides support to social entrepreneurship and people who care about ecology and environmental protection. The 2021 Good Deeds Generator is intended for people who have started successful companies, dedicated to ecology and sustainability, all with the goal of supporting various socially sensitive categories. In addition to the fact that one of the goals of the integrated bank is to position itself as a leader in Serbia, its priority this year will continue to be focusing on innovation, customer satisfaction and support for the community in which it operates. OTP Group in Serbia remains a loyal partner to the Olympic Committee of Serbia on the way to this summer's Olympic Games in Tokyo when we will together cheer for our Olympians in their effort to win medals. Efficient and safe service delivery will be the most important goal for the Bank too, while we will also pay a great deal of attention and give all our support to our staff in adapting to the new way of doing business in the challenging circumstances brought on by the pandemic. The Bank's strong management is one of the main trump cards during this demanding process who will continue to focus on further improving the user experience, innovation and digitalization.
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CHANGING CLIENT HABITS DURING A PANDEMIC - THE KEY TO SUCCESS Great credit for the success should
gramme proved to be crucial for small and medium-sized enterprises. To date, the OTP Group in Serbia has granted more than 259 million euro worth of loans through the guarantee scheme.
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3.7 billion euro, which gave the Group a market share of over 17 percent. Another important thing to mention is high credit growth is recorded in both business segments, both retail and corporate. In the segment of retail banking, OTP Group in Serbia saw annual growth of over 17 percent, with strong growth of production on housing loans of 40% annually and a market share in the housing loan segment of over 21%, while a market share of cash loans stood at more than 20 percent with realized growth of the market share of over 100 basis points. In the corporate segment, OTP Group in Serbia had an annual growth of about 13 percent, while the market share in this segment stood at over 16 percent, with a growth of over 50 basis points relative to the previous year. Thanks to these successes, as well as the increased market share in all segments, the new integrated bank will be the No. 1 bank in Serbia in terms of market share in corporate and retail lending. Customer satisfaction with the services that the Banks provides greatly contributed to these results, which is validated by the highest ratings the Banks got in customer experience satisfaction. Also, the total net operating income at the end of 2020 amounted to 102 million euro, which is a 5.6% increase compared to the previous year. In 2020, the entire OTP Group generated a consolidated profit of 742 million euro, with total assets worth 64 billion euro and annual asset growth of about 6%. The combination of specific qualities of both banks, which are both parts of the new integrated bank, represents a real breath of fresh air on the domestic financial market, as well as a new motivating factor for other market participants. In regard to current and future clients, the integration is a synergy of the best solutions of these two big brands but also brings additional security and trust. Vision and optimism were the main reasons to symbolically name the integration after the brightest star in the sky Sirius, which is also a binary system made up of two stars.
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INTERVIEW
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WE HAVE A GREAT OPPORTUNITY TO RENEW OUR FRIENDSHIP VLADIMIR MARINKOVIĆ
President of the Serbian-American Friendship Congress
Today’s relations between Serbia and the United States are at a high level and the establishment of a strategic partnership between the two countries is strongly being considered on both sides his year, the U.S. and Serbia mark 140 years since the establishment of diplomatic relations. This anniversary is a great opportunity for our two countries, although preoccupied with overcoming great challenges, to improve bilateral relations at all levels and remind our friendly peoples of the common history and cooperation and the struggle for values that we still share and relate to freedom, democracy and liberal market economy, as well as that there is a lot of room to make the most of the potentials. It is interesting to note that the establishment of diplomatic relations was initiated by the United States, which was back then looking for new markets and opportunities for cooperation in trade. After many years of negotiations, the document establishing diplomatic relations between the two countries was signed by the then Foreign Minister of the Principality of Serbia and the doyen of Serbian foreign affairs, Čedomilj Mijatović and a U.S. diplomat Eugene Schuyler. These relations, through alliances in both world wars, have formed friendly and fraternal ties between our peoples, linking common struggles and common values through the work of great historical figures such as Mihajlo Pupin, Woodrow Wilson, John Frothingham, King Aleksandar and many others. It is very important also to note the famous Operation Hal-
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TODAY’S RELATIONS BETWEEN SERBIA AND THE UNITED STATES ARE AT A HIGH LEVEL
yard which was the largest rescue mission in the history of the U.S. Air Force, during which over 500 U.S. pilots were rescued by the Yugoslav Army during World War II and who subsequently spent several months in the village of Pranjani in western Serbia where they received a warm welcome from the villagers and their families who shared
with them everything they owned. Unfortunately, as in many other instances, Serbia has not commemorated these events and important people in the past, nor has it reminded Americans of all these events, forgetting the fact that no friendship can be taken for granted but has to be nurtured daily. As a result, we have allowed certain people, whom the Americans have not even heard of, to become their friends and allies who have gained immense American help and trust. Only a few years ago, quite a few initiatives were launched to remind ourselves of our common history, to talk about it, to show everywhere we could that we fought against fascism and Nazism with the Americans, that we were persecuted and killed as a nation, but also that we were respected and that Serbian the flag is the only foreign flag next to the French that fluttered on the White House mast and that President Wilson called on the people of the United States to pray for the small but brave and free-spirited Serbian people. Unfortunately, we need to realize
both our mistakes and our inactions, especially the inaction of the political elites until 2012 who did almost nothing to actively improve relations with America and revert to the old allied path. Also, the armed conflicts during the 1990s are part of our common history, which ended with the NATO aggression directed towards our country and which left a lasting mark on the relations between our two countries, but which also teaches and reminds us
BOTH COUNTRIES AND PEOPLES HAVE A GREAT OPPORTUNITY TO RENEW THEIR FRIENDSHIP AND ALLIANCE AND RAISE BILATERAL RELATIONS TO THE HIGHEST POSSIBLE LEVEL
to continuously work on making sure that such misunderstandings never happen again. Today’s relations between Serbia and the United States are at a high level and the establishment of a strategic partnership between the two countries is strongly being considered on both sides which would additionally solidify our ties and the fight for common values to the benefit of both nations and the whole Western Balkan region. I believe that the prerequisites for forming a strategic partnership have been created, following good examples that we can already see in practice which are yielding excellent results, as is the case in our country's relations with France, the People's Republic of China and the United Arab Emirates which generated direct support, brought new investments and jobs, and created sincere, sustainable friendship that benefits our peoples when most needed. The United States has shown strong interest in Serbia in the last few years and is practically committed to showing good will, great respect and a clear
ADVENTIS REAL ESTATE MANAGEMENT LLC
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Knez Mihailova str 11-15, 5th floor Belgrade, Serbia T: +381 11 262 7 999 M: 381 64 88 00 106 E: office@adventisrealestate.com www.adventisrealestate.com
AMERICA 2021
WE SELL WE BUY WE RENT WE LEASE WE APPRISE WE VALUATE WE MANAGE WE CLOSE WE PROJECT
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interest in Serbia's progress and accomplishments all its strategic goals. America and American politicians especially appreciate our country’s results in economic reforms and the fight against the coronavirus, encouraging their companies to do business in Serbia while presenting it as one of the most favorable business destinations in Europe. We can say that, in the past few years, primarily thanks to President Vučić, Serbia has been a serious and most importantly, a reliable foreign partner of America, which has proven that it can be a pillar of stability and a leader in the region. During the 1990s, we did not know how to use this opportunity but other countries did. However, what has been done in Serbia in terms of economy, investments, and diplomacy shows that Serbia can win this battle with full commitment, knowledge and proactivism which was introduced into the Serbian political agenda by President Vučić. That is why Serbia today has a lot of friends in the US Congress and Senate, administration, universities, and think-thank organizations who have the will and desire to understand Serbia and work with it. Trump’s administration sent out a lot of good messages and showed respect which resulted in the signing of the Washington Agreement by President Vučić and President Trump, which is certainly the biggest Serbian diplomatic victory in the past thirty years. Finally, Serbia stands to receive a lot of economic benefits stemming from this agreement, which respects the fact that Serbia has legitimate interests in Kosovo and Metohija, excluding the pressure that has been exerted for many years as an integral part of the agenda of American politicians who wanted Serbia simply to acknowledge the situation on the ground and renounce its southern province. It is clear that Washington rather than Brussels is the right address to turn to for resolving such an important political issue as Kosovo and Metohija and it is even more significant that Vučić has managed to win all this for our country, which is no longer required to be a mere observer of events
IT IS CLEAR THAT WASHINGTON RATHER THAN BRUSSELS IS THE RIGHT ADDRESS TO TURN TO FOR RESOLVING SUCH AN IMPORTANT POLITICAL ISSUE AS KOSOVO AND METOHIJA but part of the solution, compromise or as Rick Grenell would say, “creative” or “imaginative solutions” that would ensure long-term peace and a stable future for the entire region. It is very important that Washington’s messages for Serbia are encouraging, given that this is a model that can increase the readiness of the citizens of our country for forging a strong alliance with America. This is validated by the fact that only two weeks after the signing of the Washington Agreement, the Serbian people’s trust and support for cooperation with the United States increased by as much as 2.5 times, from 11% to 26%, which is an indication that sincere and concrete mutual support gives great results in terms of Serbia and its citizens. The current U.S. Ambassador to Serbia, H.E. Anthony Godfrey also plays a
major role in improving relations between the two countries. Ambassador Godfrey has done a lot to ease the tension in relations and considering that he came to Serbia only a short time ago, has managed to change the perception of many people in Serbia who saw American ambassadors as people who came to Serbia only to deliver ultimatums and put pressure on our institutions. Although the U.S. administration has changed and many state officials have not been favoring Serbia in the previous period, it is essential that Serbia continues with a proactive policy and takes advantage of the fact that President Vučić has definitely changed the image of Serbia in America. Likely, the U.S. administration’s approach won’t “run on autopilot” again or be based on a policy pursued until 2012. Up until 2012, American officials thought that the issue of Kosovo and Metohija had been resolved and did not even want to discuss it. Today, they acknowledge the fact that every solution has to include Serbia, even though they have not fundamentally changed their political agenda. Secretary of State Antony Blinken knows the situation in Serbia and the region well and, like President Biden, is aware that Serbia is ready for dialogue and compromise, but not for a unilateral solution that will undermine the dignity of our state and people. President Vučić has repeatedly demonstrated the readiness to achieve long-lasting peace but has also shown strong national leadership and a vision that came to the fore in full capacity in Washington last September. Both countries and peoples have a great opportunity to renew their friendship and alliance and raise bilateral relations to the highest possible level. There is absolutely no doubt that President Vučić and Serbia will be able to seize this opportunity and together with American friends, start a new era of cooperation, understanding, economic and military collaboration, as well as to build a common transatlantic future that will provide our people with long-lasting peace and a safe future for our children. We owe that to each other.
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As a Nelt Group we understand the needs of participants in the supply chain through the personal experience of the manufacturer, distributors and logistics companies in all segments, based on 30 years of doing business in the challenging markets of the Western Balkans and Africa
December 2016, the intensity of intermodal flows has been growing stronger. In 2020, the terminal recorded a 40% operational growth relative to 2019 and we see the same trend in the first quarter of 2021. We expect that this trend will continue in the coming years.
JELENA JOVANIĆ Intermodal terminal manager at Nelt Group
“W
e have the experience of building partnerships with companies that are global and regional leaders in their industries while our innovative approach and strong partnerships are the key drivers of our long-term progress and growth. That is why Nelt The Way Logistics is an integrator of supply chains for different types of industries.“
INTEGRATOR
Nelt The Way Logistics is an integrator of supply chains for different types of industries
How did you organize the company's operations last year, considering that the COVID-19 pandemic has paralyzed Serbia and the whole world? — The extraordinary circumstances caused by the pandemic required extraordinary measures to preserve the health of our employees and the continuity of our business processes. We have demonstrated the ability to adapt very quickly, organize and do our job well, even in situations when that seemed impossible. We put together a crisis team that was in charge of taking care of the consistency and timeliness of all activities but also ensured transparency in communication throughout our company. We gave full support to our colleagues working in the field to make it easier for them to do their job in extraordinary circumstances. We have validated the importance of our role in all the markets in which we operate. Thanks to the efforts of everyone in the Nelt Group, the shops are well supplied and people can buy the necessary groceries. How important are socially responsible activities even in times of crisis? — We strive to provide stable support to the communities in which we operate. In 2020 alone, we donated over 360,000 euro towards purchasing medical ventilators and the distribution of food and other products in all Western Balkan countries, bearing in mind, above all, of the urgent local needs caused by the COVID-19 pandemic.
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weather conditions, thanks to the cooperation between Nelt's multifunctional and the contractor. Also, in the first week of April, we will start using a brand new Reach Stecker forklift, produced by the renowned Hyster brand, to handle containers. We are also preparing to transform our location in Javna Skladišta d.o.o. in Subotica, which has significant railroad track capacities, into an intermodal ter-
minal. The proximity of the Subotica Free Zone, Hungary and western Romania make a distinct potential of this location.
AMERICA 2021
What does the intermodal terminal bring to supply in the region and what results have you accomplished? — Owing to the first private intermodal terminal in Belgrade, which is connected by regular railway lines with the ports of Rijeka, Bar and Piraeus, customs office within our location, warehouses that have different temperature regimes spanning over 65,000 m2, the delivery fleet of over 250 vehicles, the location of Nelt's main distribution and logistics centre is itself an integrator of supply chains in the region. Ever since the terminal's opening in
What are your plans in terms of expanding the terminal's capacity and what else do you plan to do in the coming period? — This fact and the desire to continuously improve customer satisfaction are also the reasons for investing in expanding the terminal's capacity. The construction works, which added 5,000m2 to the manipulation plateau for handling containers, were performed within the set deadline in very demanding winter
CORPORATE
POTENTIAL AND IMPORTANCE OF INTERMODAL TERMINAL IN LOGISTICS PROCESSES
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COOPERATION
THE U.S.A. HAS INVESTED 571 MILLION EUR IN SERBIA
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AMERICA 2021
The U.S.A. ranks 14th among the biggest foreign investors in Serbia
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here is growing interest from potential U.S. investors in Serbia, in line with positive economic trends and with Serbia’s prospective EU accession. U.S. firms have invested around $4 billion in Serbia. Among the leading U.S. investors in the country are NCR, KKR, Philip Morris, Molson Co-
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ors, Ball Packaging, Coca-Cola, PepsiCo, Cooper Tire, Ametek and Van Drunen Farms. There has been increased interest from U.S. information technology (IT) companies, with specific emphasis on opportunities in e-government, cloud computing, digitization, systems integration and IT security.
EXTERNAL TRADE – THE U.S.A. Export According to the data collated by the State Bureau of Statistics, the total value of goods exported from Serbia to the U.S. in 2020 was 321.8 million euro, which is an 18.7 percent growth compared to the same period in 2019 when goods worth 271.2 million euro
were exported to Austria, a 20.6 percent growth relative to 2018. In 2019, the U.S. ranked 21st on the list of countries that the Republic of Serbia exports to the most to with a 1.5 percent share in total export. In 2020, it ranked 18th with a 1.9 percent share in total exports. Import The value of imported goods from the U.S. in 2020 stood at 390.2 million euro, which is 20.6 percent less compared to the same period in 2019, when imports from the U.S. amounted to 491.5 million euro, a 23.7 percent increase relative to 2018. In 2019, the United States ranked 15th on the list of countries that the Republic of Serbia imported the most from with a 2.1 percent share in total import. In 2020, it ranked 18th with a 1.7 percent share in total imports.
THE UNITED STATES OF AMERICA’S INVESTMENTS IN SERBIA Data collated the National Bank of Serbia are the only official data on foreign direct investments in Serbia, with the NBS publishing aggregate data on FDI by country of payment and industry, while official data on investments by individual companies are not available. It is important to note that data on foreign direct investments in money are obtained by the National Bank of Serbia from commercial banks, which means that these data are generated by country of payment and not by country of investment and largely depend on the country in which a company has a bank account through which it makes payments, i.e. investments. Starting from 2010 and ending in September 2020, inflows based on investments of the U.S. residents in the Republic of Serbia amounted to about
THE TOTAL VALUE OF GOODS EXPORTED FROM SERBIA TO THE U.S. IN 2020 WAS 321.8 MILLION EURO 571 million euro, which puts the U.S. in the 14th place on the list of countries that made the largest investments in Serbia in that period.
THE LARGEST INVESTMENTS OF AMERICAN COMPANIES IN SERBIA The records of the Development Agency of Serbia (RAS) are generated according to the country of origin of the company that invested, based on the RAS research on foreign direct investments by companies and the re-
ports of the companies themselves on the amount of investments they made. Due to the lack of legislation on companies reporting on the amount of investments they made, the following data can only be taken as indicative values. In this regard, and for the reasons stated, RAS records do not include investments of all companies, as well as all investments by individual companies. The top 5 U.S. companies that have made some of the largest investments in Serbia are Kohlberg Kravis Roberts, Philip Morris whose planned investment is around 736 million euro, then Molson Coors with about 487 million euro, PepsiCo with 200 million euro and Coca Cola Hellenic with 150 million euro of planned investments. Next is Ball Corporation, whose planned investment is around 100 million euro, Hilton with 70 million euro, Radisson Blu Old Mill with about 55 million euro and Cooper Tires with 99 million euro of planned investments. Microsoft Software d.o.o. ranks 10th.
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According to the data collated by the State Bureau of Statistics, the total value of goods exported from Serbia to the U.S. in 2020 was 321.8 million euro.
AMERICA 2021
STATISTICS
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CORPORATE
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WE HELP CUSTOMERS ACCELERATE DIGITAL TRANSFORMATION With more than a thousand business applications in the cloud, we are proud to operate the most complete and innovative set of application cloud services in the world
VLADIMIR KNEŽEVIĆ Country Managing Director Oracle Serbia & Montenegro
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merican multinational software developer Oracle, a cloud technology company that provides organizations around the world with computing infrastructure and software, set foot in Serbia by establishing a local subsidiary in 2002. It also created the world’s first – and only – autonomous database to help organize and secure customers’ data. We talked with Country Managing Director for Serbia and Montenegro Vladimir Knežević, about the impact of the pandemic on business and cooperation with the Government of Serbia. The pandemic has accelerated the digital transformation of many segments and activities in society. Do you view this pandemic as a crisis or an opportunity for you? How did Covid-19 affect Oracle and have you been able to innovate?
— Regarding the Covid-19, we believe that the pandemic offers organizations around the world a unique opportunity to upgrade their information systems and innovate by using the latest cloudbased solutions. Oracle’s focus is to be very close to its customers to help them accelerate their digital transformation journeys with our modern technologies. Our autonomous database and cloud applications are designed specifically for our customers’ success in responding to growing demands, efficiently redesigning operations or developing new business models. With more than a thousand business applications in the cloud, we are proud to operate the most complete and innovative set of application cloud services in the world. This
DIGITAL AGENDA
Oracle is helping with recommendations for improving Serbia’s digital agenda, thus increasing its level of competitiveness
puts us in a unique position to deliver the business innovation and resilience our customers need today. While there is much debate about the future of work in a post COVID-19 world, let’s see what Larry Ellison, executive chairman and Oracle CTO said recently: “We're never going back, I don't mean we're never going back to the office, but we're never going back to the way we used to work - at least not in our industry. Not everyone can work from home. If you're working in a Tesla factory, you can't work from home. So it's not universal. But an awful lot of our jobs are in the service part of the economy, as opposed to the manufacturing part of the economy. There you can work at home”. Covid-19 prompted Oracle to innovate by using newest disrupting technologies as a foundation of a sophisticated Covid-19 Therapeutic Learning System that allows physicians and patients to record the effectiveness of promising Covid-19 drug therapies. The System is the result of a collaboration with the National Institutes of Health, the Food and Drug Administration, the
Centers for Disease Control and Prevention, Centers for Medicare & Medicaid Services, and the Department of Health and Human Services. You have been successfully collaborating with the Government of the Republic of Serbia. What exactly does this cooperation entail and how important is it for Serbia? — The new digital economy in Serbia, as an economic activity resulting from billions of online connections between people, businesses, data, devices and processes, has created extraordinary possibilities for individuals, companies and the country to improve its competitiveness strategies owing to new technologies. Our cooperation with Government of the Republic of Serbia resulted in frame agreement where we are ready to help with adjusting and changing government systems by enabling centralization of shared process and empowering their digital assets. We introduced Oracle Cloud@Customer solution that brings Oracle’s portfolio of public cloud infrastructure, fully managed cloud services, and Oracle Fusion SaaS applications into customer’s data center. That solution can help our Government to prepare themselves for digital transformation journey. With this Republic of Serbia is improving the digital agenda for Serbia on the road toward its social and economic recovery.
OPPORTUNITY
Pandemic offers organizations opportunity to upgrade their information systems by using the latest cloud-based solutions Serbia officially applied for European Union membership on 22 December 2009. Accession negotiations are currently ongoing and digital transformation is important prerequisite as one of the points here is to have standardized processes and transparent outcomes. Oracle is helping with recommendations for improving Serbia’s digital agenda, thus increasing its level of competitiveness.
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As a company that is constantly working on innovating and improving its services, did you have to adjust your goals to the new circumstances and
what are they in the next period? — We adjusted our goals to the new circumstances by enabling our employees to work from home and to stay at home permanently if they wish so. Oracle’s experts has also developed a series of guides and practices for HR leaders to understand what segments of their workforce should return to the workplace and by when. HR workforce management leads will be working with operations to understand who should be in the first phase of returners. These will more than likely mean those employees that cannot work remotely due to access to equipment or their work is at a specific site like construction. In addition, it could also be those that need an increased secure environment for compliance or health and safely (i.e. Security, Defence, Research, etc). Depending on government and health policy and the ability for working space to accommodate workers, the second segment of returners could include those that are less productive working remotely, those whose working environments does not support home working (e.g. background noise or limited physical space), those whose performance is better optimised working in a team (e.g. IT scrum teams – where collective creative design is sometimes better face to face). The third segment may or may not return based on organisational and employee preference and policy. PWCs COVID-19 CFO Pulse Survey found that 68% of CFOs believed that the crisis-driven transition to remote working will make their company better in the long run. Many CHRO’s we speak to are working with their Facilities Management teams to change hot desking/office areas to team break-out space, envisaging a great number of the workforce will remain working from home post crisis. A fourth and final segment may exist dependant on the accessibility of a vaccine, and government and health policy: some members of our valued workforce may never return to a shared workspace. Those with underlying health conditions that put them at risk or are within the high-risk age demographic may be unwilling or unable to return until either a vaccine or national immunity exists.
AMERICA 2021
Apart from the public sector, you have also been cooperating with the private sector. In what ways do you contribute to digital transformation in Serbia and how far has Serbia come in that area? Is digital transformation an important prerequisite for Serbia's accession to the EU? — Digital transformation in Serbia is a perpetual process that has been accelerated during recent years. The nature of the change is more gradual and evolving then disruptive, but is nevertheless significant - with increasing momentum for both Public and Private Sector. Adoption of Oracle ICT in Serbia has increased and helped to accelerate its growth by: • Development of many successful IT companies and related products;
• I mprovement of the administrative environment suitable for IT industry development; • I mprovement of human resources potential; • I T-based modernization of business in all business sectors; •S upport for modern information technologies adoption for the purpose of modernizing businesses in all sectors; • Improvement of the legal framework and human resources potential; • Promotion of the Serbian information technology industry.
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TURBULENT YEAR WITH A STIMULUS-HAPPY ENDING The only way is up!
oe Biden signed a record-breaking $1.9 trillion stimulus package, literally drawing parallels with the New Deal, after the previous biggest crisis, nearly 100 years ago. But while this is not the way to the Green New Deal, as the progressives wanted it to be, this may be the first step towards the recovery of the American economy, which had been functioning well for many years.
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BLACK MONDAY, BLACK THURSDAY, THEN BLACK MONDAY AGAIN And then came Covid-19 and the somewhat zigzag response of the previous administration, which gave out
stimulus packages, encouraged the rapid opening of economies, and yet ignored the great casualties caused by the virus - over 500,000 people or more than all the American victims in both World War I and Vietnam. Such a demographic decline is difficult to compensate for from an economic point of view so that the opening of economies only partially covers losses. In the beginning, the stock mar-
IN THE BEGINNING, THE STOCK MARKET COLLAPSED VERY QUICKLY
ket collapsed very quickly, on March 9 and March 16, followed by a lockdown that made New York look like a ghost town and many small shops disappeared. Indeed, the ‘ordinary’ people fared the worst since they could take shelter in their summer houses or work from home like high-tech professions. Disputes over the size of the aid package continued until the end of Trump's term.
VACCINATION AND BIDEN'S STIMULUS PACKAGE After Trump handed over ‘the baton’ to Joe Biden, following an unprecedented campaign for the change of government and election like America hasn’t seen since the 1960s and Kenne-
dy. But while Trump whined that it was only after his defeat that they admitted to having the vaccine, it was up to the new president to do two gigantic things for the economy - first, to organize a successful and comprehensive vaccination in a country where many conspiracy theorists live in which he is succeeding with close to 30% of the population already being inoculated, and second, the move that President Biden made on March 11 by signing a coronavirus aid bill in the amount of 1.9 billion dollars thus initiating a huge effort of his administration to implement one of the largest relief packages in U.S. history. "This historic legislation is about rebuilding the backbone of this country," the president said during the signing of the bill. The first round of relief disbursement, of up to 1,400 US dollars, could happen this weekend and Americans, whose direct deposit bank account data is already available in the IRS, will be the first recipients of this aid. This law, also known as the American Rescue Plan, extends additional unemployment benefits to millions of people who are still out of work and introduces major changes to the tax code
in favor of families with children. This is not the end. There are also grants for the public sector as the law allocates new federal money to help schools reopen, to help cities and states facing budget shortages, and to distribute doses of the coronavirus vaccines.
THIS TWO-PRONGED APPROACH (VACCINES IN THE LEFT HAND, AND MONEY FOR ECONOMIC RECOVERY - READ FOR COMPANIES AND CITIZENS - IN THE RIGHT) COULD BE A WINNING COMBINATION This two-pronged approach (vaccines in the left hand, and money for economic recovery - read for companies and citizens - in the right,) could be a winning combination. Although liberals have been claiming that money should not be given out lightly, they be-
haved completely differently last year. There can be no "invisible hand" in crises because it can create great disruptions in the economy, unemployment, poverty and consequential crime. And that must be avoided.
TRADE-OFF Certainly, each country must weigh out how much it stands to lose by not vaccinating and by being in lockdown, on the one hand, and how much it stands to lose when giving out financial aid. If the country ascertains that “the wrapping paper is more expensive than the gift”, i.e. that the damage from the lockdown is greater than the cost of vaccines, then vaccines are acquired and the population is vaccinated quickly. If the country assesses that the damage from not allocating financial assistance is greater than giving assistance, then the assistance is granted. Biden and the U.S. administration made a bold move, making a trade-off that was necessary, which will get the U.S. economy back on its feet. In a situation where the European economy is faltering and the Chinese economy is still growing, this is also strategically important.
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WEST COAST NATIONAL PARKS ROAD TRIP
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America’s west coast national parks will leave you in a state of wonder and awe
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rom steamy geysers and majestic forests to unusual geological features like rainbow-colored sandstone and towering, narrow slot canyons, these U.S. national parks make for a memorable visit nearly any time of year. The West Coast states are home to 11 national parks and hundreds of state parks, national monuments, historical reserves, and designated wilderness areas. Road trip through these sections to camp, explore, and experi-
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ence the country’s natural beauty. Planning a trip to one of more of these destinations is an exciting undertaking. Yellowstone National Park is America’s oldest and perhaps most famous national park, with geothermal hot springs, sparkling rivers, lush valleys, dramatic canyons, and wildlife galore. While it’s not on the actual west coast, it’s one of the nation’s premier parks in the west! Lamar Valley is America’s Serengeti. Hayden Valley is another great place to see bison. Grand Can-
yon National Park, located right next to Page, Arizona, is one of the most famous canyons in the entire world. What makes it so special is that this canyon is one of the deepest canyons in the world, at a staggering 6,000 feet deep at its deepest point. The canyon also stretches for about 277 miles wide and offers visitors some of the most splendid views they have ever seen. Yosemite National Park is one of the most visited national parks in the country. Seeing the towering peaks
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GRAND CANYON IS ONE OF THE DEEPEST CANYONS IN THE WORLD, AT A STAGGERING 6,000 FEET DEEP AT ITS DEEPEST POINT
is the crown jewel of Utah’s national parks. Zion is filled with sharp peaks, high mesas, rainbow coloured rocks, and twisting canyons. The best way to experience this amazing place is by strapping on your hiking boots and finding your path. With so many hikes to choose from, you won’t know where to start. Channel Islands National Park doesn’t offer flashy amenities, but it does offer peace and solitude. There’s no highway to the park. To get here, you need to travel by boat or plane.
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from Yosemite Valley should be on everyone’s bucket list. But Yosemite has more than just great views! You’ll also find epic hikes, backcountry trails, and scenic drives. Grand Teton National Park is an amazing story of restoration and nature’s resilience. Once an area of huge cattle ranches and towns, today this natural treasure is a spectacular national park, with snow-capped towering mountains (the Tetons), staircase valleys, rivers, hikes, and incredibly rich wildlife. Zion National Park
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CEREMONY
GLORIOUS TRADITION Inauguration of the President of the United States
hey say that the coronation of the British queen is the most solemn event in the world, but that happens so rarely that even today's senior citizens were children when it last happened. But, the inauguration of the American president is very close in terms of glamour and it happens every four years. Although the inauguration of the new American president took place without an audience in town due to the coronavirus pandemic, it was still very glamorous, featuring Lady Gaga who is, just like the presidential inauguration, a one-person show and a special sensation.
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by Žikica Milošević
GLAMOUR AND SIZE OF THE CROWD MATTER! The innovativeness of a president and the sensationalism of his victory can often be measured by the number of people who attend the inauguration, so in that sense, Barack Obama was perhaps the biggest sensation in the past 50 years, since he unit-
THE INAUGURATION CEREMONY IS DEVOID OF GLAMOUR AND POMP
ed the two most numerous races in the United States. Although, Donald Trump, the disruptive president, was quite a sensation too, who boasted the most spectacular inauguration. But why presidential inauguration has to be this grand and what does it mean? Over the years, a variety of traditions have emerged that have expanded the inauguration from a simple swearing-in ceremony that takes place in many electoral democracies to an all-day event, featuring parades and multiple social gatherings, which, in the true American tradition of spectacle, became a must-see even for people who do not like the president in
question must and an event that many presidents of both smaller and bigger countries want to emulate.
WHAT IF THE PRESIDENT HAS NOT BEEN ELECTED AND INAUGURATION HAS TO HAPPEN? The ceremony itself is broadcast live on major American commercial television and cable news stations, while many media outlets also stream it live on their websites. When the president takes office suddenly and in the middle of the election cycle, the inauguration ceremony is held without fanfare. To facilitate a quick presidential transition under extraordinary circumstances, the new president takes the oath in a simple ceremony and usually addresses the nation afterwards. This has happened nine times in the history of the United States - eight times the president died while in office, and once the president resigned. In that case, the inauguration ceremony is devoid of glamour and pomp. Simply, the vice president who becomes president is not such a glamorous event because he is not elected directly. He is the second name on the election poster, so he carries a certain weight, but still, the president is the one who is a superstar. HOW MANY OF THEM WERE THERE? During the inauguration ceremony, some 72 to 78 days after the presidential election, the president takes the presidential oath. The inauguration takes place for each new presidential term, even if the president continues his term for a second time. The first inauguration of an American president, that is of George Washington, took place on April 30, 1789. All subsequent public inaugurations, from 1793 to 1933, were held on March 4 or 5, and from
THE SINGING OF THE ANTHEM WAS ESPECIALLY GLAMOROUS THIS YEAR AS THE ANTHEM WAS PERFORMED BY NONE OTHER THAN THE GLAM SUPERSTAR AND AVOWED DEMOCRAT, LADY GAGA 1937, they were held at noon on January 20 or 21, the first day of the new term. The president gives a speech addressing the nation, sometimes he says a prayer, and sometimes, of course, recites poetry. At the latest inauguration, Amanda Gorman read her song "The Hill We Climb". Previously, poetry was read for two Obama terms, as well as the inauguration of Bill Clinton and JFK. The Democrats are more inclined to poetry, especially when the new presidential mandate marks a "new era". Today, the COVID-induced
pandemic provided for the most dramatic and poetic moment, so poetry was quite appropriate. "America United" and "Our Determined Democracy: Forging a More Perfect Union" served as inaugural themes this year and subtle digs at the previous president, who was perceived as "divisive".
MUSIC, AMERICAN MUSIC Then comes the music. DJ D-Nice played 46 songs this year, as a reference to the 46th president, and included songwriters such as Bruce Springsteen, New Radicals and Mary J. Blige. And to make everything even more glamorous and complete, there were also live musicians. As before every game in almost any American sport, someone had to sing the anthem. The singing of the anthem was especially glamorous this year as the anthem was performed by none other than the glam superstar and avowed Democrat, Lady Gaga. There was nothing ga-ga about it but pure class and the icing on the cake of this spectacle. Next time, we hope that the ceremony will take place in front of the audience and without facial masks and the coronavirus.
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During the inauguration ceremony, some 72 to 78 days after the presidential election, the president takes the presidential oath.
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by Žikica Milošević
MUSIC
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BURNING MAN FESTIVAL Ancient and modern traditions entwined
o you think that it is possible to be a hippie and a hipster at the same time, or a new age proponent and an heir to the customs of your ancestors such as Maslenica or Poklade? And be all that in the most spectacular place, or rather the perfect place for creating "instagrammable photos", as they say today? Well, then Burning Man is the place for you. Burning Man is a kind of a cross between Woodstock, Exit, bohemian desert exile and a rave party. The festival is centred around the notion of community, art, self-expression and self-reliance, and is held every year in the
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western United States. It was named after its main event that is the symbolic burning of a wooden effigy nicknamed "The Man". The festival takes place on the Saturday before Labor Day. But not the one that the whole world celebrates, which falls on May 1, but the local, American Labor Day, which falls on the first Monday in September. The event has been held since 1991 in the city of Black Rock in northwestern Nevada, a temporary establishment built in the Black Rock Desert about 160 kilometers northeast of Reno. Its desert scenery makes it look surrealistic. According to its founders, Burning Man adheres to 10 principles -
"radical inclusion, gifting, decommodification, radical self-reliance, radical self-expression, communal effort, civic responsibility, leaving no trace, participation, and immediacy." However, the festival was not always held in Nevada but on the beach. Doesn't it look to you as a typically California invention to you which actually it is? It originated on Baker Beach in San Francisco, which many cite as the craziest and most liberal city in the United States and which at first glance, looks like a mixture of Lisbon and Victorian England, as well as a deeply social experiment in what the future of America might look like. The first fes-
tival took place on June 22, 1986, and it was then that Larry Harvey and Jerry James made the first effigy - “The Man” - to burn. In a way, this festival is reminiscent of the March Fallas Festival in Valencia, where effigies of all possible shapes and colors are burned to mark the end of winter. But let's go back to America. Since 1986, it has been held every year, for nine days until and including the Labor Day. Throughout the event's history, attendance has been constantly growing. In 2019, 78,850 people came to the festival which was not held in 2020, unfortunately. Emma Bowman best described its evolution from an anti-establishment festival to an alter-establishment event by saying: “Once considered an underground gathering for bohemians and free spirits of all stripes, Burning Man has since evolved into a destination for social media influencers, celebrities and the Silicon Valley elite.” That's what the alter establishment is. One anonymous participant said it was a place where no-one will ask "why?"
BURNING MAN IS, FIRST AND FOREMOST, A VENUE FOR SHOWCASING LARGESCALE INTERACTIVE ARTWORK but rather "why not?" The Temple is the second most important building at Burning Man, according to its organizers the Burning Man Project. "The Temple is a community shared space that is an important part of Black Rock City. It is not a temple in recognition of any religion; it's a neutral, non-denominational spiritual space where everyone can gather to share in the experience of remembering the past, honoring or cursing the present, and pondering the future to come." On the festival's last night, the Temple is burned right after the effigy. So, what is there to do at the fes-
tival? Burning Man is, first and foremost, a venue for showcasing largescale interactive artwork inspired by the cross-section of producer culture, technology and connection with nature. There are also Mad Max-style "Mutant Vehicles." These are purpose-built or creatively modified motor vehicles. The term "vehicle with mutations" was coined by the organizers of the burning event to outline the type of an "Art Car" that was modified more dramatically than simply decorating an existing vehicle. They look absolutely insane against the backdrop of the blue sky and ocher sand of the desert. Of course, music takes a central stage here, mainly electronic. At Burning Man, at night, various DJs put together big parties under the starry sky while during the day, most of the festival-goers ride their bicycles. And when it's all over, they take everything with them - garbage, tents, themselves - while the desert becomes virginally clean again. Until next September…. The fairytale-like September!
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WHERE ARE THE HAMPTONS AND WHY ARE THEY SO POPULAR? The Hamptons are technically made up of only two townships: The Town of Southampton and the Town of East Hampton. However, each of those townships includes smaller villages and hamlets with their own zip codes, school districts, and personalities
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dian Jimmy Fallon is known for making appearances in Hamptons hot spots such as the Stephen Talkhouse, Alec Baldwin is often spotted there, and many of the Real Housewives are out and about during the summer months.
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THE HAMPTONS OFFERS THE PERFECT MIX OF OCEANSIDE LOCALE, RURAL ATMOSPHERE, HISTORIC CHARM, AND EXCLUSIVITY, ALL WITHIN DRIVING DISTANCE OF NEW YORK CITY
But while many Hamptons visitors are wealthy, not all are. Residents and visitors of varying ages and tax brackets come to the East End to spend time in notoriously expensive areas such as Sagaponack and Water Mill, but just as many find their place in more affordable areas like Montauk, Hampton Bays, and Westhampton. All of them are great places enjoy the ocean breezes, white sand beaches, excellent seafood, lively parties, and rural atmosphere of the South Fork. Sagaponack has the highest median property sale price at $6.85 million, with Water Mill next in line with a median of $3.9 million. On the opposite end of the spectrum, the median home sale price in Noyack and Hampton Bays are $859K and $902K, respectively.
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he Hamptons is a group of towns, villages, and hamlets, concentrated on the eastern end of Long Island. Most famously, the region is a popular getaway for people from New York City. The Hamptons is known for its rural setting and amenities. The highly esteemed Cooper’s Beach, the historic Shinnecock Golf Club, and the Hampton Classic — which has been running since before 1900 — are just a few of the things that draw visitors from not just the city, but from across the nation, and even the globe. The seaside region is most notably associated with celebrity sightings. Many of the rich and famous spend their summers on spacious estates nestled along the Atlantic Ocean, often hidden behind tall hedgerows. Come-
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CULTURE
by Žikica Milošević
SOFT POWER AT ITS HEIGHT Indie-rock as an American cultural tradition
ock and roll conquered the world by leaving America. Legend has it that Elvis Presley "stole" rock and roll from African-Americans and sold it to white Americans who later hypnotically transmitted it to the whole world. The British soon made their version and spread this three-minute magic to the whole world, the Japanese started singing karaoke in clubs, while blues replaced Sanremo.
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UNDERGROUND ROCK WAS BORN FROM THE VIETNAMESE JUNGLES Soon after, alternative lifestyles started emerging from America, triggered by the Vietnam War. Of course,
after World War II, clean shaved men with crew-cut hair, in perfect suits and shirts, were quite popular. That image was ubiquitous because everyone wanted to look like victorious World War II soldiers. What fol-
AMERICA’S SOFT POWER CONQUERED THE WORLD AND IT WILL CONTINUE TO DO SO AS LONG AS THE COUNTRY CONTINUES TO RETHINK ITSELF
lowed was a collapse of trust in the establishment. When everybody understood that the Vietnam War was devastating and wrong, young people raised issues such as the meaning of everything while growing their hair and beards. The hippie movement and a bunch of bands and performers emerged as a result and for the first time, paved the way for the underground way of life. It all culminated in likeminded people taking it to the streets of all the world's cities, in the musical "Hair" and Woodstock. America changed ahead of other countries and laid the foundation for soft power. Indie-rock was born and predicted victory in the Cold War twenty years later.
INDIE, NOT JONES Indie-rock originated in the United States during the new wave, but as the American public had always preferred blues and "pure rockers", the British brutally overtook the Americans with the advent of MTV. Only the pioneers of the new wave in America broke into the forefront of world music, which suddenly became globalized – hit songs came from everywhere: France, Italy, Germany, Poland, Yugoslavia... Talking Heads and The B52's were the biggest milestones in the music of the late 1970s and early 1980s. In the latter decade, a quiet underground revolution began. Bands grew organically, without corporate pressure, they experimented from one album to the next, becoming clearly profiled and popular. REM from Georgia mixed pop, rock and country with indie, Red Hot Chili Peppers went from a surf-rock band to a funky-indie rap sensation, Violent Femmes explored topics that others didn't, and Velvet Underground sold so few records but exerted huge influence, understandably so considering who were the band’s members (Lou Reed, Nico and Andy Warhol).
In Seattle, on the forgotten northeast coast, along with Portland, a new movement emerged, inspired by flannel shirts and a mixture of punk and metal, under the rain and the gray skies of the Pacific. After the colorful, predominantly British and international 1980s, came the 1990s, the decade when everything exploded. Red Hot Chili Peppers released their sensation-
TALKING HEADS AND THE B52'S WERE THE BIGGEST MILESTONES IN THE MUSIC OF THE LATE 1970S AND EARLY 1980S al “Blood Sugar Sex Magik” and everyone knew their songs by heart. Metallica was instrumental in 16-year-old girls starting to like metal. Girls had posters of Guns'n'Roses plastered all over their bedroom walls, and REM were preachers of poetry that not many people understood, but everyone adored. Nirva-
na and Pearl Jam were the originators of the term "grunge" and the desire to wear plaid shirts, torn jeans and long hair. All of this happened between 1990 and 1992. America came back as the country that dictated global subcultural trends.
INDIE ROCK REVIVAL When electronic music took over, America jumped in again to save the day - New York's The Strokes made the first "stroke", followed by the inevitable Interpol and the best of them, The Killers, who came from the Nevada desert and managed again to sell rock to the Americans and pop to Europeans, to the astonishment of many. They all wore black shirts and tight pants, paving the way for the hipster movement, which was a perfect fusion of everything underground and intellectual that American universities had to offer. Yet again, America’s soft power conquered the world and it will continue to do so as long as the country continues to rethink itself. In each new indie-rock incarnation, America will enchant the world and the hearts of young people, who will imitate it.
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Nirvana and Pearl Jam were the originators of the term "grunge" and the desire to wear plaid shirts, torn jeans and long hair.
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THE INFLUENCE OF NETFLIX The first global TV network
hen’s the last time you saw a show or movie? It is a safe guess that it was on Netflix. Congratulations, you are part of 203.67 million paid subscribers of currently the best media platform in the world, and you’ve probably considered to start playing chess after watching Queen’s Gambit last year. Before Netflix, you probably went to the movies, watched whatever was on TV, or rented DVDs. Now, it’s safe to say that most of the TV shows and movies you stream on your devices is chosen
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AS ONE OF THE FIRST COMPANIES TO USE TECHNOLOGY AND SET A NEW BUSINESS MODEL, NETFLIX SHOWED FLEXIBILITY IN THE EARLY STAGES
DVD company but with a twist, ordering DVDs by mail and with no late fee. A year later, they introduced a subscription model, where customers could rent DVDs online for a fixed fee per month. That presented flexibility towards consumers and their needs is a big part of Netflix's story. Even now, estimation is that around 2 million people in the USA still use their DVD service. In 2007, Netflix expanded its business in the US when it introduced streaming and that transformed the way we watch content now.
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from the diverse libraries on Netflix. You prefer flexibility and convenience to decide what and when you want to watch, and you also want to be part of the global social conversation. Thanks to Netflix, no matter if you are in Serbia, the USA, or Argentina, you are getting the same content every day. No other company managed to do this around the globe, except Netflix. The reason for this is that Netflix uses technology wisely, puts people first, and is a flexible company. The service started in 1998 as a mail-order
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As one of the first companies to use technology and set a new business model, Netflix showed flexibility in the early stages. Their online business model also allows them to collect enormous amounts of data on their consumers, and use data to enhance their user experience as well as create new content. Their AI-powered algorithm creates personalized recommendations for each user based on their preferences, watch history, ratings, and demographics. The recommendations are usually very precise. According to Netflix, 80% of watched content comes from recommendations. For them, the consumers’ opinion is in the first place, and their satisfaction is part of a long-term strategy. This puts PEOPLE in the focus. However, not only people as consumers but also people as employees and people as talent for creating content. Netflix company manifesto puts people before processes, and as a company that wants to entertain the world and create more joy, they decided from early years to establish a culture that is liberated from rigid corporate rules and promotes freedom. That is reflected both on their services and content. Freedom was a big part of the first Netflix original “House of Cards” in 2013. Freedom to binge a great story on any device. As a company that has a mission to entertain the world and operates in more than 190 countries, Netflix early adopted content in foreign languag-
es from Narcos to La Casa de Papel or The Paper showing how a great story crossed borders. Netflix has become the first global TV station to dominate the global culture. With their decision to lock the best talent such as Grey’s Anatomy creator Shonda Rhimes, filmmaker David Fincher to name a few, Netflix has shown determination to create content that will provide both critically acclaimed, award-winning, and popular content.
THE PANDEMIC AND THE STAY-AT-HOME HELPED NETFLIX ADD A RECORD 37 MILLION NEW SUBSCRIBERS DURING THE YEAR “Bridgerton”, the popular show that is a mix of Jane Austen and Fifty Shades of Grey was seen by 63 million households in its first four weeks, marking the fifth-largest debut of any show on the service as Netflix stated joining the successful programs like “The Queen’s Gambit” and the documentary “Tiger King” as one of the most-watched programs released in 2020 during the pandemic. Netflix has also become an award-winning studio and fierce com-
petitor for movie studios, with more than 10 wins this year at Golden Globes as well as a studio that regularly has more and more wins at the Oscars. During the pandemic Netflix as first global TV station provided us a way to find stories that will help us escape, connect and create joy in difficult times. The pandemic and the stay-athome helped Netflix add a record 37 million new subscribers during the year. In the near future, it will be more difficult to preserve the leading position in the streaming business since all major competitors joined the race and present clear and present danger to Netflix. Fierce competition comes from Amazon, Disney+ who reached this month 100 million subscribers, HBO max or Tenecent, iQIYI or Youkuin in Asia with more and more original content in their libraries attracting new viewers each month. As a way to secure current consumers and attract new, during “streaming war” Netflix announced a new movie every week in 2021 featuring stars like Leonardo DiCaprio, Sandra Bullock, Dwayne Johnson, Zendaya, Idris Elba, Meryl Streep as a way to grow, enrich original content across a wide range of genres and nations and secure in maintaining leading position. By Marija Vicic, Communication Director for Creative Excellence for McCann in the Adriatic and Nordic region. She is a lover of good stories and media. Sometimes sleep deprived if there is a good show on.
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CORPORATE
THE GROWTH TREND OF THE REAL ESTATE SECTOR CONTINUES There is no alternative to investing except in real estate and all new residential buildings have been sold when they were still in the development phase
ERVIN PAŠANOVIĆ CEO of Adventis Real Estate
"O
ur government has chosen a policy of expansion as far as the construction sector, in general, is concerned, and I think that was a fantastic decision which, through multiplication, lifted the whole economy and generated maximum effect in times of crisis."
Many companies are in jeopardy in this situation, people are losing their jobs, and yet there is an increase in real estate turnover. There are even examples of rising real estate prices. Why is this so and who induces demand?
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The return on investment may not that high but the bulk of capital is secured for the future
The pandemic has led many people to start working from home. Some wanted to relocate from the city to a rural area, while some are looking for co-working spaces. How did all this affect the type of market supply and demand? — The Serbian construction sector is not so agile that it can quickly reorient to the current demand for suburban settlements and co-working spaces. It still takes several years to develop the location, but investors and developers are resourceful enough to try to meet the requirements of customers, who are always right. There are several such examples on the Avala and in Viline Vode. Demand for quality office space is still strong and we are yet to see the longterm effect of the crisis on the workplace philosophy. Personally, I don't like working from home, I think that my efficiency is higher in the office, but there are examples that are different to mine. Based on your experience, and according to current indicators, what will real estate trends and development be like in the coming period? — I believe that the market has not reached its maximum and I expect a slight growth in the next quarter. I also believe that, thanks to a good government policy of supporting the construction sector, the development will continue.
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— Last year, real estate turnover amounted to just over 2 billion euro, of which 33% were mortgage loans. As I have already said, there is no alternative to investing except in real estate and all new residential buildings have been sold when they were still in the development phase. It is clear that the market is realistic in terms of supply absorption and that residential quarters are not ghost towns but have real residents. It’s been
a long time since construction activity was so strong and simply put, there is a huge demand. As long as demand is higher than the offer, prices will rise, while the average Serbian buyer has become demanding and spoiled. They want better service, better quality and better neighbours.
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How did the health crisis caused by the coronavirus, which has been going on for a year now, affect the real estate market globally and in Serbia? — According to the relevant market analysis, real estate in Serbia is at the highest level at the moment, and there are various theories as to why this is the case. I am inclined to believe that the real estate market has currently become a capital market because of COVID. This means that due to the pandemic, currency risk is increasing, interest rates are close to zero, regional stock exchanges are inactive and the population has no alternative in terms of investing but to buy real estate. The return on investment may not that high but the bulk of capital is secured for the future. As for Belgrade, we can see a sudden expansion, a process I call 'Atheni-
zation', where half of the population of the Republic of Serbia will live in Belgrade, especially if capital infrastructure projects such as the subway, new bridges, tunnels and activation of the left bank of the Danube are completed. Simply put, the amenities that Belgrade offers are far greater than in the rest of the country, except maybe for Novi Sad. The real estate market in the world is stagnant, especially in terms of commercial buildings, and everyone is waiting to see which direction the crisis will take.
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by Žikica Milošević
NEW ORLEANS Part of France in America, Creole culture at its best
here is a part of America that is deeply French. Not only did "A Streetcar Called Desire" claim that Louisiana has French legislation, but the residents here still speak French. In fact, the state of Louisiana is named after the French King Louis. What about the city of New Orleans? It was named after the eponymous town in France - Orleans - where Joan of Arc was burned at stake. New Orleans is the town where imagination resides. This is the place where, in the famous horror movie, Detective Angel searched for his suspect with the help of voodoo magic and found the Devil himself. This is where Sting sang on Bourbon Street. New Orleans is the place where you hear people speaking the English language with a drawl, mixed with a few French words, where people of the mixed-race called Creoles have an incredibly diverse gene pool, speak all languages and cook the best dishes. This is the place where Nastassja Kinski turned into a black panther. A place of magic. New Orleans is also the place where funeral processions involve dancing and where one of the most beautiful festivals, the Easter Mardi Gras, is held. New Orleans is considered the economic and commercial hub of the greater Gulf of Mexico region in the United States. The city is world-famous for its diverse music, Creole cuisine, unique dialects and annual celebrations and festivals. The historic heart of the city is called the French Quarter, known for its French and Spanish Creole architecture and lively nightlife stretched along Bourbon Street. New Orleans has been described as "the most unique city" in the United States, thanks in large part to its intercultural and multilin-
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gual heritage. Furthermore, New Orleans is increasingly becoming known as the Hollywood South because of its prominent role in the film industry and pop culture. This is where the Delta blues is played and old inns where old black people, dressed in white, play the best music. New Orleans has many tourist attractions - from the world-famous French Quarter and St. Charles Avenue (home of the universities of Tulane and Loyola, the historic Pontchartrain Hotel and many 19th-century mansions) to Magazine Street with its boutiques and antique shops.
IT'S NOT A COINCIDENCE THAT PEOPLE CALL NEW ORLEANS "THE BIG EASE"
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If it weren't for Hurricane Katrina and some smaller ones, the city would be even more beautiful. We remember New Orleans from Depeche Mode's video for the song "Freelove" and the magical sunsets behind wooden houses near Mississippi. It's not a coincidence that people call it "The Big Ease". Everything is relaxed here, although it can be a bit dark at the same time. Still, this is one of the magically beautiful cities in the United States which is unlike any other, with its Spanish, French, African-American, Irish and English heritage.
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COMMENT
by Zlatko Crnogorac, Ex Art Producer
NETFLIX MARKS THE END OF CINEMA Boomers and generation X like a programme that is more organized and balanced out by the broadcasting dynamics, while millennials and generation Z prefer the so-called binging
he only question to be asked at the beginning, which stems from this overview, is the dilemma whether the on-demand streaming platform Netflix could be viewed as the modern day version of the Great Library of Alexandria or just a self-promoted viral phenomenon, like Tesla and Elon Musk if we were to compare it to the automotive industry. While surfing the wave of the coronavirus pandemic and the consequent quarantine, Netflix per se definitely marks the end of cinema as we know it, i.e. as a century-old social culture of living. Although we have faced similar dilemmas in the past as to whether television would figuratively kill radio or the Internet would kill the print media, the anthropological evolution at the turn of 2010s to 2020s, inaugurated a new generation of global audiences with a different comfort zone of content reception. We, known as boomers and generation X, like a programme that is more organized and balanced out by the broadcasting dynamics, while millennials and generation Z prefer the socalled binging, just like kids find the
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Sony Playstation more natural than the going-out-in-the-evening protocol or the week-long wait for the next episode or playing with marbles. Notwithstanding the precedent whereby the Netflix series ‘The Queen’s Gambit’ reaffirmed chess as an animation, it has only validated this new normal rule. If we look back at feature TV content of the previous decade, the most important titles were produced by the
TOO MUCH VARIETY OFFERED BY NETFLIX IS ACTUALLY OFF-PUTTING competition, primarily HBO, although it seems that in their mutual clinch of series (Game of Thrones) GOT vs HOC (House of Cards), Netflix came out as the winner. However Fargo, Americans (FX), Mad Man, Breaking Bad (AMC), including the series that were declared the best in the new millennium - from The Sopranos to Leftovers – as well as the aforementioned GOT, Wire and True Detective, are all from
the HBO portfolio. Last but not least, we have to mention an amazing fact that although thrillers such as Narcos and Narcos Mexico, series ‘Orange is the New Black’ and ‘Ozark’ and the series that depicts the epoch of the 20th century, ‘The Crown’, have been the most watched, it is ‘BoJack Horseman’, an animated tragicomedy about a centaur, that ran for six seasons, was thought to be the best series on Netflix. We, in this country, know next to nothing about this series despite our affinity for ‘The Simpsons’ and ‘South Park’. In any case, it seems that Netflix, as a content creator and simultaneous content provider, was a model business format for Telekom Srbija in its (HBO-like) business clinch with United Media / SBB Group. Hyperproduction, which stems from the logic that quality results from quantity, that instead of the AI algorithm of audience targeting one should use the deficit of executive production for the public national service, gave birth to last year's renaissance of drama series and caused a revolution in the domestic feature programming. ‘Južni Vetar 2’, broadcasted on RTS, was obviously inspired by the aforementioned Narcos, while ‘Crveni Mesec’, broadcasted on Pink TV and ‘Alexander of Yugoslavia’ on Nova S by ‘The Crown’, a biopic story of Queen Elizabeth. There is apprehension in the inverse paraphrase of the proverb ‘what doesn’t kill you makes you stronger’ that too much variety offered by Netflix is actually off-putting. Human cognition chooses between black and white, while in the entire remaining spectrum of RGB valerian, it sees only shades of gray. Recommended and retold but not spoiled summaries, instead of seductive trailers, are the only new possible coping software in the oversized hardware of the Neflix video store.
by Žikica Milošević SPORT
BASEBALLAMERICAN FAMILY TRADITION he rest of the world thinks that Americans have "strange sports" - two of the five biggest sports in the U.S. are deeply local and are struggling to break into the world that is baseball and American football. The other three - basketball, ice hockey and lately, soccer - are much easier to understand to the rest of the world. Again, it is not clear how such a rough sport as football can be considered a female pastime and one as gentle as baseball, a male one. Regardless, we are here to enjoy the diversity of the world.
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Belt, unlike football, which is loved in more 'hipster' environments such as Austin or Portland or among the Hispanic population.
AMERICAN ‘RELIGION’ “Whoever wants to know the heart and mind of America had better learn baseball,” the social commentator Jacques Barzun wrote over a quarter of a century ago. In 1919, philosopher Morris Raphael Cohen described baseball as an American national religion. The major league game was originally aimed at middle-class, white-collar workers compared to other forms of
HERE TO STAY Baseball is special in that an ordinary American audience loves this sport and it does not require special athletic abilities, but rather sharp skills. The kids are crazy about it. Baseball players have a special uniform and hat, and you can be a baseball star even if you are overweight, older than 40, or overweight like Babe Ruth. Baseball is the most democratic sport, in a way, because you only need a terrain, a stick, a glove and a ball. Baseball was and remains a reflection of American unity and peculiarity.
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BASEBALL OFFERS RELAXED ENTERTAINMENT, UNITES VIEWERS, AND GIVES EVERYONE THE PORTION OF THE AMERICAN DREAM
entertainment involving spectators. A National League ticket price of 50 cents in 1876 was high while playing venues outside the city center and scheduling games during the work week were also an obstacle for the blue-collar audience. A century later, with the rise in popularity of other team sports with much higher average ticket prices, professional baseball has become one of the leading American sports for spectators, mostly oriented towards blue-collar workers.
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A DEEPLY NATIONAL SPORT American football has been making its way up around the world lately, while baseball somehow remains deeply American. Baseball has a soul, the American soul, and as the Americans themselves say, along with the Independence Day, the parade, hot dog and apple pie, there is nothing more American than baseball. The most interesting thing is that baseball is the most popular in the good old Rust
Bearing in mind how deeply American this sport is, and how little understanding there is in the international domain, it is worth peeking into a "completely different world" that, surprisingly, shaped the American psyche
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THE MOST BEAUTIFUL EUROPEAN-STYLE WINERIES IN NAPA VALLEY Napa Valley is filled with some hidden architectural treasures that will make you feel as if you’ve landed in France, Italy, South Africa, or even ancient Persia
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CHATEAU MONTELENA It’s believed that the design for this stately stone structure — constructed in 1888 and designed as a barrel-aging facility — was inspired by the cellar of Chateau Lafite in France, and the architects, stonemasons, and stones were all brought over from that country. Instead of the wood typical of most 19th-century wineries, the Chateau is made of stone with walls three to twelve feet thick. It was designed to resemble an English Gothic castle gatehouse, including rusticated stone walls, a battlement with crenels and merlons, arched windows, a massive arched door for a portcullis, and bartizans with false arrow slits.
DOMAINE CARNEROS Called “one of Napa’s grandest and most regal wineries,” Domaine Carneros is part-owned by the famous Champagne brand, Taittinger, and was designed as a replica of the Taittinger château in Champagne, France. A wrap-around terrace looks over the symmetrical gardens and the whole Carneros region. You’ll feel like you’re at Versailles.
BERINGER VINEYARDS
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As you approach this winery you’re immediately faced with the palatial Rhine House, Frederick Beringer’s former residence and now the centerpiece of the whole winery property. With this 17room mansion, Frederick sought to replicate the Beringer family’s impressive German home at Mainz-on-the-Rhine. It was built in 1884 by architect Albert Schroepfer – who’s buried in St. Helena’s nearby cemetery – for about $28,000. The Rhine House is considered a classic example of ornate Victorian architecture with its gables, turrets, ornaments, beautiful exterior stonework, stainedglass windows, and interior wood paneling.
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CHIMNEY ROCK WINERY Drive north on the Silverado Trail as the afternoon light catches this pristine white estate against the Vaca Mountains, and you’ll swear you’re in South Africa. The graceful gables and bright stucco exteriors are classic elements of the Cape Dutchstyle of the Western Cape of South Africa, which are typical of many wineries in the Stellenbosch region, reflecting the winemakers’ roots in Holland, Germany, France, and Indonesia.
DARIOUSH Further south on the Silverado Trail, you may suspect your eyes are playing tricks on you when you spot this dramatic Middle Eastern confection. Owner Darioush Khaledi grew up in Shiraz, a wine-producing region in Iran, and today his winery design is inspired by the wine culture and history of ancient Persia paired with the winemaking influences of Bordeaux.
CASTELLO DI AMOROSA Often called “Dario’s folly” by the locals, this spectacular estate will make you feel as if you’re exploring a hill town in Tuscany or Umbria. The 13th-century-style winery grew from owner Dario Sattui’s passions for Italy, medieval architecture, and wine. Sattui is a fourth-generation Italian winemaker, and it took him more than three decades to build the castle, but the final result is astonishing, The property includes 107 rooms, a banquet hall, a dungeon and torture chamber, and a 15,000-square-foot wine cave. Most of the materials and craftsmen were brought over from Italy.
FAR NIENTE Far Niente Winery was designed in 1885 by architect Hamden McIntyre, creator of the former Christian Brothers winery—now the Culinary Institute of America at Greystone. Constructed against a hillside in western Oakville, Far Niente functioned as a gravity flow winery, gently moving the grapes through each stage of production. After being abandoned following prohibition, the winery was restored in the late 1970s, earning a spot on the National Register of Historic Places. During the restoration, the original name Far Niente, from an Italian phrase that romantically translated means “without a care,” was found carved in stone on the front of the building where it remains to this day.
Nestled at the foot of the Vaca Mountains just off the iconic Silverado Trail is the Krupp Brothers Estate Winery. Set on a bucolic vineyard and overlooking Lake Cynthia, this gorgeous Tuscan-inspired estate transports visitors to the Italian countryside, 10 minutes from Downtown Napa.
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Source: Kirsten Mickelwait · www.visitnapavalley.com
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