Interview: Ivan Gabrić, Combis CEO ICT companies are the factories of the future prompting smart investment
Regional competitiveness €75 million funding could be increased to €730 million once Croatia finalises entry into the EU
Croatian-Serbian Economic Forum Healthy market competition is the way to prosper in the future
INTERVIEW
REGIONAL COMPETITIVENESS
TRANSPORT
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Croatian Business & Finance Weekly Established in 1953 Monday / 29th November / 2010 Year IV / No 0132 www.privredni.hr
S U P P O R T E D
::: news HGK awarded at MEBEL 2010 furniture expo in Moscow The Croatian Chamber of Economy received a certificate for the best stand design at the MEBEL 2010 International furniture, fittings and upholstery exhibition held between 22nd and 26th November 2010 in Moscow, with more than 1000 participants from 29 countries. Seven furniture companies represented Croatia on a 100 m2 communal stand. Case management system (eSpis) implemented in 60 courts The Croatian Ministry of Justice has finalised the integration of the case management system (eSpis) in 60 courts across Croatia. The project was funded under PHARE 2006 with €2.9 million and its implementation started in November 2008. The new court case management system provides immediate insight into cases at all stages of the judicial procedure. Additionally, the length of the court procedure will be reduced and data exchange between courts more rapid. An algorithm for the automatic assignment of court cases to the judges has also been introduced, which should have a significant anti-corruption benefit. Job opportunities from waste management At the XIth International Symposium Waste Management Zagreb 2010, held on 25th and 26th November 2010 in Zagreb, Nikola Ružinski, State Secretary for Environmental Protection pointed out that 500 companies were involved in waste management, which has created 4,000 jobs.
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pvinternational pv international C R O A T I A N
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EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT TRANSITION REPORT
KEY PRIORITY TO END EU NEGOTIATIONS
With GDP down 5.8% and foreign direct investment slumping by 50% last year, Croatia may expect 1.9% uptick in 2011
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he European Bank for Reconstruction and Development Transition Report has shown a patchy recovery within the region in comparison with other emerging markets, with considerable differences among individual countries. For the transition region of Central and Eastern Europe, the EBRD predicts overall growth of 4.2% this year and 4.1% for 2011, after a 5.5% decline in 2009. The Croatian figures are the worst in the region. After GDP
EBRD has invested €386 million in Croatia this year fell by 5.8%, and foreign direct investment fell by more than 50% in 2009, with a further 1.5% economic downturn in 2010, Croatia can expect a slight 1.9% upturn in 2011. The main shortterm priority is to complete negotiations with the European Union on accession and proceed to full membership which is currently expected in 2012, as stated in the EBRD Transition Report. The government must carry on with the implementation of the reform programme, including efforts to
increase labour market flexibility, the reduction of business costs through limiting some non-tax revenue, and reform the judiciary and public administration. “These measures will help Croatia to improve its business environment by encouraging the significant progress that has already been achieved, by starting on economic recovery and sustainable growth”, said Pe-
ter Sanfey, lead EBRD economist for South Eastern Europe. Since 1994, the EBRD has invested considerably into different sectors of the Croatian economy and the financial commitments during the year of crisis amounted to €386 million, the highest investment ever made. A further €10 million is expected to be invested into Croatia by the end of the year. (K.S.)
2 VIEWPOINT
Privredni vjesnik Year IV No 0132
BORIS BLAŽINIĆ, DIRECTOR, INSTITUTE FOR HUMAN RESOURCES QUALITY AND DEVELOPMENT
INVESTORS PUT OFF BY RESTRICTIVE REGULATIONS
Human capital – the key A COPERNICAN TURNAROUND NEEDED to long-term survival The creation of intelligent organisations capable of Due to incomprehensible procrastination in issuing building systems and developing human resources is work permits some investors willing to make a signifivital in order to capitalise on the knowledge and po- cant investment into Croatia are lost for ever tential of individuals least have their ambassadors who Igor Vukić uman resources should be evaluated, assessed and developed. They are not disposable assets, but rather potential whose value can only increase over time. Thomas O. Davenport defined human capital as a set of knowledge, skills, experiences and abilities. However, the degree to which they will be demonstrated depends upon personal behaviour and motivation. Although most managers recognise the importance of knowledge and its competitive advantage, few know how to recognise this knowledge within a company and how to use it for the development of new value. Research has shown
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The main requirement for investing into human resources is a stable and well-functioning system of government that the only thing that guarantees a sustainable competitive advantage is the knowledge possessed by the company, the way in which this specific knowledge is used and the speed at which new knowledge is acquired. Organisations with long-term vision recognise human resources as the prime component for longterm survival, hence treating employees as an asset. Companies with short-term vision and goals are focused on financial IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
oth government representatives and economic analysts agree that the growth of private investment is the only way out of the crisis. The conclusion of the conference “A New Growth Model for the Croatian Economy”, organised recently by Poslovni dnevnik and the monthly magazine Banka, prioritises the idea of breaking down barriers that prevent investment activity. Đuro Popijač, Minister of Economy, commented on resistance caused by the announced construction of golf courses near Dubrovnik. Ljerka Puljić, Senior Executive Vice-President of Agrokor believes that further efforts should be made in order to explain to the general public that entrepreneurs take serious risks, make profits, but also employ people.
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gain, treating employees as an expense, as they would with any other costs that can easily be reduced or eliminated in order to accumulate short-term gain. Unfortunately, when times get difficult, people are often considered as disposable goods. The lower down the chain, the more “disposable” they become. If the return on the investment into development and continuous training are to be appropriately assessed, it is necessary to monitor whether newly acquired knowledge, techniques and skills are developed and implemented in the work process, whether attitudes and behaviour are moving in the right direction, and whether there were any improvements in efficiency. They develop their potential, single themselves out, increase their efficiency, add new value to their organisation and finally, complete their work to high standards.
FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr
IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr
EDITOR IN CHIEF Darko Buković +385 1 5600003 bukovic@privredni.hr
TRANSLATION Tr@duco traduco@zg.t-com.hr
EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr
COUNSELLOR, INTERNATIONAL OPERATIONS, LANGUAGE EDITOR Ray Fletcher fletcher@privredni.hr
Five years of waiting A Copernican turnaround is most certainly needed, added the entrepreneur and economic advisor to the Prime Minister, Borislav Škegro, which should welcome profit-encourag-
ing investment. The word “profit” should no longer be provocation for anti-entrepreneurial activists. “Foreigners at
can advocate on their behalf, and we, as local investors, must do everything on our own”, complained Škegro. According to another Prime Ministerial advisor, economist Željko Lovrinčević, changing attitudes will be very difficult. “Our society is rigid and hypocritical. Negotiations between government and unions are held in an introverted system in which every stakeholder is concerned about their own shortterm interest only. In the mean-
The word “profit” should not be a provocation for anti-entrepreneurial activists time, nobody seems to be worried about the non-competitiveness of society as a whole, nor about the lack of valuable export products”. U.S. Ambassador James B. Foley said that a potential U.S. investor into Croatian tourism left the country as the investment was not started after a five year long period. Miroslav Dragičević from Horvath Consulting added that about fifty investors have already addressed him with projects with a value of s o m e €30 million. He explained that potential investors are put off by restrictive regulations. Prime M i n i s t e r, Jadranka Kosor, announced that private investors in energy and infrastructural projects, worth about €14 billion, will enjoy full government support.
INTERVIEW 3 Interview: Ivan Gabrić, Combis CEO
ICT companies are the factories of the future The current economic situation prompts companies to invest in a smart and cost-effective way which is eventually a positive movement
investing in a clever and costeffective manner, which is, in the final analysis, a positive thing.
Boris Odorčić he Croatian company Combis, founded 20 years ago, is one of the leading ICT companies in the region. Its main activities include the development and maintenance of application, communication, security and system solutions. Ivan Gabrić, Chairman of the Board of Combis, comments on the current situation and the future of the ICT market in Croatia
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How would you assess the current direction in which the ICT market in Croatia is heading? The Croatian ICT market directly reflects the Croatian economy. Hence, therein lies the answer to the question whether we are heading in the right direction or not. There are two segments of the economy that are evidently dominant – banking and telecommunications, where we follow EU standards very closely, which could not be said for other segments. Generally speaking, the Croatian ICT market has been developed only superficially, which is why we are lagging behind more developed markets. This underdevelopment is most obvious in the field of ICT services and highly sophisticated ICT solutions. Are there sufficient ICT companies in Croatia? The number of ICT companies is a consequence of the demand for ICT products by the market, which means that the number of existing companies fully covers the needs of the market. Understandably, Croatian companies are strongest on their local market. This is why we can justify high ICT operations costs to some extent, as we put together the knowledge of local specifics and
Are there enough ICT experts in Croatia? If we consider the current ICT market situation in Croatia, there are not enough ICT employees, not to mention ICT experts. This is a consequence of an approach without a strategy to the development of the Croatian economy, but also due to many omissions and oversights within the Croatian educational system. I fully advocate the idea of a significant increase in science subject workload, maths in particular, within Croatian primary schools. It would be normal to increase the number of universities that would educate a sufficient number of high-quality experts as they are the only realistic basis for a stronger ICT industry.
information technology. In the broader context, the surrounding countries also find us attractive, and this is mainly what the limited scope of the ICT industry in Croatia boils down to. It is clear that we will always be able to find some examples that boldly speak in favour of the greater potential and better opportunities in the regional or EU scene, but it is indisputable that the currently available number of ICT experts and the size of the projects that we are currently processing are not suitable. I think this is a problem that all neighbouring ICT markets face, which at the same time provides one of the possible situations. Do companies not directly involved in ICT understand the advantages of using such technology in their business?
We all know that the ICT is primarily identifiable in large and successful companies that do understand and realise the full potential of business informatics. On the other hand many
Croatian ICT market lacks both ICT employees and experts projects, investment in security solutions in particular, are imposed on companies. Legislation and Croatian accession to the EU require higher security levels in particular industrial sectors, which contribute to the recognition of business solutions that would make it happen. Generally speaking, the current economic situation prompts companies into
Is the state doing enough in order to support the development of this sector? The state is obviously facing more serious challenges than considering the ICT industry, so I think that it is pointless to discuss the problems or support provided to the development of ICT in this context. After all, this is not paramount in the current situation. A broader attitude towards production in general would be crucial and ICT companies are in fact the factories of the future. Furthermore, the burden of taxation should be reduced. This would create a climate in which ICT would be much more competitive abroad, but that is not the case today. We all know very well about salary contributions and the tax rates in Bulgaria or Serbia and this should be our goal. After this, we can discuss programmes for the development of the ICT industry.
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Privredni vjesnik Year IV No 0132
Regional competitiveness
€75 million could be increased to €730 million A ccessing EU pre-accession funds requires patience, determination and a lot of hard work. In order to benefit from the funds, patience and a respect for the regulations have proved to be of more importance than being clever or inventive for they are not easy to assimilate quickly. For example, the current Instrument for PreAccession Assistance (IPA) comprises five components, one of which is regional development. This is further divided into three sub-components, one of which covers regional development and competition. Projects in this subcomponent may be implemented within the framework of the operational programme with three main priorities. Those who manage to overcome those divisions and subdivisions may count on a small portion of the current €75 million, of which the EU provides 85%, and Croatia the remaining 15%. The amount of €75 million may be increased to €730 million
when Croatia joins the EU, hence why Croatia is trying hard to apply for as many projects as possible in order to meet the benchmark set by a demanding Brussels administration. Many have
EU pre-accession funds for entrepreneurs with patience, determination and hard work already faced failure and many more will do so in the future, but there are also some who have successfully faced the challenge and have been rewarded. Marasca and e-commerce The Faculty of Food Technology and Biotechnology in Zagreb, from its centre based in Zadar is such a positive example, as they managed to obtain funding of €496.810 for the project Marasca Cherry as an Ingredient for Func-
tional Food. As project leader, Verica Dragović-Uzelac, explained the project should result in new marasca products, as marasca has high biological potential. The objective of a further project is the strengthening of competition via e-commerce, and some €10 million was provided for its implementation. Dragan Jelić, director of the Brodsko-posavska county Development Agency, one of 10 project authorities, says that screening and needsanalysis processes have already been conducted, and a workshop for entrepreneurs interested in e-
commerce is planned in the near future. Robert Markt, state secretary at the Ministry of Economy, presiding over the operational programme for regional competition, notes that the programme was helpful for the preparation of improvements in such areas as professional services, education and technology investment, e-commerce and business infrastructure development. According to Elena Grech from the EC, the results achieved through this programme will determine Croatian competitiveness in the first years after EU membership. (D. Ž.)
Postira fish factory
Sardina to invest €13.7 million
As the current factory location has now been redefined as a tourist zone it has to move; the board of directors is considering selling the attractive location and to invest into tourism he fish factory Sardina from Postira, renowned for fish production and processing, is located in an attractive location in this small town on the island of Brač. However, it is soon to be relocated to an entrepreneurial zone which covers an area of 5.5 hectares. The zone is located near Postira, only 200 meters from the road. The factory would take up some 11,000 m2 of a plot of 20,000 m2. “If the local municipality solves all the property and ownership issues in a timely manner, we will be able to start construction work in April next year. Investment includes the application of new
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technology, together with the construction of new cold storage facilities and a tunnel” points out Niko Bezmalinović, Chairman of Sardina management Board. Sardina is renowned for its continuous investment, which currently includes its fleet modernisation and the introduction of
up-dated technology. The Board of Directors and owners of Sardina factory have no desire to leave the island and as a consequence they opted to invest a further €13.7 million in their current premises although this does not provide sufficient space nor meet all the necessary standards. The move would free up 12,000 m2 of attractive land on the coast. In fact, a new modern hotel ‘Pastura’ is within walking distance of the factory. Tourist and other entertainment facilities would create the necessary infrastructure for the revival of the village. “When management began to plan this move, the initial idea
included the sale of the existing premises, since there was a high level of interest from the market. However, we decided to take our time and currently we are considering other options, the most probable being to invest into tourism; therefore a partnership with other investors might also be an acceptable option. In any event, our premises have been defined as a tourist zone within the framework of urban planning” clarified Bezmalinović. In addition to the 260 employees currently employed, a further 50 would be taken on in the case of moving to the new location. (J.V.)
www.privredni.hr Business & Finance Weekly
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( €500 million
invested by Croatian companies in Serbia
( €300,000
value of Serbian investment into Croatia
CROATIAN-SERBIAN ECONOMIC FORUM
Co-operation without political prejudice Investment should be evaluated on the basis of healthy market competition agreed Croatian President Ivo Josipovic and Serbian President Boris Tadić
Igor Vukić n 1999, when the Croatian company Končar considered the possibility of doing business in Serbia, it indirectly established a representative office in Belgrade via its office in Switzerland. After a delegation of 320 Croatian entrepreneurs led by the president of Croatian Chamber of Economy, Nadan Vidošević, visited Serbia in 2000, Končar established a full representative office. And while Croatian companies managed to take over or establish companies in Serbia investing more than €500 million, the value of Serbian investment into Croatia amounts to a mere €300,000.
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Political co-operation at the highest level At the recent economic forum in Zagreb which gathered together the representatives of almost 200 companies from both countries, Croatian President Ivo Josipović and Serbian President Boris Tadić concluded that politics should no longer be a reason for business
discrimination since the level of political co-operation has risen. “Healthy market competition is what is needed now”, pointed out Josipović and Tadić noted that after a climate of trust was created, all investors should enjoy equal treatment. Moreover, added Tadić, Croatian and Serbian com-
Serbia is well placed to enter the Russian market without paying duties panies should act jointly to penetrate third markets. This attitude was fully supported by the host of the forum, president of Croatian Chamber of Economy and the president of the Serbian Chamber of Commerce, Miloš Bugarin, who proposed that presidents of Chambers of Commerce of all exYugoslavian countries meet twice a year to discuss the possibilities for encouraging co-operation and possible “capture” of new markets. Slobodan Petrović, director general of the dairy plant Imlek, noted that the investment they
made is in line with the attitudes promoted by Tadić and Josipović. “We bought land on an industrial business zone near Sinj, where we are planning to invest €7.5 million. I believe there will be no problems in launching our products, for instance through Konzum, as we are one of the largest suppliers to the Agrokor chain store Idea”, said Petrović. Their attempt to take over the KIM diary plant illustrates the degree of obstruction to investment from Serbia. Petrović believes that sufficient time has now elapsed and that the successful investment in Sinj will set an example for a new political and business climate. Duty-free entrée into to Russia Darinko Bago, Končar CEO, confirmed that there have been some discussions of a merger between Serbian and Croatian companies, a merger between Končar, Goša and certain other companies, in order to create a basis for entering new markets. “Serbia has a fine tradition in the metal industry
sector, whilst Croatia is stronger in electrical engineering and final processing. Together we could be awarded new projects”, suggested Bago. Serbia has signed a free-trade agreement with Russia, which simplifies joint action in that country. According to the Serbian Minister of Trade and Services, Slobodan Milosavljević, the chances are fair for launching agricultural products and for participation in public tenders on the Russian market. “As several free-trade agreements have been signed, Serbia can reach a wide cross-section of the Russian market without paying duties. However, Serbia alone cannot produce enough goods in order to achieve this potential”, noted Milosavljević. As a result of individual discussions between Croatian and Serbian companies held outside the Forum, it is expected that trade will soon surpass the $844 million achieved in 2009. If the positive atmosphere created at the forum is sustained, the figure of $1.2 billion reached during the pre-crisis year of 2008 seems a distinct possibility.
6 WE PRESENT UVEZ, ZAPREŠIĆ
Privredni vjesnik Year IV No 0132
STOLART, ZAGREB
Furniture for children StolArt is a workshop where wood is shaped into furniture inspired by fairytales which takes children into the world of imagination hen the father is a skilled carpenter and the mother is a painter and art teacher the children live in a house filled with fairytale motifs. The furniture made by the Mihalić family is vibrant and alive and the making of the furniture initially meant for their children turned into a very promising business. The specifics of the furniture for children are not only the variety of colours and cheerful design but also more importantly, stability and safety. “The first chairs were for the family and we watched their reactions and what they did. We adapted everything so that chairs, for example, are a good fit for small people”, says Davor Mihalić. Edges of the furniture are rounded and the weight must be suitable for those children who may wish to play whilst sitting. The chair cannot turn over in the case of a robust four-yearold climbing on to the back.
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Combining an old craft with modern techniques Uvez celebrates its 60th anniversary overcoming privatisation and crisis years and now totally owned by its employees he printing, stationery and binding company Uvez celebrates its 60th anniversary this year. All printing activities are dealt with by 40 employees in premises that extend to 1,400m2. Snježana Krivak, CEO of Uvez, says the company promotes the traditional craft techniques used when making specific items, combined with quality technical equipment that covers the complete production process from design, pre-printing preparation, printing and the most demanding adjustments. Digital, offset and screen-printing are also included in their services. Further services include bookbinding and the binding of documents, master degree dissertations and scientific and research papers. These can be bound in cloth, leather, eco-friendly leather and clients can opt for hardback, softback or spiral binding. In addition clients can request the restoration and rebinding of old books. In its 60 years of business, the company has gone through many different phases. The state changed, as did the organisational structure and economic and taxation systems.
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Employee-owned company “Some years were good, others were better, and some were quite bad. We went through the privatisation process and it is probably due to the fact that the employees managed to buy
the whole company themselves and succeeded in maintaining ownership until today. There are no majority owners and the company is managed in a quite conservative way. Reserves from periods of successful business were useful in overcoming bad times, and all investment has come from our own funds with
They are particularly proud of their digital printing machine which is a giant step forward for the future of printing occasional short-term loans”, points out Snježana Krivak. Servicing the needs of many small clients has reduced risks associated with payment and the dependence only on several large clients. “We are particularly proud of our digital printing machine, which is really a giant step forward into the future of printing”, said Snježana Krivak. “This is the first machine in the area intended for a high-quality, mass and personalised production. It enables perfect doublesided printing in full colour up to B2 size”, she added. Binding operations will seek perfection in the future, particularly in terms of product completion. According to the Uvez CEO, in order to reach this point the modernisation of specific final processing phases has been planned. (B.O.)
The story is important As their children were growing, the parents simultaneously developed their products. Apart from small
wooden tree houses in the garden, their home slowly filled with decorated wardrobes, shelves and chairs of all colours and shapes. “StolArt is a workshop where wood is shaped into furniture inspired by fairytales, which takes children into a world of imagination. It is hand-made and hand painted, therefore it is not only functional but also inspires children to play”, says Maja Mihalić. Only solid wood is used for their furniture - pine, fir, juniper and larch. “These materials are used for all the furniture we make. Hardwood is cold, whilst conifer is warm. The difference between the two is significant”,
From family to the wider market says Mihalić. He and his wife are now making chairs and furniture to order from a growing number of clients. Rather than their own store, they make the most of the virtual Facebook arena. The StolArt profile attracts a growing number of friends and those who enjoy colourful wooden fantasies, one of the reasons being their affordable prices. The furniture can be ordered via the web page www.stolart. webs.com. (A.M.)
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CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.55
5,402699 5,488316 6,682977 5,583833 8,787553 5,59606 7,411422
USD
5.50
7.45
5.40
5.30
7.40
5.20
5.10
7.35
5.00
5.00
4.80 22.11. 23.11. 24.11. 25.11. 26.11
Durable goods down 7.8%, intermediary products down 7.5% and capital goods down 5.8% show the depth of the decline
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shows that despite good results in a particular month, there is no cause for optimism. Given that Croatia is not an export-oriented country, foreign demand without domestic demand simply cannot encourage positive trends in industrial production. As long as domestic demand is low,
Negative trends “softened” by 2.1% growth in the energy sector 7.5%. In September, a fall in the production of capital goods was briefly disrupted, only to continue the 5.8% decline trend for October. In addition, after three consecutive months and a high 10% growth in September, production of nondurable goods fell by 3.7%. Negative trends have been “softened” by 2.1% growth in the energy sector, the sixth consecutive month of growth. No cause for optimism Production decline was also recorded on a monthly level. In comparison with September, industrial production in October fell by 3.7%, a 7% decline in
last y e a r, industrial production fell by 1.8%, mainly due to a 6.8% decline in intermediary goods production. The fact that the slightly positive results were immediately followed by a negative period
4.90 22.11. 23.11. 24.11. 25.11. 26.11
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Set for further decline nondurable goods production, a 5.8% decline in capital products and a 2.4% decline in intermediary goods. Year-on-year analysis for the period January to October 2010 shows that, in comparison with t h i s period
5.70
5.60
INDUSTRIAL PRODUCTION
fter positive results in September bringing a very positive surprise for the market, industrial production continued to fall in October. According to preliminary data provided by the Central Bureau for Statistics, industrial production calculated from adjusted indices and contrary to expectations, fell by 4.4% on an annual basis, point out RBA analysts. When changes in industrial production are evaluated according to the main industrial categories, the largest decline was recorded in the production of durable goods falling 7.8%. Production of intermediary products fell by
CHF
7.50
7.30 22.11. 23.11. 24.11. 25.11. 26.11
WEEK NOVEMBER 29, 2010
5.70
Croatia cannot expect more than a slow-down in the rate of decline or at best mild growth due to the low base, which is insufficient for recovery given the duration and depth of decline, concluded RBA analysts. (V.A.)
Erste Bank grants credit to Hrvatske vode Hrvatske vode and Erste Bank have signed a €0.14 billion long-term loan agreement for the financing of capital investment into the harmful effects of water, water supplies and water purification. The repayment period is eight years and the interest rate is the six-month EURIBOR rate + 3.4%. The total loan interest costs during the loan period are estimated to be €3.15 million. The government has guaranteed repayment. Fina to take over the money claims execution Two new Acts on amendments within the banking sector will take effect on 1st January 2011. They are the Act on Money Claims Execution and the Payment System Act. From 1st January, banks will need to follow Fina’s recommendations and not hold any responsibility for the procedure. Individuals will, according to the new Payment System Act, receive information as customers in a new manner. In the second half of 2011 new payment system forms will be gradually introduced. Crisis over for AZ fund At 30 September 2010 the nett assets of AZ Mandatory Pension Fund were €1.86 billion, of which nett payments made by members amounted to €1.59 billion. In 2009 and 2010, AZ fund earned €0.20 billon, a sign that their crisis is over. In the last 12 months, the AZ fund yielded 8.11% whilst the average annual yield from inception until the end of October 2010, was 5.22%. AZ fund has a 39.71% share of the pension fund market in Croatia.
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Privredni vjesnik Year IV No 0132
TRADITION FOR THE FUTURE
DRY STONE WALL LANDSCAPES FOR CULTURAL TOURISM
Changes in life come with every generation and the old heritage and traditions fade over time putting an important aspect of Croatian tourism at risk Drago Živković eveloping Croatian tourism already well-known for its sun and sea into a destination also favoured for its culture is one of the cornerstones of the future. Impressive buildings from throughout history, palaces and churches, the moreška (Croatian sword-dance) and carnivals, wines and rakija are among the best-known of Croatian assets. However, everyday crafts and traditions are often forgotten, an example being dry stone walling. The Croatian coast and islands are interwoven with a network of dry stone walls, terraces and pathways once used to connect the earliest settlements. Within the dry stone wall enclosures residential buildings and animal grazing areas were developed and agricultural fields defined. The important role of the stone gromača in the pre-
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vention of soil erosion has been well known for centuries. The techniques involved have not changed much, depending mainly on the skills of the particular construction worker and the type of stone in the specific region. There were some variations in the building of larger buildings such as prehistoric fortifications (gradine), or in the techniques of well, pool and farm fencing. On the Croatian Adriatic, one can still notice the original Mediterranean landscape with dry stone walls as one of the most recognisable elements particularly along the more local roads. Mindless destruction The value of this aspect of the Croatian cultural heritage has for long been recognised by experts and it has been specifically promoted by the association ‘Suhozid’ on the island of Pag. The association is well-known to the pub-
National Dry Stone Wall Day The Association has started an initiative requesting the Croatian parliament to announce 26th March as “National Dry Stone Wall Day”. That occasion would be a day of remembrance of past generations who built the dry stone walls as a unique and identifiable part of the Croatian landscape but would also include the renovation and reparation of existing dry stone walls.
lic, as it built 12 huge dry stone crosses and a chapel dedicated to those firemen who died in the fires on Kornati some years ago. Dry stone walls, claims Ivo Butković, president of the Association, are a very important and valuable tourist attraction on the Croatian coast, significantly contributing to tourism. Changes in life come with every generation
The most persistent of tourists could be awarded with a dry stone master diploma
and the old heritage and traditions fade over time putting an important aspect of Croatian tourism at risk. It harms not only the cultural and historical heritage, but also causes significant economic damage, stresses Butković. Furthermore over the last decade weekend houses, holiday homes, tourist villages and roads have been built virtually everywhere, with the old cultural heritage, such as prehistoric graves and well walls being recklessly de-
stroyed. In order to stop this erosive process, the ‘Suhozid’ association decided to found a Croatian centre for dry stone construction. Triple function The centre has three main aims. First is education, which includes training for young people. Schools and faculties will be offered field trips during which students can learn the basics of dry stone walling but will also be able to participate in the renovation or construction of dry stone walls. The second function is linked to tourism, which includes working with those interested in dry stone walling, so that even the most persistent tourist could be awarded with a dry stone master diploma. The third function is a focus on local companies who would be invited, as a type of a team building, to acquire the skills of dry stone walling, as well as holidays for employees, coupled with the tasting of Croatian gastronomic specialties. The centre was perceived to be an organisation capable of recovering or rebuilding many different buildings using this prehistoric technique.