CorD Magazine No.33

CorD | December 2006

December 2006

8 Post-Electoral Coalitions

Managing Director: Ana Isaković a.isakovic@cma.co.yu Editor in Chief: Mark Pullen m.pullen@cma.co.yu

16 On the Brink of Membership

Art Director: Branislav Ninković studio.trid@gmail.com Editorial Contributors: Dragan Bujošević, Ivica Petrović, Miloš Mitrović, Vojislava Vignjević, Danijela Popović-Jurić, Jasmina Čolak, Sonja Ćirić, Alex Papke Photo: Jelena Mandić, Stanislav Milojković, Časlav Vukojičić, Jelena Seferin, CorD Archive, Tanjug Translators: Dejan Zubac, Miloš Milosavljević, Milica Kuburu-Jovanović

Interview: Georgi Dimitrov, Ambassador of the Republic of Bulgaria in Belgrade

20 Together for Development Interview: Lance Clark, UN Resident Co-ordinator & UNDP Resident Representative

Editorial Manager: Jelena Vignjević j.vignjevic@cma.co.yu Subscription & Web: Ivan Lakatoš i.lakatos@cma.co,yu Sales Executives: Stela Računica /s.racunica@cma.co.yu Biljana Jović /b.jovic@cma.co.yu Sanja Zimonjić/s.zimonjic@cma.co.yu General Manager: Ivan Novčić i.novcic@cma.co.yu Financial Director: Snežana Batrićević /s.batricevic@cma.co.yu Printing: Politika AD CorD is published by: alliancemedia Knjeginje Zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11) 308 99 77, 308 99 88 Fascimile: +(381 11) 244 81 27 E-mail: cordeditorial@cma.co.yu www.cordmagazine.com ISSN no: 1451-7833 All rights reserved alliancemedia 2006

CorD | December 2006

30 Intelligence Matters Interview: Richard Stolz, former CIA Deputy Director for Operations

40 Maturing 34 Top Investments: Market A changing business climate is seeing new 2006 business standards and practices reshape Serbia.

contents 50 Ensuring Health

by Insuring Health Interview: Aleksandra Perić, Director of the Delta Generali Health Insurance Directorate

44 FOCUS Vojvodina

business focus 54

88 fashion: MURA

70 The Opera Maestro of Treviso & Belgrade

of the action

Interview: Maria Wera Cedrell, journalist, freelance frontline reporter and authoress

78 tourism

Feature interview: Kamil Beffa, Director, Lafarge BFC

62 In the thick

92 SPORT: New World Order

Velibor Stojaković, Manager of the Ethnographic Museum in Belgrade

No33

CorD

84 Guardian of Culture

77, 86 my life in belgrade

94 shopping

CorD | December 2006

Comment

voter’s Decide serbia’s future As 2006 draws to a close, I have been reflecting on this year's two very important political events for Serbia: the independence referendum in Montenegro and the constitutional referendum in Serbia. In both cases, citizens exercised their democratic right to vote, and set a certain new direction for their country. The United States of America would like 2007 to be the year that Serbia again sets a new direction – and decisively so – for a better future.

H.E. Michael Polt, U.S. Ambassador in Belgrade

On 21st january, the decision by the country's voters in the parliamentary elections can finally decide what kind of serbia the people want – a serbia racing into the future, or a serbia mired in the past. One is a future of reconciliation and great promise, and the other is a vision of bitterness and isolation reminiscent of the era of Milosevic and his cronies. the future of the Balkans will be affected by serbia's choice, but the aspiration of progressive nations in the region will not be denied.

we in the united states were reminded most recently of the power of the people in a democracy. this past november, a relatively small number of congressional seats changed parties – a matter of some thousands of votes in a country of 300 million people – but it was sufficient to transfer control from the republican to the Democratic party in the u.s. congress. serbia's upcoming elections are in my view the most important contest since the removal of Milosevic's poisonous regime in October 2000. political forces are competing for nothing less than the soul of this country, and with it the authority to place serbia inside or outside the euro-atlantic community. at stake are the well-being or further suffering of its people, and the healing or further painful confrontation among the peoples of this region. unfortunately, and this is no secret, voter participation is a serious problem in serbia – more than one million potential voters have dropped out of the political process in the last five years.

Most of them are democratic, reform-minded people. if these people choose not to participate, they leave their future in the hands of others. serbia and its people have the opportunity to shape their own future in 2007. in the ongoing election campaign, serbia's leaders have the

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CorD | December 2006

opportunity to engage voters on their vision of the future, and to explain how they will bring success to the country. through constructive and honest public dialogue, serbia's leaders can make this election truly the people's choice. we americans want to help in this effort, because we support serbia in its democratic path. we want to help because we care about the hard working people in this country who have suffered much under a ruthless regime and who deserve a hand in providing a better tomorrow for themselves and their children. critics of the u.s. suggest that we are too involved in serbian politics, and as serbia gets closer to these very important elections, i expect more criticism from those who choose to look backwards and from unprofessional media organizations that will continue to put their own interests ahead of serbia's. however, we will not allow this last-gasp effort from a desperate old guard clinging to the past to deter us from supporting serbia's democratic future.

I hope that the Serbian people will make a decisive choice for the future. I hope they will welcome Kosovo Serbs and Kosovo Albanians as their neighbours, colleagues, and friends, regardless of where they live or what the future status of Kosovo will be.

My country takes no sides in the upcoming political contest here, except the side of serbian democracy. i will continue to speak out about democratic principles and institutions. i will continue to oppose intimidation tactics that seek to stifle democratic debate. i will meet with serbia's democratic leaders and show my support and respect for the serbian people. i hope that the serbian people will make a decisive choice for the future. i hope they will welcome kosovo serbs and kosovo albanians as their neighbours, colleagues, and friends, regardless of where they live or what the future status of kosovo will be. and i hope that serbia will soon assume its role as a powerful, positive, democratic force for stability in the Balkans, and as a contributor to security, freedom, and prosperity throughout the world.

CorD | December 2006

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Politics

post-electoral coalitions An alliance between Tomislav Nikolić and Vojislav Koštunica would cost the incumbent prime minister less than ‘an agreement’ with Boris Tadić, whilst also ensuring his next government is freed from having to cope with a dangerous nationalist opposition.

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CorD | December 2006

By Dragan Bujošević

w

e will emigrate! - one of Boris tadić’s Democratic party (Ds) officials said jokingly when asked what his party’s response to a post-electoral coalition between the Democratic party of serbia (Dss) and the serbian radical party (srs) would be. as is often the case in serbia, perhaps this joke contained more elements of truth than jest. But what the joke did do was to reveal Ds’s constant fear of an alliance between the vojislavs – koštunica and Šešelj. indeed, it is this fear alone that would justify Boris tadić’s politics without policies and the extorted cohabitation and excessive concessions during the adoption of the constitution.

Politics following the assassination of the serbian prime Minister Zoran Ðinđić in 2003, koštunica had been the first to propose a concentration government in which the radicals would also participate – he did so despite the fact that the prevailing position of the democratic bloc at that time was that there would be no cooperation with the parties of slobodan Milošević’s regime. following koštunica’s ‘suggestion’, his then advisor, aleksandar tijanić (current director of radio-television serbia), used popular weekly nin to promote the idea of a coalition which, to part of the democratic bloc, seemed impossible just before the elections in December 2003. after the elections, koštunica again proposed a concentration government; and he was again considering the forming of a government with srs in the winter of 2004, though some sources suggest that he didn’t find any support for the idea – not even from the russian embassy in Belgrade.

Dedicating a fair part of his mandate to the laundering of the radicals’ biography, koštunica has shown his opponents in the democratic bloc that he is not squeamish either to the socialists or the radicals, and in that way has threatened his coalition partners by indicating that there are enough substitutes on the bench. the lack of an agreement between serbian president tadić and pM koštunica – with regard to the division of power after the elections on 21st january 2007 - brought back the issue of a coalition between the radicals and Dss to the serbian political scene, in a most dramatic way. the brains of politicians in serbia work in such a way that it did not occur to koštunica to propose to tadić the deal: “you will be the president and i will be the prime Minister”, nor could tadić accept that even if such a proposal arrived, because he would soon lose his leader’s position in the party.

By forming a coalition with Dragan Marković palma – the former partner of Željko “arkan” raznjatović (criminal, paramili-

DS Tells DSS, DSS Tells DS Dragan Đilas, chairman of the Democratic Party’s Belgrade council: “Prime minister and DSS leader Vojislav Koštunica, and others from his party, have said they won’t make any promises, but will rather speak about what they will do after the elections. I call on them to say whether they will align with Tomislav Nikolić or Boris Tadić”.

“Only positive and constructive Dragan Đilas campaigning can lead us to form a post-election government that will resemble that of Zoran Đinđić’s, comprised of non-partisan ministers as well”, Đilas said.

In response, DSS spokesman, Andreja Mladenović said that Đilas needs to abandon his “marketing politics”.

“The public knows Đilas as a marketing expert and owner of excellent marketing agencies. However, let’s assume he is aware of the fact that politics is more than marketing. DSS is a party that leads a patient and responsible national policy. It is precisely for this reason that our prime minister is our candidate to continue in that position after the elections”, Mladenović said.

Long Live (New) Serbia!

PM Vojislav Koštunica’s Democratic Party of Serbia formed a pre-election coalition with New Serbia – the party of Serbian Capital Investments Minister Velimir Ilić in November.

Speaking after the deal was confirmed, NS leader Ilić said the coalition will embark on its campaign immediately and will not focus on other parties and “will not react to their possible provocations”.

Speaking at a DSS senior council meeting afterwards, Koštunica referred to Ilić as a ‘political friend’. The DSS president and Serbian PM also said his party will carefully monitor other parties’ agendas, as that will determine the post-election cabinet talks.

Koštunica said his party will lead a positive campaign: “Our programme for the years to come is not a collection of wishful thinking and empty promises. We make no promises, we make announcements about what we’re going to do”, he said.

The Serbian prime minister also said that in the past three years the government led by his party had treated the parliamentary opposition in a consistently responsible, fair and constructive manner.

“When it comes to state and national problems, we have always sought to reach a consensus. We tried to appreciate the opposition’s position on issues and to never come across as an arrogant or intolerant government. We consistently chose to stay away from heavy words and unfounded accusations in our political struggle”, Koštunica told the meeting. Koštunica said that the government’s efforts yielded good results in the past three years, and were crowned with the adoption of the new constitution. He also pointed out to what he called the success in fighting crime and corruption which was “beyond doubt and irreversible”.

Koštunica ended his address by saying “Long live Serbia!” which he said will be repeated at every Vojislav Koštunica Velimir Ilić rally his coalition will hold.

CorD | December 2006

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Politics tary commander, war profiteer and politician) – several days after the elections were scheduled, Koštunica sent a message which can be interpreted as follows: I’ll form any coalition which guarantees my remaining in power, i.e. in the position of Prime Minister.

The main question is whether Koštunica has to remain the Prime Minister or whether he can remain just the president of DSS, if that becomes the consequence of the elections on 21st January. It is difficult to guess what is going on in Koštunica’s head and what is in his heart. But if he wanted to leave the race

Maja Gojković

battle to remain in the pm’s office, while the last to offer him support will be local businessmen (apart from Vojin Lazarević who is fully “dependent” on Koštunica) who did not manage to establish cordial relationships with the Prime Minister, but also other political leaders, firstly Mlađan Dinkić, then Boris Tadić and finally Tomislav Nikolić.

If he wants to become the Prime Minister – and DS is not offering him that position if they win more votes – Koštunica will have to approach Tomislav Nikolić.

The question is what more Šešelj will demand from Nikolić and Vučić and to what extent they can be disobedient? (The rumour, which all the Radicals are denying, is that Šešelj demanded that Novi Sad Mayor Maja Gojković be thrown out of the party, but Nikolić and Vučić did not follow orders).

for the Prime Minister he could have withdrawn after the adoption of the Constitution with the claim that he had fulfilled his mission by giving Serbia the first non-communist Constitution after 59 years. But the lobby which surrounds him will certainly try to persuade him to try to do anything to remain the most powerful man in Serbia.

His cabinet, the party leadership, parts of the army and the civil intelligence service will be first to support Koštunica in his

Vojislav Šešelj

With the expectation that Ahtisaari’s solution for Kosovo will be a catastrophe for Serbs, political analyst Slobodan Antonić thinks that in the case DS does not offer Koštunica the post of prime minister, the DSS leader will propose a Government of national salvation. But who would make up that Government?

According to the current polls SRS, DS, DSS/NS, G17 Plus, LDP, the Muslims from Sandžak and the Hungarian Parties will get seats in the Serbian Parliament. Neither DS nor LDP, G17 Plus >

What the Americans Don’t Know Slobodan Antonić, political analyst: If half of DSS supporters claim to be in favour of a coalition between DS and DSS, would they punish Koštunica in the next elections regarding the possible coalition with the Radicals?

Maybe yes, and maybe no. Certainly, those in DSS are not considering it; it’s not a factor in their calculations.

How would Europe and America react to a coalition between DSS and SRS: indifferently monitoring, undertaking some silent sanctions or to more drastically isolate Serbia?

At the moment Kosovo is gone and the negotiations with the EU have stopped, what else could the U.S. and the EU do to Serbia? To bomb us? To take Vojvodina? It would be particularly difficult to justify sanctions if Koštunica creates a minority government. Both the U.S. and the EU would be helpless in that regard.

There would be many critics in daily Danas and Peščanik, which would bother Koštunica very much. In reality, though, the insecure “patriotic” government will calm the situation regarding Kosovo and make a deal with the West before the “secure euro-reformist” government: the former will make a fuss and then say – what can we do, we cannot do anything there, and the latter will really have to do something – for instance to break off diplomatic relations – in order not to become traitors. Therefore, it is in U.S. interests for DSS to go with SRS and not with DS (but they are, as always, closed to any more subtle game than the one “I am the strongest and you will have to listen to me”).

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Politics Voters With Short Memories Dušan Pavlović, assistant professor at the Faculty of Political Science: If half of DSS supporters claim to be in favour of a coalition between DS and DSS, would they punish Koštunica in the next elections regarding the possible coalition with the Radicals?

From this time view, that Dušan Pavlović seems logical. But when the elections come, voters will not make their judgement on the basis of what happened four years ago, but what has happened in the last four months.

Nobody can say what an SRS and DSS coalition will be like and what their policy will be like in 2010 – 2011. What if, for instance, during that coalition Serbia becomes a candidate for accession to the EU? Or what if the GDP per capita grows to $5,000, the average income to €500 and unemployment drops to 12%? Why would voters punish Koštunica for something that they did not like four years ago if they are satisfied with what he is doing at the time of the next elections?

How would Europe and America react to a coalition between DSS and SRS: indifferently monitoring, undertaking some silent sanctions or to more drastically isolate Serbia?

The pressure at the beginning would certainly be enormous. But I think that further relations would depend on that government’s position on the Kosovo issue. If the government co-operates, the pressure will ease; if the government behaves stubbornly, as it is announced now, isolation would be probable.

However, I think that this first solution is more certain: whichever government is next will accept the loss of Kosovo (with some sweetener) and will continue like nothing has happened.

and the Hungarians would join the Radicals in a Government of national salvation, thus this coalition would be reduced to SRS and DSS/NS. Antonić thinks that it is more likely that “Koštunica will make a minority “crisis” Government, counting on the support of all “democratic and patriotic” forces, in fact on SRS (and eventually SPS).”

For some reason, the majority of local analysts seem to accept that it is “natural” for Koštunica to become the Prime Minister, even if he does not get the most votes. They think that he can be the Prime Minister in a coalition with the Radicals even if they get more votes and despite Nikolić’s claim that he will be the Prime Minister in that case.

Assistant professor at the Political Science Faculty in Belgrade, Dušan Pavlović, stated the reasons why the Radicals would let Koštunica be the Prime Minister: “Firstly, the Radicals do not have enough courage to take over the responsibility. For the time being they can only be the “junior partner”. They are interested in joining the Government in order to prove that somebody wants>

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Kosovo Plan to Come Post-Election U.N. envoy for Kosovo, Martti Ahtisaari, said this month that he would wait to reveal his plans for the future of the southern Serbian province until after the Serbian elections set for 21st January.

“I have decided to present my proposal for the settlement of Kosovo’s status to the parties without delay after the parliamentary elections in Serbia,” Ahtissari said in a statement issued within hours of elections being scheduled in Serbia.

The international community had hinted that elections in Serbia could force it to delay the end-of-year deadline to resolve the status of Kosovo.

Martti Ahtisaari

Ahtisaari made the announcement after talks in Vienna with representatives of the six Contact Group countries – the U.S., Germany, France, Italy, the UK and Russia.

The meeting between Ahtisaari and the contact group members followed a declaration of ethnic Albanian prime minister of Kosovo, Agim Ceku, that his province may proclaim independence unanimously if no deal is reached with Belgrade.

Source: AFP

Politics to form a coalition with them, not to manage the Government.

Secondly, the international pressure on such a government would be enormous, thus it would be better if Koštunica explained to the international factors why that government is legitimate than if Tomislav Nikolić or Aleksandar Vučić were to do so.

Antonić thinks that the Radicals could give Koštunica the position of Prime Minister and support his minority Cabinet because Koštunica would in return “give Nikolić quick presidential elections, while the independence of Kosovo is still smoking” and Koštunica would “softly support him” in those elections.

SRS Tells DS and DSS During a gathering in Belgrade on24th November dedicated to the defence of ICTY detainee and party leader Vojislav Šešelj, Serbian Radical Party (SRS) deputy chairman Tomislav Nikolić accused Vojislav Koštunica, Rade Bulatović and Boris Tadić of having used the testimony by a protected witness in the Đinđić assassination trial for their election campaign.

According to B92, it was for this reason, Nikolić announced, the Radicals will not enter post-elec-

Tomislav Nikolić

tion coalitions with the democratic bloc parties.

“Now Koštunica and Tadić can hear us out. You have started this dirty campaign, and we are able to answer any form this campaigning may take – you have forever closed the door to any kind of political co-operation with SRS. You can team up, if that is enough for you, you can hang yourselves, if it isn’t enough, but we will have nothing to do with you”, Nikolić said.

Protected witness Dejan “Bagzi” Milenković said, during his two-day testimony in the Đinđić assassination trial that Vojislav Šešelj knew about the plans to murder prime minister Zoran Đinđić, as well as that some SRS officials maintained contact with the Zemun Gang charged with conspiring to kill the late prime minister.

Of course, in the case of an agreement between DSS and SRS, Koštunica would not care too much about Tadić and would, together with the Radicals, bring him down knowing that this would not dramatically destabilise his government.

However, in this prediction it is not certain how the Radicals will behave because Vojislav Šešelj has a much greater influence on them than he used to have. Because their electoral campaign has been reduced to the defence of the rights of their ICTY-detainee leader, their rating in public opinion polls has slightly dropped

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CorD | December 2006

(thus some analysts whisperingly mention that maybe there is the possibility of DS winning these elections).

The question is what more Šešelj will demand from Nikolić and Vučić and to what extent they can be disobedient? (The rumour, which all the Radicals are denying, is that Šešelj demanded that Novi Sad Mayor Maja Gojković be thrown out of the party, but Nikolić and Vučić did not follow orders).

How would a government made up of DSS and SRS operate, or more exactly how would it cope with Ahtisaari’s decision on Kosovo? Antonić claims that the Government of national salvation would “make a fuss regarding Kosovo, but in fact would try to make a deal with the West – we will give you Kosovo and you do not bring our Administration down”. According to Antonić, the minority crisis Government would behave in a similar way: “It would also be strict regarding Kosovo, but would in fact try to curb passions and try to make a deal with the U.S. and the EU”.

A coalitional government made up of DSS and SRS would be easy to maintain. With the Radicals in the government, Koštunica would not have the only dangerous opposition – the nationalistic one – against him. And DS, G17 Plus and LDP would certainly not pester him by asking what he is doing on the implementation of the Serbian foreign and internal policy in Kosovo, to which he is obliged by the preamble of the Constitution.

Since the government would be stable, the possible grumbling from his party should not worry Koštunica too much. The announcement of the coalition with Velimir Ilić’s New Serbia was badly accepted by almost half of the party’s supporters, but now not even one fifth is complaining anymore. It is likely that opinions about Nikolić would change in the same way. Currently 30 per cent of DSS supporters have an extremely positive opinion of Nikolić, 10 per cent have a positive opinion, 23 per cent a negative opinion and 35 per cent of DSS supporters share an exceptionally negative opinion about Nikolić.

And how would the Radicals justify the lack of action to return the seized Kosovo? In an unofficial conversation for CorD, a Radical official said: “It might be easier for us. Nobody would see us as traitors. People would say that nothing else could have been done if we reconcile with the departure of Kosovo and that we are trying to save everything that can be salvaged”. However, this Radical does not consider the coalition with Koštunica as possible at this moment: “Maybe in two years, when the decision about Kosovo and Šešelj’s sentencing settles down”.

What is more certain is that everything will depend on Koštunica. A public opinion poll researcher close to Koštunica claims that the coalition between DSS and SRS would look like a river which flows upstream, but that at this moment Koštunica seems to be the only leader who wants power at any cost. One of Koštunica’s long term acquaintances claims that rational reasons tell Koštunica to form a coalition with the Radicals, “but I think that his irrational intolerance of the Radicals will be crucial, the same way as his politics were for some considerable time determined by his irrational hatred for Zoran Ðinđić”.

Dušan Pavlović thinks that, at this time, a coalition between DS and DSS is more likely, while Slobodan Antonić thinks that “Tadić will give Koštunica the position of Prime Minister, but will take the key ministries and will also request the postponement of the presidential elections until the situation regarding Kosovo calms down and his support in these elections – that would make everything even. Tadić would be the President until 2011, Koštunica the Prime Minister until 2010. In the end it will turn out that all this confusion with the Constitution and elections was made only so that Koštunica and Tadić could remain in their current positions”.

This summer when Tadić asked him about his intentions with the Radicals, Koštunica said: “I do not even think about co-operating with them”. But Tadić does not have many reasons to trust Koštunica, and the DS leader has already been given additional reasons not to believe in Koštunica during negotiations about the elections.

Interview

On the Brink Georgi Dimitrov, Ambassador of the Republic of Bulgaria in Belgrade After years of delays, setbacks and false starts, Bulgaria has now been judged fit to enter the EU and, along with its neighbour Romania, will duly do so on 1st January 2007. This month we speak exclusively to Bulgarian ambassador in Belgrade, H.E. Georgi Dimitrov, about the trials and tribulations of the EU accession process and what the future has in stores for the regions’ new EU members.

By Mark Pullen; photo: jelena Mandić

B

efore getting down to the details though, corD felt the need to ask if Bulgaria is really entering the eu on its own merit, or whether there is any truth to the rumours that Brussels is making exceptions in terms of achieved standards in the cases of both sofia and Bucharest.

“Your question is a correct reflection of the comments which appeared in some media regarding the full membership of Bulgaria and Romania in the EU – effective as of 1st January 2007. Those comments show either a lack of understanding of the way the European family operates or a deliberate attempt to convey to the public messages of quite a different character,” insists Ambassador Dimitrov. “…membership of the EU is not a simple negotiation process; it is not give and take, in which every side is longing to achieve favourable starting positions. Rather, it is a justified process of reforms which should guarantee the persistent progress of the country towards the desirable economic prosperity, social justice, stability and respect for the general rules and standards.

“The basic credit of Bulgaria and its Government is that it came to understand this simple logic: that achieving EU membership does not amount only to outsmarting one’s partners, but that it is rather necessary to show sincere understanding, desire and capability of approaching the system in which every state makes a contribution and, vice versa, takes on others’ achievements. This very understanding was at the base of the EC’s Report, which on 26th September recommended

could say the entire Bulgarian society – set to work in order to make up for everything that was missing.

“Moreover, when Bulgaria and Romania’s progress was noted by the EC in May this year, that was not just pure satisfaction because of the seriously accepted recommendation, but because in the end it represented a realisation that the EU needs Bulgaria and Romania as much as those two countries need the EU. I would like to say that after the EC Recommendation regarding Bulgaria’s membership in the EU, our Government adopted the Action Plan which establishes over 170 measures which our country should take by 1st January 2007. Therefore this date is not sacral and, as I said, membership is not a negotiation process, but a reform process which does not finish after entering the Union. On 1st January 2007 Bulgaria will be a full member. In spite of that, Bulgaria will continue co-operation with its partners, whom we would like to see as being strong in an economic, political and social sense, and who we would like to help with everything they are lacking."

How much has Bulgaria changed – socially, politically and economically - over the course of its transition period; and how ready is Bulgaria (and her people) to join the Union as full members?

Bulgaria has gone through a deep transformation towards the modern world and today the country’s political, social and economic structures do not have anything in common with those from 10 years ago. unbiased european politicians and observers admit the great efforts which Bulgaria has exerted …we know that after entry into the EU we will not find our- during the transition process, and the changes in should be especially noted. we should selves in some Earthly paradise. However, I am convinced legislation not forget that no other member states were that Bulgaria will be stronger in the EU and that the Union exposed to such strict controls as Bulgaria and will be stronger with Bulgaria and Romania as members. romania were. nevertheless, european institutions are not blind to the fact that many more things have to be Romania and Bulgaria as members of the EU with the conclusion that done. from our point of view, we know that after entry into the eu both countries were sufficiently prepared to cover the political, ecowe will not find ourselves in some earthly paradise. however, i am nomic and legislative EU criteria required.” convinced that Bulgaria will be stronger in the eu and that the union however, making note of shortcoming still requiring attention, will be stronger with Bulgaria and romania as members. By giving the ambassador Dimitrov refers to this May’s ec report on Bulgaria’s green light to Bulgaria and romania, the eu has not only continued its progress towards satisfying eu membership goals: “This report policy of open doors for eastern european countries, but also showed outlined several fields which demand special control - the judicial what the conditions are for future and current candidate states. system, the fight against corruption, integrated administrative control as for Bulgaria, we are entering the eu not only with enthusiasm, in the field of agriculture, as well as financial control. The measures but also with a feeling of responsibility which will be helpful in comBulgaria should implement are also set out. All this was accepted with pensating for what we are lacking. the required level of seriousness, without drama and thoughts on the subject such as: “They have insulted and neglected us again”. The Is the country bracing itself for the loss of many citizens wantBulgarian Government and the Parliament, all institutions – and I ing to head west?

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Interview

of Membership

Georgi Dimitrov, Ambassador of the Republic of Bulgaria in Belgrade Bulgaria has already lost many young people, who went abroad before we joined the eu. i do not see a reason for this trend to strengthen after we join the eu. On the contrary, immigration within the eu should not worry us. the labour market is becoming more balanced, which is proven by the experiences of countries from within the euro zone. in spite of the understandable concerns of some countries which were exposed to a large wave of labour from abroad, i am convinced that any possible limitations in the labour market would not be to the benefit of either Bulgaria or europe. if i wanted to be sarcastic while commenting on the current debate regarding this issue, i would say that the eu will have to persuade its citizens that if they do not allow cheap labour to work where the investments are, the investments will unavoidably “go� to the cheap labour. in the positive plan, all eu members should open up their labour markets in order to put substance to the talks about the lisbon strategy, free competition and movement of manpower. for Bulgaria, i am convinced that migration will take on a com-

pletely new form with the achievement of a certain level of development - it will be put into the normal frames of exchange of senior management cadres and qualified experts, which even now exist in our country, and i hope that they will soon spread around europe.

How will Bulgaria’s EU member status effect relations between Sofia and the non-EU countries of the western Balkans? i will start from several points which i consider important in the context of your question. in the political aspect, the consensus in Bulgaria regarding the european and euro-atlantic orientation is stable in the long term, which was confirmed in the latest presidential elections in Bulgaria. the economic rules in the country are european and that offers the possibility for the establishment of effective links between Bulgarian and foreign trade companies.

Our expectations are that those links will strengthen yet more with our eu membership: the fact is that Bulgaria lies at the crossroads of europe and asia, and that this gives certain advantages to Bulgarian entrepreneurs. they do have the possibility to become directly CorD | December 2006

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Interview involved in the division of the enormous circulation of goods directed from, or intended for, EU countries, which pass through our territory.

Moreover, one of the results of the Bulgarian membership of the EU will be the stabilisation of the region and the possibility that European standards and rules meet easier realisation among those countries which have set off on the European path. That means not only moral and political support for Western Balkan countries, including Serbia, from the position of a full EU member, but also additional possibilities for the realisation of regional and bilateral projects, for using EU financial possibilities for helping reforms in countries from this region. You will find a strong representative of this type of EU policy in Bulgaria.

One of the basic conclusions reached

by Bulgaria’s leaders and the society in the last several years is that transition also means a change of mentality; a break with nostalgia for the past - irrespective of the high social cost which that entails.

Having an understanding for all the difficulties suffered, I would like to stress the opinion that the chosen path is the right one; those efforts are worthwhile and the countries from this region will join the group of developed countries after not so many years.

administration, as the ministry of foreign affairs alone would be unable to cope with the enormity of the task at hand.

As an example, very few of the 90 people that are to be based in Brussels as part of our permanent mission are actually from the MFA – rather they come from various ministries, such as the agriculture, education or interior ministries.

In recent months we have witnessed not only an increased interest of Bulgarian companies… Four or five Bulgarian companies have participated in privatisation tenders and subsequently bought Serbian enterprises, which is a positive development.

I’ve just walked past the German Embassy and witnessed the huge visa queues that have become a daily occurrence there. Are we going to see similar queues outside this embassy once Bulgaria goes into the EU? No. Not at all. That won’t happen here… because we’re moving the consular section to a location just behind St. Sava Temple.

So, we’ll have a new building just for the expanded consular section to deal with the demand for visas. We are also to open a consulargeneral office in Niš, which will assume responsibility for southern and eastern Serbia.

Do you expect, or indeed have you already experienced, a surge in requests for Bulgarian citizenship from ethnic Bulgarian citizens of Serbia, linked directly to the country’s EU accession?

According to official figures from last year, something in the region of 3,000 applications for Bulgarian citizenship were submitted by people from Serbia. I cannot be certain if all of these people were ethnic Bulgarians, but most of them certainly were.

This is a trend that’s also occurring in Macedonia and Moldova – places that are also home to many ethnic Bulgarians.

You are now become an EU outpost. Has this called for a marked strengthening of your non-EU borders?

Yes. Bulgaria becomes an external-border country of the EU and has, thus, put in place all that this requires in terms of security, stemming trafficking, enforcing EU visa policies, upholding sanitation requirements, etc., etc.

How has the make-up and operations of your ministry, the Bulgarian MFA, changed during the build-up to membership?

The Ministry of Foreign Affairs was one of the centres for co-ordinating the accession efforts. Now we will have to mobilise the whole

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How has the EU accession process effected relations between Bulgaria and Romania – considering that you are neighbours, you’re going in together and you’ve worked together in many areas?

Once it became clear that Bulgaria and Romania would not enter the EU with the other ten applicant nations, we got a shared track for our accession that made it natural for us to work together in many instances.

Despite speculation that the two countries would compete against each other and the ‘partnership’ would be broken, the fact is that Bulgaria and Romania worked well together and remained on the same track throughout the process.

Are you worried that foreign companies currently operating in Bulgaria – and doing so because of the country’s relatively cheap labour conditions – will take their business to neighbouring non-EU states as demand for higher, ‘EU standard’ salaries increases?

Well, lately we’ve seen an increase in foreign companies opting to invest in Bulgaria – even after the green light was given to accession. In the last year I believe we were ranked first in terms of investments per head in southeast Europe, and this is a trend that continues.

I believe that investment demand in Bulgaria will increase further when EU membership becomes a reality, because the rules and procedures will be the same as elsewhere in the EU and will, thus, be more familiar to potential investors.

Another encouraging tendency is that of Bulgarian companies trying to invest abroad – including here in Serbia. In the last several months we have witnessed, here in Serbia, not only an increased interest of Bulgarian companies, but an increased presence too. Four or five Bulgarian companies have participated in privatisation tenders and subsequently bought Serbian enterprises, which is a positive development. There are, of course, many more Bulgarian companies with representative offices here; companies investigating the market and seeking to trade in Serbia.

Finally, will Bulgaria be lobbying to help its non-EU next-door neighbours?

Most certainly. Bulgaria has very obvious interests in her neighbours joining the EU for many reasons, including interests of regional stability: achieved by having stable neighbours that make easier our physical access to Central and Western Europe.

We also need our neighbours to operate ‘predictably’ and function in the same way – applying the same rules of the game. Moreover, we have no desire to compete with our neighbours. Rather, we would like to help them to the extent that they desire, sharing our expertise and the experiences of both our successes and failures to help them on their way.

Interview

CorD | December 2006

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Interview

together for Development As UN Resident Co-ordinator and Resident Representative of the UNDP, Mr. Lance Clark is charged with the demanding task of co-ordinating the work of the 15 UN agencies acting on the territory of Serbia, and ensuring that they operate as a team. This month, with the diamond jubilee year of the United Nations drawing to a close, CorD speaks exclusively to this UN resident of the Serbian capital.

Lance Clark, UN Resident Co-ordinator & UNDP Resident Representative

Lance Clark, UN Resident Co-ordinator & UNDP Resident Representative 20

CorD | December 2006

Interview

By M. Pullen; photo: jelena Seferin

w

hen talk in serbia turns to the un, the first associations that spring to mind are the icty and the un office representing unMik, But, according to Mr. clark, the un does much more in addition to that in the country: "the UN assistance agencies are also doing important work here and, as such, our UN Week slogan this year 'Together for Development' was consciously chosen as part of a campaign to raise our profile and provide a balance to ensure that the people here know more about us." the un has 15 agencies operating in serbia, assisting the country’s reform process in various areas. Of those, one of the biggest is the united nations Development programme, which is involved in over 40 projects in the country. according to Mr. clark, the unDp is doing lots to help serbia’s development and reform process.

explaining the agency’s activities in his capacity as unDp resident representative, Mr. clark explains to corD: “We basically focus on governance, social inclusion and the rule of law – through various projects. If we take the case of the projects in south Serbia [based in Vranje], one project there is working on multiple needs and is trying to help develop a model of local governance that can be replicated in other parts of the country.

This project is actually delivering services, directly through that government project, on infrastructure and also on things like citizens’ action centres, where you can go and get what you need in terms of documents and actions – the ‘one-stop-shop’, which is very important…” This project is also an excellent example of co-operation with donors. We are implementing this programme on behalf of the European Commission and the governments of Sweden, Norway and Austria, who are all acting within this common project and share a common vision of how to help in this crucial part of the country." further explaining why the unDp is paying special attention to non-urban sections of society, Mr. clark says: “If you look at the rural population you’ll see that poverty levels are more than double those found in the cities. There are some people who just presume that the movement of people from the countryside to the cities is inevitable. But we don’t think this is so – and I think the European Union and many people within the government here agree with us. Thus, we’re interested in trying to maintain the viability of the countryside and the rural populations. That’s not easy and it’s only really by working on the ground in places like south Serbia that you can grow to understand the situation in reality – not from a philosophical point of view, but in terms of implementation on the ground… I think there needs to be a balance between urbanisation and maintaining rural communities, but I think there’s increasing recognition of the importance of the rural parts of the country.” clark continues: “The challenge is more complicated because

you can’t just focus on agriculture: there has to be some relationship between the small and middle-sized towns, for example Vranje in south Serbia, and the countryside around them. It’s not something you can just throw money at. It’s a problem that requires a greater understanding of how sustainable economic development works there.”

Mr. clark is tasked with co-ordinating the work of the 15 un agencies active on the territory of serbia, excluding kosovo. addressing the issue of co-ordination between these agencies in serbia, he admits that it is a challenging job, but also insists that the 15 agencies do work together effectively as a team: “we start with a common plan – our UN Development Assistance Framework – and that represents the overarching framework through which these agencies carry out their activities. Then

Voter Apathy “What I was struck by when I came here a year ago was the disillusionment of a lot of the population, particularly young people, regarding the pace of reforms. I think that translates into apathy at the polls and raises difficulties in getting a strong voter turnout. There is also a problem among the youth in Serbia with regard to claustrophobia caused by their inability to travel. What is crucial at this point is for political parties to be able to show young voters that they do have a strong vision for reform.” we have bi-weekly heads of agencies meetings, at which we sit down and discuss particular issues that we’re working on. In between, of course, there are lots of discussions between the agencies themselves.

“I’ve been involved with the UN since 1990, and I think I can say that over the years there’s been a real improvement in the culture of co-operation and co-ordination amongst the UN agencies; so it’s not just a formality but is also, frankly, a mindset that has been pushed much more towards working as one unified team.” addressing the issue of inter-agency competition and activity overlap globally, Mr. clark is positive when he says that “having more than one agency work in a particular area is not a bad idea as long as they know what their roles are. For example, we’ve been doing important work concerning Avian Flu: there we have the WHO working with the Ministry of Health, FAO working with the Ministry of Agriculture, UNICEF working with education authorities and leading public information activities, and the UNDP looking at the possible impact of an Avian Flu pandemic on the economy and governance. So there we have

From Tbilisi to Belgrade Prior to his arrival in Belgrade, Mr. Clark spent four years as UN Resident Coordinator, Humanitarian Coordinator and UNDP Resident Representative in Tbilisi, Georgia. Speaking about the contrasts between the two countries, Mr. Clark tells CorD: “As transition countries, in many ways Georgia and Serbia are rather similar. We recently had a UNDP workshop in London and speakers from the London School of Economics were talking about the question of when transition ends. For many countries, transition arguably ended when they joined the EU, whereas for other countries that transition has ended because they’re not moving and probably aren’t going to move any further than they have – here I’m thinking in particular of some of the Central Asian states. However, for Georgia and the countries of the Western Balkans, Serbia included, the process of transition really is continuing. If one compares the two, I think the real benefit for Serbia is its infrastructure and its strong economic progress over the last several years, which is quite striking… In terms of the sense of apathy we discussed earlier, in Georgia right now there is a general sense that the country is moving forward, and that kind of dynamism is needed here.

CorD | December 2006

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Interview four agencies working together in ated at a local level is still rather one concern, but they know prelimited and more work has to cisely what their roles are.” be done to help local municipaliWith expansion of the issues ties devise an overall development being tackled by the UN, into plan and generate viable projects areas like terrorism preven– and that’s something that will tion and the fight against global require significant work and time, warming, coupled with a global though I think it’s something that surge in demand for the activican be done; the second chalties led by the various UN agenlenge – the most difficult one for cies – such as peace-keeping and the NIP but also more broadly for relief operations – reform of the the country as a whole – is that world organisation has become of sustainable economic activities a hotly debated topic. Mr. Clark at the local level. What’s really is a strong supporter of the need needed as part of the longer term for reform within the UN, though economic action is to generate he is concerned at the level of sustainable employment. And resources made available to carry that’s not easy to do: you can’t out that reform: “Some people simply provide funding for somelook at reform in terms of managething that’s a much more compliment, suggesting that that’s where cated issue. That’s not something reform needs to take place. And I that I would say is a shortcoming think it’s true that as our role gets of the NIP, but rather a larger bigger we have to focus more on challenge for all of us working in how we do things, how we mandevelopment.”

“Serbia was my first choice of age operations and how we handle Considering global poverty posting. I came here hitchhikour finances. But, frankly, part of levels and international crisis hotit is also making sure that we spots, many argue that the UNDP ing as a university graduate have the resources to do that kind shouldn’t even be in Serbia – a back in 1971 and came here of management. If you look, for relatively prosperous country in example, at peace-keeping operaglobal terms. Mr. Clark, howevagain to work on the refugee tions, you’ll see that the amount of er, disagrees: “It’s important to problem in 1997-98. So I knew resources allocated for the overall understand that the UN has a long exactly what I was getting in management of those operations history in Serbia. The country was is too small. Typically, people from a founding member of the UN and to and this was my choice. other militaries who encounter our UNICEF is this year celebrating its In particular I like the level of peace-keeping operations are sur60th anniversary in the country. security and the great level of prised at how little actually goes But that role has changed. In the into the overall management and 1990s the UN was very definitely cultural activities and sports, how much is directly allocated for involved in a large way with relief which makes Serbia an attracthe troops themselves. operations in particular, whereas tive place to bring a family.”

“Another type of reform I’d now the focus is much more on point out is the reform of decidevelopment and supporting the sion-making – in particular the EU accession and reform. I think Security Council. A lot of people have the mistaken notion that that’s where the UNDP and other UN agencies can make a difthe Security General is the CEO of the UN. This, of course, is ference. For example, we can work on knowledge management not so. The Security Council ultimately takes the decisions, on to draw upon lessons learned and experiences gained in other security matters in particular, and the General Assembly has countries that we’re working in. We can also help in terms of other decision-making functions. The debate about how many pilot efforts, such as the south Serbia programmes. countries should be in the Security Council and how many “I think we can also help in putting together programmes to countries should have the veto is, I think, absolutely crucial. The try to implement the kinds of standards that the country’s aspircurrent make-up of the Security Council reflects the reality of the ing to – one example is provided by our focus on the question of world after World War II and the reality today is very different…I social inclusion, particularly of vulnerable groups like people think that we definitely need to expand the membership to better with disabilities: Serbia already has good legislation on this and reflect the changes in the world, but I think that we already have is working on a strategy, but what needs to be done is to put enough problems with five countries having the veto and if we that into an action plan and implement it on the ground. We were to expand that we would have a real danger of gridlock.” have something like 650 million people with disabilities around Returning attention to Serbia, Mr. Clark noted that the the world, and here in Serbia around 70 per cent of people with Serbian Government’s recently published National Investment disabilities are living on or below the poverty line and definitely Plan (NIP) is a positive step in the reform effort: “I think the represent a high risk group. This is the kind of area where the good news for Serbia is that these funds are available for the UN, in partnership with others, can make a difference.” next several years and that the government is willing to put these Summing up his sentiments with a short assessment of the funds into development kinds of activities. I also think the focus current state of affairs in Serbia after six years of transition, on infrastructure certainly has some benefits: there is a great Mr. Clark says: “The good news is economic progress. What is need for roads and transport links, and for schools and health needed now is to once again sell the importance of reforms to the facilities to be upgraded. population and generate the enthusiasm that’s required. I think “However, I think there are two particular challenges for the the focus on EU accession is the correct one and is clearly the way NIP. One is that the number of good projects that can be gener- forward for Serbia now.”

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Interview

CorD | December 2006

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Military Affairs

elections to delay reforms Serbian Defence Minister Zoran Stanković recently made public an annual activity report which states that the military debt has been reduced from 5.7 to 1.6 billion dinars. He also pointed out the difficulties that the Defence Ministry has to cope with following the dissolution of the common state with Montenegro and the resulting hazy state of military affairs.

By Miloš Mitrović

s

peaking publicly about the state of affairs within the military, Minister stanković recently admitted that “the Defence Ministry and the high command have been working under irregular conditions,” adding that he expected the serbian government would resolve the status of the defence sector with a new law on the Ministries after parliamentary elections take place next year. stanković noted that the military budget was around €500 million euros – roughly 75% of which was allocated for salaries and pensions, while the remainder was used for food rations and other activities. Because of the shortage of funds, the army and the government have devised a Master plan for the sale of surplus military assets and real estate. the money thus gained will be invested into building apartments to settle more than 14,000 homeless members of the serbian army, but also for fresh acquisitions of weaponry and to raise the standards of professional employees of the military force.

Moreover, the army and the Defence Ministry has almost entirely depleted financial reserves that it has been spending for years in order to patch up the defects that have resulted from years of neglect caused by the imposing of sanctions and restrictive funding. the military budget in 2006

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was csD49billion and after the budget was rebalanced in september another csD2.85billion was allocated for military spending. this resulted in 42,044 employees of the army and the Defence Ministry receiving a 20% raise in salary. in comparison, neighbouring romania has 90,000 people in their defence system. Of their us$2.3billion share of the country’s 2006 budget, 33% was allocated for wages, 22% for investments in the defence system, 30% for training and missions, and 17% for other expenses. institutions that are dependent on the budget – the army being one of them – will be transferred to a regime of temporary financing until the Budget law is adopted in 2007. however, spokesman of the Defence Ministry, Zoran puhač, says that the army has for years been subject to restrictive funding that is at odds with its requirements, hence this regime of temporary financing would not have a significant impact on the defence system.

“We are going to face difficulties if we transfer some of our financial obligations over to next year. Therefore, we have to do everything in our power to reduce the amount of these dues that are going to be transferred, since these will create new expenses that will have to be covered once we get our budget,” puhač explains. also speaking to corD, military analyst aleksandar radić

Military Affairs says that the new serbian constitution will only postpone the addressing of problems in the defence sector, because now it is time for elections and before the new government is established their will be no problem solving.

“Only after the inauguration of the new parliament and government can we discuss what to do with the Army. The reform currently boils down to whatever the Army can accomplish on its own. Representative of the Chief of General Staff Zdravko Ponoš and his associates have taken it upon themselves to do whatever is within their competencies. The Defence Ministry has also invested a lot of effort, which must be commended.

But these institutions cannot be expected to resolve issues that are the business of legislative powers. It could be very dangerous if the Army started to by-pass procedure,” radić says. the army is doing a lot more than it is usually expected, claims radić, bearing in mind that every army is a conservative institution in spirit and is cautious of change. the reforms are exceptionally radical in our case, since the army has not genuinely received the full support of politicians, he adds. radić says that the undefined position of the defence system in serbia has resulted in the army and the Defence Ministry leading an independent external policy. the Defence Ministry, according to radić, has turned out to be the most efficient body at promoting serbia’s foreign policy objectives and the best media propagator of serbia in the west.

“The question is whether our policies stand in support of all this. Macedonia and Croatia have asked for membership in NATO, since the Partnership for Peace programme is only a

Aleksandar Radić: “Only after the inauguration of the new parliament and government can we discuss what to do with the Army. The reform currently boils down to whatever the Army can accomplish on its own….” transitional phase towards NATO. In Serbia there is a disparity between what is being told to the West and what is being said to the domestic public. If we want to enter NATO then we have to say so openly,” radić insists. authorities in serbia have maintained a negative attitude towards natO and have done nothing in terms of public diplomacy to draw the public opinion closer to political reality: “We are still held hostage to the Milošević era and communication continues to be conducted in the same manner.>

the absurdities of civil service a

nother issue dogging the army of serbia in this transition and reform period is that of national service. One organisation helping young draftees avoid taking up arms is the european Bureau for conscientious Objectors. talking to corD about the bureau’s teething problems in serbia, the european Bureau for conscientious Objectors’ petar Milićević explains that “Civil military service in Serbia, or the right to conscientious objection, has existed since 2003, hence it is understandable why it suffers from the usual drawbacks of a young institution. On the other hand, the state should deal with this matter more seriously because of the circumstances that justify the option of civil service as long as there is mandatory military service in Serbia.” roughly 60% of army draftees opt for civil service, according to Bureau estimates, and Milićević describes this as an army of people, since a strate-

gic defence survey claims that around 50,000 people are drafted into the army each year and 30,000 of them apply for civil service.

“There are more than 1,000 institutions where an army recruit can serve.

There is a clear public interest to maintain the civil service,” Milićević says, “but there are many absurdities that call for both the civil and regular service to be abolished, or to regulate the civil service with a more elaborate legal framework until the mandatory military draft is abolished.” the law on civil service also became serbia’s international obligation after it joined the council of europe in 2003. “The bill was set aside in light of the referendum in Montenegro, although it could have been put up for vote before that. The three-year deadline ran out last year. Then we had to wait for the new Serbian Constitution. I hope the Law on Civil Service will be the first to be adopted after the Constitution,

Petar Milićević because it will provide a legal basis for a human right that young people in Serbia are very anxious to exercise,” says Milićević. the serbian Ministry of Defence backed the Bureau’s bill with several recommendations for changes, but the basic proposal is to totally demilitarise the civil service and put it under the jurisdiction of an agency detached from the Ministry of Defence. the Bureau recommends the Ministry of labour, employment and social policy to take on this task as the institution best fitted to organise the quasi-voluntary labour assigned to conscientious objectors. >

CorD | December 2006

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Military Affairs You enter NATO of your own free will, not as some form of punishment. The Army would need little time to do whatever is in its jurisdiction, because this institution naturally does what it is told. Unlike in the world of politics, verbal twists and turns are not possible in the army. We are simply refusing to ask for NATO membership because of internal political reasons,” Radić concludes.

Among the Defence Ministry’s ‘diplomatic achievements’ is the signing of the Agreement on Common Services and Acquisitions (ACSA) between the armed forces of the USA and Serbia. The agreement regulates exchange of products and services, strengthens co-operation in joint military activities, peacekeeping and humanitarian missions. The document was signed in Belgrade by the Deputy Head of European Command of the U.S. Army, William Ward, and Serbian Defence Minister Zoran Stanković.

ACSA is the third important military agreement that U.S. representatives signed with Serbia in 2006. Previously they signed the Agreement on Co-operation in Preventing Proliferation of Weapons of Mass Destruction (WMD) and the Status of Forces Agreement (SOFA).

There were a number of conditions required in order to see Serbia’s faster accession into the Partnership for Peace and NATO, Radić reminds, but now only the extradition of Ratko Mladić to the Hague Tribunal remains. He added that conditions may have matured to reduce the pressure of the Mladić case towards redefining the concept of co-operation with The ICTY..

Defence Minister Zoran Stanković says that the undefined status of the ministry he is head of prevents him from determining the responsibility of army secret services over the failure to apprehend ICTY indictee Ratko Mladić According to Minister Stanković, the Serbian Army participates in the search for Ratko Mladić through the chief of the Military Security Agency (VBA), Svetko Kovač, who is obliged

“The principal reason for adopting the Law on Civil Service is to provide total respect of human rights. We cannot draft someone into civil service and expect them to do something that borders on forced labour. The young men in Belgrade’s Parking Service work as assistant operators of tow trucks. This has nothing in common with socially beneficial labour that is defined by the

Zoran Stanković The undefined status of the ministry he is head of prevents him from determining the responsibility of army secret services over the failure to apprehend ICTY indictee Ratko Mladić. to provide all necessary assistance to the team tasked with implementing the Action Plan for Finalising Co-operation with The Hague Tribunal.

Stanković said he was not dodging the task of determining responsibilities for the failure to arrest Mladić, but added that he would like to see the other state services that were obliged to take part in his apprehension to submit reports on their own results in this field. According to Stanković, the Serbian Army has done everything it has been asked to do in helping to arrest Mladić, adding that the details were confidential and that revealing them would compromise the investigation.

have been made redundant. The same happened with professional concierges in the National Theatre.

“Conscientious objectors, mainly young men with high education, have to perform any task they are assigned to…under threat. On the other hand, people are removed from jobs that they are compelled to take for lack of better opportunities. All this is happening

“Conscientious objectors, mainly highly educated young men, have to perform any task they are assigned to do... under threat... Meanwhile, people are removed from those jobs which they were compelled to take….” decree on military service,” Milićević points out.

“The way civil service is organised in Serbia will bring about higher unemployment and new socially marginalised individuals,” says Milićević. To illustrate his point, he notes that 200 objectors work as conductors on Belgrade’s public transport system, while those who were previously employed for this purpose

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in public institutions that are obliged to respect human rights and be indiscriminative and responsible towards the society,” Milićević warns.

“Conscientious objectors are employed in communal services because they are best funded,” Milićević says. He describes this as absurd, since according to a 2005 decree these companies fund the expenditures themselves,

while the Council of Europe proscribes that the expenses should be financed by the state.

“Lesser-funded institutions, such as the Red Cross and various NGOs that provide support to people with disabilities, or social welfare centres that are directly dependent on the budget cannot finance people who could perform socially beneficial tasks,” Milićević says.

Army draft centres usually have a restrictive interpretation of their assignments because, according to regulations, they are soldiers too. Milićević says the drafting centres have to respect these norms.

“The usual threat to a civil service draftee in these institutions is “if you don’t get this or that done, I’ll make sure you end up in real military service”.

Furthermore, a day spent in civil service is measured as half a day spent in regular military service. This is discriminatory towards conscientious objectors.

Serbia is unique in the sense that civil service has a punitive quality, which is not allowed in Council of Europe recommendations,” concludes Milićević.

By Miloš Mitrović

Focus Montenegro

Focus Montenegro Bulletin... Focus Montenegro Bulletin...

New government takes office The new government of Montenegro, led by Prime Minister Željko Sturanović, officially assumed office on 13th November following a constituent session in Podgorica. The cabinet, Montenegro's first since declaring independence in May, vowed to continue implementing strategic interests on the road to EuroAtlantic integration.

November also saw Montenegro and Poland announc plans to open respective embassies in Warsaw and Podgorica soon. An agreement was reached during Montenegrin President Filip Vujanović’s visit to Warsaw and talks with Polish counterpart Lech Kaczynski.

Source: Pobjeda, Vijesti

Qatar establishes diplomatic ties with Montenegro The State of Qatar and the Republic of Montenegro have agreed to establish diplomatic relations at the ambassadorial level, out of their desire to strengthen bonds of existing friendly relations and further develop bilateral co-operation in the political, economic and cultural fields.

The agreement was signed for Qatar by its permanent representative to the United Nations, Ambassador Nassir Abdul Aziz Al Nasr, and for Montenegro by its permanent representative to the United Nations, Ambassador Nebojša Kaluđerović.

According to a joint statement issued after the agreement was signed, Qatar and Montenegro – based on the principle of mutual respect for territorial integrity and non-intervention in the internal affairs of each other, as well as norms of international law and the objectives and principles of the united nations charter – have agreed to establish diplomatic relations at the ambassadorial level as of the date of the signing of this joint communiqué.

The government of the State of Qatar and government of the Republic of Montenegro expressed their assurances that the establishment of diplomatic relations responds to the national interests of both states and will consolidate the strengthening of international peace and co-operation, the statement said.

Source: QNA

Serbian leaders blast Montenegro over Kosovo Responding critically on 5th November to the official visit to Podgorica of Agim Ceku – PM of the breakaway southern Serbian province of Kosovo – Serbian PM Koštunica was quoted by local media agencies as saying that In his opinion, Podgorica’s regard of Kosovo as Montenegro’s neighbour damages Serbia’s sovereignty and territorial integrity “in a most direct way”.

“In her entire history, Montenegro was never Serbia’s enemy. And since it came into existence, Serbia has never done any wrong to Montenegro”, Koštunica was quoted as saying.

Also responding to the visit of the Kosovo-Albanian that Serbia accuses of war crimes against Serb nationals, Serbian Radical Party Secretary General, Aleksandar Vučić, said that Milo Đukanović’s decision to talk to Ceku was “the most shameful act in the history of Montenegro”. “Đukanović did this for a huge sum of money, given to him by Albanian lobbyists and his Western mentors”, the media reports Vučić as saying.

He also said the Montenegrin prime minister “was instructed to harm Serbia, by saying that the independent Montenegro will co-operate with Kosovo, and that there’s something wrong with Serbia”.

In response, LDP leader Čedomir Jovanović condemned nationalistic outbursts directed from Serbia’s top institutions at Montenegro in the wake of Agim Ceku’s visit. He added the meeting between the two prime ministers represented no threat to Serbia.

Source: B92, FoNet, Beta

Serbia inherits federal military obligations Speaking in the Montenegrin capital on 20th November, Montenegrin President Filip Vujanović said that Serbia has inherited all international obligations of the Serbia & Montenegro military.

The Montenegrin President avoided giving a concrete answer to the question of whether Montenegro should be granted amnesty in the Bosnia & Herzegovina genocide charges filed against Serbia & Montenegro, stating only that Serbia inherited all of the military’s international obligations.

“Serbia proclaimed itself the successor of all international obligations and the successor in all international organisations,” Vujanović told daily Dnevni Avaz.

“Montenegro has shown its national stance of apology for everything that happened in Croatia and Bosnia & Herzegovina. Our stance is that the crimes need to be treated individually, and that they should not be collectively addressed,” Vujanović said.

Source: B92

Court awards compensation to family of slain Bosnian Muslim November saw a court in Montenegro award compensation to the family of a Bosnian Muslim who was deported to Bosnian-Serb custody and subsequently executed during the 1992-95 war in the Balkan republic.

The wife and four children of Izet Tufekčić, from the eastern Bosnian town of Višegrad, were awarded a total of €120,000 for the "death of a close family member," said the family's lawyer, Dragan Prelević.

The ruling effectively acknowledges that authorities were responsible for the death of the man, who had sought shelter from the war in Montenegro.

It was the latest of several such verdicts related to the 1992 deportation of 34 Bosnian Muslims at a time when war raged in neighbouring Bosnia. Twenty-eight of those forced back across the border were killed shortly after being handed to Bosnian Serbs.

Source: Associated Press CorD | December 2006

27

Focus Montenegro

constitutional Despite having gained independence in May 2006, Montenegro has remained divided over several issues. One of those that’s currently to the fore is the Constitutional definition of the official language, where a fierce debate is currently raging.

By vojislava vignjević

t

he course towards europe embarked upon by the old-new government (i.e. the cabinet of newly-elected prime Minister Željko Šturanović of Milo Ðukanović’s Dps) and supported by the opposition, includes the drafting and adoption of a new constitution. accordingly, the parliament has appointed a board, which includes members of the opposition, tasked with working on the proposal of the new constitution of Montenegro. almost immediately, however, a bone of contention came in discussions and debate of how to call the official language. even before work got underway on the drafting of the constitution, the opposition had already voiced its strong opposition to the decision of the education council to label one of the subjects in the school curriculum as ‘native language’. the pro-serbian opposition interpreted this decision as the expulsion of the serbian language from the education system, while it is defined in the current constitution as the official language of Montenegro. the language dispute dates back farther than 2004, when this decision was made, and it is used as a chief argument by the opposition, along with the issue of a constitutive status of the serbian nation in Montenegro, to claim that the rights of serbs in Montenegro are being threatened. the dispute culminated with an impact on some schools, when protests and strikes broke out in schools in nikšić because a number of teachers rejected the council’s decision to teach the subject labelled

Serbian Patriarch Pavle

28

CorD | December 2006

native language. two years ago, the protests gained wider political support from the serbian Orthodox church (spc), since several priests took an active part in them, while a delegation of the protesters – led by episcope of nikšić joanikije – were officially received by serbian patriarch pavle in Belgrade. the serbian academy of art and science (sanu) also contributed to the politicisation of the language issue, since members including Matija Bećkvić supported the protests openly and in person. the advocates of using the serbian language as the official language in Montenegro find it important that after the last population census in 2003, most people stated that they were Orthodox christians (74.24%) and that they spoke the serbian language (63.49%). they do not take into account that a significant portion stated they spoke the Montenegrin language (20.31%). On the contrary, the fact that the majority of citizens stated their nationality was Montenegrin and that they spoke the serbian language is supreme evidence that they are in

Focus Montenegro

linguistics the Movement for a common state (along with its Belgrade branch under the patronage of a group of serbian academics) is still on the agenda for pro-serbian parties in Montenegro and certain intellectual circles in Belgrade: serbia and Montenegro being indivisible historically, linguistically and culturally, because they were “two serbian states”. this group has persisted in denying the existence of a Montenegrin nation and language even after Montenegro gained independence.

On the other hand, the authorities have refuted opposition claims that the serbian language was being banished from schools. the explanation is that schools are now teaching the native language – serbian, Montenegrin, croatian, albanian. we cannot deny Montenegrins the right to name their language after the name of their nation. this was another explanation why the term native language was introduced, to render all such languages equal. as for the constitutive status of the serb community in Montenegro, the ruling coalition feels that Montenegro is a civil state in which everyone has the same rights regardless of nationality or religion and, thus, rejects claims that any ethnic group, including the serbs, are under threat or have an unequal status - all the more so, they state, since Montenegro has opted for accession to the european union and euro-atlantic integrations and has reached a commendable level of inter-ethnic tolerance despite claims, by parts of the opposition, that are mirrored in the fact that the referendum and the parliamentary elections were conducted in a peaceful, democratic atmosphere of fair play and in the attained level of multiculturality across the board in Montenegro. as for the practice undertaken by the church and some circles in

After Montenegro’s last population census in 2003, most people stated that they were Orthodox Christians (74.24%) and that they spoke the Serbian language (63.49%). However, only 30% of Montenegrins polled during the census said that their ethnicity was Serb. fact serbs (since their mother tongue is serbian), although only 30% said at the census that their ethnicity was serb. the most radical of the opposition parties, the serbian people’s party (sns), which entered the parliament as part of the serbian list in coalition with several other parties under the leadership of sns president andrija Mandić, went the furthest in demands to strengthen the status of the serb community in Montenegro, demanding autonomy and executive power for serbs, a separate budget and the right to be taught in the serbian language in schools from textbooks commissioned from Belgrade and republika srpska, in order “to prevent the apartheid that was being led by the Montenegrin authorities against the serb community”. although they failed in their plan, Mandić’s party is campaigning in parliament through the serbian list to give official status to the serbian language and make serbs a constitutive nationality in Montenegro. the theory that was advocated even prior to the referendum by

Belgrade to politicise this issue, the ruling coalition (Democratic party of socialists and the social Democratic party) points out the secular nature of Montenegro where the jurisdictions of the church and the state are two different realms, as well as the fact that Montenegro is an independent state and that any intervention from Belgrade is a meddling in the internal affairs of a sovereign Montenegro. at the end of the day, the issue of the official status of the serbian language and the constitutive character of the serbs in Montenegro are going to be in the spotlight on the parliamentary agenda. it is hard to predict whether we are going to have a compromise that would reduce the current rift between government and opposition. in any case, the ruling coalition has the edge with a two-thirds majority in parliament and the ability to validate solutions for the constitutional act that it stands behind. the eu recommends, however, that the constitution is brought with a compromise between the two sides.

CorD | December 2006

29

Interview

intelligence Matters

Richard Stolz, former CIA Deputy Director for Operations

The intelligence services of transition countries are perhaps among the most difficult organisations to reform. Speaking to CorD recently, Richard Stolz, former CIA Deputy Director for Operations, explains that this is because “old methods die slowly. Inertia and sluggishness in grasping the need for changes, coupled with a lack of capability to understand one’s own role in the modern world, certainly obstruct the progress.”

By jasmina Čolak; photo: Časlav vukojičić

r

ichard stolz was in Belgrade this november to speak at the academy of Diplomacy and security. we took the opportunity to speak to the man who joined the u.s. armed forces in 1947 and was recruited by the cia in 1950 and who, during his years of

service, held outstanding managerial positions including the position of cia Director of Operations, the so-called “spymaster”. stolz retired for the first time in 1980. however, the development of events in europe and the world at the end of the ‘80s led to his reinstatement in 1988. he remained in active service until 1991, when he retired for the second and last time. he is the holder of the eminent

Richard Stolz, former CIA Deputy Director for Operations 30

CorD | December 2006

Interview intelligence Medal – the highest honour for cia members. what are your memories of Yugoslavia during the Cold war and what was the estimation of the role of Yugoslavia in the possible clashes between East and west? until 1954 i was based in trieste and was actively participating in resolving the trieste crisis. at that time we didn’t see yugoslavia as the enemy. rather, we were mainly tasked with trying to find out what yugoslavia’s position was and what public opinion in the country regarding that issue was. yugoslavia was again the focus of activities in the ‘70s and ‘80s - during the last years of tito’s rule and the years after his death. as regards the conflict between east and west, which thankfully never came to be, the cia was convinced that yugoslavia would have been on the side of the west. on the basis of the information you had available at the time, could the CIA have predicted the bloody disintegration of Yugoslavia through civil war? at that time we dealt with yugoslavia as an entirety and placed the focus on two issues: the independence Movement and tito’s personality. we were mostly interested in what would happen after tito’s death, because we of course knew that he was going to die one day. i say that because at that time the people in yugoslavia were not allowed to talk about that, at least not out loud. nevertheless, we did not predict such an extreme development of events, maybe because we did not deal with the structural parts of the country - particularly slovenia and croatia – but rather, as i have already stated, we had yugoslavia as an entirety in front of our eyes all that time. in any case, i think that yugoslavia was a worthy idea, but obviously did not endure the test of time. simply, you tried twice and it did not work. what was your personal reaction when you heard that Yugoslavia had disappeared? i was sad.

How does the Balkans look today, without Yugoslavia? well, it certainly does not look the same as it did during the time when was it was in the embrace of socialism. however, the approach to accession to the european union and natO are very positive signs. it is true that the processes of democratisation in the Balkans has not reached completion and that there are still many problems, but such problems exist in many other countries and thus there are many reasons for optimism regarding serbia and the Balkans. on the basis of the information you have about the work of local intelligence security services, what would you describe as the basic problem which causes its slow transformation in countries in transition?

Old methods die slowly. inertia and sluggishness in grasping the need for changes, coupled with a lack of capability to understand one’s own role in the modern world, certainly obstruct the progress. even though there are positive examples, this process is still progressing slowly. But i do not believe that there is a secret reason for that. that is simply a matter of mentality. after they were persuaded for decades that they were untouchable, it is difficult to expect the members of secret services in ex-communist countries to easily accept their new position, which is crucially determined by the development of democracy in those countries.

For understandable reasons, small countries cannot just copy solutions which big countries use. Do you think that it is better small countries to have one, strong, centralised intelligence security service or several services whose work is controlled at a higher level? it is impossible to give a definite answer to that question, but i think that at least two services are needed – agencies, one which will

work at an interior level and the other one which will deal with “external” activities. i think that this way provides much greater efficiency, and at the same time facilitates the control of democratic and political institutions over those secret services. was it possible to predict the current global escalation of religious terrorism at the time when you were active in the service? yes it was possible, but we failed to do that. we did not pay sufficient attention to the signals which were, obviously, in front of our eyes.

It is obvious that the world is still searching for efficient ways to fight against terrorism. Do you have any advice regarding this issue? i think that it is of paramount importance to work on including as many moderate Muslims as possible in the fight against terrorism because the main problem today is Muslim radicalism. there are some other fanatical religious groups, but they are of minor importance. what would be your main objections to out intelligence security services and what advice would you give them? i have been here for several days, but my primary focus was the academy for Diplomacy and security, where i gave a lecture to the future leaders of the world of diplomacy on the subject of international and regional co-operation in confronting Modern security challenges. i did not become informed more closely about the services which operate here or about your services. however, the advice i would give is to constantly emphasise the significance and need for regional cooperation which is, as the first barrier to the circulation of terrorists

International Studies Award The Richard F. Stolz International Studies Award was established in 1995 by colleagues of Richard F. Stolz to honour his lifetime commitment to national security as an intelligence officer for 34 years. A plaque and a cash award are given annually to the graduating international studies major who best exemplifies integrity, scholarship, and an abiding curiosity of international affairs. A trip to Washington DC to meet various political officials is also part to the award. and the resources they use, in many ways more important than cooperation on a wider international level. therefore, i would advise the heads of the intelligence and security services, not only in serbia but in the whole region, to meet as often as possible and to establish closer co-operation. that co-operation is the best guarantee for the fast accession of the region into integrated european and world security structures. links between diplomacy and security are more than obvious and logical. were those links stronger before than they are today, or do diplomats have a stronger influence on security personnel or is it the other way around? those connections are certainly much stronger today than previously. But it is still the case that determining who exerts a stronger influence over whom depends primarily on the situation and circumstances.

Is the CIA more efficient today than in your time? it is impossible to answer this question, because of the different conditions in which my generation operated than the current one. however, my personal experience is that after 11th september the reorganisation of the intelligence security association in the usa was conducted in too great a haste. i think that this should have been done more systematically and with more tact.

CorD | December 2006

31

...from the world press

a province prepares to depart

Despite its last-minute manoeuvring, Serbia now seems certain to lose Kosovo - The Economist

w

hat you see is not always what you get. serbia has a new constitution stating that kosovo is an inalienable part of the country. serb leaders told their people that if they voted for the constitution in a referendum on 2829th October, it would speed their entrance into the european union. But as Danas, a serbian daily, noted tartly, “they promised a kosovo in serbia and a serbia in europe. it is hard to tell which is further away.” politics in the Balkans has been going through a surreal phase, but reality is around the corner – in the form of kosovo's independence. serbia has needed a new constitution ever since the fall of slobodan Milošević in 2000. the old one was designed when serbia was part of a bigger country, with Montenegro. how odd then that when Martti ahtisaari, a former finnish president who was asked by the united nations to oversee negotiations between serbs and albanians on kosovo's final status, said he would present his plans at the end of October, serbia's leaders should have rushed a new constitution through parliament with almost no debate. the leaders of all main parties rallied to the cause, asking people to vote in the referendum, which needed a 50% turnout to be valid. an aggressive campaign was launched, with millions of text messages sent out to remind people to cast their ballots. yet only 55% actually voted, many of them late in the day. suspicious eyebrows were raised; one politician who had called for a boycott declared that he did not

32

CorD | December 2006

...from the world press Interview believe the threshold had been reached.

But given the chaos that a failed vote would have caused, nobody of significance was prepared to question its validity. the reason for holding the referendum now was to delay, even by a few months, the loss of kosovo. the idea is that, with the constitution adopted, serbia will hold an election before kosovo goes, stopping the extremist radical party from picking up more disaffected votes. this has been accepted by Mr ahtisaari and other diplomats dealing with the Balkans. the election may be held in December. serbia's president, Boris tadić, wants a presidential election too, but this is being resisted by prime Minister vojislav koštunica. he fears that Mr

who will at the same time represent the eu. as in Bosnia, the job will come with considerable powers to intervene in the running of kosovo. the natO-led force now in place will remain. right now, says enver hoxhaj, a member of the kosovo albanian negotiating team, “the real talks have...begun. they are not between priština and Belgrade, but between the members of the contact group.” the key ones are the americans and the British, who support independence, and the russians, who do not. trade-offs between them are being proposed, some involving issues unrelated to the Balkans, such as iran. But what is expected to be agreed by the end of March is a new un resolution that avoids

The reason for holding the referendum now was to delay, even by a few months, the loss of Kosovo. The idea is that, with the constitution adopted, Serbia will hold an election before Kosovo goes, stopping the extremist Serbian Radical Party from picking up more disaffected votes. tadić's popularity might pull in votes for his Democratic party, reducing Mr koštunica's chances of becoming prime minister again. serbian leaders also argued that a vote for the constitution would tell the world that kosovo belonged to serbia and should never be given independence. Most serbs would like that to be true. But opinion polls show that few believe independence can be prevented. “lies, lies, lies,” commented a taxi driver as he passed a billboard demanding a yes vote to keep kosovo. “it was lost years ago.” since the war of 1999, serbia's southern province has been under the jurisdiction of the un. some 90% of its two million people are ethnic albanians who want nothing short of independence. yet ever since Mr ahtisaari began his talks last february, Mr koštunica has been repeating that kosovo will never be independent. now it seems he may have been playing a cleverer hand than some have thought. what seems to be happening is that his government, the kosovo albanians and the outside powers involved (the “contact group”) are moving towards a messy and perhaps temporary solution. the scenario goes as follows. with serbia holding an election in December, Mr ahtisaari puts off presenting a final version of his plan to the un security council. when he does so, it will suggest that kosovo becomes independent but with limits placed on its sovereignty for some years to come. an eu team is in priština planning a mission to take over from the present un one, which will be wound up. the eu is planning a similar set-up to the way Bosnia has been run since 1995. a post will be created called, probably, the international civilian representative,

using the word “independence”. at this point kosovo's parliament will declare independence unilaterally. some, perhaps most, countries will recognise the new state – but others, including serbia, will not. kosovo's albanians will be happy with this – but they will have a bitter pill to swallow too. the serb-inhabited north of kosovo (north Mitrovica and beyond) will ignore independence and continue to operate as it does now – which is, in effect, as part of serbia. whether serbs in the rest of kosovo then choose to flee depends on what happens. in the long run Mr koštunica may hope for a formal partition. some albanians would like that, but only if they get albanian-inhabited parts of south serbia in exchange. partition, sighs one diplomat, is “the love that dares not speak its name”. if kosovo can be partitioned, why not Macedonia and Bosnia? kosovo albanian politicians seem curiously resigned to losing control of the north. Many think that, in the long run, serbia will be forced to recognise the new kosovo's territorial integrity as the price it has to pay to join the eu. in the short run, it is fashionable also to refer to the irish precedent. until 1999 the irish republic claimed the whole island of ireland under its constitution, but it did not act on it. a future serbia, with kosovo still enshrined in its constitution, could take the same approach. if it does not, says Milica DelevićÐilas, head of perspektiva, a new think-tank meant to produce ideas about the Balkans and european integration, “it's the end of regional co-operation and of our aspirations for the eu.”

2nd November 2006, The Economist print edition

UN Envoy Martti Ahtisaari could delay presenting his ‘final plan’

Serbian President Boris Tadić wants presidential elections to be scheduled too

PM Vojislav Koštunica may be hoping for an eventual formal partitioning of Kosovo CorD | December 2006

33

Top Tens…

2006

Top Investments:

2006 has proved to be another fruitful year for Serbia, with privatisations, take-overs and Greenfield investments boosting the State’s coffers and easing the woes of the transition and reform process. Now though, December is upon us and the time for tallying up the year’s takings has arrived. With this in mind, CorD presents details of the top ten investments in Serbia in 2006 to date, compiled with thanks to the Serbian Investment and Export Promotion Agency (SIEPA) and the co-operation of the companies in question.

Biggest Foreign Investments in Serbia in 2006

34

Company

Country of origin

Industry

Type of investment Amount invested (mill €)

Telenor-Mobi 63

Norway

Telecommunications

Privatisation

1.513

Stada-Hemofarm

Germany

Medicine

Takeover

475

NBG-Vojvodjanska Bank

Greece

Banking

Privatisation

425

Biotech Energy

USA/Hungary

Bio-ethanol

Greenfield

380

Mobilkom

Austria

Telecommunications

Greenfield

320

OTP Bank-Niska/Kulska/Zepter Bank

Hungary

Banking

Privatisation

166

San PaoloIMI/Panonska Bank

Italy

Banking

Privatisation

122

African Israel Corporation/Tidhar Group Israel

Business Centre

Greenfield

120

JTI/Tobacco Industry Senta

Japan

Tobacco

Privatisation

100

Messer

Germany

Technical gas

Greenfield

44

CorD | December 2006

SIEPA Remark & Methodology “Due to the lack of a unique method for tracking foreign investments, the given results (see table: Biggest Foreign Investments in Serbia in 2006) should be taken with reserve.

In cases of privatisations, the total amount is for 70% of the companies’ capital value, planned investments and social programme.

In cases of a takeover, the given amount is the sum of money paid for a certain part of the capital, coupled with the amount planned for investment in the future, as stated by the contracted company.

The value of the Greenfield investments is a calculation of the sum of realised and planned investments.

01

TELENOR

Topping the investment chart so far this year is Norwegian telecommunications company Telenor, which bought mobile phone operator Mobtel

this summer. Speaking exclusively to CorD, Telenor d.o.o. CEO Stein-Erik Vellan explains that the company “is officially doing business in Serbia just a little over two months. The amount of €1.513billion, reached at the 31st August public bid, was just a start-up investment. A month after we entered the Serbian market, we invested an additional €15.3million to expand the network nationwide. Of this, €14million was invested in increasing the

capacity of the existing network, which, by the way, is of very good quality.”

Addressing the issue of the company’s social programme, Vellen tells CorD: “Our company took over all Mobi 63 employees. Instead of a social programme, the project of integrating the employees into the Telenor company business standards framework was implemented. Since the very beginning, our wish was to give our employees the opportunity to perceive themselves as part of a decision-making team, be aware of the goals and motivated to think about the most efficient ways of achieving them.

“We are very proud of our humanresources approach and of our internal communication. Our relationship with employees is based on openness and expressing one’s personal affinities, as well as motivation for professional growth. Our goal is to see our employees contribute, in the long run, to the Company’s development by getting the possibility for a continuous personal and professional growth.”

The Telenor Serbia CEO also revealed plans to boost employment when saying: “In the near future, we plan to employ approximately 100 experts, mostly in the field of marketing and sales, but there will be other positions too. Our goal is to become one of the favourite employers in Serbia.”

Explaining the company’s global and local strategies, Vellan says: “Globally, our company is not just an investor, but also a strategic partner who brings the latest products and services, technological innovations, a new concept of corporate management and highest-level business ethics. Locally, our strategy is to harmonise our offer with customer needs. This kind of attitude has brought us millions of satisfied and loyal customers all over the world.”

In conclusion, Vellan noted that “The last two months gave me plenty of reasons to be proud of the team I am heading and optimistic about Telenor’s future in Serbia. I am glad that we are in a position to offer many new services so quickly. Personally, I must say that Serbia and Serbian citizens have been an extremely positive experience for me so far.”

02

HEMOFARM sTADA

Next up comes German pharmaceutical giant STADA Arzneimettel AG, which successfully carried out its public

takeover of Vršac-based Hemofarm a.d. in mid-July for a total of €475million.

CorD | December 2006

35

Top Tens…

Speaking to CorD about Hemofarm’s recent growth prior to the takeover, Gordana Lazić Velovan, Director of the Hemofarm PR Centre, says: “Hemofarm invested approximately €100million in new production capacities at the beginning of the new millennium. The Infusion Solution Plant was reconstructed, and the equipped factory for production of injection forms was constructed.

The factory for production of drugs was opened in Banjaluka. Hemofarm became the majority stakeholder of Zorka Pharma from Šabac at the end of 2002. The factory for production of solid drug forms was purchased and attached to the subsidiary Hemomont in Podgorica.

“Due to constant investments in state-of-the-art technology, Hemofarm is currently the only pharmaceutical company in this part of Europe which produces drugs in three most sophisticated forms: effervescent tablets, Mix-O-Vial lyophilized injections and pellets.

“In the first half of 2006 the investments of Hemofarm amounted to approx. €15million. The largest part was invested in space adaptation and purchasing of equipment in the process of production procedures adjustment to international standards for pharmaceutical production.

“The privatisation process, which began in Hemofarm at the end of 1989, was completed this summer when German pharmaceutical company STADA AG purchased the Hemofarm shares for a total amounting to €495million in a friendly takeover.”

Turning to the issue of the company’s social programme and employment levels, Lazić Velovan says: “Certainly Hemofarm, as a new member of the STADA group, is expected to speed up the ongoing process of increasing its efficiency even more. But from today’s perspective there are no plans to significantly change the number of jobs because STADA plans to transfer additional production volumes as well as additional development projects to the existing Hemofarm facilities. Thus, no social programme is necessary as yet.”

On the issue of global strategies, the Hemofarm PR Centre director states that “Hemofarm will be a fully integrated part of the globally active STADA group. Beside its local sales responsibility for several Eastern European markets, STADA will rely on Hemofarm as the Group’s major competence centre for pharmaceutical production, as well as product development. To achieve this as

36

CorD | December 2006

soon as possible, numerous implementation teams are intensively working on the integration process.”

In conclusion, she notes, “STADA trusts the experienced and successful Hemofarm management. Thus, the President of Hemofarm and Chairman of the Hemofarm Executive Board, Miodrag Babić, did not only retain his position despite the acquisition, but was also elected as a Vice-President of the STADA Group.”

03

nATIONAL BANK OF GREECE

Third on SIEPA’s list is the National Bank of Greece (NBG), which paid a reported total of €425million for the

acquisition of Vojvođanska Bank.

The privatisation was confirmed on 12th September when, in the presence of Ambassador of the Hellenic Republic in Belgrade – H.E. Christos Panagopoulos – Serbian Finance Minister Mlađen Dinkić and National Bank of Greece CEO, Takis Arapoglou, signed a sale and purchase agreement for the bank, which until then was owned (99.4% of shares) by the Government of Serbia.

According to the conditions of the transaction, NBG also undertook the obligation to invest €40 million in

Vojvođanska over the following 3 years; and provide a €25 million seven-year loan to the Development Fund of the Republic of Serbia at market rates.

Speaking at the time of the purchase, Arapoglou said: “With the acquisition of Vojvođanska, we complete one more step in deepening our regional footprint. Vojvođanska’s extensive network, its leading position in Dinar deposits and its wide customer base, together with NBG’s leading position in retail banking in Serbia, will make the combined group a recognised leader in providing financial services in the fast growing Serbian market”.

Speaking to press after signing the sale contract, Minister Dinkić said that the achieved price was four times greater than the total capital of the bank. He added that €360million would be made available for the use of the government right away, while another €25million would be held on a temporary account until mid-2008 at the latest.

Dinkić also confirmed that NBG will maintain the number of employees in the next three years, and in case of dismissal the bank will ensure redundancy payments that are determined in the collective contract.

According to a SIEPA report, Vojvođanka banka is the biggest bank in Vojvodina and the seventh bank in Serbia, with a market share of 4.4% and 10 per cent participation in the country’s turnover.

In terms of numbers of clients (700,000), Vojvođanska banka is the second largest in Serbia and by the number of collected deposits is the first in Vojvodina and the fifth in Serbia.

Vojvođanska banka is the leader in the number of issued payment cards (500,000). The assets of the bank were €511million on 30th June 2006.

Arapoglou expressed his satisfaction that NBG had proved successful in its tender for Vojvođanska banka, adding that Serbia is considered a strategic market with big potential of growth in the banking sector.

Ambassador Panagopoulos is quoted as saying that Greek investors will do everything in their power to improve the business climate in Serbia.

04

BIOTECH ENERGY

Fourth place overall, and first in terms of Greenfield investments, is

Biotech Energy. It was at the end of September that a €380 million investment contract was signed between this Hungarian-American consortium and the Vojvodina Municipality of Zrenjanin.

The deal, which is not only the largest Greenfield investment in Serbia but also the largest single Greenfield investment anywhere in Southeast Europe in recent years, will see the construction

of a complex for the production of bio-ethanol, fodder and bio-fertilizers.

Construction is scheduled for completion by 2009.

The completed development will include a port on the Begej River, a logistics centre and new railway junction. Operations will see a million tonnes of wheat and half a million tonnes of corn processed yearly into half a million tonnes each of bio-ethanol and fodder. At full capacity, the complex, which will include modern R&D facilities, will employ approximately 350, with another 1,500 jobs sourced from the agriculture and logistics sectors.

Bio-ethanol fuel can be used in conventional petrol powered cars and reduces the level of carbon monoxide in exhaust by nearly 80 per cent.

05

MOBILKOM

Serbia’s fifth biggest investment of the year was made by another telecommunications company – Austrian

mobile phone operator Mobilkom, which paid €320million for the purchase of the country’s third operating license.

Having paid considerably more than the norm for such an operating license, and accepting the relatively stringent associated obligations, Mobilkom will be looking to make a return on its investment in the shortest possible time.

Speaking to CorD, Mobilkom’s PR team explains that the initial licensepurchasing investment is expected to be followed up by capital expenditures amounting to approximately €250million by 2009.

Mobilkom expects to generate around 300 new jobs in Serbia and, in temrs of global strategies, is “committed to our current expansion strategy… We reiterate our interest in value-enhancing opportunities in the CEE area. We want to become the leading regional player from Valduz to the Black Sea.” Molikom expects to launch operations in Serbia in the next six months and, Mobilkom’s press team says, “We are confident that Serbian customers will profit from our innovation leadership and cutting edge services, as demonstrated by our successful operations in Croatia, Bulgaria and Slovenia.”

06

otp bANK GROUP

Coming in sixth is the second bank of the SIEPA list – Hungary’s OTP, which has spent the last year busily acquiring Serbian banks for a grand total of €166million. OTP’s spending spree has earned it a purported three per cent share of the Serbian banking sector.

OTP Bank’s regional expansion into Serbia began on 23rd December 2005, when the bank and the Serbian Government signed a contract for the sale of Niška Banka. The agreement made OTP the owner of 83.39% of the small Serbian small bank. The acquisition was completed on 7th March 2006.

Prior to its sale, Niška banka provided 80,000 costumers with financial services through a network of 24 branches. The total assets of Niška Banka were approximately €365million by the end of 2005, which resulted in a market share of less than 1%. After-tax profit of the Bank was around €281,000, while its equity stood at €177million.

The OTP Bank Group’s next venture into Serbia came on 31st March this year, when a sale and purchase agreement for the acquisition of a 75.1% stake in Zepter banka was signed by OTP Bank and the seller Philip Zepter. OTP Bank paid a reported US$41.305million upon completion of the transaction to purchase Zepter banka, which previously provided financial services to its 52,000 customers through 17 branches.

Zepter banka, which was founded in 1992 as a privately-held bank and provides financial services to both retail and corporate customers, controlled nearly a one per cent market share in Serbia, based on total assets, prior to the sale.

OTP’s third and final acquisition in Serbia (so far) was confirmed on 7th July when the sale and purchase agreement for the acquisition of a majority stake in Kulska banka a.d. Novi Sad was signed. OTP Bank paid a purchase price of €118.6million for a 67% share package. The purchase price, which was based on Kulska banka’s market value, was forthcoming upon completion of the transaction in October 2006.

The purchase of Kulska banka paved the way for OTP Bank to further expand its activity on the Serbian banking market, which is facing significant growth.

Kulska banka, Niška banka a.d.

Niš, and Zepter banka a.d. Beograd, together have an approximately three per cent combined market share in Serbia, based on total assets on the Serbian banking market.

OTP plans to focus on strong organic growth following the merger of its three Serbian banks.

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SANPAOLO IMI

The seventh biggest investment in Serbia this year was made by Italian group Sanpaolo IMI, which bought Panonska banka for €122million in July.

According to a SIEPA report, “Serbian Finance Minister Mlađan Dinkić, Sanpaolo IMI group’s General Manager for international operations and the international banking network, Jusepe Kukureze, and Governor of the National Bank of Serbia, Radovan Jelašić, signed the contract and annex confirming the Italian banking group’s purchase of 87.39% of the shares of Panonska Banka CorD | December 2006

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Top Tens… a.d. for €122miliion."

Speaking to press after the signing, Minister Dinkić announced that Panonska Banka had been sold for 4.8 times the share value.

According to the minister, Sanpaolo IMI accepted obligations to invest a

further €11million in the next two years to pay for a new informatics systems, extend the network of branch offices and train employees.

Sanpaolo IMI is expected to make an offer to buy the remaining 12% of shares from minor shareholders for the same price as it paid for the State’s shares - €178 per share.

CEO of the Board of Directors of Sanpaolo IMI group, Enrico Salca, stated that the entry of the Bank into the Serbian market will improve the cooperation of Serbian and Italian businesses.

Sanpaolo IMI group has its head office in Turin and operates in 35 countries.

According to SIEPA, Sanapaolo IMI has capital of €14billion and is the third strongest bank on the Italian market. It is the fourth Italian bank to enter the Serbian market.

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Africa Israel Corporation /Tidhar Group: Airport City Belgrade

Making its way onto the list of Serbia’s top investments once again, this year in eighth spot, is Africa Israel Corporation and Tidhar Group’s Airport

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CorD | December 2006

City Belgrade Development, worth a grand total of €120million.

The business park development, winner of the OECD’s 2006 award for the Largest Greenfield Investment in the Region (awarded June 2006 in Vienna), will cover an area of 126,000m2 upon completion, and already provides employment for more than 200 construction workers on a daily basis.

The total investment of €120million is to be invested in phases. The first two buildings of 20,000m2 are completedand Airport City is now in its second phase. Completion of the next two buildings is expected in 2007. Speaking to CorD, Airport City Belgrade’s PR Advisor, Marina Deleon, confirmed that: “besides being the largest investment in real estate in Serbia, ACB is bringing a new office space concept to Serbia – that of the business park. As such, being a “city within a city” will generate a substantial number of new working places, as has been the case so far.”

Confirming this, ACB CEO Gili

Dekel told CorD that “during ACB’s development, numerous local building companies are being engaged. Indeed, ACB has contracted mostly domestic companies [Masinoprojekt, Nissal, Ratko Mitrović etc.] and, as such, this huge investment has provided an excellent opportunity for the local construction industry to employ their capacities in developing a business park that will facilitate more long-term local employment prospects.”

ACB’s owners see Serbia and Belgrade as a long-term investment.

Mr. Dekel says: “Investors are looking to the future and profit, so I see Serbia in terms of future profit. At the moment one can get getter better deals than those available in Serbia, but investors that are as strong as we are, are also looking for long term results, so we do see our future on this market.”

ACB’s aim is to use this project to facilitate the broadening of the owners’ overall investments in the country.

"The business park itself is a concept that will provide additional value to what Belgrade has to offer foreign investors by providing them with a working environment that is in accordance with the standards they are used to."

Moreover, states Ms. Deleon, “We hope Airport City Belgrade will be well integrated into the local community.”

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JT INTERNATIONAL

The penultimate company making it onto the SIEPA list is Japan Tobacco International (JTI), whose May 2006 purchase of a 98 per cent stake in the Senta Tobacco Industry represented the first Japanese investment in Serbia.

Speaking immediately after the initial sale, Serbian Finance Minister Mlađan Dinkić confirmed that JTI had paid €253 per share – six times the book value.

The purchase saw Vojvodina-based Senta become one of JTI’s 17 production facilities.

Speaking to CorD, Mr. Paul Patrick, General Manager of Adriatica JT International explains: “Our company acquired the DI Senta factory in May 2006 for €27.5 million. Total investment at this facility will reach €35 million, but added value for Serbia comes from the total long-term investment in both the factory and the Marketing & Sales operations in Belgrade of €100 million.”

Responding to questioning about the company’s social programme, Patrick says: “DI Senta did not require a social programme as such, since the company had a much smaller number of employees compared to the future needs of cigarette production. From the 75 employees at the moment of acquisition, we are planning a minimum of 150 new job openings. There will be no need to lay off long-serving employees at all.” Furthermore, notes Patrick: “Over and above the 150 new openings, we have hired about 100 new young and talented trade, finance and marketing colleagues. However, the factory generates indirect employment:

approximately 250 seasonal workers, as well as 700 contracted farmers for leaf production. In total, there will be some 1,200 people working for us in Serbia, directly and indirectly.”

Relaying details of the company’s global strategy to CorD, Patrick explains: “The global strategy for JTI is to invest for growth, while at the same time maximizing shareholder value.

We are the fastest organically-growing tobacco companies in the world, and third by size. Serbia plays an important part in the strategy of JTI in southeast Europe, and we plan to introduce high production standards that will guarantee highest product quality.”

Concluding by further commenting on the company’s global strategy plans, Patrick tells CorD: “JTI has made great efforts to prove itself as a responsible citizen of Serbia. We make significant investment each year into social programmes. For example, this year we contributed approximately $300,000 towards the reinsertion of economically deprived social categories. Over the last three years we have been one of the key sponsors of the Women’s Safe House in Belgrade. We have also dedicated much attention to cultural activites. In addition to numerous concerts and exhibitions, we are sponsoring the reconstruction of the local Theatre in Senta, worth about $100,000.”

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pany within the first 12 months was about €48million. Most of that investment went into machinery and equipment. Of course, our new plant in

Smederevo – the biggest of its kind in the Balkans - had the largest share with about €44million.”

Addressing the company’s social programme, Bode tells CorD: “The basic element is a very generous redundancy scheme. The amounts are such

that people can have the opportunity and financial means to start their own businesses or have sufficient funds to reach the retirement age.”

Bode says that the number of jobs generated by the investment will depend on development of the market: “In general, we are looking for young and highly skilled, educated and motivated people. Besides, our investment in the air separation plant in Smederevo is a base for the development of many other industrial branches, such as metal industry, chemical industry, health, food industry, water treatment, etc.”

Bode says that Messer’s global strategy is “to maintain our prominent market position by being a technology leader and solution provider and to be the customers’ first choice, respecting the principles of complete service orientation and competitive pricing.”

In conclusion, Bode says: “It can be felt that the Serbian economy is waking up from its long sleep. It is to be hoped that it will create enough new jobs and that the most needed political stability will support the future development of the economy.”

MESSER TEHNOGAS

The tenth biggest investment in 2006 to date was made by Messer Tehnogas, when the German company confirmed a €44million investment (SIEPA data) to build a plant on the grounds of its existing industrial gas facility in Smederevo.

Messer’s new plant will produce oxygen, nitrogen and argon that will be primarily supplied to U.S. Steel Serbia.

Messer established its Serbian operations in 1997, when it acquired 60 per cent of company Tehnogas. Besides the factory in Smederevo, Messer Tehnogas operates six plants and 60 sale centres, employing some 335 people.

Speaking for CorD, Messer Tehnogas general manager, Ernst Bode, explains that “the total investment of our comCorD | December 2006

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Advertising Industry

Maturing Market A changing business climate is seeing new business standards and practices reshape Serbia. With companies communicating in more sophisticated ways to outdo the increasing competition, the nature of Serbia’s PR & marketing industry is fundamentally changing

By Danijela Popović-jurić & CorD; photo: jelena Mandić & CorD

i

n order to get the low-down on the industry in serbia, this month corD speaks to the marketing directors of three top companies operating in the country – Daimlerchrysler (Mercedes-Benz), efes weifert and piraeus Bank. first, though, we speak in depth to one of the industry’s leading local figures – communis agency chairman ivan stanković – about his experiences in marketing, the state of the serbian market and the future globalisation of marketing in this country. ivan stanković is creative to the core. every detail of him emits a specific creativity – whether that be framed photos of his children overlooking the disorder on his desk, the way he speaks, or

the advertisements he’s produced. following his graduation from the faculty and a stint in the army, stanković says that he fell into the industry by chance in 1979 when he took up employment with what was then a very ‘in’ company: ‘jugoslavijapublik’. he describes that first position – of a marketing associateapprentice – as merely being an excuse to come home from the army. But it soon became much more. stanković rose to the position of head of promotions, before going on to become marketing manager of a publishing house. “i entered the agency business in 1986 with studio Marketing Delo, at that time the best agency in yugoslavia,” says stanković, “then the story started with saatchi. “i began promoting procter & gamble in 1991 and have prob-

True competition yet to start the fiercest marketing campaigns launched in serbia over recent years have been those of the banking sector’s major players. glossy billboards; expensively produced television campaigns with local stars; creative and distinctive print ads – the banking sector has seemingly spent a fortune on marketing of late. however, some believe that the true banking battle has yet to begin. according to Miroslava nešić-Bikić, Marketing Manager of pireaus Bank serbia, “the serbian people’s loss of confidence in the banking sector, evident during the ‘90s, started to change in 2000 – when major foreign banks entered the market. after their initial market research was performed, the ensuing few years saw the launching of aggressive campaigns, resulting in more and more growth in budgets. “while domestic banks concentrated on corporate methods of introducing themselves to the better clients they wanted to find, the goal of foreign banks was to take a good position and spread their business. i think that, after commodities, the banking sector in serbia has changed the most. the competition in the banking sector is still growing every day, which is why serious banks rely on advertising as the only true solution that will differentiate them from the others. “nevertheless, the forecast is that the real competition will start in 2008, when the banking sector will have been defined and stabilised as a result of the fact that at that point all the participants will be known. as soon as that happens, the true fight for market share will Miroslava Nešić-Bikić, begin; with competitors aiming to take clients from over banks – a task that will turn out to Marketing Manager of be very difficult because, as research has shown us, clients don’t like to transfer from one bank to another.

Pireaus Bank Serbia “On the other hand, in the next years banking services will enter the citizens’ routine even more, and a greater number of people will use the services of banks. this will result in the growth of the overall financial potential of the banking sector. “all that’s coming in 2007 and the years ahead is an indication of a tough fight between banks, a significant growth in the budget, a bigger income for the media and a bigger presence of banks in our everyday lives. “afterwards, as in other countries, a harmonisation of the budgets will come, as will greater efficiency in the advertising messages and profiling advertising campaigns. thus, in about two to three years, some of the advertising campaigns employed by some banks today will have become totally unthinkable.”

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CorD | December 2006

Advertising Industry

Ivan Stanković, Communis Agency Chairman ably become a record-holder in that respect, as i am still working with them to this day (touch wood).” recounting a telling moment of realisation in his career, stanković explains: “with a view to engaging the client, i came up with the idea of taking the opportunity offered by one of the last major gatherings held in this country – the promo festival – to invite p&g’s regional representative to perform as one of the guest speakers. in my desire to propose a topic that would be both attractive to the audience and easy for him to prepare, i suggested that he explain how big clients choose their agencies.

“But he seemed surprised and confused when i told him. “how do they choose? i don’t understand…” he said. so i

if you are a member of such a global group “when you complete your agency presentation – in which you reveal that the capital city of your domicile country is Belgrade, the currency is the dinar and the language spoken is serbian – the client is usually thrilled and ends up giving you a multi-million budget. not bad, especially when you have a network level manager that travels around the world and forces clients who dared not to work with you into the network. in those cases your luck is limitless.” unfortunately, warns stanković, “everything nice has to end. and when it does it is only then that you realise how pleasant and effortless it was while it lasted.”

Stanković: “regardless of how good you are, a global contract is always better. In the basic terms of our profession, that simply means that the surest way to acquire major international clients is to be a constituent part of a large international chain”

And how did that something ‘nice’ come to an end for you? “if publicis hadn’t acquired saatchi at the global level; if the people that worked with me hadn’t wished to create their own agencies with my clients; if there hadn’t been bombing and vanity and many other negative realities, who knows where i would be today?”

Despite the setback of the takeover, stanković was determined to prove himself a success and, thus, set up a new agency of his own. however, he notes, he was faced with the “unique” problem of reaching and acquiring clients: “some didn’t know about me, and other new ones didn’t appear. i wasn’t interested in domestic clients: they still believed that movie directors make advertisement spots, designers do newspaper ads and that the agencies are surplus agents that ruthlessly poke into somebody else’s jobs. i wasn’t adequate for foreign clients, because i wasn’t part of an international chain. “i performed market analysis and envisaged the basic segments: 1.) “the multinational networks represented a protected area, where naive players did not stand a chance of success. and if you got inside such a network only global disaster could kick you out – i actually suffered that very misfortune when the Bates network,

explained: “well, something along those lines. for instance, how come you guys – a big, mega-galactic client – opted to work with us?” he looked at me confusedly, peered over the top of his glasses and said: “how did we choose you? well, quite simply, my boss called me and told me to work with you because we have a global contract with saatchi.” “it was then that i understood one major truth: regardless of how good you are, a global contract is always better. in the basic terms of our profession, that simply means that the surest way to acquire major international clients is to be a constituent part of a large international chain.”

CorD | December 2006

1

Advertising Industry which had fallen on my side after the split, was purchased and absorbed by WPP Holding. The integration of our client cost the jobs of 80% of Bates’ staff and taught me the meaning of globalisation; 2.) “Domestic stakeholders were deeply encamped, more or less according to the political options and owners’ interests. Bearing in mind my political independence and nausea towards that kind of association, I didn’t see any kind of big chance for me there; 3.) “Lucky agencies were the ones who had their deals and

Stanković: “the Bates network, which had fallen on my side after the split, was purchased and absorbed by WPP Holding. The integration of our client cost the jobs of 80% of Bates’ staff and taught me the meaning of globalisation who believed in the system of rewarding success. So: you give me the job, I give you a percentage – Alexander the Great said that there was no wall a donkey loaded with gold could not jump over.

This remains the sad truth. I didn’t see my chance there either. Not because I didn’t want to, but because I didn’t know how to; 4) “Production groups that have grown into agencies were, and remain, the cancer of the Serbian advertising market. Their wish is either to sell the seconds they have received from television stations due to various production deals, or by profitable contracts based on elements from the previous point, with or without family-homeland component; 5) “The remaining group consisted of a large number of agencies controlling a smaller part of the market. Their main characteristics were that they were fighting for their lives and couldn’t be sure of significant growth.

“So, where was my place? I didn’t belong anywhere.”

Bouncing Back Stanković has made it back to the very top of the industry, and a growing number of advertisements produced by his agency are being widely acclaimed as mini masterpieces.

He confesses that is “pretty proud” of the fact that in the four years of its existence Communis has succeeded in becoming on of the most important domestic agencies.

Describing his favourite campaign as “One that still has to come...” he says that Communis’ commercials are about applied art, “though the accent is more on the application and less on the art. Art lies in the method of packaging a message, but it’s the message that’s everything and the art…well it’s not exactly nothing, but it’s surely secondary.”

Overcoming Rejection As with all artistic mediums, tastes in advertising vary greatly. No surprise, then, that client rejections are commonplace.

Stanković admits that he’s faced many negative decisions of his own: “Rejection is a very painful experience, both in life and in work. But we try to eliminate emotions and not take it personally. The important thing is to ascertain why something’s been rejected: is it a question of extravagance, quality, situation/market appropriateness, or cost.

“Work between the client and the agency is a story of collaboration and reaching solutions by working jointly. In this respect, we especially enjoy working with the teams of Knjaz Miloš and Soko Štark, as we share that passion to do the impossible. That’s a greatest motivator; Mission Impossible, part 7.”

People Power Stanković has an excellent reputation in Belgrade’s PR circles and is regarded as a fair player with a sense of value: he pays well and sometimes even better than that. According to the man him-

Playing catch-up Methods of marketing are part of an advanced industry elsewhere in the world. However, notes Efes Weifert Brewery Marketing Manager, Mete Yurtsever, “Serbia and neighbouring countries don’t have a long tradition of “marketing””. Still, he continues, “in today’s world information and knowledge spread quickly”.

Speaking to CorD about marketing trends in Serbia’s dynamic beer industry, Mr. Yurtsever says: “In terms of novelties in packaging, advertising and promotion, Serbia is not behind almost any developed country’s beer market. That is the result of heavy investments by foreign brewing groups. However, it takes time for the consumer to catch up with concepts like consumer consciousness and consumer rights.”

Big budget campaigns are booming in Serbia’s beer industry. Drawing on the example of the success of Efes Weifert, Yurtsever explains: “in the period January-October 2005, Efes Serbia brands’ total share of brand [awareness] viewing (rating) was 13% in the beer category. However, during the same period this year that rating increased to 21%.

“This year, besides Weifert, we began a national tv campaign for our international brand Efes – as we’ve started local production under Efes Breweries International license.”

Perhaps providing a hint of the expenses of a top-quality tv ad campaign, Yurtsever reveals: Mete Yurtsever, “This Efes tv commercial was directed by Steve Haim, the MTV award winning director of Madonna’s “Frozen” music video. I must say that we’ve received very positive feedback on this Efes Weifert tv campaign, as well as on our new bottle. Overall, our tv budget represents 35 to 40 per cent of Brewery Marketing our total marketing expenditure. Next year we plan to keep our position on TV, but focus more Manager on BTL execution.”

Turning to the issue of competition in the country, he says: “There are international and local brewers in Serbia. We are together with these brewers also in markets like Russia, Turkey and Kazakhstan. For me, it’s interesting to observe the similarities and differences in their strategies and executions... Local competition still has some power in their periphery, but could not succeed in creating a national value for their brands, selling mostly at low prices. Nevertheless, we are focused on building up our brands regardless of competitor’s actions.”

Predicting that a period of further growth is ahead for Serbia’s beer market, Yurtsever says: “Serbian consumers still aren’t loyal to their brands; they still have a large repertoire of brands that they are consuming on a regular and occasional basis. The competition will grow to make consumers more loyal. So far, international brewers have been the disadvantage of local brands, and there’s not so much room left anymore. Therefore, we can expect more fierce competition among mainstream brands.”

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CorD | December 2006

Advertising Industry Growth sector Another growth sector in the country is represented by the auto industry: an industry renowned for the ferocity and sophistication of its marketing methods the world over. Revealing the insider’s view of the industry, Sanja Uzelac, MercedesBenz Marketing Director, tells CorD: “Serbia’s auto market has been growSanja Uzelac, ing continuously in the Mercedes-Benz last three years and has Marketing Director achieved annual growth of 20%. As a result of this trend we have caught up with Bulgaria, are ahead of Bosnia, Macedonia and Albania, and need just a little more to overtake Slovenia and Croatia.

“The biggest growth has been in sales of ‘B’ category vehicles (lower class), which represent more than 50% of total sales in 2006. After that comes the ‘C’ category (lower class).”

Marketing budgets are key to an auto companies’ strategy, but Uzelac notes that: “Though the amount of money set aside for the marketing budget is important, the way the company approaches the needs of the market and its customers is even more important. Our actions are the result of the competence of our workers and much input from the head office, allowing us – through accomplishments of sales and marketing campaigns – to state and modify our actions and our approach toward the needs of the market. As an example, we have Forte 5, with which we provide five years of free servicing for the B category vehicles of all our customers.

“For us, our great market share – or more importantly our 50% relative market share in the ‘B’ category (according to direct sale of the competition of BMW and Audi) – is not a surprise. Rather, it is the result of having the right approach to the market and answering the needs of our customers on the SCG market.”

Further explaining the successful growth of the brand locally, Uzelac concludes: “We are very pleased to say that sales of Mercedes-Benz vehicles are growing faster than the whole market, with an average of 30% annually. Sales on the SCG market in 2006 are expected to reach between 550 and 600 vehicles. With this result we have contributed to the sale of the 25th million Mercedes vehicle, which was just produced in November 2006.”

vour. You either have it or you don’t. It’s very simple; Zezanje (fun) – I insist on that. I love the way we have mutual fun in the agency.”

Facing Oneself This October saw Communis receive two awards at the “Golden Drum” international advertising festival in Portorož, Slovenia (for their Mercedes and Panona projects) and last year the domestic agency earned the greatest global award for their Mercedes campaign, while Stanković was declared Marketing Manager of the Year 2005.

Telling CorD of his belief that everyone must face the reality of who they are on a daily basis, the man dubbed by many as the Marketing Magician, says: “this New Year I will give the people around me the gift of mirrors. That’s because people must look in the mirror everyday and say: “this is the story that I am part of - the smaller the discrepancy between the story and the real self, the better.” I know a lot of people with catastrophic discrepancies who try to assure themselves that they are the same as their projected image.

It is for that very reason that I have internal brakes that I am programmed not to release.”

Fighting Creatively With consideration of the future path of the marketing industry in Serbia, Stanković concludes that the cards are still being dealt on the country’s young market: “The big players will be created in the near future. The announced arrival of big world chains brings a variety of different new clients. Some agencies will succeed in overcoming the client service strategy and emerge as good agencies. But there will be plenty of fighting for market survival, and lots of creativity.”

self, “Money isn’t everything.”

“There are companies who pay much more than we do, but can’t attract or keep their people. The whole package is much more important – principally including attitudes towards people and the guiding concept of the company. I try to be fair. I respect the integrity of each of my employees. The creative philosophy of my operations is G&D: Good and different (the clients are mostly offered one or the other).

“Another part of our business philosophy comprises the four-Zs [in Serbian]: Znanje (Knowledge) – I’ve learnt much, but I’m still learning and don’t have a problem with that; Zdravlje (health) – that is mental health. I employ people based on two criteria: Personality & IQ. That is something that cannot be taught; Zapaljenost (fervour) - there’s nothing without passion and ferCorD | December 2006

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Focus Vojvodina

Focus Vojvodina

the autonomous serbian province of vojvodina is one of the Balkan region’s most prosperous and prospective territories. stretching 21,506 square kilometres – from pančevo in the south to subotica in the north – vojvodina is home to more than a fifth of the population of serbia (2002 estimates of 2,031,992 inhabitants), has external borders with republika srpska, croatia, hungary and romania, is intersected by three major navigable rivers –the Danube, tisa and sava– and is home to some of the country’s strongest and most strategically important domestic and international companies. this dynamic province in the north of serbia, with its capital in novi sad, is a leader in the country in many areas, including tourism, banking, education, agriculture and, recently, foreign investments and privatisations. it is famous for its abundance of fertile arable land and is home to the world renowned international music festival ‘eXit’. it is with all this in mind that corD magazine presents its new regular feature – focus vojvodina – which will bring you news of the province’s investment opportunities, business happenings, political scene and cultural life, as well as interviews, ‘my life’ commentaries and analyses of the province and its economic development.

Novi Sa d

Zrenjanin

adin etrovar P T I X E

Pančevo

Subotica

Vršac Palić

CorD | December 2006

Focus Vojvodina

Focus Vojvodina Bulletin... Focus Vojvodina Bulletin...

Novi Sad Fair hosts 1st InvestExpo in november, the novi sad fair hosted the 1st investexpo, an event intended to present investment opportunities in over 45 municipalities in serbia, focusing on the vojvodina region. the fair was organised by the serbian government, including the ministries of international economic relations and public administration, and siepa, as well as being sponsored by the executive council of vojvodina, and the vojvodina investment project fund. along with the many stands hosted by local municipalities, including business park, production, industry and infrastructure opportunities, the banking and finance industry, it industry and real estate sector were represented, as were many foreign donor agencies (eBrD, ear, swedish investment fund siDa, italian agency for infrastructure Development and usaiD). the fair was held from the 7th to 10th november.

Exit Festival signs 30 million dinar agreement with Ministry of Finance serbian Minister of finance, Mlađan Dinkić, together with exit festival founder and general manager, Bojan Bošković, signed a protocol on co-operation that will guarantee support from the serbian budget to the tune of 30 million dinars annually from the period 2007-2010. through extending co-operation with the festival, which costs between €3.5 to €4million to stage, the government expressed its support for the novi sad music festival that gathers over 150,000 attendees from serbia and abroad, and which Dinkić said had "done more to promote serbia than the diplomats whose job it was." Bošković noted that the government had in the past supported the festival as well, specifically last year by reducing the vat rate on the sale of concert tickets from 18 to 8 per cent.

First Business Incubator in vojvodina opens in Zrenjanin

the tender for the granting of concessions for the construction of the highway from horgoš to požega was won by a consortium made up of the spanish fss company and austrian alpina, according to serbian capital investments Minister velimir ilić.

Minister ilić said that this consortium won because it gave the shortest deadlines for completing the construction and the lowest price of €1.3billion. source: B92

Auto logistic to Build in vojvodina at a meeting in paris in late October, vojvodina executive council president, Bojan pajtić, and Director general of french company auto logistic international, clemente philips, signed an agreement on intentions for construction of the company's food factory in vojvodina. the factory would employ 30 workers and secure work for several hundred subcontractors. the vojvodina government has also pledged to secure all necessary logistical support for this project, and assist in finding a suitable location for the factory and obtaining of necessary permits.

A new statute for vojvodina speaking to novi sad daily građanski list, the vojvodina secretary for administrations, regulations and national Minorities, tamaš korhec, said that the vojvodina parliament needs to develop a new statute as soon as possible. korhec told the popular daily that the draft for the new vojvodina statute should be developed by the end of the year, and added that the new statute will be more inclusive than the last one, because vojvodina has more jurisdiction under the newly confirmed constitution. he noted that, under the new serbian constitution, vojvodina can freely confirm its governmental institutions and their functions and jurisdiction.

Owned by the Municipality of Zrenjanin and the vojvodina investment promotion fund, and supported by the executive council of the ap of vojvodina, the serbian agency for Development of small and Medium-sized enterprises and entrepreneurship, entranse, the german Organization for technical cooperation (gtZ) and the Osce, the BiZ business incubator in Zrenjanin officially opened on 16th november. five companies will be located in this centre, where technical and administrative facilities are sponsored and shared. the first companies located in the incubator mostly come from the it sector, comprising four local entrepreneurs and one italian company. aiming to encourage more entrepreneurial activity in the region, the business incubator currently occupies one floor of a high-rise building in Zrenjanin with plans to expand to another floor by March 2007.

Road Concessions will Cost vojvodina Dearly speaker of the vojvodina parliament, Bojan kostreš, said this november that vojvodina could lose up to €420million euros over the next twenty years as a result of concessions to be granted for the horgoš-Belgrade highway. speaking to B92, kostreš explained that the construction of the horgoš-Belgrade highway was completely funded by vojvodina, noting that: “the vojvodina administration took out credit from the early 1970s to 1988 and paid it back completely.” he said that funds generated by the highway, which runs through vojvodina territory and which the people of vojvodina paid for, must not be ‘stolen’ to pay for construction of the Belgrade-Čačak highway. “vojvodina’s infrastructure needs to be built with these funds, because this situation will have €420million taken away from vojvodina in the next 20 years, which is unacceptable.”

CorD | December 2006

Focus Vojvodina

solid progress Kamil Beffa, Director, Lafarge BFC

By Alex Papke; Photo: Nemanja Savić

When France’s Lafarge Cement entered the Serbian market it saw a great opportunity to make profits in a growing transitional country. However, the world’s largest cement company also had a vision to modernise and improve business practices in Serbia, as well as putting into place an aggressive corporate responsibility plan that has helped to create the Beočin Business Park.

Kamil Beffa 6

CorD | December 2006

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afarge is the largest producer of cement in the world, tallying over €16billion in sales yearly and employing 80,000 people at 2,100 sites in 76 countries. so when lafarge comes to town, they mean business. But with lafarge, business means more than just the cement they produce. with an active emphasis placed on corporate responsibility and the localities they are active in, lafarge acquired serbia’s oldest cement factory, in vojvodina’s Beočin, and outlined a plan to improve the way that company operated as well as the business prospects for the whole community. for lafarge these goals are not independent, they intertwine with each other as the success of their company can be measured by the success of the markets in which they operate.

Between 2002 and 2005, this has meant a €55million investment into the Beočin cement factory and €16million invested in various social programmes. the factory has had improvements made in allaround worker safety, to its facilities and to its environmental impact. in adding production of ‘clinker’ – a pre-component to cement – Beočin has increased profits with an easier-to-transport product. however, investment has also been made in its human resources, sending managers to its lafarge university for education, as well as providing training for many more of its employees – totalling 28,000 hours. lafarge’s social programmes have reached deeply into the community, with co-financed building projects for roads, schools, churches, and cultural centres already underway and more being considered. the highlight of lafarge’s corporate responsibility programme, though, is the Beočin Business park – currently being built on an unused section of the factory’s land that has access to the Danube river. here a 15-hectare section is being developed, including all needed infrastructure (buildings, road and river access, communication, etc), with the possibility of growth to meet demand. this non-profit project offers shared competencies to investors, such as administrative services. lafarge not only sees good use of its resources in this project, but also a real opportunity to bring muchneeded jobs to the city it is now calling home. what is the process of analysing a prospective country for investment and what drew you to Serbia and Beočin? we look, of course, at the potential for development of the cement market, which is linked to the construction market; then to the quality of the workforce, as well as the business we are targeting for acquisition. then we look at the business environment, which is extremely important, the applicable regulations and the risks to doing business. when we came here, serbia was just in the process of redeveloping, which is the right moment to get into the cement market. we identified the plant of Beočin as an opportunity, particularly because of its prime location on the Danube. it has two major advantages: that we can supply raw materials on the Danube and we can ship some of our products, namely clinker, to customers. cement production and sales is a very local activity, because of very high transport costs and the relatively low value of the product. to be competitive, in terms of transport, you have a maximum radius of about 200 kilometres by roads. On the other hand, clinker is a bit easier to transport, mainly on waterways. last year we started to commercialise clinker, and are now supplying our sister units in

Focus Vojvodina austria, slovakia and Bosnia, as well as customers in Bulgaria and hungary.

Production of cement implies new construction, Greenfield investments and long-term projects. what are the markets lafarge is involved in? From the perspective of a cement producer, how do you see the transition progressing in Serbia? there are three markets for cement – infrastructure, housing construction and non-residential building. the infrastructure market: roads, tunnels, pipelines, and bridges. that we see is going to develop in the future, especially because of the national investment plan, promoted by the government, as well as in the need for infrastructure development in serbia as a whole. the second segment in cement is residential construction activity, which represents the biggest portion of the market in serbia. this is closely linked to gDp – whether people are able to renovate their house or to build new ones. here, we know the progress serbia has made since the change of regime in 2000, and we see progress in this segment, but not necessarily as quickly as in infrastructure. the last segment is what we refer to as nonresidential construction – mega-markets, office buildings, etc. with the development of the retail industry and banking sector, we are also seeing an increase in this market. right now we are seeing an overall growth of five per cent, which we expect to continue.

what advantages do you see in Serbia, and specifically in vojvodina? what needs to be done to attract more investment to the country and this region? vojvodina and serbia both have many advantages to attract foreign investors. the location in the centre of the Balkans, the Danube and the main roadways connecting europe is very important. you also have historical and traditional industries - agriculture in vojvodina in particular is an opportunity. there is a well-educated workforce - we have found good managers that can really help an investor to do good business in serbia. there are institutions that really understand the

Lafarge business conference needs of investors and work with them to overcome the challenges they may face in serbia. there are still some changes we are all aware of that remain – such as the political uncertainty that is still facing serbia, which we hope will be overcome in the coming months. then you have the business environment in serbia, where a lot has been done since 2000 in terms of new regulations and in moving to a market economy. there are still things to be done, land reform for example is a major one. companies can only have a right to use the land and do not have the right to own land. investors still feel they are not treated equally compared to local companies, and the rule of law still needs to be improved, but on all these topics the government is informed and are making steps to change them.

From planning to current business practice, how has lafarge worked with the various levels of government? we work with the local government, the Municipality of Beočin, with whom we have a lot of projects. every month we have a board meeting to look at the further realisation of the social programme. when we made our commitments, we agreed to invest 50 per cent in a fund and with the local government we decide where to allocate this money. there are some schools that are being renovated, a church, and a cultural facility among others. these are financed together with the government and we discuss these projects regularly. we also work together on infrastructure projects looking at what are the plans and aims of the Beočin Business Park? how to better connect Beočin with the surrounding areas. we have the Beočin Business park is a passionate project for us, and also co-financed – along with the central government, the city of novi sad a challenging one. passionate because in the end it is creating jobs authorities and the city of Beočin – road construction between the for people, it is stimulating local activity, and it is something this two cities - financing 12.5% of that. we are also looking into the field of railway development and working with a lot with comConsumption of cement is closely linked to measurement of panies in Beočin, such as transport companies. progress and wealth – when societies develop they invest we work with local agencies – we need a lot in infrastructure, and when people have money they build of permits for construction and for the new investments, regarding environmental complinew houses, shopping malls and office buildings. ance provided by the regional government. we work with the regional administration of energy and mining with regard to our mining activity. we also work with company is not used to doing - moving aside from its core business the vojvodina investment promotion fund, related to the Beočin to concentrate some energy and resources to attract foreign investors.

Business park. they represent the many regional governments of we are meeting with many people, foreign investors and promoting vojvodina in attracting foreign investments – we have a good working the project within serbia, and at the same time we are developing the relationship with them. and, of course, we co-operate with the cen- structure – the grounds, the port, etc. tral government at the national level: we have had a lot of solid relathe challenge is that the pace at which the investor makes a decitionships with the ministries of finance, environment, investment sion is a long one. they need to identify serbia as the place where and international economic relations. they want to invest compared to other countries. they need to be with the Beočin Business park, we work extensively with the sure that they want to come to Beočin, we have to promote the advanserbian Ministry for international economic relations. we discuss tages of Beočin - then they need to make a business plan and work up business topics with them mostly. however, we also feel that we can the investment side. this is a long process. we launched the process discuss any other issues we having, as well as suggesting changes to the a year ago and contacted 1500 potential investors and more than 30 law, which they are very receptive to. we also work with the serbian came to visit the site already. we are in discussion with 3-4 now and investment and export promotion agency (siepa) a great deal. we are confident that they will materialize in the coming months.

CorD | December 2006

7

B2B Interview Siniša Brašanac, General Manager of European Construction d.o.o.

Mpc go global MPC Properties is continuing to champion its biggest project – the Ušće Shopping Centre – on a global level by participating in industry fairs and expos the world over.

Indeed, one of the company’s professional delegations has just returned from a successful visit to the French Riviera resort of Cannes, where the team participated in this year’s annual Mapic Retail Real Estate Expo – the biggest event of its kind in the world.

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tanding out of the mass of the 7,000-plus participants at this year’s Mapic was the Mpc properties’ stand, which drew lots of attention not only because it included a top class design featuring a stunning 3D model of the ušće shopping centre, but also because it was manned by no fewer than seven former national beauty queens (provided courtesy of the Miss yu company.) the lucky man tasked with escorting Mpc properties’ team of beauties to cannes and leading the delegation was siniša Brašanac, general Manager of european construction d.o.o. this month Mr. Brašanac speaks to corD about the retail expo scene and Mpc properties progress.

Mapic is the world’s biggest retail real estate expo. with this in mind, how important is MPC Properties’ participation in the event – both for the company and in terms of raising an awareness of Serbia among international retailers, brand chains and potential investors? it was a very significant fair for us and, as you rightly mentioned, it wasn’t important only for Mpc properties – as a leading investment company here in serbia – but also for Belgrade’s presentation and for serbia as a whole. i was very satisfied and proud because this year Mpc wasn’t new to Mapic and the name, or ‘brand’, of Belgrade and serbia were already known and acknowledged on the existing map of investments in retail real estate. as opposed to last time, this year i didn’t need to explain to any serious investor or retailer where serbia and Belgrade are. this is because they are now really well informed – owing in part to our participation in the MipiM [the biggest international property market expo in the world] event in cannes in March this year, and the fact that they were probably among the 17,000-plus participants attending the fair just as Belgrade was being announced as the city of the future of southeast europe by The Financial Times. another reason they knew about Belgrade this time around was our participation in last year’s Mapic, where we really took the opportunity to draw the attention of foreign investors to our ušće shopping centre project – a project that is highly rated among major developments throughout the entire region. this year our organisation was quite a bit better than in 2005 and all-in-all i’m very satisfied with the job we did. what did you learn from last year and take advantage of this time around? last year our project was still in its infancy: we only had a scheme design and didn’t yet have the necessary building permit. so it was essential to convince investors and potential retail tenants that we were going to develop a serious centre and that we had enough strength and financial resources to carry the project out to the full, as well as being able to fulfil all other preconditions.

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CorD | December 2006

MPC's Siniša Brašanac and Vesna Vlatković in contrast, this year we were in quite a different position: we already had the building permit, construction work had commenced two months prior to the event and almost 70 per cent of the space in the shopping centre had already been pre-leased – an excellent result for any shopping centre anywhere in europe. this put us in a much stronger position.

MPC Properties’ stand at this year’s event in Cannes focused primarily on the Ušće Shopping Centre project. How would you gauge the success of your presentation in terms of promoting the centre; did you attract the attention of retails chains and brands not yet represented in Serbia? a crucial point of our presentation was precisely that [attracting the attention of retail chains and brands not yet represented in serbia]. i’m not concerned about the local brands: they are 100 per cent willing to enter the centre when it opens in 2008. But we had to attract well-known foreign brands to enter serbia for the first time. when trying to lure such brands, it’s certainly not enough to merely make a good presentation of your own centre. rather,

MPC Properties' attractive and superbly-manned stand at this year's Mapic it’s crucially important to present Belgrade as a whole, and serbia, the country’s market and the consumer habits and trends of the entire country’s population. as such, it is up to us to make a global presentation and convince them that purchasing power in serbia will grow in the next three to five years and that, thus, Belgrade is a very attractive market for foreign brands. as a result of our efforts, we managed to attract the attention of Marks & spencer, new yorker, pick & kloppenburg, as well as almost finalising deals with h&M and other well-known brands. Our idea is to build one centre here in Belgrade that is on the same level as the best major shopping centres elsewhere in the whole of europe.

I suppose an important truism to show potential foreign retailers is that, regardless of actual living standards and real wages, Serbia is a consumer society and Belgraders love to shop. that is a message i am always trying to get across in talks with potential clients or tenants. i simply encourage them to visit Belgrade for the first time. after that they will be able to decide for themselves whether or not Belgrade is worth a second visit. personally, i’m convinced that after just one visit a positive picture of Belgrade will have made its impression on them. Moreover, if they were to conduct their own market survey they would certainly receive results that are in stark contrast to the discouraging statistics available to them.

Do you intend to participate in similar fairs and conferences as the Ušće Shopping Centre project continues to develop? this is indispensable; it is necessary for any serious investor company to attend such fairs. Depending on our strategy, we will attend some fairs merely as visitors, while we will participate fully as an exhibitor in others. prior to attending Mapic, we were in Munich at what is a very good fair for that part of europe. in june next year we are to participate in vienna’s real estate expo - last year we were there as a visitor at what was an excellent fair, and this year we will go back as exhibitors. additionally, we will attend a lot of other fairs as visitors – the next of which will be the massive real estate expo in Dubai this December. when you attend these sorts of fairs and expos, do you draw inspiration for your own potential new projects from other exhibitors, or do you look around and think ‘we’re really up their with the best in terms of standards and practices’?

i would not say that our role at this moment is simply to copy the route of all developments that have taken place in the last decade in central and eastern europe. that said, we do have to admit in all honesty that those countries are now ahead of us by some six or seven years – despite being well behind us two decades ago – and, thus, we have to follow their advice and follow their strategies to an extent; taking advantage of their know-how and implementing their ideas here. with 70 per cent of the Ušće Shopping Centre already preleased, and interested parties almost certain to reserve the remaining 30 per cent soon, are you starting to look towards the next project; what can we expect from MPC Properties in the near future? ušće shopping centre may be our biggest project, but it’s by no means the only project we’re developing at the moment. we’re

As a result of our efforts, we managed to attract the attention of Marks & Spencer, New Yorker, Pick & Kloppenburg, as well as almost finalising deals with H&M and other well-known brands. continuing to develop our specific concept of small and mid-sized shopping centres that we plan to construct all across Belgrade – in the city’s suburbs and outskirts. this concept was first realised through our pilot project: the ‘iMMOcentar’ on Block 64, which was entirely pre-leased four months prior to the opening date of Mid-March. Our next immocentar site is in cerak on jablamička street. that centre, which will be some 40 to 50 per cent bigger than the Block 64 immocentar, is due for completion by the end of 2007.

Our assessment is that Belgrade has the potential to cope with at least seven or eight such mid-sized shopping centres. this is why we intend to fully develop the immocentar chain and by so doing create a well-known brand out of the immocentar name. we are convinced that this market is very suitable for other real estate developments too. perhaps the most attractive acquisitions at this moment, besides the small and mid-sized shopping centres, will be big so-called ‘power malls’ of 100 to 120 thousand sqm located some 10 or 15 kilometres out of Belgrade. But that is for the future.

CorD | December 2006

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B2B Interview

ensuring health by insuring health

Aleksandra Perić, Director of the Delta Generali Health Insurance Directorate July this year saw the long overdue return to Serbia of Assicurazioni Generali after a break of some six decades, when this Italian giant of global insurance became the owner of 50% plus one share of Delta osiguranje. Now Delta Generali has become the first and only insurance company offering full coverage health insurance on the Serbian market

By Danijela Popović-jurić; photo: jelena Seferin

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t was during the prosperous era of the first yugoslavia, between the two world wars, that assicurazioni generali last represented one of the symbols of modern life in the serbia of the time. “Meanwhile”, though, many things have happened in serbia.

During the period following generali’s departure insurance of any kind grew to become a luxury for serbia’s citizens (as is common in societies with poor economies). while, on the other side, under the state’s patronage the health sector, and treatment within it, began to represent an exhausting process that could easily see one become even more ill. as such, to this day specialist checkups are scheduled months in advance and certain operations, such as heart surgery, are scheduled as much as a year or more in advance. Occasionally, though, the “lucky ones” don’t have to wait quite so long because the “unlucky ones” waiting ahead of them were unable to wait their turn. it was with all this in mind that Delta generali began offering additional health insurance to serbian citizens, but also to foreign citizens. included in Delta generali’s offer are high quality health services, a network of over 100 state and private clinics, eminent doctors, the Medic call centre – and, among all this, efficient and quality health care which is certainly not a luxury. explaining the nature of Delta generali’s private health insurance, aleksandra perić, Director of the Delta generali health insurance Directorate, tells corD that their offer includes “a unique kind of insurance which is agreed collectively for employees in companies and organisations, by which the employer provides a higher level of health protection for his employees and their family members. in 2007 we plan to offer this kind of insurance to individuals. “we believe that good medical services in serbia can be organised on sound economic grounds. the construction of new private hospitals is not the only precondition, but our private health insurance programme is offering exactly that. this kind of insurance has been functioning for over a year, through a network of private and state health institutions in Belgrade, novi sad, kragujevac, niš, subotica and many other towns.

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CorD | December 2006

which of those institutions would you emphasise and exactly where can someone insured by Delta Generali look for medical assistance? the state health institutions i would like to emphasize are the Bežanijska kosa, hitna pomoć, narodni front gynaecological Obstetrician clinic and, through our recently signed contract with vojno Medicinska akademija (Military Medical academy – vMa), we have provided our clients with everything in one place. apart from that, of course, there are a large number of eminent private clinics. Moreover, we work on the training of employees of all those institutions, in order to ensure that our clients can have as fast and efficient a treatment as possible.

“We know how difficult is to find the right people to work in a company and how important it is to keep them. Delta Generali voluntary health insurance is the right solution for that because you do get staff security and loyalty.”

In that sense, the Delta Generali Medic Call Centre is of great importance to your clients as it represents some sort of bridge between them and the health institutions? that’s right. Our Medic call centre is at the disposal of out clients 24-hours-a-day, 365-days-a-year. Bilingual (english and serbian) doctors and medical technicians are employed in the centre. By calling this service our clients get first aid information and free medical advice; they can book all kinds of medical checkups, seek information about the network of medical institutions, directions to the closest institutions and, finally, control of the services offered. what does the basic and the additional Delta Generali private health insurance cover? the basic cover includes the costs of checkups, operations, doctors’ fees, therapy, private rooms i.e. apartments, and addi-

B2B Interview

Aleksandra Perić tional cover includes the costs of treatments; existing chronic illnesses and injuries, entomological services, systematic checkups, the costs of prescribed medicines, health protection for pregnant woman, labour costs and dental costs. excluded are only addiction illnesses, treating sterility, aesthetic surgery and aiDs. Can you give us a specific example of an insurance premium? for example: Monthly premium is from €50 to €200, and the amount depends on age group and the type of the “package” that is under contract. for example, one company will for every employee in the age group 30-39 years to pay €74.66 monthly. this covers eventual expenses up to €100,000 annually per employee for all the services covered by the basic coverage, with additional coverage of the previous health condition, preventative coverage once a year, pregnancy and delivery and dental services. what is the procedure concluding the insurance like? there are three kinds. the first one is when the employer concludes and pays the premium, the second one is when the employer concludes and he and the employee pay partially, and the third one is when the employer concludes and the employees pay the premium. it is mostly acceptable for the employer to be paying insurance for the employee, while the employees themselves are paying for their family. the first example you stated represents a genuine treasure for employees.

Of course. we know how difficult is to find the right people to work in a company and how important it is to keep them. Delta generali voluntary health insurance is the right solution for that because you do get staff security and loyalty.

I suppose that most foreigners come to Serbia with health insurance from their countries of origin.

yes, mostly it is a case of refunding the costs. But it is not only important that somebody will refund me the costs, the point is in the quality of service. in Delta generali we take care of how much something costs, but what is more important is that the patient, i.e. the client, receives a superior service and, for the good of our clients, we are prepared to visit every doctor if that is required. here is a very simple example. i travel abroad with my family and it does not mean anything to me that somebody will refund my costs if some of us gets ill there, what is important is to be able to trust and believe the doctor who will accept us and treat us, and to have accommodate that we are used to in our country.

How much has Generali, as the strategic partner, helped Delta osiguranje in positioning itself as the leading private insurance company in Serbia? what the people from generali concluded before coming here was that what the serbian market is missing is private health insurance, one with full cover – the one you and i are in fact talking about. i think that in this short time we have managed together to prove, and are continuing to prove ourselves, at both the micro and macro levels. we have worked together on popularising insurance in general. for a long time in serbia we had the unwritten rule that insurance companies never pay for anything. now the situation is completely different.

Moreover, the big international companies operating on the global level want to have similar coverage. with generali we coordinate much easier; we make new packets. everything is now much easier and more approachable. when we have a demand from some international client for some sort of insurance, we can quickly find out how that programme operates in, for instance, austria, germany… we adapt it to the local regulations and we come out with a new offer very quickly. i consider that as our biggest advantage compared to other insurance companies operating on the serbian market.

CorD | December 2006

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Interview

Developing

David Ericson, managing director and owner of Capital Investment & Consultancy Ltd. Spring 2007 will see ground broken on one of the most exciting construction projects in Belgrade for many years: the Dorćol Marina development. Considering that the riverside development is set to completely regenerate lower Dorćol, creating a prestigious retail, leisure and residential complex in the heart of Belgrade’s Stari Grad, CorD speaks to David Ericson, managing director and owner of Capital Investment & Consultancy Ltd. – one of the partner companies leading the development. in the first phase of the works – attracted many bidders from the world of international construction. in the end, though, it was the bid of engel Marina Dorcol that proved successful. engel Marina Dorcol doo is a partnership between capital investment & consultancy ltd. – a locally-registered company - and engel east europe n.v, registered in amsterdam and traded on the london stock exchange (aiM: eee). what set your bid apart from those of other companies vying for the tender to win the rights to construct Belgrade’s ambitious Dorćol Marina project? first of all, the evaluation committee considered our finances, which come from the london stock exchange. this was deemed as being of importance during the bidding process because, although the development of the marina is not part of a national project as such, it was of national importance. Dorćol Marina will become a calling card of Belgrade, a symbolic icon of the city – drawing affluent foreign residents, tourists and day-trippers to the serbian capital. this is why considerations of who would assume responsibility for developing the project were so vital. another advantage we had over all our rival bidders lies in the fact that we are a publicly-owned, publicly-traded company – an important factor for those in the know. while yet another advantage was that none of our rival contenders had anywhere near the same level of vast experience in developing residential complexes and could boast to be operating in such varied locations as canada, germany, czech republic, poland, hungary, romania, Bulgaria, israel, amongst others [engel east eurOpe n.v is probably the largest residential Developer in central and east europe, with over 15,000 units under Development].

David Ericson _____CorD

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he redevelopment or Belgrade’s crumbling Dorćol Marina is long overdue, and the realisation of this project was one of the vision’s of many, including late prime Minister Ðinđić. in fact, so keen was the government in 2003 to see the marina brought back to life, they even instigated a national architecture competition to choose the site’s design – an example of which was published in last month’s corD guide to Belgrade. the tender for the development of the project – which covers an area of some 140,000m2 (inclusive of green areas, pavements and roads) and includes the precondition of building a new marina, yacht club and associated repair shop to be handed over to the city of Belgrade

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CorD | December 2006

will the project bring innovative design ideas and construction methods to Belgrade’s riverside area? we are using the israeli architect rami wimer, who designed airport city Belgrade for our competitors – africa-israel. Moreover, because of the importance of the Dorćol Marina project to the city fathers and the population at large, we have engaged a special architecture consultant, professor Brana Mitrović – a well-known serbian architect and newly elected member of the serbian academy of science – who will advise us and oversee the designs, as well as ensuring that the designs will be accepted by the city and will be acceptable to everyone involved in this project.

More than just the sensitive nature of great war island reserve opposite and kalemegdan fortress, there is also lower Dorćol. and credit must be given to the city fathers and the management of the city of Belgrade for deciding to transform lower Dorćol into an up-and-coming, vibrant and exclusive neighbourhood. here we’re talking about a total

Interview

Dorćol Marina of well over 100,000m2 of newly built area, taking into account, on top of the infrastructure, 8,200m2 of green areas alone, 14,000m2 of pavements and roads, and 32,000m2 of car parks. as such, the city’s concept was not merely to upgrade this part of town, but to totally transform it from a poor, run-down neighbourhood into a very dynamic, vibrant, and nightlife-orientated inner-city district. in that respect we are proud to be able to consult with the city architect and city Management, which is offering the support and encouragement that such an important project deserves. will the Marina itself feature nightlife hotspots and other entertainment and leisure facilities? around the marina we are going to have some 4,800sqm of entertainment establishments, including bars, restaurants, galleries and

will suffer from noise pollution caused by the nightlife hotspots? absolutely not. the distance of the residential towers from the restaurants is sufficient. the vast area covers almost a kilometre, and the design is such that we have the underground car park for 1,200 cars and the green park area on one side, the towers on another level and the leisure area on the other side around the marina. thus all the noise will be dumped and the residential area will remain peaceful.

Speaking of parks and open-spaces, how much green space will remain in what is currently a very eco-friendly area? the total green area and pavements will represent about 15% or more of the built up development. the way we have designed it, the towers will be surrounded and interspersed by trees and grassed areas, adorned with footpaths and benches. indeed, the positioning of the tow-

Dorćol Marina Project - User Convenience Paramount* Gross Area: about 140,000m2; Built Area: about 100,000m2 – including seven towers of 11-12,000m2 per tower; Car Parks: 32,000m2 – both subterranean and open-air; Green Areas: 8,200m2; Pavements & Roads: 14,000m2 www.engel-marina-dorcol.com, +381 11 3691495 boutique shops, as well as 14,000m2 of commercial area to be maniers has been planned to create a lot of space. for that purpose we have fested as an open market retail area or shopping mall. the concept is to engaged the services of Mr. Žugaj – an architect and urbanist who will extend the shopping district down from the pedestrian knez Mihailova lead the urbanistic and infrastructure design. street, and the nightlife the city’s Master plan scene of strahinjića Bana, for this area, as a modern By building a new marina we are automatically upgrad- concept, provides for green to the new marina – making the quality of the vessels that will use it... And with the areas here that do not exist ing it a busy, young leisure area which will also boast in many other parts of town. quality yachts, more affluent yachtsmen will come... extremely luxurious apartMoreover, the city architect ments and represent a very sub-committee is looking exclusive neighbourhood. adding to the exclusivity is that fact that we for a design that will match the ambience of the surroundings and not only have permission to build 600 apartments, and without even having stick out, whilst also being a 21st century design concept. yet gained the urban project building permits (which will come in the next few months) we’ve already registered over 100 interested parties by How will you develop the marina itself and will it allow affluent word-of-mouth alone – the penthouses are already booked, the four-bedpleasure yachters and private river cruisers to visit Belgrade? room duplexes are under pressure and we expect 20 per cent of buyers the brand new marina will have berths for 150 vessels of up to to be non-serbs.

15-metres in length, plus outside docking space for large tourist ships coming up from the Black sea or down the Danube. By modernising what effect will the marina development have on the surroundthe area and building a new marina with vertical walls to allow for the ing neighbourhoods?

150 spaces, we are automatically upgrading the quality of the vessels we applaud the city planners because the mixed use concept of the that will use the marina. and with the quality yachts, will come the marina, coupled with the redevelopment of the port of Belgrade by its able owners: more affluent yachtsmen will come to the area, and they new owners, due to start in 2012 long after we will have sold out our will demand the kind of high quality residential accommodation, resproject, will cause a domino effect and result in the regeneration and taurants, shops and bars that will follow. taking into account that these transformation of the whole of lower Dorćol up to the road to panćevo wealthy private yacht owners will come during the summer to visit and 29th november street.

Belgrade; we are creating a place that we have modelled on london’s famous st. katherine Docks and chelsea harbour – both very busy, yet will the mixed-use concept prove problematic because residents extremely exclusive urban riverside developments. * NOTE: the above image is a computer generated illustration for marketing purposes only and does not represent any agreed actual project design.

CorD | December 2006

3

Sanpaolo Buyout Confirmed 24th November saw Italian banking group Sanpaolo officially become the majority owner of Panonska banka.

Sanpaolo acquired 87.39% of Panonska banka capital at the end of July 2006, paying a price of €112million or €178 per share. Sanpaolo is required to purchase the remaining stake from minor shareholders at the same share price.

Source: Ekonomist

NBS Reveals Sector Growth The National Bank of Serbia (NBS) has announced that the first three-quarters of 2006 saw the total assets of the banking sector in Serbia grow by 39 per cent. According to NBS figured, 49.3% of that total is represented by the five banks with the largest value of total assets, and 67.8% represents the participation of the first ten banks’ total assets.

As of 30th September 2006, banks operating in Serbia that are majority-owned by foreign entities contribute 71.6% of the sector’s assets, while banks majority-owned by the Republic of Serbia provide 19.9% and domestic banks majority-owned by private entities contribute 8.5% to the total assets of the banking sector.

Source: NBS

C.A. Life Insurance Giant Arrives Mid-November saw the National Bank of Serbia (NBS) issue an operating license to life insurance stockholding company Credit Agricole Life.

According to NBS officials, the issuance represents the first Greenfield license under the new Insurance Act. Source: Politika

Manufacturer Beats Own Targets Serbian household appliance manufacturer Alfa Plam has announced the reaching

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CorD | December 2006

Responsibility beyond the Plant Gates DaimlerChrysler is one of the world’s leading automakers.

Their Group’s commercial success is founded on people’s trust in all the countries where it operates. That’s why DaimlerChrysler’s vision is one of sustainable development – worldwide. The coverage of DaimlerChrysler’s sustainability activities in 2006 rests on three pillars: the publication “360 DEGREES — MAGAZINE on Sustainability 2006,” the report “360 DEGREES — FACTS on Sustainability 2006” and a website (www.daimlerchrysler.com/ sustainability).

Concept, DaimlerChrysler is following, is known as Corporate Citizenship concept. It means that a company should fulfil its social responsibility in its immediate surroundings. A facility must participate actively in the life of the community – not only as an employer and taxpayer, but far beyond the limits its business plan would suggest.

DaimlerChrysler SCG, subsidiary that covers Serbia and Montenegro territory also supports this activity. In 2006 they formed humanitarian fund focused on `Vera Blagojevic`, the Foster home for children without parental care in Banja Koviljaca.

They have learned throughout hard times that only a joint action can make a difference and that accomplishment is the result of boundless humanity we give. This way, DaimlerChrysler SCG, succeed through the year to make holidays and at least one day in the month magical for the youngest and the teenagers in this foster home, showing how the future can have brighter dimension.

All employees in DaimlerChrysler SCG are committed volunteers in this action. Everyday they are bringing small gifts for this charity fund DaimlerChrysler SCG created. `By this deed we didn’t became nor leaders or winners, the first or the only one, although we felt so special and great. It is up to us to pass our satisfaction to others, to prove that our little to some people can be more that anyone can imagine`, said one of the employees in DaimlerChrysler SCG

of its planned 2006 annual export plan two months ahead of schedule, following exports, to end-October, of 82,000 kitcheners and heating devices with a total value of €18million. According to an Alfa Plam spokesman, the company expects the total value of exports for 2006 will reach €22million, or 100,000 exported products. This total would surpass 60% of its total annual production capacity.

Source: Pregled

ProCredit Opens Most Doors ProCredit bank opened seven new branches in Serbia in the third-quarter this summer, thus making the biggest impact on the broadening of the banking sector’s network in the period. ProCredit was followed by Meridian banka, Agrobanka and AIK banka, which all opened five branches in the same period.

Source: NBS

Soy Producer Predicts Profit The representatives of Victoria Group, the majority owner of soy bean producer Sojaprotein, stated that they are expecting three times higher profit at the end of 2006 or €10million in comparison to 2005.

This year’s profit would be achieved on revenue to the total value of €160 million. Moreover, Victoria Group invested €20million in its plant for production of bio-diesel in Šid. The total production capacity of the plant is 100,000 tonnes annually.

Besides Sojaprotein, Victoria Group owns six other companies in Serbia – including Veterinarski zavod Subotica, artificial fertilizers production plant Fertil, cooking oil production plant Mladost, a laboratory in Becej, agriculture company Kindja and the Port of Bačka Palanka.

Source: Ekonomist

Čačak Welcomes Piraeus 15th November saw Piraeus Bank open its twentieth branch in Serbia, in Čačak, at 74 Bate Jankovića Street. Citizens and business people from Čačak now have at their disposal all the products and services offered by Piraeus Bank, such as revolving credit cards that allow credit to the value of six monthly wages; residential and Relax credits that are used to refinance loans, and credits for small and medium enterprises. Yannis Nikolopoulos, deputy general manager, said during the opening ceremony that the Bank has plans for this region and Serbia in general. “We feel that we are in a friendly country and that is why we want to help in its development and on their way into the European Union.”

Until the end of the year there will be a number of new branch offices opened in Serbia: beside Belgrade on Vračar, Vidikovac and Mirjevo, branches will open in Šabac, Novi Sad and Sombor.

This will add up to a total Piraeus network of 30 subsidiaries and branch offices in Serbia. The bank is also planning to work with the same dynamism in the following year. Piraeus Bank PLC Belgrade is a member of Piraeus Bank Group, which has very successfully finished the third-quarter of 2006. The total active capital in September was €29billion, which is a growth of 32% from last years €22billion at the end of the same period. The total revenue after tax has grown by 151%. According to these results, Piraeus estimates that the total revenue of The Piraeus Bank Group in 2006 will be higher than €400million.

CorD | December 2006

55

Privredna Ups Capital Privredna banka increased its capital by approximately €30 million after a capital increase and the issuance of new shares worth a total of €12.1million.

The state also plans to invest approximately €3million in the bank’s real estate in order to keep its 20% stake in the bank.

Privredna banka is planning to open 33 more branches.

Source: Politika

Banini to Boost Employment Confectioner Banini plans to increase its employee totals from the current figure of 379 to 529. New employees are to be engaged in the process of expanding the Banini sales network and planned opening of new sales centres in Belgrade, Novi Sad, Niš and five more towns and cities in Serbia.

Source: Pregled

Raiffeisen Celebrates Flybook – Notebook Five Successful Years Prét a Porter Raiffeisen Banka has celebrated five successful years of business in Serbia as a decisive leader in the banking market in the most significant banking categories. The foresight to be the first to enter the Serbian market, with a development strategy in accordance with the needs and possibilities of the domestic market, have been fully confirmed after five years through the accomplished results and gained confidence.

An official celebration was held to mark the occasion in the Genex Impulse Hall, named and symbolized by the Orient Express – as the path of expansion and success of Raiffeisen Banka through Central and Eastern Europe coincides to a large extent with the path of the anthological train.

Raiffeisen International has become the leading banking group in Central and Eastern Europe, and the contribution of Raiffeisen based in Serbia is significant to the global success.

The initial part of the performance had the form of a theatrical mesh, within which there were can-can dancers on the first stop in Paris, opera singers in Venice, a string quartet in Vienna, Csárdás dancers in Budapest and a performance from the ballet “Ko to tamo peva” of the National Theatre in Belgrade. That segment was directed by Kokan Mladenovic.

The hosts of the programme were actors Branislav Trifunović and Nataša Solak. After the performance/voyage, Zdravko Čolić performed, much to the delight of clients and guests.

Metals banka Applies to Belex Novi Sad-based Metals banka submitted an application to list its shares on the Belgrade Stock Exchange (Belex) on 7th November.

Metals banka has a network of 82 branches, sub-branches and offices throughout 40 towns in Serbia. The bank is focused on corporate lend-

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CorD | December 2006

ing, mainly SME’s. Recently, the bank received a €7million loan from EBRD for financing SME’s.

At the end of the secondquarter of 2006, Metals was ranked 31 out of 38 banks in Serbia in terms of total assets, with a market share of 0.71%.

In 2005 the bank reported an average ROE of 15.17%.

Source: Pregled

Mobility redefined! Flybook is a go-anywhere, do-everything computer. It’s as powerful as a desktop or a heavyweight laptop PC and as handy as a mobile phone. At a tiny 235 x 155 x 31mm, it’s crammed with the latest multimedia and telecommunications technology. Flybook is the office in your pocket!

Flybook is your ideal work or leisure travel companion due to its compactness and lightness. Whatever you want to do - create and share documents in Microsoft Office®, surf the internet, send and receive e-mails, write or receive text messages, make phone calls – all bundled up in one 1.2kg notebook that slips into your handbag or briefcase.

Flybook - your fashion statement. Forget about the dull greyness and monotonous look of standardised computers. Flybook comes as you are! You can choose the colour you prefer from the gleaming shades of silver, black, dark blue, dark red, yellow and white. Six wonderful alluring colours which strengthens its modern and refined design of fine lines, smooth angles and polished case. Flybook is all you ever wanted; exactly the way you want it!

Flybook connects you to the internet and phone services at anytime and anywhere in the world. It has a built-in GPRS tri-band mobile speakerphone that lets you call, send text or multimedia messages and surf the internet – just insert the SIM card and the world is at your fingertips. In fact, you can connect Flybook to the world using any system you like - GPRS, telephone line, LAN, Bluetooth or Wi-Fi – they’re all built-in. You choose!

For information on where to buy, please visit www.dl.co.yu/ gdekupiti or send your question to info@dl.co.yu

Simpo to Dump Subsidiary Furniture manufacturer Simpo is to auction off 100% of capital in its subsidiary Simpo drvo – the plant for production and trading of construction materials. The 30th November sale is set to have an initial asking price of €1.8million.

Source: Glas javnosti

CEFTA to be signed on December 19

Porsche Ada Supplies Telenor

Uniqa Announces Zepter Buyout Austrian insurance group UNIQA has issued a public report regarding its takeover of Zepter osiguranje shares.

UNIQA acquired 310,745 shares, or a 70.35% stake, of insurance company Zepter osiguranje at a price of RSD3,181 (€39.9041) per share. Added to the stake of 9.65% which was in the possession of UNIQA before the acquisition, the Austrian insurer now owns 80% of Zepter osiguranje.

Source: Politika

Salford Dairies to Merge Salford group dairies Imlek, Impaz and Mlekara Zemun will be merged into one diary – Imlek. The assets and liabilities of Impaz and Mlekara Zemun are set to be transferred to Imlek in exchange for a new issuance of Imlek shares.

Following the merger, the shareholder capital of Imlek will be approximately €66million, while the total number of shares outstanding will be 8,739,400. Conversion ratio: two shares of Impaz to one share of Imlek and one share of Mlekara Zemun to seven shares of Imlek.

Source: Politika

Porsche has achieved remarkable results just a month after moving in to their new Porsche Ada [Ciganlija] Radnička Street facilities, which are the biggest and most modern on the Balkan Peninsula and were constructed according to European standards.

The month of October saw the biggest number of SEAT vehicles sold in a single month when Porsche Belgrade Ada organised the delivery of 25 SEAT Altea vehicles to Telenor, one of the world biggest mobile operators.

Telenor opted for the SEAT vehicles because they attract attention on the first sight. With their spirit, energy, attraction and sporty image, they go well with Telenor’s promo teams.

These cars will be used to promote Telenor’s new sales product Telenor Xpress. Telenor is trying to be as close to users as possible. Xpress mobile sales teams will be travelling with the 25 Seats and with specially designed stands around Serbia.

Porsche Ada says: “We believe that this is only the beginning of a good co-operation between Porsche SCG, one of the biggest car traders, on one side, and Telenor, the biggest mobile operator, on the other.

“We are planning promotions together with Telenor, the details of which will be released at a later date.”

Spain & Austria Impress on Highway Offer

TOS Announces Tourism Revenue

A Serbian Government spokesman has confirmed that the best offer at the concession tender for the construction of the Horgoš - Požega Highway was made by Spanish FCC company and Austrian company Alpina, which offered € 800 million.

Source: Tanjug

The Tourist Organisation of Serbia (TOS) has confirmed that the total amount of foreign currency revenue from tourism in Serbia during the first eight months of 2006 was US$258.7million. The total represents a 34 per cent rise on the same period last year.

Source: Beta

Dinar: from CSD to RSD The London-based British Standards Institution (BSI) has informed the National Bank of Serbia (NBS) that the alphanumeric code of the Serbian currency has been changed from CSD to RSD. As such, RSD became the alpha code for the dinar, and 941 its numeric code, as of 25th October 2006.

Source: Tanjug

State Secretary at the Serbian Ministry of International Economic Relations, Vlatko Sekulović, announced this month that the Central European Free Trade Agreement (CEFTA) should be signed on 19th December 2006. Sekulović, who heads the Serbian delegation in charge of signing CEFTA, told Beta news agency that the aim of the Serbian government is for tobacco industry terms to remain unchanged. However, he added that the possibility of increasing taxes on imported cigarettes is still being considered. According to Sekulović, the final proposal of the Serbian delegation will be known on 12th December, by which time Serbia and Bosnia & Herzegovina are required to submit their proposals and thus clear the way for the signing of CEFTA. He explained that in the meantime, negotiations with Croatian authorities will continue, and added that he as consulted with ambassadors of European countries in Belgrade on negotiations between Serbian and Croatian teams.

Source: Government of Serbia

October take-home salary totals RSD 22,340 The Serbian Statistics Office said that Serbia’s average gross salary in October amounted to RSD32,668 – which is 0.35% and 0.75% higher in nominal and real terms respectively against the previous month.

The October 2006 takehome salary in Serbia amounted to RSD22,340, which is 0.36% and 0.76% higher in nominal and real terms respectively against September 2006.

The average salary paid out in October 2006 increased nominally 22.26% and 13.41% in real terms year-on-year.

The nominal and real increase in the JanuaryOctober 2006 period was 24% and 10.42% against the same period of 2005.

Source: Government of Serbia CorD | December 2006

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Edgecombe Praises SMECA Results Financial Expert and Task Manager for the World Bank’s Export Finance Facilitation Project, Lloyd Edgecombe, gave his opinion on the SMECA project in its final phase while on a recent visit to Belgrade. “I am very pleased by the development of the SMECA programme, which has accomplished such results in such a short period of time; results which took export-credit agencies in other countries a full decade to develop themselves. Only two years after SMECA was founded, it overgrew the initial foundation phase and began a phase of development.

“While in Slovenia and the Czech Republic it took a couple of years to establish such an institution and the market to accept that method of work, the financial reports on the turnover made

by SMECA confirm that the turnover and returns are growing, and that its further development is sustainable.

“SMECA has established ties with foreign financial institutions and foreign insurance companies. Co-operation with foreign agencies of the same sort has been successfully established, above all, through its membership in the Prague Club Berne Union and good business relations with the syndicates in the London insurance market, which provides the exporters and their foreign partners a good degree of protection from possible risks in export-import operations.

“This project of the World Bank will be completed in the first half of the next year. Competent authorities will decide as to whether they will provide additional financial support to this project, according to the achieved results, bearing in mind the designed amount of capital of this institution of US$30million and its present amount of capital of US$20million,” said Edgecombe.

Serbian Debt to be Repaid Early?

The National Bank of Serbia has stated that it has submitted a proposal to the IMF on repaying its debt of US$468million ahead of schedule.

The NBS has proposed paying-off the remainder of the three-year financial arrangement with the International Monetary Fund through its foreign currency reserve, according to a statement from the central bank.

The second half of the debt will be paid off in two instalments – at the end of this year and in March 2007 – the NBS proposes. The first half of the debt was paid off earlier this year, also in two instalments.

NBS Governor Radovan Jelašić stated, in the proposal sent to the IMF, that the timely

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CorD | December 2006

payment of the debt would have positive effects on the decrease of Serbia’s foreign debt and added that the NBS is ready to continue cooperation in the post-programme monitoring for implementing successful macro-economic politics.

Source: B92

Komercijalna Claims Top Spot Komercijalna banka representatives said in early November that the bank hold a leading position among banks in Serbia, with regard to foreign currency savings.

According to Komercijalna, savings of this type have reached €576million, which amounts to a fifth of Serbia’s foreign currency savings market.

Source: Ekonomist

La Fantana Opens New Plant La Fantana opened its plant in Mitrovo Polje near Aleksandravc Župski for the production of bottled water on 2nd November.

After La Fontana decided to build the plant in Mitro Polje, the realisation of the project was finished very quickly. The plant was built according to European standards and regulations.

Two million euros have been invested in the construction of the 10,000m2 plant to date, in what is one of the biggest Greenfield investments in this segment of agriculture.

The plant was opened by one of the founders and members of the board, Ronald Bengtson, who stated that he is very satisfied with the accomplishments La Fontana has achieved in Serbia.

“The construction and the commencement of operations are a big success after two years of doing business. The whole process is now finished. This will allow us a better, easier and more efficient distribution of our water with the water cooler system. Our goal is to present a professional and quality service according to European Standards, and to respond to the needs of our customers in a good time. We are planning on spreading our distribution network and that is where the plant will come apparent,” said Dejan Antić, general manager of La Fantana Serbia, speaking at the opening ceremony.

La Fantana is a Swedish company that distributes water by the water cooler system. The company was founded in 2001 by Swedish investment fund Oresa Ventures and has been present on the Serbian market since May 2004.

La Fantana Serbia has grown into a stable company employing over a 100 staff and with branch offices in Belgrade, Novi Sad, Niš and Čačak. La Fantana in Serbia has over 7,000 satisfied customers, including embassies, health centres, banks, hotels, universities and many other companies and institutions.

Regional Electricity Market By 2008

Trend Car Offers New Chevrolet The story of Trend Cars that (as you all know) sells Opel models, doesn’t end there.

At the same address - our sales salon at 266 Cara Dušana Street, Zemun – you can find Chevrolet models. Trend Car, which was established in 1998 and has since been continuously growing in supplying as well as in selling, is also on the top because of the friendly prices offered. We have all Chevrolet models: the most interesting models at this moment are Epica and Captiva. The car fair in Novi Sad has shown that people are interested in our models. Epica in the D segment offers a power unit of 2.0 and 2.5 litres and Captiva in the SUV class beside petrol motors has a modern 2.0D common-rail diesel power unit. These models can satisfy all the needs of a business man as well as of a family, that is why we suggest that you come and visit us. We always have cars ready.

We offer special benefits and discounts to the members of the diplomatic cord. The salon is open weekdays from 8am to 6pm and Saturdays from 9am to12pm. You will be greeted by friendly sales people that are always willing to talk and co-operate. You have everything in one place, so while you are waiting for your car to be serviced you can take a cold or hot drink.

We are expecting you

Contract on sale of Paracin glass factory signed The Serbian Privatisation Agency stated that representatives of Paraćin-based glass factory Srpska Fabrika Stakla and of Rubin from Pleven (Bulgaria), as the sole bidder, signed yesterday a contract on the sale of 100% of socially-owned capital, which makes up 98.86% of the glass factory’s total capital.

The statement adds that the purchase price was €100,000 with an

Serbian Energy and Mining Minister Radomir Naumov emphasised the importance of energy community member countries adopting their national action plans in order for the implementation of the annex on setting up the energy community that envisages the creation of a regional electricity market.

Speaking at a ministerial conference of the Energy Community of South East Europe (ECSEE) in Skopje, Macedonia, Naumov specified that the annex envisages the opening of the regional electrical energy and natural gas market by 1st January 2008.

He explained that this means that all industrial and other large consumers in Serbia will become qualified buyers, that is, that they will be able to decide who to purchase electricity and gas from. According

to Naumov, Serbian public companies Electric Power Industry of Serbia (EPS) and Srbijagas will, thus, become equal participants in the open market and will behave in line with energy market regulations. The Minister stressed that everything Serbia has done so far is beginning to be realised in practice. This includes the creation of legal frameworks compatible with EU regulations, as well as the preparation of domestic energy companies for the market, their restructuring and implementation of reforms within these companies.

The regional energy community was formed on October 25, 2005, and the agreement on its establishment was signed by Serbia, Montenegro, Albania, Bulgaria, Bosnia and Herzegovina, Romania, Croatia, Macedonia, UNMIK and the European Commission.

Source: Government of Serbia

investment programme worth €25 million; the buyer also unconditionally accepted the minimum obligations, as well as a certain number of added elements from the company’s social welfare programme.

The Bulgarian company was the sole participant in the public tender announced on 1st June.

At the third session of 7th November it was decided to conclude the sale contract with the sole bidder, Rubin.

Source: Economy.co.yu CorD | December 2006

59

C O R R E C T I O N S Olivera Božić Not a DS Member

HP Mistaken Identity

In CorD #32, November 2006, in the article “Top Women in Business” (pp.3035), it was erroneously stated that Olivera Božić, Chief Executive of the Development Fund of Serbia, is a member of the Democratic Party (p.35).

Mrs. Božić is never, and has never been, a member of any political party. CorD would like to apologise to Mrs. Božić and our readers for any offence or confusion caused.

In CorD #32, November 2006, in the article “Nurturing PC Know-How” (pp.36-37), a picture of HP Personal Systems Group Manager, Aco Filipović, was displayed with a caption mistakenly identifying him as Slobodan Radić, General Director of HP d.o.o.

CorD would like to apologise to Messrs Filipović and Radić, and our readers, for any offence or confusion caused.

Hellenic Petroleum Group

Hellenic Petroleum Announces Results

WHIRLPOOL

Whirpool Srbija Established After less than five years operating successfully via a representative in the country, American company Whirpool has founded subsidiary Whirpool Srbija.

A festive reception to mark the establishing of Whirlpool Srbija, hosted by Whirpool Srbija Director Suzana Dubajić, was held on 2nd November and attended by State Secretary at the Serbian Ministry of International Economic Relations, Vlatko Sekulović, Commercial Counsellor of the U.S. Embassy in Belgrade, Maria Andrews, and Lorenzo Milani, Mediterranean Regional Director of Whirpool Europe.

Whirpool is the world’s leading producer and distributor of major home appliances, supplying products under 12 major trademark names in more than 170 countries.

According to Suzane Dubajić, the widening representation in specialised products has resulted in growth for the company and positioned Whirlpool as a brand among the leaders of the domestic market.

Whirlpool products will now be much more easily available to retail buyers, both in terms of volume and assortment.

All products come with a three-year total guarantee and complete post-sale support. Distributors will also be able to get supplies directly from the Belgrade warehouse.

Hellenic Petroleum Group has announced the financial results for the first nine months of this year. The consolidated net revenue for the period is €215million, equating to net profit per share of €0.70. Due to the falling price of crude oil at the end of the third quarter, the consolidated net revenue for the third quarter is €40million.

At the group level, revenue for the first nine months of 2006, before taxes and interest rates (EBITDA), is €432million.

The key financial results in the first nine months of 2006 comparing to the same period of last are as follows: sales revenue of €6.127million – up 32%; net pre-tax profit (before the EBIT) of €327million – up 28%; net profit of €220million – up 46% and net profit per share of €0.70 – down 17% This financial result is achieved thanks to the increased efficiency in the field of processing, delivering and trade.

EFG Eurobank Scholarships for 800 Top Learners Serbian Minister for Education and Sport, Slobodan Vuksanovi, and President of the executive board of the EFG Eurobank, Stavros Ioannou, presented scholarship certificates to the best final year students at Serbian state universities. EFG’s scholarships amount to €1,000 each and were granted to 800 students whose average grade is above 9.5 (on a scale from 5 to 10).

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CorD | December 2006

Vuksanović said that what EFG bank has done is a good sign for Serbia’s economy. He also said that students should not worry about whether their degrees will be equalled with the new master degree, adding that the Constitution and the Law on higher education guarantee that the title of master and qualified engineer will be considered the same.

Assistant General Manager for International Business of the Athens-based EFG Eurobank, Theodore Karakassis, said

that the bank is actively engaged in social programmes and intends to realise them in Serbia as successfully as in Greece, adding that other financial institutions should take a leaf out of their book.

Ioannou specified that the bank has projected €3 million for supporting local, regional and national development projects in Serbia, which is the largest donation granted to Serbian citizens by any foreign company operating in Serbia.

Source: Serbian Government

Agrobank Forecasts Growth Agrobanka officials have announced their expectations that the bank’s foreign currency savings will reach €100million by year’s end 2006.

Agrobank is basing their estimation on the growing trend of local and foreign currency savings, which is seeing growth of approximately €6million per month. In this case the total savings in Agrobanka would be increased by approximately €70million.

Source: Danas

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CorD | December 2006

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Media views Interview: Maria Wera Cedrell, journalist, freelance frontline reporter and authoress

in the thick of the action “All war reporters are troopers at heart – confident, mobile, fierce.

And we’re all part of the same troop; we’re a big family.”

It takes a special kind of person to be able to travel to the world’s war zones and objectively cover human conflict at its most violent, but Maria Wera Cedrell has spent her career doing just that.

By M. Pullen; photo: jelena Mandić

M

aria wera cedrell is a journalist, freelance war reporter and independent authoress. as well as promoting humanitarian actions and writing a series of books, she also works out of small production company wtn (world television network), which provides the world’s biggest media houses – such as the BBc, nBc and cnn – with television reports from any place on the planet that their own correspondents cannot or will not go.

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cedrell, who performed the last ever television interview with legendary palestinian leader yasser arafat, has covered many wars as a frontline correspondent, including conflicts in somalia, sudan, rwanda and afghanistan. But it is her 18 years covering the Middle east, and iraq in particular, that has led her to author three books (fourth on its way) based on her vast and intimate knowledge of the country. cedrell has been permanently living in Baghdad for the past three years, working on her news stories and books. however, unlike the bulk of international media personnel resident in the iraqi capital, she actually lives beyond the safety of the fortified centre of Baghdad in the city’s so-called ‘red Zone’. she is currently in Belgrade to promote children in need, but Maria wera will soon be heading back to the thick of the action: “Baghdad’s the place for me to be right now; to be part of the history.

From my base in Baghdad I can cover the whole of the Middle East. For instance, I recently used it as a base from which I travelled to Lebanon during the recent war between Israel and Hezbollah."

Media views what compelled you to make the life-changing career decision to be a frontline journalist? when you start to cover war in some way – for me that happened to be eastern africa – you can’t just sit back and say to yourself ‘well i’m just going to cover the positive things’. no. you have to be there to cover the whole thing on the ground; to be first and to be last.

How scary is it? it’s very scary to be in the middle of a war at anytime. But it’s especially frightening now in Baghdad.

Do you have nightmares? i don’t suffer from nightmares, but i do have a lot of bad dreams sometimes. i’m a mother myself and my bad dreams often involve my son. But you have to teach yourself to be extremely strong.

Do you ever think: why am I here? Should I go back home and sit behind a desk and write some nice, uplifting features? well i was doing that before as well, during a different stage of my career. i progressed through the usual route: from a runner, to doing the culture articles, to the sports desk perhaps, then on to either politics or economics, or having to be ready at the places where it’s all happening. and in time you learn to see where those places are.

How difficult is it to get to the story and are you limited by your paymasters? as freelancers we have more of an open-minded, open-handed approach, but the newspapers or media houses that use our work do, of course, have their own censors. nevertheless, we try to do our stories as everything that we see happening in front of us, without really paying attention to what’s happening on the other side. Moreover, you have to be on the edge all the time. when i work i don’t intend to be imbalanced in order to please anybody, you stay as neutral and objective as you can, while neither judging nor taking part. i’m not an advocate. i’m just there to bring the story and it’s up to you and you and you to form judgements.

How difficult is it to maintain your neutrality when you’re seeing the effects of open conflict on the people around you on a daily basis? there are ways to ensure you stay unbiased, and one is to remember to keep it professional: prevent yourself from getting emotionally involved (if you can), simply describe what you’re seeing and how you’re seeing it, then later analyse the situation and put an angle on your story. there are times when it’s all but impossible to remain objective. for instance, as a woman and mother it’s very tough for me to see

children dying in conflict, and i’m really not sure how one can remain objective in such situations – the emotions definitely take control.

Do you think the job is more difficult for a woman, or does the female approach actually have its merits in war zones? it’s extremely difficult to get initially involved and entrenched as a woman. when i first came to Baghdad i was embedded in a company of american troops – i was the only female among 1,500 u.s. soldiers and you can imagine how that was. i can tell you, if my leg slipped out from under the covers while i was sleeping there would be 3,000 eyes staring at it. so, it’s not easy to be a woman in that sense. however, i believe a woman ultimately finds it easier to get to the action. and not merely by turning on the charm, but rather using your brain. what do you predict is going to happen with Iraq now? as i’ve written in books and articles, i believe that iraq will definitely be divided into three or four pieces – the implementing of Balkanisation over there as a result of the fact that the different peoples do not share the same mentalities or ideologies. thus, it must be done; and in an informal way it’s already being done – with shia and sunni exchanging houses and dividing neighbourhoods.

So you predict that the Kurds will finally get a homeland state of their own in Iraq?

Quite probably. But that in itself could be dangerous for the region, with turkey, iran, syria and other countries in the Middle east all having large kurdish minorities. what motivates you to keep pursuing this dangerous career; are you a crusader? i’m fighting for the truth and for the children. at the moment that means campaigning for children in need… we are continuing our “Bridges of hope” film series to help children in need, which we have already done in several countries.

Are people charitable enough? no they’re not. they could give much, much more… it would be best to start educating children in schools about how to give to charitable causes and how to develop a better understand of the need to give and take in life.

My philosophy is that we all have to do something for humanity – be that writing a good book or performing good deeds. i’m always asking my friends and family why they aren’t working to change the world around us. people, do something! what should you do? well, if you can’t eat a whole sheep in one day you could at least share it. that’s my policy. i am convinced that every human being has to do something for humanity.

SUPER HELL “I was completely covered in black robes and a black headscarf – a perfect BMO (Black Moving Object), as the Americans would describe it. I slipped into the back seat of my photographer’s car. His mother sat beside him and we headed off to a nearby mosque; it was almost prayer time.

“Upon arrival, my friend and I entered the women’s section, while my photographer began filming covertly.

“A short time later, our attention was drawn by noises and shouting at the gate of the Mosque. My friend and I peered through the door to witness a heated discussion going on between a sinister looking man and a mosque guard. All of a sudden the “stranger” started running and then boooom! A

large explosion; he’d detonated the explosive belt he was wearing!

“I jumped to cover my friend with my body, as shrapnel struck us. After the dust cleared, I immediately realised that my friend’s face had been hit by a piece of plaster; and then after a while I felt something hot dropping down my back – I immediately knew that I’d also been hit.

“In the main U.S. hospital in Baghdad, which lies within the fortified Green Zone, doctors treated the two of us. We’d both been lucky.

“Prior to that incident many had suggested that mosques were the last places in Baghdad that were still sacred to even the suicide bombers.”

Excerpt from Maria Wera Cedrell’s Super Hell

CorD | December 2006

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Ambassador of Angola in Belgrade, H.E. General Filipe Felisberto Monimambu (left), welcomes Brazilian Ambassador, H.E. Dante Coelho de Lima (right), to Belgrade’s African Museum on 10th November for a reception marking Angolan Independence Day.

Greek Ambassador in Belgrade, H.E. Christos Panagopoulos, pictured on 10th November bidding goodbye to the Head of the Embassy Press Office, Marianna Varvariguo, at a joint reception to bid farewell to Mrs. Varariguo and welcome her successor, Mr. Aristotelis Papageorgiou.

Telenor CMO David Meneghello, pictured presenting the visual identity and commercial image of Telenor Srbija to press on 9th November at Belgrade’s Progress Gallery. The alternative press conference included the premier screening of Telenor’s already familiar television commercial, which was produced by media agency Leo Burnett and filmed in the Vojvodina city of Subotica.

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Italian Ambassador in Belgrade, H.E. Alessandro Merola, and Delta Holding President Miodrag Mišković, pictured at the Embassy of Italy in Belgrade on 26th October at a meeting of the Council for the development of the commercial relations of Serbia and Italy.

Thirty winners of an essay competition of the Embassy of the Republic of Korea, pictured alongside Ambassador H.E. Dr. Kim Young-Hee (centre), Counsellor and Deputy Head of Mission, Kim Deuk-hwan, and Eunju Ahn, First Secretary of the Embassy of the Republic of Korea.

Each of the 30 winners of the essay contest, which was open to primary and secondary school pupils across Serbia, received a brand new computer.

Olivera Lazović, Director of the Tourist Organisation of Belgrade, and Miodrag Popović, Director of the Tourist Organisation of Serbia, picture on 14th November at a press conference held to announce the details of a report regarding Serbia’s participation at the WTM 2006 international tourist fair in London.

Princess Jelisaveta Karađorđević (left) and Zahumlje-Herzegovina and Coastal Bishop Grigorije (second from right), pictured among other guests of honour at the festive reopening of Tonus Fitness Centre on 26th October.

Ann-Lis Svensson, UNICEF Area Representative, pictured on 20th November presenting Momir Turudić with the UNICEF Media Prize for the best reporting on children and children’s rights in Serbia.

The aim of the UNICEF Media Prize is to promote high quality ethical reporting in print and electronic media and to stimulate the shaping of positive attitudes, recognising outstanding media professionals.

Svetozar Janevski, owner of the Tikves Winery, addresses attendees of a Tikves wine-tasting event in the Hyatt Regency Hotel’s Ellington’s Club on 31st October.

Serbian Parliament Speaker, Predrag Marković, addresses the press and public on 28th October to announce the closing of the referendum polls and confirm that Serbian voters had voted in favour of the proposed new constitution.

Left-to-right: Raka Levi, President of the Jewish Community Council, Milica Mihajlović, Custodian of the Jewish History Museum, Vojislava Radovanović, Director of the Jewish History Museum, and Juan Fernández Elorriaga, Director of the Cervantes Institute – pictured on 20th November in Belgrade’s Cervantes Gallery at the opening of the first exhibition of the series ‘Sephardic Pictures from Belgrade’.

Ambassador of Turkey in Belgrade, H.E. Hasan Servet Öktem, pictured with his wife awaiting guests at a 31st October Hyatt Crystal Ballroom reception held to mark the National Day of the Republic of Turkey.

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Ambassador of the Slovak Republic in Belgrade, H.E. Igor Furdik (left) and illustrious Slovak painter Stanislav Harangozo, pictured at the festive opening of an exhibition of Harangozo’s paintings in Belgrade’s Guarnerius Gallery on 8th November.

Polish Ambassador in Belgrade, H.E. Maciej Szymański, and his Defence Attaché, Colonel Janu Ciećki, await guests at a 17th November reception held to mark the Independence Day of the Republic of Poland.

Left to right: Vladimir Kutirin – Director of ‘Ruski Dom’ and Advisor to the Ambassador of the Russian Federation, Stojanka Babić – widow of Dostoyevsky-expert Milosav Bobić, and Professor Zoran Božović, of Belgrade’s Philology Faculty, pictured at a 16th November Ruski dom celebration of the 185th anniversary of the birth of Fyodor Dostoyevsky.

General Manager of the Metropol Palace Hotel, Christos D. Tsemberas, pictured with guests at a 1st November reception in the hotel to mark its purchase by leading Greek hoteliers the N. Daskalantonakis Group.

NEWLY ACCREDITED H.E. Ajay Swarup, Ambassador of India A post-graduate in Political Science from the University of Allahabad, Ambassador Swarup is a career diplomat of the Indian Foreign Service.

During his diplomatic career he has held various posts in such countries as Mongolia, the Netherlands, the USSR, Belarus, Mauritius, the U.S.A. and South Africa.

Within the Indian MFA’s HQ, Swarup has worked in and administration and co-ordination, as well as the Europe West and Iran-PakistanAfghanistan divisions of the Ministry of External Affairs, New Delhi.

With much experience in political, economic, commercial, consular and cultural work, Swarup served as political minister in the Embassy of India, Washington, and was tasked with inter alia liaison with the U.S. Congress and political activists of the Indian American community.

Prior to his arrival in Belgrade, Ambassador Swarup served as Consular General of India in Durban, South Africa.

The new Indian ambassador in Belgrade enjoys reading and music, and is a married father of one daughter.

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Italian Ambassador, H.E, Alessandro Merola, and Italian Trade Commissioner, Mr. Enrico Barbieri, pictured enjoying the Gala Dinner that marked the final event of the successful ALMA Italian Culinary Festival at Belgrade’s Hyatt Regency.

The evening included a seven-course dinner, a fashion show of Italian brands and an award ceremony for the 25 participating chefs, led by famous Italian chef Michel Magada.

Senior management officials of Raiffeisenbank d.o.o., pictured celebrating the fifth anniversary of the bank’s existence in Serbia at a distinctive themed reception at Genex Impulse Hall on 3rd November. The celebration was an entertaining ‘journey’ on the Orient Express, which was selected because the famous train’s route resembles the expansion route of Raiffeisen.

Japanese pianist Hideo Harade, pictured performing at Zemun’s Medlanianum Opera & Theatre in a 5th November concert organised in conjunction with the Embassy of Japan in Belgrade and staged as part of the Days of Japanese Culture.

Members of popular local band Flamingos, Marinko Madžgalj (left) and Ognjen Amidžić, pictured on 14th November at Porsche Ada Belgrade during a press conference to announce the band’s promotional agreement with car brand Seat.

NEWLY ACCREDITED H.E. Flaminio Farnesi, Ambassador of the Sovereign Military Hospitaller Order of Saint John of Jerusalem of Rhodes and of Malta Born in Pizza on the 19th June 1940, Ambassador Farnesi is a successful printer of pharmaceutical packaging materials and is founder and president of Pizza-based Grafica Zannina, Zaninni Ireland Ltd. (Tullamore, Eire) and Zannini East Ltd. (Vršac, Serbia).

Farnesi contributes to the work of many of the institutions of the city of Pizza, as well as being president of ASIS – a non-profit organisation which works extensively with the University of Pizza.

Among numerous other functions, Farnesi is vice president of the Knight’s of St. Stefan Academy; editor-in-chief of Pizza-based ARNO magazine; associate professor at the Faculty for Pharmacology at the University of Pizza; owner of Pizza’s Macchi gallery and a member of the Rotary Club.

Ambassador Farnesi has been awarded on numerous occasions and holds many titles, including Knight for work; holder of high honours of the Republic; holder of the of Order of St. Grave in Jerusalem and St. George Manya; holder of the Order with a star for Italian solidarity given by the commandment of the President of the Republic.

CorD | December 2006

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Ivica's Edge

serbia’s pricey lifestyle

By Ivica Petrović

j

udging by the relatively low average income in serbia, foreign visitors could mistakenly presume that retail prices are adapted accordingly and that, thus, the country is a desirable destination for budget shopping holidays. the shocking reality for visitors from wealthy foreign countries is the exact opposite. this is because serbia is, in essence, a very expensive country – though this fact is something that the country’s citizens are reluctant to admit.

Belgraders do complain about the general hardships of life in the country, but this is little different to the kind of everyday complaints that can be heard on the streets of any of the world’s big cities and does not relate directly to the cost of living per se. as for complaints about the government, of course that is something that nobody would ever mention aloud. perhaps the answer to the question of why serbian people bite their tongues instead of speaking their minds lies in serbia’s wellknown “excess of pride”, coupled with a lack of genuine parameters for comparison. On one side, there is therefore some sort of national folklore which ensures that citizens live under the gross misconception that it is much cheaper here than anywhere else, especially in comparison with the “too expensive west”. and on the other side, this could be a result of the country’s isolation from the world, which has disabled any practical comparisons. the obstacles that have caused the citizens of serbia to have difficult, limited or non-existent communication with the rest of europe for almost 20 years are well known and there is no need to repeat them. But, they conditioned the phenomenon of the lack of valid criteria with which certain things could be placed in a certain context. it is, thus, unsurprising that many conversations on the subject of what is cheap and what is expensive in serbia ends in heated arguments. it is precisely for this reason that the author of this article thinks that it is almost insulting to say that anything in serbia is cheap, even though the local people like to show off about that in front of their foreign friends. when you ask somebody what is cheap in serbia, they reply for instance that renting flats is cheap. if those prices are considered in the context of other large european capital cities, then they truly do seem reasonable. But when we return to the serbian reality, then we are able to ascertain that the renting of what is, for all intents and purposes, a ‘barely inhabitable’ flat costs the same or slightly more than the average

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The holiday and New Year euphoria is mostly connected with purchasing presents. In that sense, Serbia is no exception. However, a major difference compared to ‘western’ countries is that here nobody calculates their personal balances of money spent on gifts, nor predicts how much the average citizen will spend on the festivities of the Christmas and New Year holidays. Many people here believe that it is tasteless to talk about money spent on something which is definitely a luxury in a country where most people hardly make ends meet. If we look at the average income in Serbia, which is around 200 euros a month, that logic makes sense.

monthly income in serbia; an even more frequent situation is that landlords request two average wages for an average flat. the category of social or subsidized renting does not exist any longer and it is incomprehensible to the foreign visitor when somebody sets aside almost everything he earns to pay the rent, and then manages to live with his family as though that is the most normal thing in the world. the prices of flats are an even bigger phenomenon. experts from the agency responsible for monitoring the real estate market in southeast europe were recently guests at a seminar in Belgrade. speaking on that occasion they emphasised that the prices per square metre in Belgrade are too high, even when compared to countries such as italy, spain or portugal, and they noticed that business premises are much more expensive in serbia than in neighbouring croatia or Bulgaria. that is, of course, no obstacle for the real estate agents in our capital city: currently, when selling a halfway decent flat (which under western criteria often relates to a flat that is not fit for habitation) measuring around thirty square metres and located in the wider centre of Belgrade,

a property owner can expect to net at least €70,000. if that 30m2 flat was in slightly better condition and were located in a high-rise equipped with central heating or boasting a terrace or balcony, then one can expect to earn (if selling) or fork out something in excess of €100,000.

Moreover, purchasing property though a long-term mortgage is still more of a marketing ploy than a real life option for today’s city dwellers in serbia, and the majority of flats are still sold after the buyer has emptied tens of thousands of euros in hard cash from a suitcase, rucksack or plastic bag onto the table. all this proves that the main clients are not middle class families, which is anyway a confusing term in serbia, but various kinds of ‘businessmen’ from the grey zones.

Ivica's Edge The expansion of hypermarkets also did not bypass Serbia. A better offer and lower prices were expected, but apart from the pleasure of doing your shopping in slightly better equipped, more nicely lit shops to the accompaniment of easy-listening music, nothing has really changed to the benefit of buyers because most goods are still imported under high tariffs are no real genuine competition can spark a price war.

When one hears from a German colleague that milk is more expensive in Serbia than in Germany, you start to ask yourself how people manage with such high prices at all, and how they even manage to function from day to day in those conditions.

Indeed, the grocery price disparity between Serbia and the countries of the EU is such that one could be well advised to simply cross the border into Hungary to buy food and daily perishables at up to half the price one would pay for such goods in Serbia.

Foreigners often note that the prices of taxis, alcohol and restaurants are more than reasonable in Serbia, and thus assume that the country provides cheap shopping. Though this may be true at first glance, any foreigner would be well advised to consider such sentiments carefully and again put things into the context of the average Serbian income. The

…the grocery price disparity between Serbia and the countries of the EU is such that one could be well advised to simply cross the border into Hungary to buy food and daily perishables at up to half the price one would pay for such goods in Serbia.

Serbian problem in that sense is that the average income is not considered as any marker of the standard or the quality of life – and that is a long lasting phenomenon.

In Serbia, as such, it is easy to get the impression that nobody likes to be “average” and the consequences of that are unrealistic projections, but also an inclination towards life beyond one’s genuine means. What might be clear to western friends is that everybody lives in accordance with their social circumstances and status, but in Serbia that is in one way insulting. If the average western family knows that its limit is, for instance, a Toyota, then we can say that in Serbia those same people would judge their limit at the level of a BMW 7 series, and would believe that their existence has no meaning without that car. That is perhaps the best real indicator of how hard and unrealistically people force themselves to live here.

As a long term audiophile and lover of hi-fi magazines, I can illustrate this situation with another example. Some time ago, while reading readers’ letters mostly in British magazines, I was surprised, in a naïve way, by the fact that somebody who lives in such a rich world is so careful about whether an amplifier costs £200 or £220. That is the famous question “what is your budget”, which became clear to me later because in Serbia people usually do not have a prepared reply to that question.

Because of that I loved letters which started “I have a 15-year-old amplifier, or 20-year-old speakers. Is it time to upgrade them?” What you would get here as the answer is, there is no sense in buying that rubbish for £200…the real thing is that hi-fi for £1,000, even though you do not even have the money for the one which costs £200.

Of course, the answer to the question of how to survive in such an environment – an environment which seemingly defies the rules of physics, mathematics and basic economics, is far from simple. Getting by in Serbia often requires the ‘grey’ economy or perhaps high-earning relatives abroad. Whatever the case and whatever the state of the wallets of people in Serbia, the illusion that we are living in an affordable society is a dangerous phenomenon that can even lead to a spiral of bankruptcy.

Then again, it is comforting to think that the struggle against the unrealistic expectations and spendthrift tendencies of Serbian people can be solved simply by providing greater access to – and information from – the world beyond the expensive Western Balkans.

CorD | December 2006

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CULTURE

the Opera Maestro of treviso & Belgrade Claudio del Monaco, opera director

The staging of opera Tosca in the Serbian National Theatre in Belgrade has brought one of Belgrade’s favourite adopted sons back to town – director of Tosca Mr. Claudio del Monaco. With the celebrated opera directed spending his autumn in the city, CorD took the opportunity to catch up with him.

By Sonja Ćirić; photo: jelena Seferin

c

laudio del Monaco was born in treviso, italy, to Mario del Monaco (arguably the world’s greatest tenor) and rina fedora (singer, pianist and vocal pedagogue). since birth, claudio has been surrounded by the world of music and operatic celebrities: irina arhipova, Maria callas, herbert von karajan, aldo proti and renata tebaldi are just a few of the myriad opera stars who were regular guests at his family home. his father taught him singing and vocal techniques, while he learned the history of music and how to read scores from the great italian pedagogues. growing up, he accompanied his father on tours around the whole world and in that way improved his knowledge of the art of opera until he eventually made his own debut as an opera director in calabria with his interpretation of georges Bizet’s carmen. it was at the end of the 1970s when claudio first came to Belgrade, interestingly on a hunting trip. he only returned at the beginning of the ‘90s, this time motivated by love and work commitments. since then he has lived in rome and Belgrade and nowadays he describes himself as an italian by birth and a serb by persuasion. this question may be intrusive, but looking at your life I’m compelled to ask why you decided to add Serbia to your heart? it does not bother me that you ask that. everybody asks me the same thing, and i would do likewise if i were you. what decided that? well, destiny; destiny made that decision. firstly, i married Dragana jugović, your prima donna, and we had a son – who is 12-years-old now. and, secondly, in 1992 i became the art director of the national theatre Opera and Ballet in Belgrade. they invited me to come from italy; or rather, Mr. aleksandar Bercek – the then director of the national theatre

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Claudio del Monaco – invited me. i did not knock on that door! i was the only foreigner in that position in the history of the national theatre! that was a great honour for me! then i held the same position in the serbian national theatre in novi sad. the press at that time wrote that i was bringing artistic splendour to our, i.e. your, country. after that i was an advisor in the serbian Ministry of culture. the time you are talking about was the time of the blockade of our country. But you did not respect that blockade at all! i did not. why would i? it was silly to block the cultural and sporting events: that is not the army! that was a difficult time, but successful… … And then, in spite of the ban, you organised 12 humanitarian concerts of foreign artists. How did you manage that? there is an agency whose artists hold great respect for my family.

Because of that, they said that they would come wherever my family tells them to sing, even in countries which are at war. thus i invited them to serbia, and they came. and the audience did not forget that.

One man told me that a street should bear my name because i defied the blockade. i told him that this would be nice, but that it would be enough for me if my son would one day be happy with what his father had done.

Of course, it was nice that the audience was with me. they told me: you are ours, why don’t you live here, and i was glad. why did you resign as director of Belgrade’s opera? in the beginning it was good. i demanded a free hand, and in the beginning it functioned. then, when it stopped functioning, i left. i cannot co-operate with somebody who forces me! My principle is: “if we win, we win together, and if we lose, it is only my fault! But i do not

want to talk about that now. It is important that I am here again, only that is important!

Last year saw the premiere of Tosca in the National Theatre, directed by you and representing the first “virtually directed” opera in our country. How can you direct a classical form in this age of new visual technologies? How can you make it interesting to the younger generation?

Opera, as with film, must follow the scope of modern technologies. The question is why exactly virtual directing? Here is why: the stage sets cost a great deal and afterwards are thrown away. Therefore, it is a bad investment, isn’t it? Because of that, when they told me ten days before the premiere that there was no money for the stage set, I found a solution. I went to the theatre’s cellar and found at least 50 stage sets. I took parts which suited Tosca’s time and put them up in three dimensions. Nobody saw that those were parts of old stage sets! Why? Because of the lights! The light on the stage is the most important; light creates the required illusion.

At the end everybody was praising the lights and the stage set. I did everything according to the principle: you have to give the audience new things on a teaspoon, you should not shock the audience! I was the first in Italy and Serbia to direct virtual opera.

My brother Giancarlo was the first one in Cologne. Tosca is my love, and I am glad that this was the first virtual opera. At the premiere, in December last year, we had the first encore on this stage after 18 years!

I cried when I heard bravo maestro from the audience!

Now you have come only because the leading singing role has been changed, only because of the second showing?

This is not the second showing, this is the premiere! Every performance is the premiere! That is my principle!

Was there, perhaps, any discussion regarding future co-operation, some new performance?

Maybe, maybe - but that is all I can say. Good upbringing doesn't allow me to talk about such things before it is addressed by Dejan Savić, the director of the National Theatre. In any case, I am busy until 2010!

demand more from yourself, and money will come by itself.

What do you think about our Opera ensemble?

Thirty years ago, the National Theatre was fantastic. Milka Stojanović, Miroslav Cangalović and Radmila Bakočević – the old school were here. But when there are no great pedagogues and conductors, there isn’t anything else. Nevertheless, I think that the choir and the orchestra in Belgrade’s Opera are excellent. I claim that there is no good or bad choir or orchestra, but only a good and bad conductor! When I came to your Opera to become the director my goal was to bring that level back, but that was impossible. It was not my mistake, it was simply impossible. Whose fault was it? That is not my problem. However, the del Monaco family is always prepared to help.

This year marks the 25th anniversary of your father’s death.

Many opera houses around the world will mark this anniversary.

How do you remember him?

You do work a lot! During the rehearsals for Tosca you were Nobody in the history of opera has sung 1,600 times without a given the nick name Tsunami because of your great energy! faux-pas. The strong technique, the discipline! He was a man of great I do not have age. I have energy! That is genetic; it means that I can concentration, with a big heart, but he was difficult as a father because thank God and my family that I am like that. I had a check up with my he demanded absolute discipline, though he was big hearted. He cardiologist and he told me that I have the heart of a child. Energy is also demanded us to be precise, perfect, fantastic. He acted in 13 movies, the consequence of challenge, challenge gives me adrenalin. However, with the likes of Ornela Muti and Gina Lolobrigida, but refused the when I do not work I do not panic! I do not think that time without work invitation from Hollywood to be an actor! “I like being an opera singer; is lost time. No, that is the time for thinking, analysing and planning.

I like being the first in my profession”, he said.

Everything fits into place in the end!

He was a handsome man, talented, rich, a great gentleman. For me there is God and after him my father. That is my way, my There is an agency whose artists hold great respect for my guiding star!

family. Because of that, they said that they would come wherever my family tells them to sing, even in countries which are at war. Thus I invited them to Serbia, and they came.

You spent this year working in Italy, directing another Giacomo Puccini opera – La bohème – and Gioacchino Rossini’s Barber of Seville. What's different between working in Italy and Serbia?

In Italy we have a festival every 50 kilometres. The experience there is great: Italy is the country of opera, the same as Serbia is the country of basketball. And we should not compare those two countries. Simply, everybody has their own speciality.

In the Barber of Seville I changed the lights around 70 times. That was a great success and my great pleasure. Those two directing projects were the finger of destiny: that I got two directing jobs in Italy after directing the premiere of Tosca in Belgrade! And after Italy I received an invitation from Asia! Destiny! My father’s advice realised: always

The Mario Del Monaco Foundation is big and famous. Is it interested in our artists?

The Del Monaco Foundation, with the help of the Italian Government, helps young singers by offering them advanced studies. Our Foundation’s school is the school of singing which my father nurtured, and we organise master classes all around the world. Our institution can help, but cannot be the Red Cross. It is true, I did get a great deal from this country, but I also gave it a great deal back, and I cannot always be the patron.

Your Serbian is excellent, where did you learn it?

Not in a foreign language school! I learned it on the market, in restaurants, in the Opera during the rehearsals. I like to socialise with people – the artist has to know a lot about things which are not just his profession. I am aware that this is the Balkans, it reminds me of Naples: it is nice to live here, but is difficult because of the discipline. I like your nation. I respect it, and while it remains so I can live in Serbia.

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cultUre news The best films from L’Oreal Paris Cinemania All films that have been watched the most during the annual revue of commercial films-L’Oreal Paris Cinemania are now on the regular programme of cinemas. We are taking about Departed, Devil

During their performance the artist have presented the previous stages of the project and animated the audience to start do deal with the problems of transition creatively. The performance was the inauguration of the local branch-office PROTRANZIT. The art project will be continued by domestic artists. In this way Belgrade has become a legal member of the International Problem Market.

This project was realized in a cooperation of cultural institutions from Belgrade and Ljubljana and was supported by the Assembly of the city Belgrade and Erste Bank.

Free Zone for the second time The Free Zone festival of feature and documentary films was held from 14th to 19th November in Belgrade’s Cultural Centre. The Rex cultural centre initiated this festival concept last year, and this year’s festival achieved a good response from the audience and media.

The festival was opened with the film All Invisible Children, seven stories directed by world famous directors: Spike Lee, Jordan and Ridley Scott, John Woo, Stefano Veneruso, Katlin Lind and Mehdi Cref. This story is about children on the margins of life in different parts of the world. This film was awarded in Venice in 2005 with the Roberto Rossellini award. At the festival, Free Zone, were shown many films that have already been awarded at other film festivals- in Can, Sandes, Venice, Amsterdam, Copenhagen, Prague, Toronto…

Free Zone was closed with the film New World by Terrence Malick, a Hollywood hit that has been nominated for this year’s Oscars. Funds raised from the entrances fees are to be given to the B92 fund and for the construction of Safe House, a shelter for women and children that have been victims of domestic violence.

New Film Festival Hits Belgrade wears Prada, Prestige and Black Dahlia. Film Perfume starts its cinema life on December 7th. According to the journalist that followed the Cinemania the best film is Prestige, directed by Christopher Nolan with leading actors Hue Jackman, Christopher Bail, and Michael Cane. Prestige is a film about rivalry and life paths of two magicians at the begging of the XX century, where Nikola Tesla played by David Bowie appears in the film. On second place is the thriller Departed, on third place a science fiction film Children of man, the fourth place is shared by Borat (a new cult comedy, with specific montipayton humor) and Perfume, a crime story placed in France at the end of the XIX century, based on a novel by Patrick Zekinda. On fifth place is Devil wears Prada, a blockbuster with Meryl Streep in the role of an editor of a prestigious American fashion magazine, the film revolves around the dark side of glory and the fashion industry.

Problemmarket in Belgrade Famous artists from Slovenia Igor Strosmajer and Davide Grasi, presented their play PROBLEMMARKET in Erste Bank’s business center on November 15th. The play is about today’s neoliberalistic and capitalistic movement that is simplified by creating a virtual market whose products are problems. Problemmarket started in 2000 and up till know it has been shown in many cities around the world. At this moment in the project are included artists from Madrid, Frankfurt, Stockholm, Venice, Milan, Zagreb, Rijeka, Sarajevo, San Paolo, Tokyo… They are daily connected over an international problem market where 180 brokers from all over the world do business. Radio PRONEWS regularly reports about the events on the market, furthermore, branch offices are being opened all over the world that deal with local problems. For years artists Strosmajer and Grasi have experimented in art and new media segment, and in Belgrade they have fulfilled their project Problemmarket and carried it out. It was preformed as a business conference and the opening of a local branch office PROTRAZINT, which will be oriented on the problems of transition and on the post socialistic Serbian society, looked on from a critical point.

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A new festival of writer-director films will be held in Belgrade from 28th November until 3rd December. This festival, organised by the Look into the World Organisation, is an opportunity to watch controversial films - films that because of there themes, authorial access, and prohibitions in domestic countries have interested the world public and have won many prestigious awards. Some films that will be shown are: Romanian film “12:08 East from Bucharest”, “Red Road Street” by Andre Arnold (winner of the Cannes Jury Award), “Look in both directions” by Sara Vot (winner of 19 awards and nominated for 13 more), and many other interesting titles. The festival has an accompanying programme under the title ‘Snoliki Film’, during which a day dedicated to Mozart will be staged and many Belgrade artists will present their favourite films about dreams.

Guests at this festival will include many famous names from the world film industry.

Films will be screened in Dvorana Kulturnog Centra (premiers) and in the Dom Kulture Studenski Grad. An international threemember jury will decide on the recipient of the Aleksandar Saša Petrović Award, named after an important Serbian film director.

CULTURE CALENDAR November BALLET 5th December SAVA CENTRE, Grand Hall, 9pm IMPERIAL RUSSIAN BALLET Swan Lake 6th December SAVA CENTRE, Grand Hall, 9pm IMPERIAL RUSSIAN BALLET Sleeping Beauty 7th December BITEF THEATRE, 8pm The Little Prince - Antoine De Saint-Exupery Choreographic Fantasy Choreographer- Katarina Stojkov- Slijepćević Music- Aleksandra Ðokić In the role of the little prince- Miloš Isailović Co-organised by the National Theatre Ballet, Bitef Theatre, Ballet school “Lujo Davico”, Art Academy and the French Cultural Centre.

CLASSICAL MUSIC 1st December, Kolarac Hall BELGRADE PHILHARMONIC ORCHESTRA “Destructive love” Urs Schneider, Conductor Programme - R.Schneider-Carmen, C.Debbusy- Pelles et Mehstande, G. Faure- Pelles et Mehstande

15th December Kolarac Hall “Sex” Fusao Kajima, Conductor Aleksandar Nikolic, Bandoneon C.Griffis - Pleasure Dome of Kublai Khan Tangos R. Strauss - Don Juan M.Ravel - Bolero 15th December Art Centre GUARNERIUS, 8pm VIOLIN EXHIBITION Organized by Gilles Chancereul – Parisian string instrument expert - and Art Centre Guarnerius 16th December SAVA CENTRE, Grand Hall, 8pm World Music ROBI LAKATOS ENSEMBLE 21st December SAVA CENTRE, Grand Hall, 8pm “MOZART…LUSTER…LUSTIG” Irena Popović - conception Jay Scheib - direction Organised by Jugokoncert, Sava Center and Mocarteum, Salzburg

6th December Kolarac Hall, 6pm Music Gallery Cycle- Music workshop Milena Ilić, piano 9th December Kolarac Hall, 6pm Music Gallery Concert - Students of interpretative violin - professor Dejan Mihajlović 9th December SAVA CENTRE, Grand Hall, 8pm Schlomo Mintz, violin with the RTB Symphony Orchestra Conductor Bojan Suđić 13th December SAVA CENTRE, Grand Hall, 8pm 150 years of Mokranjac`s birth Concert of students of various Belgrade music schools Conductor - Darinka Matić Marović 14th December SAVA CENTRE, Grand Hall, 8pm Big Band RTS CorD | December 2006

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CULTURE CALENDAR November 22nd December Art Centre GUARNERIUS, 8pm Olivier Laquerre, bass bariton (Canada) Vladimir Gligorić, piano Programme: Jacques Ibert, Dominique Roy, Ralph Vaugh-Williams, Maurice Ravel, Camille Saint-Saens, Gabriel Faure Sponsors: City Assembly of Belgrade, Embassy of Canada in Belgrade and Art Centre Guarnerius 23rd December Art Centre GUARNERIUS, 8pm “WOMEN COMPOSERS” Nada Kolundžija, piano Programme: Beverly Pinski Grigsby, Irena Popović, Jasna Veličković, Katarina Miljković, Ada Gentile, Isidora Žebeljan, Ivana Stefanović Sponsors: City Assembly of Belgrade and Art Centre Guarnerius 23rd December SAVA CENTRE, Grand Hall, 8pm V. Lisinski Music School Concert of Students of the V. Lisinski Music School 24th December SAVA CENTRE, Grand Hall, 8pm Belgrade String Orchestra “Dušan Skovran” Soloist - Sreten Krstić, violin 25th December SAVA CENTRE, Grand Hall, 8pm Ensemble “Kolo” 26th December SAVA CENTRE, Grand Hall, 8pm “LADIES SING JAZZ” RTS BIG BAND (with guests) 27th December Music Gallery, 6pm New Year’s concert Piano students of the Faculty of Musical Art 27th December SAVA CENTRE, Grand Hall, 8pm Symphony Orchestra and Choir “Collegium Musicum” Conductor - Bojan Radovanov 29th December Kolarac Hall “Fun” Dorian Wilson, Conductor Liro Rantala, piano

HAPPENINGS 4th to 10th December SELECTIVE FILM RETROSPECTIVE Roundtables and films MUSEUM OF YUGOSLAV FILM ARCHIVE

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Co-organiser – The Goethe Institute Guest film directors- Andrej Kosak, Hrvoje Hrabar, Zeljko Sasic, Oleg Novkovic, Srdan Golubovic, Marija Perovic, Milutin Petrovic 6th to 10th December FESTIVAL OF NEW FILM AND VIDEO French Cultural Centre Special programme - French Experimental Film Selector - French film director Sebastian Cross 7th & 8th December.

SAVA CENTRE, Grand Hall, 8.30pm NIGHT OF COMMERCIALS 8th to 11th December 10th INTERNATIONAL FESTIVAL OF UNDERWATER FILM Dom Omladine, Museum of Yugoslav Film Archive Guest of the Festival will be Daniel Merrier, president of the International Festival of International Underwater Film in Antibes 11th, 13th & 14th December 70th ANNIVERSARY OF THE SPANISH CIVIL WAR Student Cultural Centre 22nd & 23rd December SAVA CENTRE, Grand Hall CHILDREN MUSIC FESTIVAL SAVA CENTRE, Grand Hall December 27th, 20 00 HUNGARIAN GIPSY NATIONAL ORCHESTRA FROM BUDAPEST

ART EXHIBITION 18th December to 27th January CILE An exhibition of the latest works of Serbian painter Cile Marinković, who has been living in Paris since 1992. Milan Marinković- Cile (born Belgrade, 1947) graduated from the Academy of Fine Arts in Belgrade and ahs since staged over 80 solo exhibitions in Yugoslavia, France, Belgium, the U.S., Italy, Russia, Sweden and elsewhere.

Marinković is member of ULUS (Serbian Fine Artists’ Association) and La Masson des Artistes – French Art Association.

CROSSWORD

November FILM PREMIERS Déja vu SAVA CENTRE,12th December, 8.30pm Thriller Directed by Tony Scott Cast - Denzel Washington, Val Kilmer, Adam Goldberg Plot - An ATF agent travels back in time to save a woman from being murdered, falling in love with her during the process.

Eragon SAVA CENTRE, 13th December, 8.30pm Film based on the Christopher Paolini novel by the same name

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PUZZLE

CULTURE CALENDAR

2 3 4 5 6 7 8 9 10 11 CROSSWORD PUZZLE Solve this crossword puzzle and test your Serbian – the clues may be in English, but the answers should be entered in Serbian

Directed by Stefen Fanguerer Cast - Edward Speelers, Jeremy Irons, John Malkovich, Robert Carlyle, Sienna Gillory Plot- In his homeland of Alagaesia, a farm boy happens upon a dragon's egg -- a discovery that leads him on a predestined journey where he realized he's the one person who can defend his home against an evil king.

Horizontal: 1. A region of Serbia, 2. both; currency of Serbia, 3. car registration sign for Zrenjanin; sign of phosphor; very little – minute amount, 4. flying machine; legendary chess player Michail … , 5. thick, dense forest; abbreviation for Law on Expropriation; the sound of the hit of a horse’s hoof, 7. social services – abb.; sick passion, 8. first name of the actress Ras; main artery (aorta), 9. arable land; the sign of carbon; “Mining institute” – abb.; 10. warning/reminder signal; a month in spring, 11. a suburb of Belgrade Vertical: 1. driver; a suburb of Belgrade, 2. hair above the eyes; a luxurious fabric; 3. personal pronoun; an island near Zadar (Croatia), a member of a group of wanderers, the sign for voltage; afterwards, a kind of a parrot, 5. From; Attack on someone/thing; megabyte – abb.; 6. the result of combustion; a bird similar to a duck; within, 7. spite; team; Academic Master – abb. 8. doctor’s diagnosis; a machine to harness bulls, 9. a small town in Šumadija; operatic melody Having trouble? To find the answers to this month’s crossword check out www. cordmagazine.com

Happy Feet Sava Center, 17th December Animated feature film Directed by George Miller Voices - Elijah Wood, Brittany Murphy, Hugh Jackman, Nicole Kidman, Robin Williams Music - originals by Prince, Kool and the Gang, Frank Sinatra, Elvis Presley, Earth, Wind &Fire Plot - Into the world of the Emperor Penguins, who find their soul mates through song, a penguin is born who cannot sing. But he can tap dance something fierce.

Holiday From 21st December Romantic comedy Directed by Nancy Meyers Cast - Cameron Diaz, Kate Winslet, Jude Law, Jack Black Plot - Two women troubled with guy-problems (Diaz, Winslet) swap homes in each other's countries, where they each meet a local guy and fall in love.

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Column - Notes from the Big Plum

8th instalment

nOt just anOther party

A slava, (and I’ll add an “s” on occasion hereafter to make it plural) or celebration of a family's saint's day, is a major religious holiday for Orthodox Serbs.

Slavas occur all year long, but many take place in the winter months. although some families invite only guests whose slavas they themselves attend, someone may invite you, so it’s good to know a little something. first of all, how did they come to be? centuries ago every serbian clan had its own household god. as christianity spread, several attempts were made to convert the serbs. it was only in the thirteenth century that rastko nemanjić, later canonized as saint sava, created Pat Anđelković, the serbian Orthodox church. he sent independent authoress out messengers to replace each family's household god with major christian saints. in the fourteenth century the turks conquered serbia, taking complete control for 500 years. Many serbs converted to islam to save their lives or to ascend social or political ranks. Orthodox serbs secretly carried on their christian customs. after the collapse of the Ottoman empire, serbs celebrated their slavas freely for a short while until communism again discouraged religion. as under the turkish occupation, many continued to observe their personal slava. nowadays there are no more restrictions.

But just how is a slava celebrated? although there are differences from family to family, what follows is a traditional explanation. slavas are celebrated for three days and families must be ready to welcome guests on all three days, since during slava, an Orthodox home is considered a church, and no one should be turned away. in earlier times, everyone in a particular village knew whose slava fell on which day and automatically came for the celebration. nowadays it is customary for a family member to extend verbal invitations usually only once and simply remind guests from year to year. if there has been a death in the family during the year, slava must still be observed, but usually only by family members. Because slavas are religious occasions, traditionally no music is played. customarily a slava takes place in the father's home or in the grandfather's if he is still alive. nowadays if there is more than one grown son in a family having a separate household, each son may celebrate in his own home. slavas are passed from father to son. when a woman marries, she adopts the slava of her husband. (feminists may think that a woman shouldn't have to adopt her husband's slava, but most women here feel that they have two slavas to their husband's one!)

During the days before slava, housewives prepare great quantities of food, sparing no expense, whereas other families may choose to prepare lighter fare. some slavas are “lean” slavas and no dairy products or meat are served. two foods are traditional. the first is the slavski kolač or slava cake, a large, brioche-type bread decorated with salt and flour Orthodox crosses. the other is žito, a confection

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made of wheat berry, cinnamon, sugar, and nutmeg. But don't look for žito at every slava. there are certain saints' days where no žito is served, because some saints are still considered to be alive. in this instance, slatko, cooked, whole fruit like cherries or strawberries in thick syrup is served in place of žito to welcome guests.

On the first day of slava, family members greet each other with 'srećna slava' or 'happy saint's Day'. no unnecessary work such as laundry, sewing, or ironing is done that day. the head of the family lights a tall beeswax candle, taking great care that the flame not be extinguished until they go to bed that evening. Beside the candle are the slavski kolač, žito or slatko, and a glass of red wine. then they wait for the priest to come to perform the slava ritual and bless the house. when the priest arrives, the family gathers in front of the candle for the priest to perform a small ceremony and cut the slavski kolač. (families may take their slavski kolač to the church instead to be cut if they so wish.) afterwards, he proceeds to bless the house by walking through its rooms swinging his brass censer of fragrant incense. guests usually arrive around seven in the evening, bringing flowers or wine, the only true slava gifts, and greet the family with "srećna slava". then the lady of the house or eldest daughter offers a tray of žito or slatko. each guest must partake of the žito or slatko.

some families serve food buffet style while others choose to have a sit-down dinner. guests may stay all evening or excuse themselves after an hour or so. if you choose the latter, make sure you tell your host you are going to another slava, otherwise it wouldn’t be polite to leave so soon. in former times on more popular saints' days, streets were filled with people travelling from one slava to another, especially on sveti (saint) nikola, 19th December. people joke that half of Belgrade has a sveti nikola slava, and the other half attends! remember: a slava is not just another party. in fact, it is not a party at all, but rather the observation of a religious tradition and it’s an honour to have been invited to someone’s slava. it shows that your host has accepted you and wishes to share with you the customs of this significant holiday.

My life in Belgrade

My life in Belgrade

Leaving shortly but sure to return

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hy you come to a place isn’t always the reason you end up staying there – perhaps that’s obvious. i first came to south eastern europe in 1999 and was based in tirana for three months and then in 2002 i came to Belgrade for the first time to spend the summer here. and in 2003 i studied for my Master’s Degree in human rights and Democracy in sarajevo for a year before coming back to Belgrade in june 2005. and i must say i have completely lost sight of why i was so keen to come to this side of europe in the first place, but i think it was something rather trivial like a teenage obsession with goran ivanisević, the wimbledon champion of 2001. Or perhaps it was because of the stories i’d always heard my grandmother relate about her journey on a yugoslav cargo ship from india to croatia back in the 1960s. i wish i’d kept a diary of first impressions because my first three-month summer experience in Belgrade in 2002 was nothing like my 18 months has been here this time. Back then i was a volunteer with women in Black, sleeping in a bed jammed into a filing room at the back of their offices, and i spent most of my time hanging out in people’s flats, going back and forth to ruma where a friend lived, and boiling old bread with pavlaka to make a stomach-filling, extremely affordable meal!

Anya Hart Dyke - SEESAC SALW Awareness Officer this, my second visit to Belgrade, has been a lot more fastpaced and seriously fun, which of course is down to the fabulous people that i’ve met. But it took time to make friends and what i wondered when i first came here last year, when i knew few people and spent most of my time between the flat and the office, was what other foreigners were getting up to and what their daily routines were. i had a wonderful time doing things that i never made time to do at home in england, such as reading, cooking, watching national geographic, amassing a ton of photos and taking long walks through the city. But then life took off and this year has been nothing short of spectacular, with my books now thick with dust. where to start? i think that this region has its future in rural and sports tourism. what a treat (and bearing in mind i’m from an island) to hop on a bus to go skiing in kopaonik (serbia), walking in plitvice national lakes park (croatia), rafting in tara gorge (Montenegro) or all of the above in Bosnia-herzegovina. But what i am definitely set on doing if not next year then sOOn is staying with a local family out in the sticks to breathe some fresh air, slow down a little and develop a thick provincial serbian accent.

so what am i doing this time round – well i work as a small arms and light weapons (salw) awareness Officer for the south eastern and eastern europe clearinghouse for the control of salw (seesac). we’re a regional project based here in Belgrade working with national governments, unDp salw control projects and non-governmental organisations in all areas of salw control. this basically means in the areas of legislation,

But back to Belgrade – what a city! By far the liveliest one in the region. though each capital city of the former-yugoslav republics has a life of its own, Belgrade has definitely been the craziest of all of them for me. i think all foreigners in Belgrade know how much fun people here can be, so i needn’t over-emphasise that. But the real treasure you take away from any place of course is its people and what is it all about if not ‘people’. and i am thinking about all of this because i am leaving in December (though am bound to be back soon) and boy will i miss those noisy greetings kisses, those independent-minded dogs that cross at designated pedes-

weapons collection and destruction, stockpile management, data collection on the impact of salw ownership and (mis)use and targeted awareness initiatives. we’re housed in the unDp offices but are primarily funded by the eu.

trian crossings, pavements coated in cars and being scolded in the post office for not correctly filling out my electricity bill. Of course there’s more, but most importantly i want to thank all the wonderful people in BgD that have made this place my second home.

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Tourism

Mountaintop Moments Winter encroaches with every day that passes, and lovers of the cold season grow impatient as they wait to unlock the box of wintry delights that it brings; its surprises and celebrations, winter magic, festive fare and specific sporting thrills. This month CorD and the Tourist Organisation of Serbia recommend some of Serbia’s most attractive winter destinations.

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Tourism DIVČIBARE Divčibare lies 37 km southeast of Valjevo and around 130km from Belgrade, in western Central Serbia, high on Mount Maljen (980m ASL). As a result of its beneficial location, Divčibare is influenced by the Adriatic coastal climate, as well as the climatic peculiarities of the Carpathian Mountains and the Panonian plains, and enjoys iodine-rich air beneficial to the treatment of lung diseases, anaemia and numerous neurological disorders.

Divčibare has a mild climate. It enjoys an average of 239 days a year without wind and 280 days without precipitation. Winters on Divčibare are snowy, while the average air temperature in summer does not exceed 22C°. It is for these reasons that Divčibare has been declared a climate spa.

Indeed, it is Divčibare’s favourable climate, coupled with its rich flora and fauna and abundance of springs and streams that ensure the area is classed among Serbia’s top nature-tourism attractions year-round.

Divčibare is rich in coniferous woods, and in the very heart of the reserve grow towering pines which do not grow at such an altitude (2,000m ASL) anywhere else.

Divčibare’s nature reserves include ancient woods in Velika pleča, Vražji vir (Devil’s vortex) on Crna Kamenica (Black stone); the Black River and her gorge. One of the areas most attractive spots is the 20-metre high Skakalo waterfall on the River Manastirica.

Divčibare boasts numerous sporting facilities, including tennis courts and a mini-golf course, riding lanes and marked hiking routes. The reserve’s riding school is open throughout the year, while the surrounding heights and gentle slopes are covered by snow for three to four months a year.

Winter sports lovers can also find fun at Divčibare. The northern slope of Crni vrh (Black Peak) includes the areas longest ski lane (800 m), complete with a cable car system capable of transporting 700 skiers per hour. The lane is fully lit for night skiing. Three shorter ski lanes (up to 300metres long) lie near the “Zmaj” tourist home in Golubac and on ‘Stražara’ [Watchtower] peak. These lanes have a capacity of 200 skiers per hour.

Divčibare Gorge has excellent terrains for ski running. One can hire and service ski equipment at hotels and recreation homes, and during the winter months there is also a fully equipped ski school.

Various tourist, culture and sports events take place in Divčibare throughout the year.

Tourist information and accommodation:

Tourist Organisation of Valjevo Municipality “Valjevo turist”, Prote Mateje 1, 14000 Valjevo tel. 014/ 221 138 , fax 014/ 226 112 tovaljevo@ptt.yu; www.divcibare.co.yu Hotel “MALJEN” tel. 014/277-419, 277-234. Accommodation: 16/4, 2/1, 32/2, TV room, disco club for children, restaurant, 125 beds Hotel “PEPA-CRNI VRH” tel. 014/277-323, 277-205, fax: 277-323 Accommodation: 23/2, 35/5, lecture halls, restaurant, pizzeria, billiard room, 200 beds, restaurant, pizzerias, disco club

TARA One of Serbia’s most beautiful mountains is the stunning Mount Tara, which lies in Western Serbia. Covered with dense woodland, interspersed with alluring glades and meadows and adorned with rocky cliffs, ravines and caves, Tara stretches to an altitude of 1,200m ASL. CorD | December 2006

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Tourism Climatic conditions are beneficial for treating bronchial and asthmatic conditions, chronic bronchitis, anaemia, etc.

Tourists can take advantage of Tara’s 10kilometres of arranged walking lanes, while more sporting visitors can take up the challenge of Tara’s 1.6km-long trim hiking lane or make use of the football pitch, open sporting fields and other recreational terrains.

In the winter period guests can ski on Tara’s ski lanes located beside the “Beli bor” (White pine) Hotel at an altitude of 1,000m ASL. There are also two ski lifts: one for children and novices (150m long), and the other for recreational skiers (450m long).

The Tara National Park covers an area of 19,750 hectares. Tara is characterised by its abundance of variegated flora, which includes the Pančić Spruce – unique to Mount Tara. Tara’s diversity of habitats and high level of natural conservation has enabled the survival of many animal species, such as the brown bear, chamois, white grouse, golden eagle, and the others.

Tara’s woods, canyons and riverbanks are a treasure trove of traces of prehistoric, antique, Roman and Byzantine culture.

The 13th century Rača Monastery, necropolis with tombstones in Perućac and Rastište are all crucial elements of Serbia’s medieval heritage. A unique example of folk art is represented by the Dinara log cabins, dotted along the banks of the River Drina.

The Drina-fed lake near Perućac is rich in aquatic life and boasts various species of trophy.

During the summer season tourists have at their disposal arranged beaches at the lake, boats for excursions and outdoor swimming pools.

Tourist information and accommodation:

Tourist-sports centre Bajina Bašta Milana Obrenovića 34/III, 31250 Bajina Bašta tel/fax: 031/ 865 370, 865 900 office@stc-bajinabasta.com, sbcbb@eunet.yu www.stc-bajinabasta.com

ZLATAR The highest peak of Zlatar Mountain - Golo brdo (Naked hill) – towers over the rivers Lim, Uvac, Mileševka and Bistrica at a height

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of 1,627m ASL. The name of the mountain – ‘Zlatar’ (Goldsmith) is a perfect summation of the mountain’s qualities: aromatic meadows and clear lakes, surrounded by spruce and birch woods; a concoction of both Mediterranean and mountainous climates; a maximum number of sunny days, salutary air enriched with turpentine and oxygen-rich air, and limitless horizons...

Thanks to its geography and geology, Mount Zlatar is rightly classed as an important tourist region, where one can develop sports-recreational, sightseeing, health-recuperative, hunting, congress, excursion and village tourism.

Zlatar boasts the Hotel Panorama and the Institute for Prevention, Healing and Rehabilitation of Cardio-Vascular diseases and Arterial Blood Pressure.

During the winter period, guests can take advantage of an 800m-long ski lane equipped with a 420m ski-lift – situated 200m from the Hotel Panorama. Ski equipment is also available to hire.

In the vicinity of Mount Zlatar lies the Uvac River Canyon – home to numerous species of bird that are rare to the Balkans, including the endangered Old World Griffon vulture.

The Zlatar area’s ecological beauty and crystal-clear waters is an attractive lure for all types to tourists, including sports rafters and photo-tourists.

Three artificial lakes - Zlatarsko, Sjeničko and Radoinjsko – as well as the Mileševa and Banja monasteries, log cabin churches in Kućani and Radijevići complete the tourist offer of Zlatar Mountain.

Tourist information:

Tourist Organisation “Zlatar” Karađorđeva 36, 31320 Nova Varoš tel/fax: 033/ 62 621 tozlatar@verat.net, www.zlatar.org.yu

GOLIJA The ‘Golija’ biosphere reserve is one of the most beautiful forested mountains in Serbia and, accordingly, is under official UNESCO protection.

Situated 40km southwest of Ivanjica, Golija is a perfect destina-

Tourism tion for those seeking a spot of rest and recreation in almost completely unspoiled nature.

Golija Mountain was placed under state protection in 2001 and declared a national park. It has a 1st category protection status, due to the fact that its natural habitat is adjudged as being of extraordinary importance.

Golija’s highest peak is Jankov kamen (Janko’s rock) - 1833m ASL and the mountain’s Slopes provide excellent skiing terrain during the winter season.

The mountain river ‘Golijska’ lies 40km west of Ivanjica, peaking at a height of 1480m ASL. The riverside recreation area includes a football pitch, tennis courts and other sports terrains. The area also boasts walking trails and a special challenge for all visitors is completing the hike up to the dizzying heights of Jankov kamen or Novića brdo.

The former mountaineering home at Odvraćenica (31km from Novi Pazar) has now given way to the newly constructed Hotel Golija. Guests have at their disposal three ski lanes and two ski lifts - one “baby” lift for novices and the other a 500m-long lift for experienced skiers.

Tourist information:

Tourist Organisation of Ivanjica Municipality Milenka Kusića 47, 32250 Ivanjica tel/fax: 032/ 665 085 tooivanjica@yul.net; www.ivanjica.co.yu/tooi

RUDNIK Rudnik (Mine) Mountain looms over the region of Šumadija and is situated around 100km south of Belgrade.

Besides the mountain’s tallest peak - Cvijićev vrh (1132m ASL), Rudnik also boasts Srednji and Mali Šturac, Molitve, Paljevine and Marijanac – all peaks in excess of 100m ASL. Good transport routes ease access to Rudnik, which has a pleasant continental climate, clean air and a multitude of distinct rambling and hiking routes. Another major advantage of the mountain’s location is that fact that it lies within a stone’s throw of numerous sites of historical interest, such as Oplenac and Takovo, Vraćevšnica

Monastery, Voljavča, Nikolje and Ovčar-Kablar monasteries.

The town of Rudnik – as the name suggests – was an active mining centre for many years – its ores were utilised long before the Slavs came to this region by the Romans and even the Illyrians and ancient Celts.

Archaeological discoveries suggest that Rudnik was home to a large Roman settlement with its own coin mint.

Serbian rulers and feudal lords are known to have fought for control of Rudnik and the dinar coin of King Dragutin, which was minted in Rudnik, is the first example of a Serbian coin with a Cyrillic inscription.

In the 14th century, Dubrovnik rulers and Saxons maintained colonies in the area, but it was only after the fall of Novo Brdo (New Hill) in 1441 that Rudnik became a location of significance.

At that time Rudnik – which boasts large deposits of silver, lead and copper ore – was an importance source of revenue for Serbian rulers, as well as a key settlement which developed original styles of arts and crafts and a broad trading hub that connected Serb areas economically and allowed for the proliferation of cultural trends throughout Serb lands.

Thanks to its extraordinary wilderness areas, natural health benefits and the fact that its lies in the vicinity of several large towns, Rudnik is an excellent choice for active, cultural, educational, health and hunting holidaymakers year-round. It was as far back as 1922 that Rudnik was declared an ‘air spa’, thanks largely to its extraordinary climatic conditions: large number of sunny days annually, beneficial air flows and high air ionization, as well as an unpolluted natural environment.

Guest mountaineers can scale Veliki Šturac and the steep volcanic elevation of Ostrvica (Small Island) which ends within the walls of Jerina’s City. Climbers can also visit the nearby historic sites of Oplenac and Takovo, monasteries Vraćevšnica, Voljavča and Nikolje, while hunters can obtain licenses to hunt large and small game species.

Tourist information:

Tourist Organisation of Gornji Milanovac Municipality Vojvode Milana 1, 32300 Gornji Milanovac tel/fax: 032/ 717 220, 716 891 togm@ptt.yu; www.togm.org.yu

CorD | December 2006

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Too Deep For Tears – Part Three of the trilogy:

8th instalment

Pigs Do Not Eat Banana Skins Slavica Beresford, having bumped into Andrew’s ex-wife Masha and her mother Maria at a concert, accepts their invitation to visit them...

Timothy Byford

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showered, breakfasted, hoovered and dusted the flat just thoroughly enough to give the impression that someone had hoovered and dusted the flat, showered again and collapsed on the sofa. Yes, I would go to see Masha. Firstly I was intrigued by why she should be so keen to see me again, and secondly I wanted to have a second look at the mother-in-law and perhaps even talk with her. I would take her some flowers.

Then at least she would have to say ‘thank you’.

“Thank you. They’re very nice.”

No, they were not ‘very nice’, they were beautiful. Like her smile. Maria must have been quite irresistible when she was young.

“Would you like a cup of coffee?”

“Yes, please. Without sugar.”

I didn’t really want coffee, but it would have been tactless to have turned it down, as it was obvious Maria wanted an excuse to leave the room and avoid having to make conversation with me, the destroyer of her daughter’s happiness.

Masha had been unexpectedly delayed at a local council meeting; it seemed she had added politics to her list of activities since Andrew left her. This must be the room where Andrew and Maria had made love. The first time, when Maria was playing Mendelssohn and Andrew and she drank just a little too much plum brandy. This must be the very sofa…

The door opened and Masha breezed in, red-faced and panting.

“Terribly sorry I’m late. Where’s Mummy?”

“She’s making some coffee. I got the impression she wasn’t particularly pleased to see me.”

“On the contrary. It was her idea to invite you here. Of course, she hated your guts when you went off with Andrew, but she couldn’t help noticing how deeply you were affected by the music last Friday. And she would like to meet your friend Mr. Bogdanović again. Perhaps even to interview him.”

So that was it. Maria fancied Uncle George and I was to be the go-between. Surely I was not jealous? True, Maria’s nose

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had a porcelain beauty that Uncle George would certainly appreciate, and her eyes could not fail to stir his heart. But she was far too old for him. I doubt whether even Masha could any longer send the necessary vibes to his ever-willing but longemptied loins. As she came in with the coffee I tried to imagine what she must have looked like ten years ago when Andrew had last made love with her. Delightful old lady as she now was, the contemplation of Andrew touching her breasts and inserting his prick into her shrivelled old pussy was nothing short of grotesque.

“Oh, Masha, you’re back. Good.”

“Yes, but I’ve got some things to sort out in my room. I’ll join you in half-an-hour.”

“Can’t they wait?”

“No.” So, like it or not, Maria was going to have to make conversation with me. And I was going to make sure it was she and not I who did the making.

“Do you go to concerts regularly? I have a feeling I’ve seen you before.”

“Yes, Mr. Bogdanović and I go most weeks at least once.”

“He must be an excellent companion. He knows a great deal about music.”

“Yes.” I decided to remain cool and distant. Maria realised this and immediately changed her tactics.

“Look, my dear, I’m afraid I was rather rude to you on Friday. I had no right to take out my anger at what Andrew did to Masha on you. I can see you’re a very sensitive person.

Well, I’m sensitive too, and I’m very vain. I mind a lot what people think of me and I wouldn’t like you to get the wrong impression of me. What Andrew wrote in his book about his relationship with me was very unfair. Some things are quite simply not for public consumption. He was doing no more than showing off at my expense. What I did – what we did - was wrong, but he was a very attractive man in his way and I think he was lonely. I think he missed England, although

he would never admit it. Masha tells me you know about our later relationship. That was regrettable but at the time it seemed inevitable. I could be accused of using him to satisfy my sexual needs, which were still quite strong – but Andrew could also be accused of using me for the same ends. But what I felt for him could be described as love. As for him – I’m not certain whether he even knew what love really was.”

“Oh, I think he knew what love was. At least, he knew what it wasn’t, and that what he felt for Masha – towards the end, anyway, - came in the ‘wasn’t’ category.”

“And what he felt for you came in the ‘was’ category?”

“I think so, yes.”

“Well, my dear, it’s all history now, anyway. If you were happy, I’m sorry you lost him so soon. A nasty way to go.”

Nasty. Not ‘bizarre’, or ‘weird’, or ‘shocking’. It seemed that Masha had not told her mother the full story. At least Maria would be able to remember Andrew in a good light. I believed her when she said she had loved him. And perhaps ten years ago she had still had sexual charm. After all, a pussy is a pussy, shrivelled or not. And who was to say I wouldn’t still want to make love when I was sixty-five?

“Masha says you would like to interview Uncle George – I mean Mr. Bogdanović.”

“Did she? Well I may have mentioned it. I’ll expect we’ll meet again at Kolarac. I’m sure you’ll both be going to the Mahler on Friday. I’ll talk to him about it then.”

Maria was far more subtle than I had given her credit for.

If she was going to woo Uncle George, she was going to do it in her own time and in her own way. Of course we would be going to the Mahler on Friday. I could not wait to see this fascinating woman again. I think I had fallen a little in love with her. After all, she was part of Andrew, an important part of the human jigsaw I was trying to put together. And I was fast beginning to realise that not only was it a jigsaw with an unknown number of pieces, the pieces themselves did not always match the picture on the box.

But if the completed jigsaw of one’s life is different from the picture on the box, which of the two is the real thing?

Perhaps one shows how we see ourselves and the other how others see us. But surely neither of these is the real ‘us’. If we come trailing clouds of glory from God who is our home, to quote one of Andrew’s favourite poems, then it is God who paints the picture on the jigsaw puzzle box, and when we leave heaven and enter society, the picture is cut up into jagged pieces for us to try to put together again, and we forget the glories we have known, and that imperial palace whence we came – to borrow from Wordsworth once again. Whether we actually make the effort to complete the jigsaw puzzle at all, is up to us. What became suddenly clear was that here I was, trying to put Andrew’s jigsaw together, while my own was lying untouched in its box with, more likely than not, several pieces missing.

What was it that Masha had told me? Andrew had spent more time trying to know himself than living in this world with ordinary people. Of course, there’s nothing new in that.

Know thyself was inscribed on the temple of Apollo at Delphi.

Alongside Nothing in excess. But how does one go about getting to know oneself? Andrew sought the answer in the teachings of Krishnarasti. The little I had read I had found interesting - but far from compelling - reading, and Sofija had said he kept on repeating himself. But perhaps I should try again.

After all, Krishnarasti was part of Andrew’s jigsaw. Perhaps he was the sky bits.

I found a number of passages with headings such as ‘The need to know oneself’, or ‘How is one to know oneself?’, which seemed to confirm what Sofija had told me. Anyway I chose one, which having convinced me of the need to know myself then began to make me wish he would repeat himself

occasionally, because although Krishnarasti posed a number of very relevant questions, he always seemed to answer these with yet another question. Perhaps he was really a Jew. And then I remember what Paolo had told me – that Krishnarasti had insisted that we question everything he said. Like a child.

“Why do I have to wear a cardigan?”

“Because it’s cold.”

“Why is it cold?”

“Because it’s winter.”

“Why is it winter?”

“Because it’s the time of year when the sun isn’t so hot.”

“Why isn’t the sun so hot?”

“Because it’s not so high in the sky as during the summer.”

“Why isn’t it so high in the sky?”

“Because the earth goes round the sun and in the winter the top half, where we live, is sort of bending away from it.”

“Why does the top half bend away from it?”

“So that the bottom half can bend towards it.”

“Why does the bottom half have to bend towards it?”

“Because it’s their turn to have summer.”

“Why do they have to have summer?”

“So they can take their cardigans off.”

“So they don’t have to wear cardigans?

“No.” “Not even the children?”

“Not even the children.”

“So why do I have to wear a cardigan?”

“Because I say so.”

Seriously though, I did begin to understand what Krishnarasti was getting at. There is no easy way of knowing oneself. No procedure. Nobody can ‘teach’ me to know myself. A ‘guru’ might convince me I am seeing ‘the light’, but he can’t teach me to know myself. He is too full of his own prejudices. And I am too full of my own prejudices to look at myself clearly, in complete freedom. So what can I do? I must become aware of my conditioning. I did not have to look very hard to see that I am conditioned beyond recognition. My parents saw to that. And society.

My parents did all they could to turn me into a perfect adult like them. Perfect, self-centred, jealous, proud, callous adults. And society worked diligently to persuade me to be its useful, hardworking, honourable and obedient member. Neither taught me love, beauty, truth… To tell the truth, maybe, but not to know Plato’s truth, the truth that is the beginning of every good thing, both in Heaven and on earth.

The other ‘tip’ I picked up from Krishnarasti about knowing oneself was that I could know myself through my relationship with others. The people I am with act as a sort of mirror in which I can see myself. Yes, I can see that when I was with Andrew I was jealous, dependent, self-centred – and madly in love. Without him I was insecure, lonely and confused. I had no mirror in which to see myself. I needed a relationship.

Uncle George satisfied my need for companionship, intelligent conversation and humour, as well for the selfless love of a fellow human being. But if Uncle George was my current self-mirror, then I think I was probably looking into it through rose-tinted spectacles. When I looked at myself straight in the eye in my earthly bathroom mirror I could see that what I was craving for was a physical relationship. I needed sex. (to be continued)

CorD | December 2006

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Culture Velibor Stojaković, Manager of the Ethnographic Museum in Belgrade

guardian of culture Serbia’s Ethnographic Museum in Belgrade was established 105 years ago and its first permanent exhibition was opened in September 1904. The museum’s history is a rich tale of successful exhibit expansion and artefact acquisition, publishing, Nazi looting, post-war neglect and, of late, international exhibiting. To find out more about this guardian of Serbian culture, CorD spoke to Velibor Stojaković, Manager of the Ethnographic Museum in Belgrade,

By Željko Popivoda; photo: jelena “Mandy” Mandić

u

nder the managerial leadership of velibor stojaković, the serbian ethnographic Museum has established co-operational links with counterparts in france, greece and even australia. speaking to corD, stojanović recounts: “we travelled to sydney’s powerhouse Museum and were wonderfully received by the city’s st. george choir, which performed one of the concert repertoires they had performed as an introductory concert here in the ethnographic Museum.” stojanović would like to plan more guest exhibitions of the ethno-museum abroad, but, he says, “that is up to the government” who don’t seem to have “clear priorities” with regard to culture. stojanović has found assistance for the museum from the diplomatic corps, though, and he singles out the embassy of japan for note: “in the last couple of years we have received extremely good support from the japanese embassy, with which we have established good relations and solid co-operation. they have supported us whenever they’ve been able and we have always enabled them, through the auspices of the japan-serbian association, to have their promotions, gatherings and social events here in the Museum.” continuing cynically, stojanović tells corD: “we have the support of many ambassadors… and we think the current government is handing responsibility for the museum to the foreign community; counting on them to take care of us so they won’t be obliged to fund our activities. we will try to resolve that problem. we aren’t in a hurry, but we do feel a little neglected.”

Describing himself as an “absolute optimist”, stojanović is confident that things will turn around and the government will again give its attention to the ethnographic Museum: “Omissions happen. nobody’s perfect, certainly, but being left out of the budget does hurt us.”

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explaining that the institution’s problems go well beyond the mere restoration of a neglected building, but that the museum has succeeded in restoring some of its most valuable pieces, stojanović says: “some of our artefacts were stored in inadequate rooms in the pančevo Museum and vuk’s foundation in the middle of terazije. however, we managed to get them back here and now, after eight or nine years, we’ve succeeded in processing and protecting those artefacts.” when stojanović took on the job of managing this famous old museum, he had a mountain to climb in order to restore and resurrect the veritable treasure of neglected artefacts: “unfortunately,

“some of our artefacts were stored in inadequate rooms in the Pančevo Museum and Vuk’s Foundation in the middle of Terazije.

However, we managed to get them back here and now, after eight or nine years, we’ve succeeded in processing and protecting those artefacts.” the two managers that preceded me had spent their mandates doing nothing for about eight or nine years. however, within three years of me becoming manager we have succeeded in processing more than 80% of those artefacts. we shall continue our work, but we need support for that. it is positive that this year the government has given us at least some money to work, and we have succeeded as much as possible. But there is still much work: the ventilation system is broken and the workers are asking for a couple of hundreds of thousands of dinars to repair it – this is ventilation, not air-conditioning. this ventilation was installed in 1987, but is

Culture

Velibor Stojaković already struggling to work.” providing insight into the topsy-turvy world of financing national institutions like his, stojanović explains: “the ethnographic Museum is on the republic’s budget, but it’s no secret in serbia that the city of Belgrade has the most money. as such, we are always working with the city and the Belgrade government is pretty open towards us … in recent years at the municipal level, though, we have been gifted with something wonderful in the form of stari grad president Ms. gožidarević. she sent us a letter asking us exactly what we required – and even put suggestions like computers and air-conditioning units in brackets. we wrote back, of course, and immediately received help. it is thanks to her work that we received a telephone operator’s unit, and numerous other items of equipment. this is something that people understand is necessary, and we have succeeded to buy 30 second-hand computers, in order to link people, there is the server we should put to use by the end of the year, in order to make our network, but we still need some extra money. it is not sufficient that we have bought that from our own money. it is not easy to earn, conditionally speaking those are some of the revenues. whatever we earn we spend on storage space. in the last 4 years we have arranged six storage spaces that were in a catastrophic state. now they are excellent.” arguing his case for the maintenance and upgrade of the ethnographic Museum, stojanović says: “we have a museum that is one of the best in this part of europe, with one of the richest collections. so many years and centuries have been packed into cupboards and everything should be arranged in a certain prescribed way, protected by bars, technical protection, etc. now we have one of the best collections, which can serve as a model, and

i could even show it with pride to a delegation from new york’s Metropolitan Museum.”

Once more returning to lack of official support, stojanović says: “i cannot blame the culture Ministry because they’ve support us as much as they can, but it is regrettable that we were left out of the national investment plan. i am now searching for the real reason behind that, but i am afraid that it is merely an improper attitude towards our national treasure which made the ethnographic Museum redundant on the list of eligible projects… that is something that should burden the souls of the decisionmakers. i do not know what their criteria was and i do not know which logistics channels were used, but it seems that we obviously lacked the logistics. encouraging corD readers to pay a visit to the ethnographic Museum, stojanović speaks of the offer of this great old guardian of culture: “foreign guests can see everything in the ethnographic Museum. this principally includes the permanent exhibition, and seemingly every other day we have some sort of manifestation, exhibition and event. we are currently showing an exhibition of national geographic photos, as an example. “the Museum has completely opened itself up to the public. i think that if we employ some young people with better ideas, we would open up even more. But we also have problems related to the fact that if we want to open up completely, we need to have protection for all of our artefacts: we have completed at least 90%, but 100% is never possible to reach, although we strive to achieve it. we have completed protection of all artefacts, we have optimum working conditions for work and research, and also for further perfection.” another problem facing the ethnographic Museum team is one of a lack of space: “we have 6,000 square-metres, but not all 6,000 are used as public space. we can plan for the future to shrink that public space – the public and fixed exhibitions: there are now other techniques, so that we do not need to present every artefact materially, it can be a virtual presentation, and certain techniques can present some details showing intangible part of the culture, for instance a custom. we are working on a film about that and have gathered over 600 titles collected during the past 15 years. we expect 100 more to come. everything is documented.”

“We have a museum that is one of the best in this part of Europe, with one of the richest collections…Now we have one of the best collections, which can serve as a model, and I could even show it with pride to a delegation from New York’s Metropolitan Museum.” protecting the museum’s priceless possessions remains top of stojanović’s priorities. “next year we will open a special department for audio-visual communication, i.e. its protection. this department will be tasked with transferring all films from vhs, Beta, etc. to DvDs, hard discs, etc. using a new technique that is, of course, documented. One should turn to new things, primarily due to protection, using film, and all the other tools like archive material, photography.” emphasising the practicality of modern film and image storage methods, stojanović revealed that the ethnographic’s complete exhibition was recently sent to the serbian embassy in seoul on one cD-rom. concluding on a positive note, stojanović tells corD that the he is “motivated by the great truth that people live as long as their achievements are preserved and remembered” and, thus, “the staff of the ethnographic Museum will continue its efforts unabated and will ensure that new achievements are offered to those to whom the future belongs”.

CorD | December 2006

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My life in Belgrade

My life in Belgrade

Life isn’t all “sweetness and light” Tony Barnett,

Belgrade’s resident Mancunian

People who have never been here frequently ask me “what’s it like?” and “do you enjoy it?” and without really thinking about it I invariably reply in an animated and enthusiastic manner about “how it’s a great place” and how much I enjoy my life here.

Tony Barnett, Belgrade’s resident Mancunian

I

have lived in Belgrade a little over two and a half years. I remember arriving for the first time back in April 2004, the memory of clearing customs will stay with me forever! I spent four days here on that initial visit and from that point on I have never really looked back.

I live in the centre and work out in Zemun. The traffic can be a bit of a problem on occasions, but I consider it a small price to pay given the advantages of life in the centre. It can even be quite amusing watch the traffic cops trying to beat the logic of the automatic traffic lights system, maybe they do, but the traffic always seems to flow much better when they’re not there!

The convenience and abundance of things to do socially in the centre are wonderful when compared to the other places I have lived. Developing an enjoyable and diverse social life has been key to making the most of living and working in Serbia. The ease with which I was able to do this was a major surprise given the impressions of the place imprinted on my mind by the Western European media before I arrived.

Belgrade truly is a friendly and welcoming place. If you can’t integrate here as a foreigner, then I doubt you would be able to do it anywhere. People frequently tell me that the locals are different with foreigners “they are nice to you because you’re foreign”. Well, I’m sorry but I just don’t buy that line anymore. I’ve had too many experiences whilst living here that destroy that view. However, it does highlight the tendency by many of the local people to think the worst in any situation. Given the recent history of the place and the difficult personal circumstances many people face, I guess that it’s understandable.

Life isn’t all “sweetness and light”; you only have to look at the faces on the young children begging at the cars on the major traffic intersections to see that huge social challenges exist. I always make a point of showing friends that come to visit a “balanced” view of life here. I personally find the stark contrast of the affluent lifestyles of the “mansions of Dedinje” and the “Roma camps” a few kilometres away difficult to comprehend. This level of social injustice is a clear reminder of the reality of life here for many people; the images frequently bring me back down to earth with a bang. I guess my Northern English upbringing plays a big part in my view of these things. However, I am convinced that with time the people of Serbia, with their endless resourcefulness, will resolve these issues by themselves.

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I came here to do a job, a very challenging and difficult one.

It’s my involvement with this, and the achievements of the people I have come to know and work with during this time, which will have the most lasting impact on me. Working in Serbia has given me the opportunity to be involved in the creation of something that has made a real difference to people lives, in many cases transformed them. No amount of money or reward can compare to seeing the real happiness and joy in peoples faces when they have a tremendous sense of achievement and more importantly great self respect.

To be able to watch a group of people of all ages and from diverse social backgrounds come together in such a short period of time to build a “winning team”, is a “once in a lifetime” experience.

From a professional standpoint, the challenges continue – just with a slightly different dimension than before. My daily life has changed a lot recently, giving me a broader interaction with Government and the wider business community. This change has

The strong combination of the social enjoyment and professional achievement have really made living and working in Belgrade such a fantastic part of my life. I have witnessed a large number of changes since I first came to Belgrade, mostly positive. I hope that in the “dash” for European Union integration the “unique” aspects of the culture don’t get swamped and destroyed in the relentless quest for so-called progress. enabled me to see some new sides of Belgrade life and exposed me to different experiences. It’s also made me much more acutely aware of the “divide” that needs to be bridged between the stakeholders in the economic development of the country, a divide that can only be bridged with effective dialogue.

The strong combination of the social enjoyment and professional achievement have really made living and working in Belgrade such a fantastic part of my life. I have witnessed a large number of changes since I first came to Belgrade, mostly positive. I hope that in the “dash” for European Union integration the “unique” aspects of the culture don’t get swamped and destroyed in the relentless quest for so-called progress.

When I finally leave Belgrade and Serbia, it will be memories of the people I have met and worked with that I will take with me forever. To Belgrade, the city that I call home, for that I will always be grateful.

Interview

CorD | December 2006

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Mura Lady Female elegance is to the fore in the LeOna Autumn/ Winter collection – devised by Stefka Varga Radic.

Experience a new renaissance, while the main competition remains ‘costume’.

Mura Man Classically aristocratic, so characteristic of the Carniolus brand, with the added creative solutions of designer Andreje Bele, has been brought back to life this Autumn/Winter in a new form.

www.mura.co.yu Importer:

ZIBORN D.O.O. Beograd 011/3283-758 011/2626-967 011/3283-874

Outlets: Novi sad Njegoseva 2 021/427-872 Belgrade Knez Mihailova 47 011/2181-370 011/3283-435

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Sport

New World Order This autumn saw the Serbia & Montenegro ladies’ volleyball team secure World bronze – perhaps a surprising result for many, but not those who shaped this national team and are now eyeing Olympic Gold in Beijing in 2008.

By Aleksandar Radosavljević; photo: Tanjug

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ntil recently, Serbia was dubbed the land of basketball. But after the performances of the female national volleyball team at the 15th World Volleyball Championship in Japan, many could now argue that Serbia is on its way to becoming the land of volleyball.

After three decades spent in anonymity, Serbia’s volleyball players – performing for the last time under the name of Serbia & Montenegro – provided the initial signs of what was to come in the very first round of the tournament, when they destroyed world leaders Italy (3:1). Indeed, they eventually went on to complete their dream championship with victory against the same rival, this time even more convincingly (3:0), to secure the bronze medal.

Japan 2006 has proven to be for the national ladies’ volleyball team what the Athens 1995 European Championships was for the country’s senior men’s team. Back then, 11 years ago, the male representative team travelled off to Greece inconspicuously, unnoticed by hardly anyone but the UN sanction enforcers they had managed to evade. Nevertheless, they had a strong team under the leadership of selector Zoran Gajić and, bolstered by the likes of the skilful Grbić brothers, Brđović, Tanasković, Petrović et al, one could have predicted that this generation – that also started with a bronze medal success – was destined to achieve gold from the very beginning.

Boričić’s Promises Although it is the players that are the so-called ‘direct performers’ and are always the most deserving of – and applauded for – success, the story of the rise of Serbian volleyball should start with due mention of the visionaries who nurtured the sport in the country; men who were ahead of their time. So we come to Aleksandar Boričić – the man whose managerial skills alone have firmly established him in the positions of Chairman of Volleyball Association of Serbia (formerly Volleyball Association of Yugoslavia and Volleyball Association of SCG) and Vice-Chairman of the European Volleyball Association (CEV).

Serbs are not known for their accord. It is also not usual in Serbian sport for the country’s two leading sporting clubs – Crvena zvezda (Red Star) and Partizan (Partisan) to enjoy “creative communication”. But volleyball has bucked that tradition - the first man of Crvena zvezda volleyball, Aleksandar Boričić, and the first man of Partizan volleyball, Nenad Golijanin, knew that it was only together that they could push the state team onto the international medal podiums. Secretary General of the Volleyball Association, Slobodan Milošević, also represented a very important link in the Management team. When things are put in their right place, when we know who does what and who has what responsibility, then

Terzić: We have waited 28 years for this!

After victory against Italy in the match for the third place, SCG selector Zoran Terzić reminded that the “blue lady team” has waited for their second participation in the world championships for almost three decades: “This was the most difficult match in my career. We have all waited for that moment for 28 years. Our luck is immense. The girls deserve all congratulations. The first match in the Championship, against Italy, we played for ourselves. All the other matches, and especially this for the bronze medal, we played for our nation; for all those who have encouraged us. I thank them all, they supported us to win the medal.

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CorD | December 2006

Sport great potential come naturally...

When the male team won the bronze medal at the Olympic Games in Atlanta in 1996, Boričić instantly promised the gold in Sydney 2000. Those actually believing his prediction were few and far between, but the Volleyball Association did not have the slightest doubt about it. Optimism ruled both in the Expert Headquarters and amongst the players. The promise has been fulfilled.

Again making predictions, it was at the beginning of October this year in Moscow, during the draw for the Men’s European Championship to be held in 2007 in Russia, that Boričić announced that the country’s female volleyball players would soon become a “world hit”.

“We are happy that our female representatives have established themselves in the “upper middle layer” of world volleyball, said Boričić. “The team needs more quality matches in order to psychologically prepare itself for penetrating the top, but I firmly believe that they are going to make us happy already in Japan. From day one I made predictions that were too bold for many, but for me they were the logical sequence of things - I didn’t come up with those forecasts based purely on my emotions, but rather based on relevant information. As an Association, we have always come out with precise forecasts”.

The Fall of Italy in 111 minutes

Suzana Ćebić - Best Libero Serbian volleyball player Suzana Ćebić was declared the best Libero (specialised defensive player) of the 15th World Championship in Japan. The title included a cash prize of U.S.$50,000. The title of Most Valuable Player of the tournament went to Japanese lady Yoshi Takeshita, who won U.S.$100,000.

€150,000 from the Government The Serbian volleyball ladies received much praise and congratulations upon their return to Serbia.

Among the first to congratulate them were Serbian President Boris Tadić and Prime Minister Vojislav Koštunica, along with the 10,000-plus citizens who greeted them in front of Belgrade City Hall.

The Government of the Republic of Serbia has, according to its Decree on Rewarding Sportsmen in Major Competitions, rewarded the volleyball players with a cash prize of €150,000.

Final Standings

Confirmation of Boričić’s prophecy came as early as the first round – when the team left World Champions, Italy, in a state of shock and the world of volleyball truly surprised at the one-sided score line of three sets to one.

Two former Crvena zvezda players, Anja Spasojević and Ivana Đerisilo, opened the path to victory with 17 points each, while another former Red Star man – trainer Zoran Terzić – came out of anonymity in his meeting with his famous counterpart Massimo Barbolini.

In the second round another major force fell by the way side – Cuba, also succumbing with a 3:1 defeat. Then followed matches with somewhat easier opponents – Peru (3:2), Egypt (3:0) and Turkey (3:0).

At the beginning of the second round, there were two more sure victories, against Southern Korea (3:0) and Poland (3:0). The first defeat only came in the eighth match of the Championship, when SCG fell to host nation Japan (2:3), despite leading at two sets to love. But it was as soon as the next day that the team bounced back and succeeded in a dramatic clash with the maximum number of sets when Taiwan was defeated 3:2 (15:13 in the fifth set) and a path towards the semi-finals was opened.

The all-Serbian volleyball girl players made a brave stand in the semi-finals to perform a new miracle, but their opponents were Brazil – until that point the only undefeated team in the tournament. This time the girls from Serbia did not succeed, eventually going down (1:3).

With the final now beyond them, Serbia’s girls prepared to meet Italy again in the bronze medal play-off. With the build-up to the game gaining momentum, it was a day before the match that the question of questions came to the lips of the pros and pundits: could a rank outsider nation beat the outgoing World Champions twice in the same world tournament? A positive answer came in only 111 minutes – 3:0.

The youngest representative team in the Championship (average age 22.66 years) so ended behind the Russians and Brazilians, who met in an unforgettable final that saw the Russians secure victory by three sets to two and thus return to the throne they last sat at some 16 years ago.

Serbia has even formally separated itself from Montenegro in Japan, although this was a one hundred per cent Serbian team. Now new great promises are expected from Boričić, maybe even gold at the Olympic Games in Beijing in 2008.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13-14.

Russia Brazil Serbia and Montenegro Italy China Japan Cuba Holland United States of America Turkey Germany Taiwan South Korea Azerbaijan Poland Porto Rico Costa Rica Dominican Kazakhstan Peru Cameroon Egypt Kenya Mexico

15-16.

17-20.

21-24.

Year

Host

1952 1956 1960 1962 1967 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006

USSR France Brazil USSR Japan Bulgaria Mexico USSR Peru Czech.

China Brazil Japan Germany Japan

ALL MEDAL WINNERS Gold Silver USSR USSR USSR Japan Japan USSR Japan Cuba China China USSR Cuba Cuba Italy Russia

Poland Rumania Japan USSR USA Japan USSR Japan Peru Cuba China Brazil China USA Brazil

Bronze Czech.

Poland Czech.

Poland South Korea N. Korea S. Korea USSR USA Peru USA Russia Russia Russia SCG CorD | December 2006

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Techno Talk Cannon Selphy CP710 www.canon.com This Canon is loaded to the gills with topdrawer features, including wide-ranging compatibility with memory cards and both PictBridge and Direct Print. It also has a small yet perfectly serviceable LCD screen and is a doddle to set up and maintain.

Processing the prints:Easily the best detail on offer in this test, and colour reproduction that pips the Kodak, too. It’s also dead fast, particulary with Canon cameras, and is, therefore, perfect if you love showing off your holiday snaps to canvassers.

You can hear the Snappy Snaps shareholders crying as yet another perfect print pops out.

Price: €150

APPLE iPOD NANO www.apple.com Ooh, crumbs. With its rounded edges and different colours, Apple seems to have taken a retrograde step with the new generation of Nano. Gone is the smooth, easily-scratched but classy finish, and back comes the brushed aluminium iPOD Mini look, albeit significantly thinner, at 6.5mm. the reappearance of colours in the range will spark old debates about men buying the pink one or anyone buying the green one but only $GB buyers get to choose colours or silver: the €150 2GB version is available only in silver; the €200 8GB range-topper is exclusively black.

Price: €150

Sony Ericsson Z610i www.sonyericsson.com Typical day for a Z610i owner: roll out of bed with perfectly styled out-of-bed hair. Go to glamorous job in the Shoreditch location. Make phone calls on Z610i to famous people you’re on the first-name terms with. Go out to lunch at Claridge’s take 2MP stills of your beautiful dining partners and show them back on 2in screen. Leave phone carefully positioned on table while engrossed in jovial conversation, catch your immaculate visage in mirrored finished of phone, unbroken by external OLED screen which is now on standby. In afternoon, upload 2MP images to blog via 3G for fabulous friends in Grenoble to see.

Price: tba

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Techno Talk

A smart Balance of Mobility and Performance R1F converts easily between notebook and slate modes. A built-in fingerprints reader allows quick and painless biometric identification, enabling secure personal computing.

Enjoy revolutionary entertainment on the go with Intel Centrino Duo Mobile Tehnology. With a 13.3’’ W convertible screen and handwritten input support, R1F series is world;s first A4 sized tablet PC that offers a wide aspect visual enjoyment while remaining compact for high mobiloity. Price: €2,200 For more information on where to buy, please visit www. dl.co.yu/gdekupiti or sen your questions to info@dl.co.yu

Samsung NV10 www.samsungcamera.com ‘What’s so great about D-pads, anyway?’ asked Samsung. Then it blazed a trail with its new interface, which uses touch-sensitive buttons along both axes of the screen so you grid-reference your control icon of choice. Unusual but very neat.

Ten a penny?

There’s an inspiring feel to this fella: nostalgia mingled with tactile coating comfort. And that’s before you’ve tried the blindingly clever Smart Touch interface.

Picture quality is excellent, too.

Sexy design, great optics. A Samsung masterclass.

Price: €415

SHANLING CD-T300 www.shanling.com Which one of you just said hi-fi is boring?

Ooh, it makes us mad… Especially when there are CD players like this available. It’s a gargantuan slab of machined aluminium decorated with neon blue lights, glowing orange valves and a vibrant red LED display, and it spins CDs in a manner seldom seen in our compressed music era. The digital signal passes through eight DACs before it heads out toward the amplifier, and it has a similarly chunky external power supply, so it really means sonic business (as you’d hope, given its vast price).

Boring? Far from it.

Price: €6,000

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Techno Talk SONY PS3 www.sony.com Primary weapon: 1080p HD gaming Secondary weapon: Blu-Ray player Last to enter the battlefield, the pS3 comes with a weaponry honed to perfection. The Wii controller attempts to swat it away like a tennis ball but the PS3’s joypad pitches to the side in an evasive manoeuvre. Then the PS3 unleashes its media capabilities-Blu-Ray discs cut through the air and invisible Wi-Fi streams commands its media hordes. We have our winner.

Price: tba

Palm Treo 750v

www.euro.palm.com Palm, what have you done? Having survived since the year dot on your own operating system, refusing to follow the lemming-like masses, you’ve finally succumbed to the dark side-Windows Mobile 5.0. But don’t worry, Mr. Treo 750v, we won’t judge you. We will, however, judge your features, such as the ability to edit Word and Excel Mobile documents, HSDPA upgradeability, 1.3MP camera and miniSD expansion slot. We sentence you to a lifetime in our sweaty pockets.

Price: tba

Nokia N80 www.nokia.co.uk Nokia’s latest delivers a features bonanza. With 40MB of onboard memory plus a miniSD card slot, it’ll play multiple format music (including FM radio), shoot pics and video via a 3MP camera and surf the web via 3G or Wi-Fi. It will also make the tea and clean your flat.

Price: tba

Oakley O Rokr www.oakley.com Whatever gnarly activity you’re engaged in, the O Rokrs can enhance the experience. Visually, through the use of Oakley’s Plutonite lenses, but also audibly. Previous MP3-playing specs were treated with some disdain but these are a bit more exciting because they use a2DP Bluetooth stereo music streaming, either from a compatible mobile phone or, with an adaptor, any MP3 player. Calls interrupt the music, and Oakley claims a battery life up to five hours talk time. Lenses are interchangeable to suit the conditions. Price: €300

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Techno Talk

JVC EVERIO GZ-MG505 3CCD, Detailed and colourful but some times too vivid, A whopping 30GB for 7 hours of top-quality footage, Big bright and widescreen but grainy and blurry, Compact but by no means pocketable, Ropey 5megapixel job, The Sanyo’s HD capture Price: €1,200

DAHON JACK

www.dahon.co.uk London is awash with people riding small folding bikes; all spinning wheels and legs and indignity. Treat yourself to a proper folder. Sure, it doesn’t fold as small but it can circumnavigate a drain cover.

Price: €515

NINTENDO Wii

www.nintendo-europe.com With the PS3 rumoured to cost as a really, really good night out, there are still chance that gamers would be buying both new consoles this Christmas. Now that the PS3 is delayed, the Wii should sell like a particularly warm currant bun. And what a currant bun it is…

Price: €250

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Belgrade directory of all ages, as well as a ball pool and plenty of space for running and jumping. The playgroup, located at 165a Mihajla Pupina Street, is open seven-days-a-week from 3pm to 9pm. Contact PUF-PUF on 311-1793.

...Buy original CDs

CorD's editorial staff will attempt to find and give answers to questions of current interest to our readers, so please send in your questions for future editions. In this issue.

...Enjoy a relaxing spa If you want to relieve yourself from the stress of daily life and find sanctuary from the worrying world, try the positive and relaxing environment of a local spa. Serbia has many spa centres across the nation, but for those of you stuck in the humdrum of Belgrade we recommend the Belgrade Spa Centre, located in the heart of the city at 5 Strahinića Bana Street, Dorćol. The Centre offers professional massages, steam bath, a relaxation table, manicures, pedicures and much more. The Spa Centre also offers an exclusive VIP Package with lots of extra benefits for regular users to enjoy.

The Belgrade Spa Centre is open from Monday to Saturday. Contact them to make your reservation on 3285-408.

...Go skating If you find your desire for skating frustrated by the salt and grit laying on Belgrade streets this winter, why not visit one of Belgrade’s skating rinks and enjoy warming refreshments while you skate the day away? Belgrade’s Olympic-sized skating rink at ‘Hala Pionir’ is open to the public year-round, and also stages ice hockey events and figure skating competitions. During the winter months, the fresh air skating experience is provided at the romantic setting of Kalemegdan fortress. Situated beside the basketball and tennis courts, Kalemegdan’s skating rink is open throughout the winter months and offers skating to music, as well as a snack bar.

...Play squash: One way to fight off the winter chill is to partake of some serious exercise. And what better way than an invigorating game of squash? Belgrade’s Pionirski Park (Košutnjak) boasts a squash club that you can join for 3, 6 or 12 months. There is also a discounted Family package for ‘Squashland’ members and the centre offers organised matches with professionals and professional instruction for junior players from 10am to 5pm daily. Call Squashland on 063 305-744, or visit their website at www.squash.co.yu

...Entertain your children If you find yourself unable to get a break from your kids, or you find your children bored and lacking a peer-group environment, why not take them to the PUF-PUF Playgroup. This fully-supervised indoor play centre has a wide range of toys and games for children

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Fed up of cheap, low quality copies? Why not visit central Belgrade’s ‘Mamut’ store, which offers a wide range of original CDs, from popular, to classical, to jazz and folk; English-language books, DVDs, videos and much more. Situated on the corner of Sremska and Knez Mihajlova Street, Mamut offers a wide range of international newspapers and magazines, and has many gift ideas.

Alternatively, try Knez Mihajlova’s popular ‘Belgrade Window’ – opposite the fountain and the Mexican embassy. On Belgrade Window’s subterranean floor one can listen to the music on offer before buying, and the store also sells tickets to all major events in the city.

...Find out more about Nikola Tesla Famous, world-renowned local scientist, Nikola Tesla, is so popular in Belgrade that there is an entire museum devoted to his life and works. The Nikola Tesla Museum displays personal belongings of the great scientific innovator, which where transferred to Belgrade in accordance with his last will and testament follow his death in New York in 1943. The wealth of archive material, which includes more than 150,000 documents relating to his life and creative works, as well as exhibitions of his inventions and scientific innovations, ensure that this museum is one of Belgrade’s most unique and important institutions. The Nikola Tesla Museum, located at 51 Krunska Street, is open Tuesday – Friday from 10am to 6pm, and weekends from 10am to 1pm.

Make yourself understood Find yourself frustrated by your inability to say simple things in Serbian? Here at CorD we are endeavouring to make your stay in the State Union a tad less alien by providing a few simple phrases that will help you make yourself understood: I’m in Belgrade on business/holiday Ja sam poslovno/na odmoru u Beogradu My car has broken down. I need assistance.

Pokvario mi se auto. Treba mi pomoć.

Could you recommend a good restaurant nearby?

Možete li mi preporučiti dobar restoran u blizini?

What’s the best way to get to the British Embassy from here?

Koji je najbolji put do Britanske Ambasade odavde?

I have an 8 o’clock reservation in the name of Bloggs Imam rezervaciju za osam sati na ime Blogs I’ll be back in five minutes/half an hour.

Vraćam se za pet minuta/pola sata.

What do you do for a living? Čime se bavite?

When does the bus to Novi Sad depart?

Kada polazi autobus za Novi Sad?

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