CorD Magazine, May 2019, issue no. 175

Ambassador of the People’s Republic of China to Serbia

NELA KUBUROVIĆ

The Importance Of Not Representing A Precedent

We Want A Law That Will Be Just And Efficient

Analyst, Visiting Professor at LSEE

www.cordmagazine.com

Solid Steel Friendship

JAMES KER-LINDSAY

Serbian Minister of Justice

MAY 2019/ ISSUE NO. 175

H.E. CHEN BO

interviews opinions news comments events COMMENT

Brexit

No (Good) Exit FOCUS: DO WE NEED A NEW LAW TO DETERMINE

The Origins Of Assets?

Exclusive

VLADIMIR KOSTIĆ PH.D.

783002 771451 9

Preserving Identity Is Investing In Freedom

ISSN1451-7833

PRESIDENT OF THE SERBIAN ACADEMY OF SCIENCE AND THE ARTS, SASA

CONTENTS

COMMENT

NEBOJŠA KATIĆ

BREXIT - NO (GOOD) EXIT When the UK formally initiated the process of leaving the EU by triggering Article 50 of the Lisbon Treaty two years ago, the British government promised the UK would leave the EU on 29th March 2019, with a new trade agreement combining the best of all worlds

10 PRESERVING IDENTITY IS INVESTING IN FREEDOM VLADIMIR KOSTIĆ PH.D. President of the Serbian Academy of Science and the Arts, SASA

PRECEDENT

JAMES KER-LINDSAY Analyst, Visiting Professor at LSEE

28 DO WE NEED A NEW LAW TO DETERMINE THE ORIGINS OF ASSETS? FOCUS: Tax Policy

34 CORD CHARITY MASTERS 2019

BELGRADE MARATHON

16 SOLID STEEL FRIENDSHIP

H.E. CHEN BO Ambassador of the People’s Republic of China to Serbia

36 HONOUR, JOB & RESPONSIBILITY

INTERNATIONAL WOMEN’S CLUB BELGRADE

38 THE NEW JAPANESE ERA NAME IS “REIWA” FEATURE

39 BUSINESS DIALOGUE 52 SIMPLE TRICKS - THE BEST WAY FOR A SUCCESSFUL BUSINESS ENTERPRENEUR: Richard Branson

@CORD_MAGAZINE

@CORDMAGAZINE

CORD MAGAZINE

EDITOR IN CHIEF: Miroslava Nešić-Bikić m.bikic@aim.rs DESIGNER: Jasmina Laković j.lakovic@aim.rs CONTRIBUTORS: Rob Dugdale, Maja Vukadinović,

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Associate Professor at the University of Belgrade’s Faculty of Organisational Sciences

22 GLOBAL DIARY 24 THE IMPORTANCE OF NOT REPRESENTING A

Mirjana Jovanović, Miša Brkić, Ljubica Gojgić Radmila Stanković, Steve MacKenzie, Zorica Todorović Mirković, Sonja Ćirić, Miloš Belčević EDITORIAL MANAGER: Neda Lukić n.lukic@aim.rs PHOTOS: Zoran Petrović COPY EDITOR: Mark Pullen

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55 MATHS AND THE BEAUTY OF THE WORLD VESNA TODORCEVIĆ, PH.D. Associate Research Professor at the SASA Mathematical Institute;

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72 CULTURE CALENDAR 74 AFTER WORK Phone: +(381 11) 2450 508 Fax: +(381 11) 2450 122 E-mail: office@aim.rs office@cordmagazine.com www.cordmagazine.com www.aim.rs ISSN no: 1451-7833 All rights reserved alliance international media 2019

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Comment

Brexit

No (Good) Exit NEBOJŠA KATIĆ ECONOMIST

T

he UK would leave the single market and the customs union while being able to trade with the EU as before, but would also be free to sign trade agreements with the rest of the world. Immigration would be firmly controlled and the UK would no longer come under the jurisdiction of the European Court of Justice, nor be subject to EU laws.

Unburdened by extensive EU regulations, the UK would become a haven for foreign investments and multinational corporations, becoming the “Singapore of Europe”, rich and fully sovereign.

Today, not even ardent Brexiteers believe in this rosy scenario. The UK is still in the EU, with its departure extended until 31st October 2019.

Instead of a quick, clinical exit, the UK and its economy are struggling with constant uncertainty, stress and political chaos.

The EU is the UK’s largest market by far, accounting for 47% of goods and services. Meanwhile, EU exports to the UK comprise 15% of total EU exports. The trade arithmetic clearly favours the EU, giving it an upper hand in Brexit negotiations. The EU wants an orderly Brexit, but not to allow the UK to profit – the Brexit trauma should be a lesson not only for the UK, but for all EU members who might contemplate exiting.

The EU insists that no negotiations on a new trade agreement take place before the UK leaves.

The current drama is about the withdrawal agreement – just the first phase of a long exit process.

Trade agreement negotiations will come later and

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When the UK formally initiated the process of leaving the EU by triggering Article 50 of the Lisbon Treaty two years ago, the British government promised the UK would leave the EU on 29th March 2019, with a new trade agreement combining the best of all worlds will be much harder, especially regarding services.

The withdrawal agreement that the government is trying (so far unsuccessfully) to push through Parliament would keep the UK within the customs union until a new trade agreement is negotiated. How long the UK would stay in the customs union is impossible to predict, as it also depends on the EU. Instead of the best of all worlds, the UK will have the worst – tied to the EU via a customs union, the UK will have to follow all EU rules while losing its influence over the EU, and will not be able to forge separate trade deals.

If the UK crashes out of the EU and has a so-called ‘no-deal’ Brexit, (as is the wish of diehard Brexiteers) the UK would enter uncharted territory. No one knows how a no-deal Brexit would work or how UK industry would cope.

Relying on smooth supply lines, modern industries are based on a just-in-time system and function with minimal stock. The potential disruption to

The current drama is about the withdrawal agreement – just the first phase in a long exit process. Trade agreement negotiations will come later and will be much harder, especially regarding services

trade and long queues at borders would create chaos and lead to unnecessary costs, at least in the short term. The status of the border between Northern Ireland and the Republic of Ireland – for which the UK signed an international agreement committing not to implement a hard border and customs checks – also faces uncertainty.

If Goldman Sachs is to be believed, the UK’s economic losses since the 2016 referendum are in the range of £600 million per week. Cumulatively, the UK has already lost around 2.4% of potential GDP. Projections for a future with a no-deal Brexit are even worse. The IMF anticipates that the UK would suffer recessions in 2019 and 2020, even without any border disruptions. By the end of 2021, GDP would be 3.5% lower compared to the alternative “softer” Brexit scenario. EU economies would also suffer, but to a much lesser extent, with cumulative losses of approximately 0.5% by year’s end 2021. The EU is already seriously lagging behind the U.S. and China, and Brexit has only exacerbated the problem.

Economic predictions are notoriously unreliable, or as J. K. Galbraith stated, “the only function of economic forecasting is to make astrology look respectable”. Yet, when it comes to Brexit, the probability of a disastrous economic outcome is not just political scaremongering.

Ironically, a political system that never cared much for direct democracy has become a hostage of an ill-advised and badly-timed referendum.

This self-inflicted harm might prove to be the costliest blunder in modern UK history.

Interview Exclusive VLADIMIR KOSTIĆ PH.D. PRESIDENT OF THE SERBIAN ACADEMY OF SCIENCE AND THE ARTS, SASA

Professor Vladimir Kostić is set to remain at the head of SASA for the next four years. This was decided by academics, the vast majority of whom voted to re-elect him to that function. In his first address to the public, in this exclusive interview for CorD magazine, the SASA president says that preserving the Serbian language and culture remains the priority of this institution. The work of the Academy is often overlooked because, as professor Kostić estimates, for almost 30 years we’ve been living through a “dramatically decisive moment” in which politics “consumes everything”. That’s why SASA will continue to offer alternative content, based on science and art, and to create space for communication on these and similar issues for all thinkers and worried fellow citizens, says its president. Professor Kostić, you said in your first address that you were afraid of such a large number of votes for you to remain at the head of the Academy. How much were you jesting when you stated that you marveled at the fact that you haven’t made

Preserving Identity Is

Investing In Freedom This time and its communication technologies are not favourable to small nations. Moreover, the seemingly unobtrusively drawn stance that we are closer to the shores of some global civilisation and cultural course, and that we’ll receive everything we need when we get there - is only enough for us to forget what has been and what we were. Blissful ignorance of the future! Although these words of mine will probably be understood as the mystification of identity, I consider its preservation as a prerequisite, a kind of deposit for free, straight and creative communication with the world - Vladimir Kostić 10

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PEOPLE

It is necessary to abandon every dream and illusion of “unrequited love” that you will receive from people around you

LABYRINTH

I consider it a prerequisite for self-determination, without which we are lost in the current historical, political and cultural labyrinth - tradition, language and culture are our Ariadne’s thread

more opponents among academics over the past four years?

Of course, I see now, it was to do with an unsuccessful joke. Or, better, half-joke. Specifically, if you manage or coordinate something, or if, like me, you’re led into a situation where you are, somewhere and sometimes, the first among equals, and are thus forced to make decisions, it is necessary to abandon every dream and illusion of “unrequited love” that you will receive from people around you. And if nobody has found fault with you and hasn’t done so (imagine!) for a full four years, then you’re just a more or less successful demagogue – at the Serbian Academy of Sciences and Arts (SASA) those sorts are read quickly and easily. I think, however, that my colleagues recognised that I expressed my views to them honestly, to their faces, without hatred and some personal interests, out of the box and intrigue - even when I was mistaken (and I made mistakes!). And that’s why I’ve been “punished” with four additional years, regardless of my “good rule”.

of Kosovo). But in such a rigorous everyday life, we declare ourselves and the “small” things of life as ephemeral, we get angry, for example, when someone speaks about the plastic bags that have overtaken our landscapes, about museums around Serbia etc., etc. - with the kind of response, where have you now found that; as if we don’t have more important things to deal with. And this overlooking of life and daily existence will cost us. I see the solution – at least when it comes to SASA – in

DIVERSITY

Diversity of attitudes and ideas is a bigger “gift” in one’s environment and a more responsible way of fulfilling the duties of institutions like SASA, universities etc the realisation of alternative contents, based on science and the arts, but also on creating space for communication regarding these and similar issues for all thinking and worried fellow citizens. Which is precisely what we’re already doing! As one of the priorities of the Academy during your new term, you’ve mentioned “preserving the language” and continuing work on the Dictionary of the Serbian lan-

You consider that Serbian society overlooks a large number of SASA activities due to politics having “consumed everything”. Do you intend to change something in communicating with the public, or will you perhaps more vehemently oppose the dominance of politics?

I do not think SASA is the only one, nor a special “victim” of the overlooking of the work and activities of scientific and artistic institutions. Over the past decades we’ve created an everyday atmosphere of political and historical “fractures”; our country has for almost 30 years been in a dramatically decisive moment, an “either-or” situation, “arrive and flee, and exist in a terrible place” - unfortunately, I will reiterate, for us this is not a moment, rather it’s been an everyday state for decades. We are rather reluctant to plan, because, here, “it’s just about to break!”, so we’ll deal with it afterwards. It would be improper of me not to say that this isn’t only collective paranoia – to which we, like other societies, are prone, but rather it is also a mental state with many rational reasons (for example, the hijacking

When it comes to the issue of academic honesty, SASA was among the first to organise a summit on this issue a few years ago, and from the SASA ranks have come not only initiatives, but also proposals of legislative texts regarding the issues to which you are referring

guage, which already has 20 volumes, while the Serbian Language Institute say that this is only half. Discussion of the Serbian language is sometimes vulgarized with the question: do you write in the Latin or Cyrillic scripts. How do you view this “dilemma”?

You’ve mentioned some of SASA’s key priorities in the sphere of culture, which were actually defined as such as far back as1842, when our predecessor, the Serbian Learned Society, was founded. Specifically, one of the problems caused by globalisation is the phenomenon of the English language, which has become the “lingua franca” of the scientific communication, while command of English is almost a condition of the global literacy of an individual.

Huntington cunningly consoles us by suggesting

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Interview Exclusive this is about the de-ethnicised language, which is separate from some specific culture that its use would silently impose on us. Nor are Karmani and Penikuk much more serious in their attempts to promote the “innocence” of the monopoly of the English language in various spheres by citing the fact that Islamic terrorists spoke it fluently when they attacked American landmarks on 11th September 2001. I’m afraid that small nations are again awaited

by a double job: to persistently nurture both their own language and multilingualism, as an imperative. Do you still consider it a challenging issue to preserve, during times of globalisation, the culture and language of a nation that’s small both in terms of territory and population numbers?

In two programmes of the SASA Executive Board, in the space of four years, this issue has been emphasised as being crucial: that which we must not forget and what we have to put into the bundling our own identity through the erased space of globalisation. This time and its communication technologies are not favourable to small nations. Moreover, the seemingly unobtrusively drawn stance that we are closer to the shores of some global civilisation and cultural course, and that we’ll receive everything we need when we get there - is only enough for us to forget what has been and what we were. Blissful ignorance of the future! Although these words of mine will probably be understood as the mystification of identity, I consider its preservation as a

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prerequisite, a kind of deposit for free, straight and creative communication with the world. Finally, I consider it a prerequisite for self-determination, without which we are lost in the current historical, political and cultural labyrinth - tradition, language and culture are our Ariadne’s thread. Individual critics of the Academy resent the alleged aloofness regarding burning is-

In the previous year alone, and only in the building in Kneza Mihaila Street, the most diverse activities have been carried out at SASA on an almost daily basis, which have been attended by between 150,000 and 180,000 citizens sues, both regarding Kosovo and regarding the situation in the academic community, which is contaminated by accusations of fake doctorates and the hyper-production of college degrees. Should the Academy participate more actively in such discussions?

Incorrect and sad! In the previous year alone, and only in the building in Kneza Mihaila Street, the

most diverse activities have been carried out at SASA on an almost daily basis, which have been attended by between 150,000 and 180,000 citizens. When it comes to Kosovo, during the dialogue that has been launched, the shortcomings of which we’ve noted very specifically, we didn’t want that which we considered and that which we said to sink under the sand, rather we are – as far as I know – the only institution that has published a book containing the stances of its members. This, you’ll admit, is something that’s more enduring! That book was offered for free to anyone who showed an interest.

Within the book, alongside the stances of academics, hundreds of references (books, monographs, studies, papers...) that SASA has published about Kosovo are exhaustively cited, in order for the continuity and intensity with which SASA deals with this problem to be seen.

Also functioning within SASA is the Academic Committee for Kosovo, which regularly publishes anthologies with exceptionally significant texts, about which one of our politicians said spontaneously some time ago, “Well, if I’d had them when I needed them!” And those texts were freely available.

When it comes to the issue of academic honesty, SASA was among the first to organise a summit on this issue a few years ago, and from the SASA ranks have come not only initiatives, but also proposals of legislative texts regarding the issues to which you are referring. At least 10 meetings have been held since then, at which problems in the sphere of academic ethics have been addressed, and all those gatherings were open to the public. And here we see that even you haven’t been informed about that.

The third issue is the persistent pushing for SASA to declare its political, and even partocratic commitment. They don’t even ask why we don’t declare ourselves, but rather why don’t say “this and that” loudly. It’s like we’re a loudspeaker for the opinions and interests of other. If the prerequisite for acknowledging our engagement and activities is that we uncritically reiterate the words of others that will be submitted to us from all sides, then let the false claim that SASA “doesn’t do anything” remain in this intoxicating blogosphere. You stated in one recent interview that the state leadership has never called on the Academy with regard to resolving the issue of Kosovo. If they had, do you believe that SASA would be able to respond with a unified voice?

Often looming behind the unanimity of an institution is the cowardice of individuals, who avoid defining their stance, choosing institutions to hide behind, even when they are not entirely concordant. That’s much more comfortable. On the other hand, SASA is not a choral institution, and much has already been said about that, although various groups send us finished texts and definitive stances that we are supposedly meant to read unaltered.

Finally, let me ask a question, if we all think the same thing, why would one even initiate discussion?

Diversity of attitudes and ideas is a bigger “gift” in one’s environment and a more responsible way of fulfilling the duties of institutions like SASA, universities etc. If nothing else – unless you nurture the illusion, like many in this Serbia of ours, that the truth is solely in their possession – we’ll have something to discuss. Do you consider that any agreement between Belgrade and Priština must also address the issue of the cultural and religious

heritage in Kosovo and whether it should remain “Serb” rather than Kosovar, as it is argued in the request for Kosovo to become a UNESCO member?

In one interview a long time ago that I was criticised for, I wrote some words that went unnoticed: “Kosovo, of course, implies a huge part of that which constitutes our cultural heritage. We have to fight tooth and nail regarding that, for the simple reason that it is an attempt to actually subvert something that constitutes a substrate of our history and part of our psychology, and whatever you want.” I haven’t changed my opinion, and I perceive the idea of “the cultural heritage of Kosovo” as a mockery, as another irrational attempt at humiliation. I will not hide from the apostles of political correctness who pillage Europe and I cannot believe for an instant that those who targetted their attacks against 236 churches, monasteries and other objects owned by the Serbian Orthodox Church suddenly and idyllicly feel at one point that these are valuable treasures of civilisation that should be preserved.

I don’t believe that those who were burning them down until yesterday, without the feeling that they belonged to the civilisation and any other context in which those monuments emerged, would struggle with the rankling of conscience for the church of the Virgin Hodegetria from 1315, the Church of St. Nicholas from 1331, the Church of Saint Saviour from 1348, or the Hermitage and Monastery of St. Peter of Koriša from the early 13th century. How can modern cynicism explain the sorrow of 5,261 (that number has unhappily increased in the meantime) tombstones destroyed or damaged at 256 of our graveyards, while at more than 50 of them not a single monument remains intact.

If they take from us the care and context of “Serbian monuments”, they will only convince me that the powerful don’t want either peace or reconciliation in those areas, but rather only a useful open wound for their pathetic and ruthless geostrategic circumvention.

In describing Dečani Monastery, academic Mihailo Lalić, in Zatočnici, the second volume of

Interview Exclusive the difficult demographic, economic, technological and other consequences of isolation which we have experience of from the not-so-distant past.” How to achieve this is not a question for one man, but rather for a multitude of people and institutions.

the memoirs and diary of Peja Grujović, writes: “I knew a little, more from poetry than history, about this monastery; I also saw it in pictures, but that he stands there new for six centuries, outlasting Serbs, Turks and Albanians with white caps and their frequent scuffles, long periods of hate and shortlived reconciliation – that seemed unbelievable. It seemed to me, and still appears to me now, that there is something supernatural in that building – some miraculous fusion of ennobled matter and a soul caught in matter. Without such a balance between distant and opposing elements from two halves of the cosmos, without their embrace, it could not have happened that something would endure for so long in a land where everything is short-lived and disappears quickly... I would like to see it again, to check if its soul is really in beauty, as I think, and beauty in the promise and hope it gives to everyone who sees it, regardless of the faith to which they belong.” You’ve expressed concern that Serbia’s relations with the international community, in which you’ve noted that there was cruelty towards Serbia, could again reach the stage of dangerous isolation. If we add to this the fact that political decisions in the world are dictated by “military and economic” power, how can such a scenario be avoided?

For me personally, the bombing of Serbia was an inappropriate and irresponsible crime. Today, twenty years later, I’m still not able to understand the harshness and exclusivity with which it was carried out: in all of that there is something irrational, some strange historical and ideological resentment and vulgar prejudices. However, it is essential for us to try to understand, even demented motives, that exclusivity and cruelty, in order for that scenario not to repeat itself. In conversations with people from abroad, when we try to shed light on that time and those circumstances, I’m not as insulted by the ease with which our arguments are rejected as I am by the disinterest and indifference, even there where we don’t expect it, which convinces me that many of my interlocutors wouldn’t be overly disturbed if everything were to be repeated. However, no less dangerous than those who politically and militarily initiated the bombing are those around us, but also among us, who advocate for positions that lead to Serbia’s isolation. That attitude also encouraged me to include the following lines in the previously cited SASA book about Kosovo: “In the choice of its own

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According to the more optimistic scenario, Serbia could become a member of the EU by around 2025. Do you believe in such a possibility?

Frankly, no. I don’t believe I will await that moment during my lifetime. It’s true that if I go earlier, before 2025, perhaps some chance actually exists. What exactly do you mean when you say that “the ‘future’ is the most expensive Serbian word”?

It is actually that for all nations, so naturally also mine, that future is the most expensive word. I’m afraid that we often overlook that in choosing our priorities here. We negligently leave it for the end of our daily agenda, under the item “various”, and given that our meetings last too long, we leave that part of the agenda for the next meeting... and so on.

We are obliged to imagine all the frustrations (even psychological), alongside undoubted and key economic problems, that contribute to our readiness to get involved in planning and to support the “great escape” of our children decisions, I believe that Serbia should take care not to be isolated again and excluded from the flows of the wider environment to which it belongs. (Only) with defiance reinforced by experience, which I share myself, that the isolation and sanctions imposed on Serbia were unjust and destructive, it is counterproductive and – if it is made absolute in a political stance – is contrary to the interests of citizens, the nation and the state... Moreover, Serbia’s isolation would be the ultimate success of its hypothetical “cursed enemies” (under the proviso that they exist), because we are all aware of

As a professor at the Faculty of Medicine, you have certainly witnessed the great interest in leaving the country among young people. The devastating information recorded by statisticians as a novelty is that they are now largely supported by their parents in that intention. Do you believe the scenario that suggests there will soon be “nobody to treat us” in Serbia?

As a layman who’s heard a lot about this problem in recent years, it seems to me that these are terribly complex issues that aren’t only hitting Serbia.

With an apology in the case that these words remind you of another text: an anathema is circling Europe, an anathema of negative demographic trends. The resounding statistics cited at one recent symposium at SASA are quite scary: specifically, it is estimated that the Serbian population fell in the period between censuses (2002-2014) by between 367,000 and 422,000, with the migration component contributing between 15 and 26 per cent to this decline. Over the period of a quarter of a century, Serbia has recorded negative natural growth year-on-year. Serbia’s loses around five of every 1,000 inhabitants per year. Apart from departures abroad, internal migrations are also unfavourable: seven consecutive censuses reveal

that populations are abandoning most settlements, with populations growing only in Belgrade and a few urban centres.

Somehow, the belief that “there is no life here” has crept in and settled. I don’t recall having seen on television until recently those students who rank top at domestic colleges, while with almost sweet pleasure we show the wonderful young people who were accepted by foreign universities and who, precisely because “the best are leaving” (though nobody has ever proved that precisely – it won’t be the case that only the incompetent stay here), only illustrate the initial premise that we have placed an unquestioned axiom on a pedestal.

I’ve been shook even more in recent years by the fact that it is not only people at the beginning of their careers who are leaving, but rather established, middle-aged experts of 40-45, who take their families with them. I wouldn’t want anybody to think that I mean people only leave because they are spoiled, but some also leave due to an absence of full insight and information. We are obliged to imagine all the frustrations (even psychological), alongside undoubted and key economic problems, that contribute to our readiness to get involved in planning and to support the “great escape” of our children. Are they and us, as their parents, with our opportunism and resistance to every change to the status quo, with the perseverance of the elderly, that it is not them but us who need to plan their future, one of the reasons... But that was written about in an incomparably better and more talented way by Duško Kovačević.

As for the scenario that there soon “won’t be anyone to treat us”, it also imposed on my generation the notion that those who remained weren’t very worthy. I can’t speak in global terms, but at the Neuroscience Clinic I see that there are five or six young specialists in my group alone who know much more than I knew at their age, who have no reason not to be better doctors and researchers than me in the years to come (perhaps that’s not much, but it’s the most proper comparison as far as I’m concerned). If they stay... You’ve cited bringing the Academy closer to young people as one of your goals. How do you intend to achieve that?

Certainly not through paternalism! Probably with more considered contents of work. If there is a certain interruption, or at least a weaker signal in trans-generational communication (and I believe

to nevertheless make them aware that our experiences and the values that we’ve held (to the extent to which we held them) perhaps are still of some value to them. Such attempts have been made at SASA over the last four years, but they weren’t particularly successful. How important is international cooperation to the work of the Academy and, in this context, what does the recent signing of the Cooperation Agreement with the Chinese Academy of Sciences mean for SASA?

I’m afraid that we often overlook that in choosing our priorities here. We negligently leave it for the end of our daily agenda, under the item “various”, and given that our meetings last too long, we leave that part of the agenda for the next meeting... and so on that exists), and if we accept as a postulate that there are no better or worse generations (only younger and older), then we are duty-bound to try to understand the younger generations and their time. I realised that I am infinitely caricatured and pathetic when I speak with my children, even with my grandchildren, starting my tirade with “in my time” - my eldest grandson answered me without a lot of sentiment, saying “your time has passed!” Apart from that, it is our responsibility

International cooperation with other national academies was also extremely important during the previous leadership, and we merely continued with this policy. Of course, one should bear in mind that the structure of national academies is heterogeneous: in some place they are academies similar to ours, while in some places academies of science and academies of art are separate entities.

In China, for example, there is a separate Chinese Academy of Science, devoted to natural and mathematical sciences, with which we signed an agreement, and the Academy of Social Sciences, with which we will soon have a meeting, and in some countries, like Greece, there is no institution similar to the national academies of the majority of other countries. Our priority is regional cooperation, but unfortunately, not ideally, it is slower with some neighbours than SASA would wish, though we are aware that politics continues to have a significant impact on the decision-making of some of our neighbours. I’m not overly optimistic, at least not for the near future!

As for cooperation with the Chinese Academy of Sciences, there is a striking difference in size and potential: for example, operating within it are over 100 institutes with around 70,000 researchers and scientists, under its auspices operate three universities and a number of organisations that facilitate the exploitation (even commercial!) of scientific achievements, with a turnover that’s around 1.5 times higher than the entire Serbian budget. Others rush to cooperate with such a powerful institution.

We are evidently awaited by the job – given these frustrating relations – of defining spaces where we have something to contribute. Some of this is already unfolding through bilateral projects. Finally, it is important for us to emphasise that we’re also awaited this year by the signing of an agreement with Germany’s Leopoldina Academy of Science.

In short, it turns nonetheless.

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Interview H.E. CHEN BO

AMBASSADOR OF THE PEOPLE’S REPUBLIC OF CHINA TO SERBIA

China’s new ambassador to Serbia, Mrs Chen Bo, returns to the country after having served here in the ‘90s, and it’s no surprise that she continues the practise of her predecessors by conversing with her interlocutors in Belgrade in excellent Serbian. In this interview for CorD magazine, she talks about the changes she’s noticed in Serbia, but also about the new policy of economic cooperation between China and Serbia, which has only intensified with the launch of the Belt and Road Initiative. Talking about the fear of economic downturn for China, Ambassador Chen Bo says that it is a reflection of the “trend of protectionist thinking” adding that she believes that, when it comes to relations with the European Union, this is “just one murmur” in cooperation. This murmur in communication is being monitored with interest in Serbia, given that it has based its economic recovery on foreign investments, which are increasingly coming from

Solid Steel

Friendship

“Following the HBIS Group’s purchase of the steelworks and a number of reforms to production and management processes, the Smederevo Steelworks has become Serbia’s largest exporter and an employer of 5,000 workers. The problem of the quota [for the EU] represents a major challenge for the steelworks and has a negative impact on its work. We expect the quota problem to be resolved as soon as possible, in order to prevent it from having a negative impact on the healthy development of the steelworks” - Ambassador Chen Bo 16

May

SPECIAL PLACE

Serbia is a country where I’ve studied and worked, the first country I resided in for a long time after China, and it has a special place in my heart

China, but also on economic partnership with the EU. That’s why the fate of steel exports from Smederevo, which is now the property of China’s HBIS Group, was among the unavoidable issues. Your Excellency, it was noted when your arrival in Belgrade was announced that you would be returning to Serbia for a third time, having already served on two different occasions at the Embassy of the People’s Republic of China in Belgrade. Now that you’re returning as an ambassador, what are your new first impressions?

I am particularly joyed to be working in Serbia again; I feel simultaneously happy and responsible after having assumed the position of Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to the Republic of Serbia. Serbia is a country where I’ve studied and worked, the first country I resided in for a long time after China, and it has a special place in my heart. When I came back to Serbia, I noticed the changes taking place – lots of tall cranes, lots of cars in traffic, new projects, constructions of new factories; a vibrant scene. After suffering, Serbia has returned to the path of prosperity and development, which makes me very happy.

I feel deeply that Serbia hasn’t changed in some sense – it is still hospitable, open and inclusive, full of friendly feelings towards China and the Chinese people. I am ready to dedicate myself exclusively to deepening the traditionally friendly relations between our two countries and to be a “bridge” and envoy of our two peoples. The start of your mandate in Serbia was marked by the laying of the foundation stone for the construction of a large factory for manufacturing tyres in Zrenjanin, which is being opened by Chinese company Sandong Lindong. Are you satisfied with this major company’s decision to start doing business in Serbia?

I am of course pleased, as the ambassador of

INVESTMENT

We believe that ever more investors will have a positive view of the development potential of the Western Balkan countries

China, that such a large project of a Chinese company is being implemented in the Republic of Serbia. In recent years, under the personal leadership of President Xi Jinping and President Aleksandar Vučić, on the basis of the Belt and Road Initiative (BRI), cooperation between China and Serbia has yielded tangible results.

SCIENCE

Cooperation in the field of scientific research is still in its infancy, but it is believed that following this visit - bilateral cooperation will intensify in this field

The project to construct Linglong’s tyre factory is the embodiment of mutually beneficial and winning cooperation between our two countries.

The investment in this project is worth nearly a billion U.S. dollars. Jobs are being created for 1,200 workers. The construction of one of the most modern factories for the production of tyres

PRESIDENT ALEKSANDAR VUČIĆ AND H.E. CHEN BO

The Western Balkan region has experienced a lot of turbulence, with many problems remaining unresolved, but viewed in general terms this is a relatively stable period for it and will open the door to a period of rapid development of the economy

in Europe will not only promote employment and improve the standard of living for citizens in Zrenjanin and the surrounding area, but will also contribute to Serbia’s economic and social development. At the same time, by investing in Serbia, Linglong has found a home that suits it best for its further development in Europe and has established a good platform for growth and improving its overall competitiveness on the European market. I believe that in the future there will be more projects such as the Smederevo Steelworks, the Mine in Bor and the Linglong Rubber Factory. Considering your familiarity with Serbia and the region, having arrived in Serbia

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Interview after serving as ambassador in Sarajevo, do you believe that the Western Balkans – which is presented as an unstable region – can continue to be interesting to other Chinese investors?

The Western Balkan region has experienced a lot of turbulence, with many problems remaining unresolved, but viewed in general terms this

China’s position regarding current events in Kosovo?

The position of the People’s Republic of China on the issue of Kosovo is clear and consistent.

China respects the sovereignty and territorial integrity of the Republic of Serbia, understands Serbia’s justified concern over the issues of Kosovo, supports the resolving of this problem

reflection of the trend of protectionist thinking.

Recently, at the 21st meeting of leaders of China and the European Union, a joint statement was issued that clearly shows that China and the European Union will continue to open up to each other and to work together against protectionism.

The “fear of China” theory is just a murmur in cooperation between China and the European Union, and we are convinced that the shared victories of the two represent the main melody of this cooperation. What was achieved in that regard at the recent meeting of President Xi Jingping and European leaders Macron, Merkel and Juncker. Speaking on that occasion, President Xi highlighted four principles that should form the basis of global governance.

To what extent can these principles impact on the current situation in the world and the Western Balkans?

is a relatively stable period for it and will open the door to a period of rapid development of the economy, which follows recovery, while the business environment will continue to improve.

I’ve noticed that there are ever more Chinese companies, but also other foreign companies that invest in the Western Balkan region, especially in Serbia. There is still a great difference between the level of economic development of the Western Balkan countries and EU member states, while these differences actually represent the potential for cooperation and development.

Companies are the main bodies of the market and are the most sensitive to the situation on the market. We believe that ever more investors will have a positive view of the development potential of the Western Balkan countries. Serbian President Aleksandar Vučić recently called on Serbs living in Kosovo to wait until his meeting with the President of China before deciding to withdraw from all of the institutions there. What is

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Recently, at the 21st meeting of leaders of China and the European Union, a joint statement was issued that clearly shows that China and the European Union will continue to open up to each other and to work together against protectionism through dialogue and values the efforts that Serbia has exerted towards that end. Do you think the “fear of China” that followed the arrival of Chinese investment in Europe has now abated?

The so-called “fear of China” is essentially a

In the current international situation, there are many factors of instability and uncertainty, while protectionism is on the rise. China and Europe, as two important international powers, are prominent participants who shape the process of global multi-polarisation and economic globalisation. During his visit to Europe in March, President Xi Jinping met with European leaders and achieved an important consensus on the decisive preservation of multilateralism and the instilling of stability, security and predictability in a world full of uncertainties. President Xi Jinping also presented an important concept for improving global governance, specifically by supporting justice and rationality, mutual consultations and understanding, mutual assistance on the same road, as well as common benefits and shared victories. He also presented China’s positions and views on global governance. I believe that, provided all parties exert efforts together, positive changes will come for the world, including the Western Balkans. At the start of your term in Serbia, you spoke about the “steel friendship between China and Serbia”. This also provides an association with the major business undertaking of purchasing the Smederevo Steelworks, which is now owned by China’s HBIS Group. Have the operations of this steelworks been hampered by the Euro-

pean Commission’s decision not to exclude Serbia from the so-called export quotas for steel and other products from Smederevo?

Following the HBIS Group’s purchase of the steelworks and a number of reforms to production and management processes, the Smederevo Steelworks has become Serbia’s largest exporter and an employer of 5,000 workers who live and work in peace. Serbia’s iron and steel industry has been revived, and its stable work is of great importance to the development of the Serbian economy. The problem of the quota represents a major challenge for the steelworks and has a negative impact on its work. We expect the quota problem to be resolved as soon as possible, in order to prevent it from having a negative impact on the healthy development of the steelworks

Following the HBIS Group’s purchase of the steelworks and a number of reforms to production and management processes, the Smederevo Steelworks has become Serbia’s largest exporter and an employer of 5,000 workers who live and work in peace The Serbian Academy of Science and the Arts was visited recently by a delegation from the Chinese Academy of Sciences. What effects has this visit had and what is the level of cooperation like in the academic community?

This was the first time in many years that the president of the Chinese Academy of Sciences had visited the Republic of Serbia. Serbian President Aleksandar Vučić received the delegation led by President Bai Chunli. On this occasion, the Chinese Academy of Sciences and the Serbian Academy of Science and the Arts signed an agreement on scientific and technological cooperation. The Chinese side invited the Serbian side to join the Alliance of International Science Organisations in the Belt and Road Region (ANSO) and the Chinese Academy of Sciences’ President’s International Fellowship Initiative (PIFI) programme, while it is also ready to promote bilateral cooperation in the field of the research and development of natural products and new medicines, sustainable agricultural development, information technology, etc. Cooperation in the field of scientific research is still in its infancy, but it is believed that - following this visit - bilateral cooperation will intensify in this field. To conclude, we would ask you how your country will commemorate the 70th anniversary of the establishment of the People’s Republic of China, and whether you are also planning something to mark this occasion in Serbia?

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Interview Under the leadership of the Communist Party of China, from 1949 to the present day, China has gone through a remarkable 70 years. From a poor country with a GDP not reaching even 20 billion U.S. dollars, to the world’s second largest economy, worth 13.3 trillion dollars, and with over 30% of contributions to world economic growth over many consecutive years. However, China is still a developing country; our GDP per capita is

From 25th to 27th April, the Second Belt and Road Forum for International Cooperation was held in Beijing. A round table of leaders organised within the scope of the forum included, alongside China, the participation of 40 heads of state, government officials and representatives of international organisations. At the Second “Belt and Road” Forum of International Cooperation, the total of 6,000 foreign guests included the

PRESIDENT ALEKSANDAR VUČIĆ WITH PRESIDENT XI JINPING

less than 10,000 U.S. Dollars, ranking us around 70th worldwide. We will organise a series of events to celebrate the 70th anniversary of the founding of the People’s Republic of China. However, our most important task is to summarise the experience gained during these 70 years of development, to identify existing problems and challenges, and to define new directions of development. On this occasion, the Chinese Embassy will organise a series of events, such as exhibitions and seminars, while this year’s National Day reception will be bigger than in previous years. Serbian friends from various circles are welcome to participate actively in the activities organised by our embassy. The Second Forum of International Cooperation under the Belt and Road Initiative (BRI) and the Eighth Meeting of the Heads of Government of China and the countries of Central and Eastern Europe both took place recently. What were the results of these two events?

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Under the leadership of the Communist Party of China, from 1949 to the present day, China has gone through a remarkable 70 years. From a poor country with a GDP not reaching even 20 billion U.S. dollars, to the world’s second largest economy, worth 13.3 trillion dollars participation of 150 countries and 92 international organisations. Participants agreed in principle that the Belt and Road Initiative represents a path of opportunities (possibilities).

The forum included the determining (setting) of the goal of jointly constructing all aspects of the Belt and Road Initiative in a high-quality way, while consensus was reached on establishing a global partnership for mutual interconnectivity and communication, while more fruitful results were also achieved. Between the last forum and this one, 283 tangible results were achieved. A conference of entrepreneurs was also held under the auspices of the forum, during which Chinese and foreign enterprises signed agreements to cooperate on projects worth in excess of $64 billion.

Serbian President Aleksandar Vučić responded positively to an invitation to participate in the forum and met with President Xi Jinping.

The leaders of our two countries consider bilateral cooperation in all areas to be progressing steadily, and that mutual political trust has been strengthened. Serbia is an important country within the framework of the joint construction of the Belt and Road Initiative. It was concluded that the two sides should deepen their mutually beneficial cooperation in order to contribute to the well-being of the peoples of our two countries.

The Eighth Meeting of the leaders of China and the countries of Central and Eastern Europe was held on 12th April. Serbian Prime Minister Ana Brnabić also participated in the event and met with Li Keqiang, Premier of the State Council of the People’s Republic of China. Premier Li Keqiang used this opportunity to state that the Chinese side is ready to continue stimulating cooperation with the Serbian side in the fields of the economy and trade, the construction of infrastructure and other areas, and that it supports Chinese companies in investing in Serbia and participating in infrastructure construction projects in Serbia.

It can be said that this April was a “fruitful” month, with China and Serbia having signed several cooperation documents during these two events, such as the “Plan of Bilateral Cooperation Within the Framework of Joint Construction of the Belt and Road Initiative”, an agreement on financing the construction of sections of Highway E763, construction of the section of the railway between Novi Sad and Subotica, an agreement on cooperation on projects in the fields of constructing railways, highways, an industrial park, investments, financing and other areas.

GLOBAL DIARY

Internal Governance

“I believe the EU needed to improve its internal governance first before opening up to new members. Would we have 30, 32 (member states) in a couple of years’ time? With the same rules that is simply not feasible” – FRENCH PRESIDENT EMMANUEL MACRON

SOCIALIST PSOE WINS BUT NO CLEAR MAJORITY The 2019 Spanish general election was held on Sunday, 28 April 2019, to elect the 13th Cortes Generales of the Kingdom of Spain.

All 350 seats in the Congress of Deputies were up for election, as well as 208 of 266 seats in the Senate.

The Socialist Party (PSOE) has won 123 seats and Unidas Podemos (UP) – the left-wing alliance between Podemos and United Left (IU) – has taken 42. Together, these two parties account for 165 seats, which is below the 176 needed for an absolute majority. This means Pedro Sanchez will need the support of other parties if he is to be sworn in as prime minister. The right-wing bloc has also fallen short of an absolute majority. The conservative Popular Party (PP) won just 66, the center-right party Ciudadanos (Citizens) took 57 and the far-right party Vox won 24 seats in its debut national election. Together, the three parties account for 147 seats.

ARAMCO- THE WORLD’S MOST PROFITABLE COMPANY The earnings of Saudi Arabia’s giant oil company have long been a mystery, but last month Saudi Aramco opened its books, revealing that it generated $111.1 billion in net income last year, making it probably the world’s most profitable company by far.

It handily beat Apple ($59.5 billion in net income

CROWN PRINCE MOHAMMED BIN SALMAN

EMOJI FOR EU ELECTION IN MAY Twitter launched an emoji for the European Parliament elections in May, seeking to provide a visual link to channel conversations around a vote set to affect the European Union in the coming years.

Together with Facebook and Google, Twitter has come under pressure to do more to combat disinformation about the elections.

All three companies have pledged to the European Commission to crack down on fake news to avoid heavy-handed legislation.

The emoji features a ballot box and a ballot paper in EU navy blue, with a tick mark on the ballot paper in EU yellow, all surrounded by the iconic ring of stars, which is triggered when the hashtags #EUElections2019 and #EP2019 are used.

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May

in 2018) and ran laps around other oil companies like Royal Dutch Shell ($23.9 billion) and Exxon Mobil ($20.8 billion). The disclosure reveals a company that is hugely profitable but also tightly bound to one country and the price of oil. Aramco issued the financial data as it prepares to borrow up to $15 billion through a bond sale, in what could signal a more aggressive approach to capital-raising for both the company and Saudi Arabia, which is seeking to cut its dependence on oil and gas revenue.

Perspective

“If we do not open up to countries in that highly complicated and tragic [Balkan] region, and if we do not open up a European perspective to them, we will see war returning to that area as we saw in the 1990s.” – JEANCLAUDE JUNCKER, PRESIDENT OF THE EU COMMISSION

SERBIA, KOSOVO AGREE TO TALKS FOLLOWING BERLIN SUMMIT Western Balkan leaders gathered in Berlin on April 29, with the goal of defusing the worsening feud between Serbia and its former province, Kosovo. The summit was jointly organized by German Chancellor Angela Merkel and French President Emmanuel Macron. In attendance were heads of state and government from Bosnia-Herzegovina, Croatia, Kosovo, Montenegro, Serbia and Slovenia. Mogherini also traveled to Berlin for the talks.

A Balkan summit in Berlin has ended with Serbia and Kosovo agreeing to work together to diffuse existing tensions. Chancellor Angela Merkel and French President Emmanuel Macron had hoped to restart a dialogue. Both sides also vowed to play a “constructive” role in talks led by EU foreign policy chief Federica Mogherini. Previous negotiations broke down over talk of possible border changes between Serbia and Kosovo.

Source: DW(Getty Image)

DAVID MALPASS NAMED WORLD BANK PRESIDENT

member countries were potentially eligible.

David Malpass is a U.S. government official and economic analyst who currently serves as Under Secretary of the Treasury for International Affairs.

Though citizens from all member countries are considered eligible for the bank’s top job, since its inception following World War II, the bank’s presidents have invariably hailed from the U.S.

Senior U.S. Treasury official David Malpass was on unanimously selected as the new President of the World Bank 6th April.

The selection was made by the World Bank’s board of directors after an open and transparent nomination process in which citizens of all

COMEDIAN ZELENSKY WINS PRESIDENCY BY LANDSLIDE Ukrainian comedian Volodymyr Zelensky has scored a landslide victory in the country’s presidential election. With all ballots counted in the run-off vote, Zelensky had taken more than 73% with incumbent Petro Poroshenko trailing far behind on 24%. Mr Poroshenko, who admitted defeat after the first exit polls were published, has said he will not be leaving politics. He told voters that Mr Zelensky, 41, was too inexperienced to stand up to Russia effectively. Zelensky, a political novice, is best known for starring in a satirical television series Servant of the People, in which his character accidentally becomes Ukrainian president. A Kremlin spokesperson said it was too early to speak about possible cooperation with Ukrainian Zelenskiy, but added that Moscow respected the choice of the Ukrainian people.

SRI LANKA BOMBINGS The Islamist suicide bombings that killed more than 250 people in Sri Lanka during the weekend of 21st April were carried out in revenge for last month’s attacks on two mosques in New Zealand, the Sri Lankan government confirmed, citing an initial police probe. The revelation came as the death toll of the Easter Sunday bomb attacks on churches and high-end hotels rose to over 360, with hundreds more wounded and still hospitalised. “Preliminary investigations have revealed that what happened in Sri Lanka was in retaliation to the attack against Muslims in Christchurch,” state minister of defence Ruwan Wijewardene told parliament. Police say that several homemade devices were thrown at thousands of worshippers gathering for the annual Ashura Procession in the capital, Dhaka. The so-called ‘Islamic Stateć terrorist organisation has claimed responsibility for the bombings, according to the group’s Amaq news agency.

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Interview Exclusive JAMES KER-LINDSAY

ANALYST, VISITING PROFESSOR AT LSEE

I believe that it would be very dangerous to open discussions on the territorial integrity of BosniaHerzegovina or North Macedonia.

However, I don’t believe that such debates are a necessary consequence of any agreement between Serbia and Kosovo. What is agreed between two sovereign states is not a precedent for others – James Ker-Lindsay

The Importance Of Not Representing A Precedent

A

s someone who is very familiar with the situation in the Balkans, James Ker-Lindsay, visiting professor at the London School of Economics, considers that the continuation of the dialogue between Belgrade and Priština should be dedicated to addressing key issues leading to mutual recognition and Kosovo’s admission into the United Nations.

In the case that an agreement that would be supported by both sides also implies “an exchange of territory”, this is a solution that shouldn’t be avoided. The dangerous question of changing borders, which is always a cause of concern in the Western Balkans, could also become a topic for the UK, where Brexit is again bringing up the issue of the status of Northern Ireland, confirms Ker-Lindsay in this interview for CorD. Professor Ker-Lindsay, the EU is preparing for elections and the finalising of Brexit arrangements, so there are ever more messages to the Western Balkans suggesting that a pause is coming in relations and on the EU accession process. How do you see the dynamics of these relationships by the

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end of 2019 and what do you see as the greatest challenges?

I think we have to understand the accession process in two separate ways. In the first instance, there is the legal and technical dimension. Are countries able to meet the formal requirements of membership? This is about harmonising national laws with the EU acquis communautaire, the EU’s body of laws, and then making sure those laws are being implemented effectively. Secondly, there is the wider political dimension of membership, whereby the the EU and its individual member states make a judgement as to whether they feel the EU is in a position to accept new members.

At this stage, I think the emphasis needs to be on the former, rather than the latter. We are not talking about any new countries joining the EU in the next few years. As things stand, no country will be ready to join before 2025. Even though Montenegro has made great progress in opening negotiation chapters, there are genuine concerns about implementation. Also, based on Croatia’s accession, any ratification process will take approximately two years to complete. I think that focusing on the big political picture at this stage

is harmful as it sends the wrong message to the region and can be read as the EU trying to step back from accepting new members altogether. Instead, the focus should remain firmly on encouraging the countries of the Western Balkans to continue their reform efforts and make as much progress as possible towards meeting the technical requirements for membership. You’ve stated that, following the reaching of agreement on the name of North Macedonia, there are two remaining unresolved issues in the Balkans – Bosnia-Herzegovina, and the unresolved dialogue between Belgrade and Priština. What do you foresee happening with Bosnia-Herzegovina?

To my mind, Bosnia-Herzegovina remains the most intractable problem in the Western Balkans.

Numerous efforts have been made over the years to try to break the political deadlock in the country.

Sadly, there has been little progress. The country remains deeply divided, and by all accounts the divisions are becoming more and more entrenched.

My overall sense is that this will be the last issue to be resolved in the Western Balkans. It will only

be tackled once the international community specifically the EU and the United States - have solved the other issues in the region and can devote their attention on settling the situation. This is why resolving the Macedonia name issue was so important, and why it is crucial to try to find a comprehensive settlement of all outstanding issues between Serbia and Kosovo. Once these have been resolved I think there will be a real push to try to find a way to make Bosnia more functional and open its path to EU membership.

Balkans as a way of achieving lasting peace.

Apart from Kosovo, Less considers that new borders must also be drawn within BosniaHerzegovina and perhaps in Macedonia and even Montenegro. Does the impetus

that such debates are a necessary consequence of any agreement between Serbia and Kosovo. Again, what is agreed between two sovereign states is not a precedent for others.

to change Kosovo’s borders inevitably open

Kosovo analyst Belul Beqaj believes that

this topic to discussion?

“border corrections” between Serbia and

Personally, I do not think that we should consider wider territorial changes in the region. The situa-

Kosovo according to ethnic principles would lead to the rest of Kosovo merging with

When it comes to the dialogue between Belgrade and Priština, you believe that the international community has no reason to view the possible “rectification of borders” with trepidation. Does this mean you don’t believe in a domino effect across the rest of the Western Balkans?

This is obviously an extremely controversial topic.

My starting point is that we need to see a final deal reached between Belgrade and Pristina that will see the two countries establish a normal relationship based on mutual recognition. This will see Kosovo join the United Nations, and open the way for Serbia’s EU membership. To this end, any options that do not violate international law should be on the table. If this means some mutually agreed territorial arrangement, then this should be permitted.

Of course, many argue that settling the differences between Kosovo and Serbia in this way necessarily opens the way to resolving other situations in the region in the same manner. I disagree. Under international law, what two sovereign states decide between themselves does not create a precedent for others. If Belgrade and Pristina agree to exchange territory as part of a final settlement, then this is their business. It does not open up an opportunity to others to seize that model. Simply put, one country agreeing to the separation of part of its territory does not mean that others are obliged to accept the same. If so, no countries would ever be allowed to secede by the rest of the international community. However, balanced against this, I understand the sensitivities around this issue. I think it is important to emphasise that any agreement must be subject to approval in Serbia and Kosovo and that the implications of any arrangement on the wider region must be carefully considered. British analyst Timothy Less wrote in magazine Foreign Affairs about the specific need to adjust borders across the Western

Albania. Do you reject such an possibility?

As things stand, no country will be ready to join before 2025. Even though Montenegro has made great progress in opening negotiation chapters, there are genuine concerns about implementation

This is certainly a possibility. However, I think that it is far more likely to happen if the current situation continues and there is no final settlement between Serbia and Kosovo. The more Kosovo is denied a place in the international system, the more incentive there is for it to circumvent the problem by uniting with Albania. The option of drawing new borders doesn’t yet have support from the citizens of Kosovo, Central Serbia or the EU, where Germany is particularly opposed to the idea. Do you see any basis other than border rectification that could revive the dialogue between Belgrade and Priština?

tion between Kosovo and Serbia is a very specific issue that needs a mutually agreed solution. It is not something that I advocate in other situations in the Western Balkans. In fact, I believe that it would be very dangerous to open discussions on the territorial integrity of, for example, Bosnia-Herzegovina or North Macedonia. However, I do not believe

I think that lots of things could revive the dialogue between Belgrade and Pristina. However, I think we need to consider what the purpose of the dialogue is now. To my mind, it should not be about trying to achieve various confidence building measures (CBMs) as part of a long-term incremental approach to improving bilateral relations. This could lead to another decade of uncertainty. I think it

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Interview Exclusive is far better to focus on a formal settlement that closes all the outstanding issues between Kosovo and Serbia and allows them to establish a formal relationship based on mutual recognition. This would ‘normalise’ the situation overnight. For this to happen, I think it will require some major decisions, and concessions, by both Belgrade and Pristina. In this context, there are a whole range of options that could be explored. However, I suspect none of them will be universally popular.

so. In this sense, London’s support for Pristina is nothing new. However, at the same time, I think it is important to acknowledge that Britain has also been keen to improve its ties with Serbia over the past few years. I think we have seen tremendous steps forward in that direction. I have seen the wonderful initiatives taken by the British Embassy

only in the northern part of Kosovo, in Serb municipalities, which is implied by the UK Foreign Office’s official message for UK citizens not to travel to the area?

The existence of organised crime is certainly a concern in the north of Kosovo. However, if we are to be honest, it is a problem across the entire Western Balkans. I don’t get the impression that the northern part of Kosovo, or Serbian inhabited areas, are being singled out for special attention.

Do you consider that the EU should medi-

Turning to the UK’s own main issue, will

ate the continuation of the dialogue between

the country formally leave the EU?

Belgrade and Priština, or is it inevitable for

Overall, I think that the vote to leave the EU was a disastrous decision. Indeed, the whole idea of a referendum was ill-conceived. People did not really understand the value of the EU or the nature of our membership back in 2016. Apart from the decades of lies from much of the popular press, the whole Leave campaign was marked by serious irregularities. On top of this, the actual withdrawal process has been an utter mess for start to finish.

The damage done to Britain’s standing in the world is immeasurable.

At this stage, it is almost impossible to predict what will happen. As a staunch Remainer who actively campaigned for the United Kingdom to stay a member of the European Union, I would like nothing more than to see Article 50 revoked. Failing that, I think there should be a referendum to confirm that people still want to leave the EU. I think a new vote is vital now that it is clear that the deal negotiated with the EU is vastly inferior to the relationship we already have with it as a member - especially if one considers the various important exemptions Britain has, such as not using the euro and not being a part of Schengen.

the United States, and perhaps Russia, to become formally involved? Some people have also mentioned the idea of returning of the process to UN frameworks?

My natural preference is to see the EU take the lead. The Western Balkans is surrounded by the EU, and its future lies in the EU. Also, the EU has a lot of levers that it can use to facilitate an agreement between the sides. However, it needs to be recognised that the United States and Russia are also going to have to play their parts in any settlement process. After all, they are both members of the UN Security Council. In this capacity, they have have the potential blocking role on any deal that it reached. Also, we can’t overlook the fact that, in their different ways, the two countries are seen by Belgrade and Pristina as protecting their interests.

As for a UN role, I am not sure that this would make sense. I would expect it to be strongly opposed

by Pristina, which would almost certainly see it as reopening the status question. Part of the public in Serbia has the impression that, following the Brexit decision, the UK has been engaged more actively in supporting the authorities in Priština – citing, for example, the example of strong support for Kosovo’s request to become a member of Interpol and the removing of debate on

I think that the vote to leave the EU was a disastrous decision. Indeed, the whole idea of a referendum was ill-conceived. People did not really understand the value of the EU or the nature of our membership back in 2016

Given that we’ve discussed borders in the Balkans, do you consider that the UK’s exit from the EU – with or without agreement – will bring back to the agenda the issue

Kosovo from the agenda of the UN Security

of the border between the UK and Eire, or

Council during the UK presidency, while there

rather between the Republic of Ireland and

is also speculation about the intensification

Northern Ireland?

of London’s political-military counselling of

Absolutely. In fact, I believe that if Brexit goes ahead we could very well see the break up of the United Kingdom in the next decade. Indeed, the big question to my mind is whether it will be Northern Ireland that leaves first or Scotland. For various historical and cultural reasons, if one goes then it seems all but certain that the other will follow.

Kosovo authorities in recent months. How would you comment on that?

The United Kingdom has long been one of Kosovo’s key supporters on the international stage. It was one of the first countries to recognise Kosovo. It also took a lead role in persuading other countries to do

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in Belgrade to try to build ties with Serbia and the Serbian people. I know that many in London view Serbia as the key to a peaceful and prosperous Western Balkans. How do you view the United Kingdom’s assessment that instability and crime reign

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Focus

Tax Policy

Do We Need A New Law To Determine

The Origins Of Assets?

In a society where there is a belief that there are “selected taxpayers” with whom there is a discrepancy between reported revenues and acquired assets, there is a justified need for such cases to be investigated. The choice of the way we will do this tells us a lot about the social values we want to promote

D

iscussion is continuing in public about whether the new law on determining the origin of assets and special tax (currently in draft form) represents proof of the maturity of the authorities to finally carry out a cross-check examination of tax fundamentals that has been promised for decades, or whether it’s the product of the administration misdirecting its energy, given that there is already a Law on Tax Procedures and

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Tax Administration (ZPPPA) that envisages this. Will the more modern pre-existing solution be replaced with a retrograde one; should the ideas from the new draft enrich and supplement the existing law, or are we on the road, with this new law, to taking another beating from the authorities, who strike selectively and at their own discretion? The opinions of the experts with whom we spoke illustrate various views regarding this tax issue.

NELA KUBUROVIĆ

SERBIAN MINISTER OF JUSTICE

WE WANT A LAW THAT WILL BE JUST AND EFFICIENT WITH THE NEW LAW, A COMPLETELY NEW METHOD OF CROSS-CHECKING ASSETS WILL BE INTRODUCED AND SPECIAL TAX UNITS WILL BE ESTABLISHED TO DEAL WITH THIS PROCESS. THE LEGISLATOR’S INTENTION IS TO ADOPT LEGAL ACTS THAT WILL BE EFFECTIVE IN IMPLEMENTATION, WHICH WAS NOT THE CASE WITH EXISTING LEGISLATION Although we’ve all witnessed announcements of the required adoption of a law on the origins of assets over the past two decades, it is a very interesting fact that the question of the validity of adopting this law was only posed after the Ministry of Justice published the first text of the Draft.

The fact is that the existing Law on Tax Procedures contains provisions that allow for the cross-checking of property, but which have never come to life into practise.

The primary reason for this is that these provisions were not sufficiently elaborated, then there was no obligation for state authorities possessing relevant information for determining the origin of assets to share that information efficiently, and as such they remained dead letters on paper.

The Law on Tax Procedures and Tax Administration for determining tax on regular annual income envisages two ways of determining tax fundamentals – the comparative method and the cross-check examination method.

The first method involves determining tax fundamentals on the basis of financial statements, turnover existing throughout the year, and this is the method almost always applied by the Tax Administration. The second method is cross-check examination, which has absolutely no punitive character even if it is applied and a discrepancy is found between reported revenue and what the Tax Administration determines.

The Law on the Origins of Assets and Special Tax is an attempt to elaborate provisions on the cross-check assessment of tax fundamentals that exists in the Law on Tax Procedures and Tax Administration, which was adopted in

2002. The aim of the Ministry of Justice and the Ministry of Finance is to produce high-quality acts that can be applied in practise, and the Law on the Origins of Assets and Special Tax should enable such effective implementation.

The draft law introduces a completely new method of cross-checking assets, as well as a new procedure of the special tax unit that will deal with this process. The intention IN THE CASE THAT of the legislator is to adopt new IT IS ESTABLISHED legal solutions in such a way that DURING THE they will be enforceable and will prescribe mandatory coordination PROCEDURE OF INand cooperation between differVESTIGATING THE ent institutions, which may have ORIGINS OF PROPrelevant information for determinERTY THAT THERE ing someone’s actual assets.

It is very important to point out ARE GROUNDS TO that this law does not exclude the SUSPECT ASSETS possibility of criminal prosecuWERE ACQUIRED tions or confiscations of assets in the case that it is established THROUGH A CRIMduring the procedure of invesINAL OFFENCE, tigating the origins of property THIS LAW DOES that there are grounds to suspect assets were acquired through NOT EXCLUDE THE a criminal offence. In that case, POSSIBILITY OF the Tax Administration is obliged CRIMINAL PROSto inform the competent public ECUTIONS OR prosecutor’s office accordingly and to provide information CONFISCATIONS regarding the case.

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Focus

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DEJAN POPOVIĆ, PH.D. FACULTY OF LAW, UNIVERSITY OF BELGRADE

INTENTION GOOD - NEW LAW SUPERFLUOUS I WELCOME THE GOVERNMENT’S READINESS TO SECURE THE “ACTIVATION” OF CROSS-CHECK ASSESSMENTS OF ASSETS, BUT I CONSIDER THE ADOPTION OF A SPECIAL LAW AS SUPERFLUOUS, BECAUSE MOST OF THE RELEVANT PROVISIONS TO DO THIS ALREADY EXIST BUT AREN’T BEING APPLIED In a society where the predominant belief is that the tax system is unfair because “important” taxpayers effectively avoid paying taxes, it is essential to conduct controls over whether an asset has be acquired as a result of the accumulation of previously taxable income. If there is a discrepancy between the income the taxpayer reported to the tax authorities, as well as in the income that they did not have to declare, but was taxed on the basis of deductions (such as dividends), on the one hand, and increases in assets, on the other, the origin of such an increase should be re-examined. Specifically, this is either a gift or inheritance, or it is a case of undeclared income. Such a cross-check assessment of tax fundamentals has already been regulated in the ZPPPA, but that provision has not been applied since 2003. I think the government’s readiness to provide “activation” of cross-check assessments should be welcomed, but the adoption of a special law to determine the origins of assets and special tax is superfluous, as the existing provisions of the ZPPPA contain the majority of that which is necessary to achieve the desired goal.

If the political will to address cross-check assessments really exists, the idea of forming a special unit within the Tax Administration should be taken from the Draft and its provisions incorporated into the ZPPPA. It must be ensured in doing this that this unit does not “jut” out of the system of norms regulated by the Tax Administration, the state administration generally and the judiciary. According to the Draft Law, specifically, certain state bodies and agencies, as well as the National Bank, are obliged to assign staff members for connecting with the Unit of the Tax Administration, who may be transferred to work in the Unit. This is contrary to the constitutional principles upon which the National Bank operates, whose employees cannot be subjected to such treatment as though they are civil servants. The Draft also envisages that judges of the Administrative Court who will preside over administrative disputes regarding special tax must have completed training at the Judicial Academy. The Administrative Court has not been specialised to date. The Draft stipulates that - only in connection with the special tax that is being introduced - a specific circle of specialised judges of the Administrative Court be trained, the composition of which will be determined by the

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Judicial Academy, which is largely controlled by the Ministry of Justice.

If they desire a specialised administrative judiciary, that will be regulated by the Law on Administrative Disputes. Finally, care must be taken to avoid the trap of lacking precision in norms, which the creator of this Draft (consciously or not) has fallen into, allowing the taxpayer to file a tax return for previously unreported income in the control procedure conducted by the Tax Administration and then pay the tax: thus they will neither pay the special tax of 75% nor be held criminally accountable.

ĐERĐ PAP

LAWYER AND TAX ADVISOR, DIRECTOR OF FISKAL PRO D.O.O. (LTD.)

THIS IS A STEP BACKWARDS FOR THE CONSISTENCY OF THE LEGAL SYSTEM, IT IS ALWAYS BETTER FOR THE WILL OF THE AUTHORITIES TO BE REALISED WITHIN THE FRAMEWORK OF SYSTEMIC REGULATIONS AND OVER THE LONG TERM. AND IN THAT THE INSTITUTE OF “CROSS-CHECK ASSESSMENT OF TAX FUNDAMENTALS” HAS ADVANTAGES COMPARED TO THE INSTITUTE OF “DETERMINING THE ORIGINS OF ASSETS” I don’t think it’s necessary. Cross-check assessments of tax fundamentals is practically another name for determining the origins of assets.

Alongside that, cross-check assessments are a more contemporary, more modern institute that is familiar to many European legal systems.

In our tax system, the adoption of the Law on Tax Procedure and Tax Administration was implemented in 2002, meaning 17 years ago. Throughout all this time, however, this institute – for some unknown reason – was either not applied or was applied at the level of a statistical error.

I witnessed directly that plenty of effort and material resources of both the state and taxpayers were invested in preparations for its implementation. We all remember that the state, first in 2003 and later also in 2013, invited all citizens who have assets worth more than 300,000 euros to file an appropriate application accordingly. These applications were supposed to be the first step towards a future consistent application of instituting cross-check assessments of tax fundamentals.

Cross-check assessments should have encompassed all those who did not register their assets worth more than the cited figure, but also those who submitted the application – in the case that the value of the assets increases disproportionately in relation to legal revenues after the filing of their tax return. However, there is no reliable information on how many cases (if any at all) cross-check assessment procedures have been initiated.

In all likelihood, all the effort exerted by the state and taxpayers around the registering of assets worth more than 300,000 euros (in two sweeps)

was a shot in the dark and a waste of time. In 2013 some 3,369 applications were submitted, which is not a small number. A great deal of effort was required to complete such a large number of applications, but also effort to take receipt, register, defer etc., on the part of tax officials.

The draft law on determining the origins of assets and special tax envisages that its adopIT IS NOT GOOD tion will end the validity of the article of the FOR THE LEGAL Law on Tax Procedures and Tax Administration (AND TAX) SYSTEM regulating cross-check assessments of tax OF A STATE THAT fundamentals, which means that instituting this will be completely erased from the legal WANTS TO BE system, and which, I think, is a step backwards, CONTEMPORARY because we’re erasing a modern legal-tax TO IMPLEMENT institute that is applied in modern tax systems on a daily basis.

REGULATIONS Apart from that, I’m also of the opinion that it THAT WE CAN SAY is not good for the legal (and tax) system of a ARE EXTRAORDIstate that wants to be contemporary to implement regulations that we can say are extraordi- NARY AND (PROBnary and (probably) have a limited duration of ABLY) HAVE A applicability.

LIMITED DURATION For the consistency of the legal system, it is OF APPLICABILITY always better for the will of the authorities to be realised within the scope of systemic regulations and over the long term. And in that the institute of “cross-check assessment of tax fundamentals” has advantages compared to the institute of “determining the origins of assets”.

DR MILAN R. KOVAČEVIĆ

FOREIGN INVESTMENT CONSULTANT AND FULL MEMBER OF THE SCIENTIFIC SOCIETY OF ECONOMISTS OF SERBIA

NO USE COMES OF CORRECTING THE PAST IN POLITICAL CONFLICTS, THE IDEA OF INVESTIGATING ASSETS IS VERY APPEALING, BUT ESSENTIALLY INSTEAD OF SEEKING MONEY FROM THE PAST, IT IS BETTER TO FOCUS ON IMPROVING THE TAX SYSTEM AND IMPROVING TAX COLLECTION FLOWS Only older people will remember that there was a law on the origins of assets in Yugoslavia in the 1970s. It was intended to check private

Focus

Tax Policy

property in conditions of social rule, but even that didn’t succeed. Of the states emerging out of Yugoslavia, only Serbia is bring back that idea of a one-off tax.

In 2001, Serbia passed the Law on the one-off tax on additional income and additional assets acquired through the exploitation of special advantages, with the application until its entry into force, a sharp progressive taxation of 30 to 90%. I sought the contesting of such a time limit and the Constitutional Court adopted it only in 2011, so that law has been applicable for 18 years already. And it has had practically no effect, and damage can be caused by a law that is not enforced.

And the ZPPPA has long contained the authorisation for the tax administration to assess tax fundamentals through the method of crosscheck assessments of taxable income on the basis of a taxpayer’s increased assets above taxable income. It also prescribes mandatory registrations with the tax administration of assets of private individuals and entrepreneurs worth a total exceeding RSD 20 million. The Tax Administration was granted the possibility of using the cross-check assessment method to determine taxes from the start of 2003 until the end of 2005, but nothing came of that.

In political conflicts, the parties mention thieves and make accusations against tycoons, so the idea of checking the origins of assets is appealing. The conclusion was reached that it was politically advantageous to finally pass a law that would determine assets and levy a special tax. Although it is already clear from experience that there is no lack of tax regulations, it is necessary to improve them and, above all, to better implement them. Tax evasion is high.

It’s for good reason that we have the saying ‘don’t leave for tomorrow that which you can do today’. There’s no justification in exerting effort and money to sift through the past. These resources should be used to improve the tax system and improve tax collection flows. The ZPPPA has already stipulated that the right of the tax administration to determine and collect tax and ancillary tax contributions will be outdated in five years. And the rule in the Constitution is that laws and all other general acts can not have a retroactive effective, with the exception of cases when that is in the general interest, which is not the case here.

MILICA BISIĆ

PROFESSOR OF PUBLIC FINANCE AND FISCAL POLICY AT THE FACULTY OF ECONOMICS, FINANCE AND ADMINISTRATION (FEFA)

TAXATION SHOULD NOT BE EQUATED WITH PUNISHMENT SOME ARTICLES OF THE DRAFT LAW REQUIRE, IN ESSENCE, COMPLETE ARBITRARINESS IN THE CHOICE OF THE SUBJECT OF CONTROL, ON THE ONE HAND, AND, ON 32

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THE OTHER, A VERY CAREFUL CHOICE OF THE PERSON WHO WILL CARRY IT OUT AND THE JUDGE WHO WILL ULTIMATELY BRING A JUDGEMENT. ADDITIONALLY, WITH THE INTRODUCTION OF A “SPECIAL TAX”, WHICH BORDERS ON EXPROPRIATION WITH THE LEVEL OF ITS RATE (75%), THE DRAFT LAW DETERMINES TAX AS A PUNISHMENT In principle, the adoption of any law is necessary either when the subject is not regulated at all or if existing laws don’t regulate in a sufficiently positive way. Likewise, it is possible that the authorities want to treat a particular individually and separately. From the rationale applied by the Draft, it follows that this is precisely the desire of those proposing its adoption.

The Draft separates the method of determining undeclared income from regular tax procedures and prescribes a special punishment for this deed (unfortunately called a special tax), irrespective of whether or not the criminal offence of tax evasion is to be proven in the criminal proceedings that can follow. With this, the provision on cross-check assessments of tax fundamentals is erased from from the ZPPPA and the obligation of regularly checking (un)reported taxable assets is changed to become a special and separate task of the Tax Administration.

Does the Draft thus eliminate the reasons DOES THE DRAFT why cross-check assessments of tax ELIMINATE THE fundamentals were not applied from 2002, when the ZPPPA was introduced, to this REASONS WHY day? Hardly! Firstly, the articles of the Draft CROSS-CHECK that replace this provision of the ZPPPA are, ASSESSMENTS to put it mildly, indeterminate. Secondly, the OF TAX FUNDAarticles that supplement it require, in essence, complete arbitrariness in the choice MENTALS WERE of the subject of control, on the one hand, NOT APPLIED and, on the other, a very careful choice of FROM 2002, WHEN the person who will carry it out and the judge who will ultimately bring a judgement.

THE ZPPPA WAS Additionally, with the introduction of a INTRODUCED, “special tax”, which borders on expropriaTO THIS DAY? tion with the level of its rate (75%), the Draft law determines tax as a punishment. And HARDLY! tax shouldn’t be equated with punishment.

Paying tax is an obligation arising from law, while it simultaneously represents an obligation of every conscientious person towards the community in which they live. By equating tax with a one-off penalty, this Draft, like previous tax amnesties, continues to undermine regular and voluntary compliance with this civic duty.

All in all, consistently applying the provisions of existing laws would be sufficient to fulfil the goals stated in the rationale of the Draft.

This, however, probably wouldn’t provide an opportunity to tell the passionate story of the state’s determination to punish and seize “illegally acquired assets”, nor to declare all those who note that the Draft is unnecessary and/or flawed as being frightened embezzlers and/or their defenders.

And, as with everything else, the story is one thing, while actions are another. It remains to be seen what and which actions will result from the application of the law envisaged in the Draft.

Marathon

CorD Charity Masters 2019 This April, for the 13th consecutive year, CorD Magazine organised the CorD Charity Masters, the first humanitarian race held in cooperation with the Belgrade Marathon.

The CorD Charity Masters has been held each year since 2006, in tandem with the Belgrade Marathon, aiming to gather readers and partners of CorD Magazine to help those in need. Following the success of this CorD Magazine humanitarian initiative, many companies, organisations and individuals launched their own humanitarian actions, with such activities today representing the basics of the Belgrade Marathon.

This year’s CorD Charity Masters is honoured to have welcomed teams from the Embassies of Malaysia, Ukraine, Turkey, India‌, as well as companies Novo Nordisk Pharma, Schneider Electric, Astellas Pharma, Puratos, Red Star Rugby League Club et al.

We thank each member of the teams participating in the CorD Charity Masters, and hope to see you all again next year!

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International Women’s Club Belgrade

Honour, Job & Responsibility MRS MILICA LUNDIN

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he role of an ambassadorial spouse is, above all, to represent their country. A great honour, major job and huge responsibility; to create a positive and attractive image of their home country, to inform the diplomatic and local community about different aspects of life there and – sometimes – to break stereotypes. Their job, on almost a daily basis, is to meet, get to know and entertain a large variety of relevant people, in order to communicate cultural and social messages of their home country. Also, as active members of the IWC Belgrade, many ambassadorial spouses take part in all relevant IWC events.

The IWC is an organisation run by volunteer members that provides opportunities to meet other international women, expats and repats. It provides fun, friendship and support. The IWC is open to women of all nationalities.

In conversation with CorD magazine, Mrs Christina Czettl, vice-president of IWC, herself from Austria, speaks about the history of the club, saying: “The Association existed during the days of Yugoslavia. Belgrade was bursting with embassies from all over the world. The Club was founded by diplomats during the late ‘60s and operated under the name of “International Women’s Association”. All activities were free and organised by the members. It was an

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The life of a diplomatic spouse is anything but conventional. The spouse of diplomats must juggle a unique combination of family life, professional commitments, education, responsibilities and travel exclusive club; Serbian members were just a few established writers and artists. Upon arrival, every new diplomat would automatically join the club, while the managing board had five members. Art auctions were organised

“This April, for the first time since the club´s registration, IWC Belgrade members met members of IWC Zagreb, not only to present the city Belgrade to these ladies based in Zagreb, but also to exchange experiences in the organising of fundraising events and the daily activities of the two clubs. Future cooperation is planned with other international women´s clubs,” explained IWC Vice President Christina Czettl

and with these funds they purchased hospital equipment. Ladies regularly visited the children’s hospital in Tiršova Street in Belgrade, spending time with sick children, reading books to them and giving them emotional and financial support. They also helped in International schools.

“The activities of the Club were interrupted in 1998, when most of the embassies, foreign schools and clubs closed. Several embassies reassumed their activities in 1999 and diplomats came back with families. The first Bazaar was held in 2000, as a small event at the International school, while charity events were organised at diplomatic residences or in hotel halls. The name was changed to the IWC Belgrade. The official registration took place in 2011.”

A very important task of the IWC is to explore the host country, learn about its history, culture, heritage, traditions, values, top businesses etc., to learn at least the basics of the language and share the experience with our spouses, being informative partners in conversations with them. As they are often busy with everyday challenges and tasks, they can learn a lot through the IWC. However, for those who lack the opportunity to be involved actively in diplomatic work or who are distanced from the diplomatic world, this seemingly prestigious profession is regarded as a life of luxury, glamour and

globe trotting….a sort of extended holiday.

This is far from the truth.

“Together with an ambassador’s responsibility as a representative of his country abroad, the spouse also has to bear the same responsibility. Spouses are on many occasions heavily involved in the activities of their embassy, from culinary and cultural diplomacy, to national day celebrations.

“I believe that several factors, such as personal experience, skill set and personality, influence the way a person carries out the responsibilities expected of an ambassador’s spouse. I think an openness to learn and develop friendships, enthusiasm, and a sense of humour can make this multifaceted role enjoyable and fulfilling. I can say in this respect that, as a spouse of an ambassador, I have complemented my husband’s work as a diplomat and an ambassador. I also enjoy having such an opportunity in Serbia, as the host of our current diplomatic posting,” explains Mrs Milica Lundin, president of the IWC and wife of the Ambassador of Sweden in Serbia.

The role of a spouse, thus, is not so simple – they must provide support to spouse and family, create new homes many times throughout their lives and get involved in promoting their home country whenever possible. This is all easier said than done, with the supportive role very often meaning that a spouse has to forsake their own career path and shift their life focus.

“It is very important to learn and understand new cultures and customs, to be engaged in activities organised by other spouses of ambassadors and to see each new posting as a possibility to bring different countries and their people closer to each other.

“It is a great responsibility to be the spouse of an ambassador or any diplomat, as you represent your country, its culture and traditions. For that, it is important to have deep knowledge of the subject, to be able to create a broad network among representatives of both diplomatic and local communities,” says the IWC Belgrade president.

The IWC Belgrade serves to unite women from all over the world, helping members who come to Belgrade to settle in, enjoy their new environment and gain a better understanding of Serbian life and culture.

“In addition to our regular monthly

meetings, there are several social and special interest groups that offer stimulating and enjoyable events, adding an important element and a more personal dimension to club life with the IWC. These groups not only provide an opportunity to meet new friends with shared interests, but often help

wards helping settle into a new country, and we are here to offer friendship and help each other enjoy all that Serbia has to offer. We do, however, have established client-service partnerships with some Belgrade firms that are mutually beneficial. The condition is that they are not related to any of our members.”

MILICA LUNDIN, AKUOMA HELEN BOROMISA AND CHTISTINA CZETTL

The IWC Belgrade, through the activities of the IWC Charity Committee, works to meet the needs of vulnerable and marginalised populations in Serbia, striving to effect positive long-term change in local community members further develop those interests and talents, or even to discover a talent you didn’t know you had! We are always open to any ideas that will enrich our club life and offer the multicultural diversity that is the essence of the IWC. “Social interaction goes a long way to-

The IWC Belgrade Executive Board manages, with the additional help of two IWC committees, all aspects of the IWC’s functioning, membership, meetings, charity projects and events.

The Bazaar, organised in the first week of December, has been growing in popularity and serious donations have been collected.

Since the official registration of the IWC in 2011, we have collected over 500,000 euros thanks to generous donors, and all of the funds have been allocated to support community projects selected by the IWC Charity Committee through an application process. The IWC receives many proposals and field visits are made to each potential project prior to approval; proposals are then reviewed and evaluated according to a demanding set of criteria. The IWC Belgrade, through the activities of the IWC Charity Committee, works to meet the needs of vulnerable and marginalised populations in Serbia, striving to effect positive long-term change in community.

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Feature

Statement by Japanese Prime Minister Shinzō Abe

JAPAN’S PRIME MINISTER SHINZO ABE SPEAKS AT A PRESS CONFERENCE WHILE STANDING NEXT TO THE CALLIGRAPHY ‘REIWA’

The New Japanese Era Name Is “Reiwa”

This was taken from wording appearing in the Manyoshu: “In this auspicious month of early spring, the weather is fine and the wind gentle.

The plum blossoms open like powder before a mirror while the orchids give off the sweet scent of a sachet.” Moreover, this name “Reiwa” includes the meaning of culture coming into being and flourishing when people bring their hearts and minds together in a beautiful manner

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he Manyoshu is Japan’s oldest poetry anthology, compiled more than 1,200 years ago. It is also a Japanese work containing poems composed by people from a wide range of strata in society, including not only Emperors, Imperial Family members, and nobility, but also soldiers and farmers, and symbolizes Japan’s rich national culture and long-established traditions.

History from time immemorial, highly respectable culture, and natural beauty unique to each of our four seasons. We will pass down these national characteristics of Japan firmly to the next era. Just as the plum blossoms announce the arrival of spring after the harsh cold of winter and bloom splendidly in all their glory, all Japanese will be able to make their own blossoms come into full bloom, together with their hopes for tomorrow. We decided on “Reiwa” with the hope that Japan will be just such a nation. On peaceful days

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On 1st May, His Imperial Highness the Crown Prince will accede to the Imperial throne, and this new era name will be used from that day forward when we can foster culture and appreciate natural beauty, full of heartfelt gratitude, we will together with the Japanese people carve out a new era that is brimming with hope. In deciding on the new era name, we renewed our determination to do this.

On 1st May, His Imperial Highness the Crown Prince will accede to the Imperial throne, and this new era name will be used

from that day forward. I ask for the understanding and cooperation of the people on this. The government is taking all possible measures to prepare for this historic succession to the Imperial throne from a living Emperor - the first such instance in approximately 200 years - to take place smoothly, and for the Japanese people to celebrate the day with one accord.

Era names have, together with the longstanding tradition of the Imperial Household and a profound wish for the peace and security of the nation and the well-being of the people, woven together the history of our nation that spans almost 1,400 years.

Era names are also integrated into the hearts and minds of the Japanese and support the Japanese people’s inner sense of unity. It is my sincere wish that this new era name will also be widely accepted by the public and take root deeply within the daily lives of the Japanese people.

Leaders’

MEETING POINT

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Investment

“Investments in Serbia of about €500 mln this year will probably move Serbia towards fifth or sixth position in the EBRD countries of operation - we have nearly 40 countries of operation” – SUMA CHAKRABARTI, PRESIDENT OF EBRD

LOCAL NEWS T-MEETING

COMMUNICATION INDEPENDENCE

IEEG

TO DEVELOP ELECTRIC CAR CHARGERS IN SERBIA IEEG based in Stara Pazova is the first company in Serbia to develop the production of electric car chargers and the prototype of this device was presented at the International Car Show in Belgrade. IEEG is in the process of developing electric cars whereas the first car charger would be installed in Stara Pazova in a few months , announce d the founder of the company, Slavko Vujovic.

– Electric car charger are the greatest innovation in the world consider they could replace gasoline and diesel fuel. The energy would be transferred tot he car batteries but the technology could be used in other industries as well, Vujovic explained and added that the chargers could also be used for charging with renewable energy.

On the occasion of the presenting of the latest technological innovations of company T-Meeting at the Swedish ambassadorial residence in Belgrade, an exclusive presentation was held to demonstrate the latest achievement enabling people with impaired hearing and speech to conduct complete communication via mobile phones.

TERA – the world’s first solution for complete communication for all groups who cannot use a normal telephone – is now available as an application on tablet devices and smart phones. Max and Faruk Tairi, owners of T-Meeting, are driven by two basic philosophies: people who are deaf, blind, have speech disabilities or hearing impairments should have the same communication independence as everyone else, and technology can provide high-end solutions.

Launched worldwide, the T-Meeting solution has already been acclaimed in demonstrations in Norway and Sweden. The key characteristics of the app, which was developed by Swedish company T-Meeting, are its accuracy, speed and mobility.

SHANDONG LINGLONG

OVER 13 MILLION TIRES TO BE PRODUCED IN ZRENJANIN “By coming to Serbia we are sending a good message to all potential investors. This affects Volkswagen too and they will pay close attention,” said Wang Feng, the president of the Chinese company Shandong Linglong Tire, which started the construction of its factory in Zrenjanin He expected the Zrenjanin factory to be ready for production by the end of next year but that they set the start of production for 2021.

The factory`s planned output is 13 million tires per year which will be reached by 2025, Wang specified that they were planning to make their products made in Zrenjanin available in North Africa, Europe and North America.

YAZAKI

ADDITIONAL INVESTMENT IN ŠABAC Representatives of JBAS members, together with H.E. Mr. Junichi Maruyama, Ambassador of Japan to Serbia and Montenegro, and Embassy’s representatives, have visited JBAS member Yazaki Srbija in the City of Šabac.

Our hosts on this occasion were Mr. Munenori Yamada, Chairman of Yazaki Europe Limited and Mr. Ahmed Bedewy, General Manager of Yazaki Srbija.

During the visit, the members had an opportunity to learn more about Yazaki, company’s culture and especially its strong commitment to corporate social responsibility and its activities in Serbia, as the first Japanese greenfield investment in Serbia.

In less than two years of its activities in Serbia, Yazaki has already reached a lot of milestones, invested around €31 million and employed almost 2.700 employees, with a plan of realizing additional investments during 2019 and reaching the number of more than 3.400 employees.

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Strategy

“By acquiring Slovenia’s Gorenjska banka, AIK banka has become the first Serbian bank to break into the EU market. AIK banka’s medium-term strategy is to become one of the leading banking groups in this part of Europe.” – JELENA GALIC, AIK BANKA EXECUTIVE BOARD PRESIDENT MINTH

NEW FACTORY IN LOZNICA The plant will be manufacturing aluminum car par ts and will employ 300 workers initially, and hire another 700 later.

Minth investment in Loznica is worth 100 million euros, and it will be realized in two phases.

The new plant will start producing auto PHOTO: RTS parts as early as October. MINTH Automotive Europe Director Ching Li Wong also said that said MINTH Europe was a part of the MINTH Group, which supplies 80 percent of the world’s carmakers.

The factory will be a €100 million investment and it will hire 1,000 workers, he said. MINTH exports its products to Australia, Europe, North America, Japan and Southeast Asia and its customers have an 80-plus percent share of the global market.

Placements postings

&

appointments@aim.rs

NIKOS ZOIS, NEW MANAGING DIRECTOR LEADING HEINEKEN SERBIA

Nikos Zois was appointed as the new Managing Director of HEINEKEN Serbia. With clear vision and strategy, Zois will lead the HEINEKEN team in Serbia maintaining the firm business standards through further improvement of top line results.

The new Managing Director of HEINEKEN Serbia has a wide commercial experience in the beer industry for almost 25 years. As Sales Director in Athenian Brewery, Zois contributed to the overall sustainable growth of all operating parameters with a stable financial result. HEINEKEN Bulgaria, led by Zois since 2016, was evaluated by consumers and stakeholders for three consecutive years as the “greenest” and most socially responsible company in the fast moving consumer good sector. In addition, Zois has introduced a number of initiatives improving the company’s climate and positioning HEINEKEN Bulgaria as a preferred employer.

Zois’ ability to empower the organization, build strong leadership teams and develop talents with clear focus, simplicity and innovation, will be key to drive further success of HEINEKEN Serbia.

MANAGEMENT CHANGES AT NESTLÉ

SIEMENS AG

INDUSTRIAL ZONE NEAR KRAGUJEVAC Germany’s Siemens AG has built another plant in the Sobovica Industrial Zone near Kragujevac. The production line will include assembling whole tram cars.

Beside the announced delivery of train cars for Austrian railways and manufacturing tram cars for Belgrade, it was almost certain that train cars for mass transportation would be assembled for London Underground as well.

The information on the new factory is still being kept as a business secret but as it is found out the number of employees in this German giant that recently acquired Milanovic Inzenjering factory in Kragujevac had already reached 1,000 workers and it was expected to double soon

Company Nestlé has announced changes in its leadership that came into force at the beginning of the second quarter of this year. Specifically, Dejan Maslinko has become the new commercial director, while Neli Angelova has taken on the position of Nestlé communications director for the Southeast European market. They are also members of the Nestlé Management Team for the market of Southeast Europe.

Maslinko and Angelova will utilise their rich experience of leadership positions, strong leadership abilities and excellent business skills to fully realise the market potential of all areas for which they are responsible, improving the operations of their teams in order to together achieve even greater business successes.

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Euro zone

Businesses Started 2nd Quarter With Tepid Growth Euro zone businesses started this quarter on the back foot, with growth unexpectedly slowing again as demand barely rose despite more modest price rises, surveys showed last month

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he data comes a week after European Central Bank President Mario Draghi raised the prospect of more support for the struggling euro zone economy if its slowdown persists.

IHS Markit’s Flash Composite Purchasing Managers’ Index (PMI), which is considered a good guide to economic health, fell to 51.3 this month from a final March reading of 51.6, confounding the median expectation in a Reuters poll for a rise to 51.8.

“It’s still not in recession territory by any means but is pointing to rather subdued and uninspiring economic growth, and this is reflected in the gloomy expectations,” said Chris Williamson, chief business economist at IHS Markit.

Mr Williamson said the PMIs, if maintained, indicated second-quarter GDP growth of just under 0.2 per cent, below the 0.3 per cent predicted in a Reuters poll earlier this month. As new business barely increased in April - the sub-index only nudged up to 50.6

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An index measuring output, which feeds into the composite PMI, rose to 48.1 from 47.2 but for an eighth month factories ran down old orders to keep active.

The backlogs of work index fell to a more than six-year low of 44.4 from 45.0 from 50.5, perilously close to the 50 mark dividing growth from contraction - there is scant sign of an imminent turnaround.

The downturn was again led by the bloc’s manufacturing industry. While its PMI rose to 47.8 from March’s 47.5, it spent its third

consecutive month below the break-even mark and was below a median forecast for 47.9.

An index measuring output, which feeds into the composite PMI, rose to 48.1 from 47.2 but for an eighth month factories ran down old orders to keep active. The backlogs of work index fell to a more than six-year low of 44.4 from 45.0.

A PMI covering the bloc’s dominant service industry fell further than expected.

It dropped to 52.5 from March’s 53.3, well below the median forecast in a Reuters poll for 53.2.

“We have further signs of a manufacturing-led slowdown spreading to services,” Williamson said.

Like their manufacturing counterparts with no meaningful increase in new business, service firms turned to filling old orders.

And suggesting they see little improvement in activity over the coming year, optimism waned. The business expectations index for services fell to 62.0 from 62.3

ZEPTERRA

A Harmonious Life Is Spelled ZepTerra The new residential and commercial complex will combine an urban, business environment with Zen philosophy

T

he new residential and commercial complex ZepTerra will adorn one of the most attractive parts of New Belgrade. This magnificent edifice will be located in Block 65, next to Koťare Heroes Boulevard on one side and Tadija Sondermajer Street on the other. It will be characterized by an abundance of luxurious green spaces that will become a symbol of the block in which every citizen will find their oasis of peace, despite its location in the immediate vicinity of New Belgrade’s business zone.

The ZepTerra complex whose construction will begin this summer will resonate with a mix of tradition, family values and modern architecture. In the first stage, there will be 227 apartments of a variety of types on sale, from one to five bedrooms, all of sophisticated design. ZepTerra apartments will be finished with top quality materials such as Italian tiles and multilayer parquet, but will also be prepared for Smart Home, which will equip this complex with the latest technology. In addition to the large number of parking spaces in a two-level garage, the proximity to all important institutions,

The Zen state of mind which implies an active life integrated into the human community and associated with nature, and where the basic concern is what is common and beneficial to everyone, will provide a unique sense of home to all future ZepTerra residents

retail facilities, shopping areas, schools, kindergartens, parks and playgrounds for children will make this complex the ideal place to live.

But what will make this complex unique on our market are the principles used by the creators of the ZepTerra Project as guide, and which are based on Zen philosophy. The Zen state of mind which implies an active life integrated into the human community and associated with nature, and where the basic concern is what is common and beneficial to everyone, will provide a unique sense

of home to all future ZepTerra residents.

The top quality and comfort of the ZepTerra project is guaranteed by two investment companies, with this complex as their joint venture - the Serbian Zepter Group and the Chinese Yihai Properties Group. The Zepter Group is known as one of the biggest investors in our country, but also in the region, and has realized large projects in the hotel industry, as well as numerous modern business and residential buildings on some of the most beautiful locations in Belgrade. The well-known investor from China, Yihai Properties Group, was founded in 1989 and has added to its rich portfolio a total of 8 million square meters, out of which some of the largest investments were in China, Dubai and New York. This renowned investor built the Yihai Garden in Beijing as well as other luxury facilities in major cities such as Shanghai, Hong Kong, Shenzhen and Guangzhou, and no less renowned property in America.

The exclusive representative of the ZepTerra residential and commercial complex is the leading real estate consultancy company CBS International, part of the Cushman & Wakefield Group.

May

45

Dialogue

“In order to respond in a timely and comprehensive manner to security challenges, the Alliance needs to preserve the transatlantic dialogue and solidarity between the Allies” – SRĐAN DARMANOVIĆ, MINISTER OF FOREIGN AFFAIRS OF MONTENEGRO

REGIONAL NEWS BULGARIA

ARKAD TIE-UP TO BUILD 484KM GAS PIPELINE

BOSNIA-HERZEGOVINA

PROJECT TO RECEIVE AZERBAIJANI GAS Bosnia-Herzegovina is working on an interconnection project to receive Azerbaijani gas, according to Federal Minister of Energy, Mining and Industry Nermin Džindić.

“Bosnia and Herzegovina, together with company BH-GAS d.o.o. Sarajevo, which is in charge of development projects in Bosnia and Herzegovina, is working on realisation of the Southern interconnection of B&H with a Croatia project that would create conditions for future expected connection to the Ionian-Adriatic Pipeline (IAP) and Trans Adriatic Pipeline (TAP),” said the minister, pointing out that the Southern interconnection of B&H and Croatia is a project to interconnect the gas systems of Bosnia-Herzegovina and Croatia.

Company Bulgartransgaz has said that it has picked a tie-up comprising Saudi Arabia’s Arkad Engineering and Construction Company and Italy-based Arkad ABB to build a 484 km pipeline for the transporting of natural gas from the border with Turkey to the border with Serbia. The consortium has offered to build the pipeline for 1.29 billion euros within 250 days, or for 1.10 billion euro if the deadline is extended to 615 days, said the state-owned Bulgarian gas transmission network operator in its decision.

The offshore section of the TurkStream pipeline, stretching 930 km across the Black Sea from Russia to Turkey, consists of two parallel strings each with an annual throughput capacity of 15.75 billion cubic metres of gas. One string is intended for consumers in Turkey, while the second will carry gas to customers in Europe.

ALBANIA

ROMANIA

company that runs Tirana Airport has reacted angrily to government claims that it was to blame for a stunning heist executed at the airport. The robbery saw an Austrian Airlines plane at Tirana International Airport attacked on 9th April 2019 by armed robbers, who left the scene with millions of euros. The Chinese-owned company that manages Tirana International Mother Teresa Airport reacted angrily after Albanian authorities accused it of security failures, enabling the gunmen to board the Austrian Airlines Airbus on the tarmac and to leave with millions of euros, due to be transferred to a bank in Vienna. Tirana International Airport, SHPK, owned by Hong Kong-based China Everbright Limited, claimed that the Albanian police were responsible for responding to such major security breaches.

SeaDream, a cruise ship to be used on luxury voyages, will be built at the Mangalia shipyard in Romania following the signing of a contract by Damen Shipyards Group with Norway-based SeaDream Yacht Club. Damen Shipyards holds a 49% minority stake and operational control of the Mangalia shipyard, with the Romanian state holding a 51% stake.

The contract is Damen’s first for a cruise ship. The 155-metre mega yacht, a purpose-built ship, will be prepared to operate in diverse destinations around the world, including polar and tropical regions.

According to an Economy Ministry announcement, the SeaDream contract is one of several major deals confirmed by the Mangalia shipyard, which is also set to build passenger transport ships and a complex ship for offshore farms, with a loading capacity of over 10,000 tonnes.

PLANE ROBBERY AT TIRANA AIRPORT MANGALIA SHIPYARD TO BUILD SEADREAM The Chinese-owned

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May

MONTENEGRO

WELCOME TO HUMA KOTOR BAY – WHERE MYTHS COME TO LIFE

Kotor Bay is the favourite spot for real connoisseurs of Mediterranean culture, heritage and nature. For those expecting nothing less than perfection for their holidays, we have some great news – A five star hotel located in picturesque Dobrota, just 3 km from the Old Town of Kotor, has open its welcoming gates right on the sandy beach! Huma Hotel is an example of synergy of traditional and modern - architecture is inspired by Venetian heritage with strong roots in the area. Simple yet luxurious buildings of the hotel, together with 10 exclusive villas right by the sea, have been carefully designed to blend into the surroundings, and yet stand out for their elegance, modern amenities and immaculate service.

You can choose from 89 well-appointed rooms and suites, or 10 private villas with landscaped gardens and sea views.

To make the experience perfect, Huma features 2 open pools, 2 restaurants, the Shanti spa and the possibility to organise meetings and special events.

The uniqueness of the Virtu Beach, the only sandy beach in the area, makes it the finest choice for all Mediterranean loving guests!

Another reason to visit Huma is one-of-akind art cuisine restaurant Mudra, under the artistic leadership of internationally renowned Chef Enzo Neri. If you were wondering about the unusual name – it comes from the mythical HUMA, a magical bird which, according to the legends, spent its entire life in the sky, never landing. Huma hotel today is a luxurious nest where the world travelers can settle down!

Freedom

“The EU reports some level of preparation concerning freedom of expression in most countries (of Western Balkan) , but also very little progress in the last few years, which is increasingly a matter of concern.” – PATRICK PENNINCKX, HEAD OF THE INFORMATION SOCIETY DEPARTMENT AT THE DIRECTORATE GENERAL HUMAN RIGHTS AND THE RULE OF LAW AT THE COUNCIL OF EUROPE CROATIA

MLINAR LEADING BAKERY COMPANY SOLD

REPUBLIKA SRPSKA

WIND FARM FOR NEVESINJE MUNICIPALITY SOON An agreement on the awarding of a concession to Nevesinjebased company VE Grebak for the construction of a wind farm in this municipality should be signed soon, after which the investor will start resolving property-legal relations regarding the land on which the wind farm is to be constructed.

This was confirmed by on 5th April by VE Grebak Executive Director Miralem Campara. He emphasised that the signing of the agreement with the Republika Srpska Government was to be followed by the resolving of the land ownership issue.

The plan is to install 14 wind turbines art the Grebak wind farm, which will have estimated installed power of 49.5 MW, with annual production estimated at 130 GWh. NORTH MACEDONIA

CITIZENS SPEND €133.7MN ONLINE IN 2018 Citizens of North Macedonian spent a total of €133.7 million on online purchases in 2018, representing annual growth of 17.8%.

This indicates that confidence in e-commerce and online shopping is increasing in this country of just 2.1 million inhabitants. However, growth is now slower than it was a year earlier, when it stood at 21%.

Due to the limited offer of online products and services in North Macedonia, most transactions were with online stores abroad, which accounted for 64% of the total value of online transactions.

The remaining 36% of the value of transactions went to local online shops.

The number of bank payment cards totalled 1.841 million at the end of 2018, up 0.4% on the previous year.

The Mid Europa Partners Fund has entered into the ownership structure of Mlinar, Croatia’s leading industrial bakery company. Mid Europa will have a majority stake in the company, according to a statement posted on the website of one of the leading investors in Central and Eastern Europe.

The transaction is subject to customary closing conditions and is expected to be completed in Q2 2019.

“We plan to help the company expand internationally, and we look forward to our partnership with Mr Škojo, as he continues to support Mlinar’s growth,” said Andrej Babache, a partner in Mid Europa – a fund which, according to Škojo, “has an excellent track record in food production and retail”.

HUNGARIA

V4 INTERNATIONAL NEWS AGENCY FOUNDED IN LONDON The newly founded V4 News Agency (V4NA) will start with a team of 50 journalists and fast-responding news teams in London, providing news both in English and Hungarian, with plans to add other languages at a later stage. The agency’s owners are New Wave ÁRPÁD HABONY, Media Group Ltd. (the owner of e.g. origo.hu; 57%), FOUNDER OF V4 NEWS AGENCY Danube Business Consulting (owned by Árpád Habony; 40%) and, interestingly, Hungary’s extraordinary and plenipotentiary ambassador in London, Kristóf Szalay-Bobrovniczky (3%). It was an open secret for a while that Árpád Habony, a progovernment media mogul, would like to move to the international stage after having given all his media outlets to the Central European Foundation of Press and Media.

MONTENEGRO

HIGHWAY PROBLEMS The highway that’s ultimately intended to link the Adriatic port of Bar to the Serbian capital of Belgrade has become problematic, with construction coming to exemplify China’s divisive investment on the fringes of the EU and the pitfalls of funding large infrastructure projects with loans from Beijing.

The Montenegrin government’s borrowing from China to finance the cost of constructing the roadway, estimated at €1.3 billion, has sent the country’s debt soaring from 63 per cent of gross domestic product in 2012 to almost 80 per cent today. If Montenegro defaults, the terms of its loan contract gives China the right to Montenegrin land as collateral. The highway is being built by the Chinese Road and Bridge Corporation, or CRBC, and is 85 per cent financed by a dollar-denominated loan from China’s Eximbank.

Source: FT

May

47

Banking

Concerns Over European Bank Earnings Several analysts have raised concerns over earnings this quarter due to external risks such as low economic growth, uncertainty over U.S.-China trade deal, Brexit and a U-turn on major central bank policy towards more easing

E

uropean banks are suffering from years of weak profits, massive fines, ultralow monetary policy and uncertainty surrounding the UK’s exit from the European Union.

Big European banks are set to report their firstquarter earnings starting mid last month and some investors fear that poor report cards could lead to further volatility in the stock markets.

Several analysts have raised concerns over earnings this quarter due to external risks such as low economic growth, uncertainty over U.S.-China trade deal, Brexit and a U-turn on major central bank policy towards more easing.

European banks are suffering from years of weak profits, massive fines, ultra-low monetary policy and uncertainty surrounding the UK’s exit from the European Union. The U.S. banks, on the other hand, especially the big ones like J.P. Morgan and Citi have very strong retail operations that have kept these banks resilient in the face of economic headwinds. U.S. bank earnings have been a mixed bag in the first-quarter of this year. But it is yet to be seen how their European counterparts perform.

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CREDIT SUISSE According to data firm Refinitiv, Credit Suisse is expected to report a first-quarter net profit of 793.7 million Swiss francs, as compared to 694 million Swiss francs reported in the first-quarter of 2018.

Last year, the Swiss-lender swung back to profit for the first time since 2014.The bank reported a full-year net profit of 2.1 billion Swiss francs ($2.08 billion) for 2018, compared with a 983 million loss in 2017.

The bank’s CEO Tidjane Thiam has led the bank’s turnaround strategy by improving the balance sheet, cutting down on bonuses as well as slashing headcount. In February, Thiam also pointed out a number of external uncertainties weighing on the bank. These include the U.S. trade negotiations and Brexit that have led to “limited visibility” in the months ahead.

However, the bank’s stock is still down nearly 20 per cent over a 12-month period and about 40 per cent since Thiam took over as the CEO in 2015.

UBS According to data firm Refinitiv, UBS is expected to report a first-quarter net profit of 856 million Swiss francs, as compared to 1.5 billion Swiss francs

reported in the first-quarter of 2018.

Last month, UBS chief Sergio Ermotti told CNBC that despite the rally in global equity markets, revenues in the first quarter of 2019 was one of the worst in recent years.

Noting especially tough conditions outside the United States, Ermotti said investment banking revenues were down about a third compared to the euphoric first quarter that kicked off 2018.

Investment banking is a specific division of banking related to the creation of capital for other companies, governments and other entities.

The bank recently also announced that it is cutting an extra $300 million from 2019 costs after they anticipated investment banking revenues plunged –and wealth management remained under pressure in the first quarter.

UBS stock is down more than 23 per cent over a 12-month period.

BARCLAYS According to data firm Refinitiv, Barclays is expected to report a first-quarter net profit of 875.6 million pounds, as compared to the heavy losses of 764 million pounds reported in the first-quarter of 2018.

By Spriha Srivastava

Earlier this year, Barclays reported a full-year net profit of £1.4 billion for 2018, swinging back to the black after 2017 losses. The bank also set aside a Brexit provision of £150 million in its 2018 results.

However, the bank remains under pressure from its shareholders over its turnaround strategy.

In February, U.S. hedge fund Tiger Global Management dumped all of its stake in Barclays. The New York-based hedge fund had been one of the top 10 investors in Barclays and held a stake of 2.5 per cent.

Barclays’ first-quarter numbers come at a time when the bank is also facing pressure from activist investor Edward Bramson forcing his way on to the board. Bramson’s Sherborne Investors holds a 5.5 per cent stake in the bank. According to Reuters, Bramson wants Barclays to reduce resources allocated to its investment units. Barclays’ shares are down more than 21 per cent over a 12-month period.

DEUTSCHE BANK According to data firm Refinitiv, Deutsche Bank is expected to report a first-quarter net profit of 130.5 million euros, as compared to €120 million reported in the first-quarter of 2018.

Deutsche Bank has been in the news regularly in the past few months due to speculation over a potential merger with Commerzbank. The merger is seen to be heavily backed by the German government in a bid to create a strong national champion. A joint operation could have a balance sheet of nearly €2 trillion.

In the past few years, Deutsche Bank has made headlines for all the wrong reasons — from settlements with the U.S. Department of Justice, to management reshuffles, weak earnings, constant restructuring and steep stock price falls. Last year, the bank posted its first full-year net profit since 2014.

Shares of Deutsche Bank and Commerzbank are both down more than 35 per cent over a 12-month period.

RBS An estimate for RBS’ first-quarter net income for 2019 wasn’t available from Refinitiv. However, the bank reported a net profit of 792 million pounds in first-quarter 2018.

The bank slightly beat expectations for full-year profit during its fourth-quarter numbers. However, it has been at the center of a long legal saga with the Department of Justice (DOJ) over its selling of toxic mortgages in the U.S. in the run-up to the 2008 financial crisis. The lengthy settlement agreement process had prevented the bank from providing

dividends to its shareholders. In the summer last year, the bank proposed its first dividend in 10 years.

RBS has continued to warn of ongoing economic and political uncertainty and highly competitive mortgage market, along with uncertainty surrounding UK’s exit from the European Union.

In the third-quarter of 2018, the bank said it

Several analysts have raised concerns over earnings this quarter due to external risks such as low economic growth, uncertainty over U.S.-China trade deal, Brexit and a U-turn on major central bank policy towards more easing had set aside an impairment provision of 100 million pounds to deal with economic uncertainties, including from the fallout of Brexit. Shares of RBS are down nearly a per cent over a 12-month period.

BNP PARIBAS According to data firm Refinitiv, BNP Paribas is expected to report a first-quarter net profit of 1.8 billion euros, as compared to €1.5 billion reported

in the first-quarter of 2018.

The bank downgraded its 2020 targets during its fourth-quarter results in 2018. The bank said that the economic environment in Europe supported outstanding loans, despite low interest rates. However, it lowered its profitability and revenue growth targets for 2020 due to the impact from the market

sell-off in the fourth quarter of 2018.

The French bank now hopes to achieve revenue growth of 1.5 per cent per year between 2016 and 2020, down sharply from its previous 2.5 per cent target.

Shares of BNP Paribas are down more than 23 per cent over a 12-month period.

SOCIETE GENERALE An estimate for SocGen’s first-quarter net income for 2019 wasn’t available from Refinitiv. However, the bank reported a net profit of €850 million in the first-quarter of 2018.

SocGen, France’s third-largest bank, announced earlier this month a plan to cut 1,600 jobs, mainly at its corporate and investment banking arm, in a bid to buoy profitability after last year’s poor performance.

The lender had announced it would cut €500 million euros in costs at its corporate and investment banking in early February after its fourth quarter results were hit by a steep market downturn, which in turn forced it to lower both profitability and revenue growth targets.

Shares of SocGen are down more than 36 per cent over a 12-month period.

The author is News Editor for CNBC International

May

49

Pride

“The key to India’s success is its diversity. Our diversity is the core that makes us so unique. Nations are not built by governments alone.

Nation building requires national pride.” – RAM NATH KOVIND, PRESIDENT OF INDIA

WORLD NEWS CUBA

CUBA TO LAUNCH INVESTMENT OPPORTUNITIES PORTFOLIO IN HANOI

CHINA

CHINA - NORTH KOREA BRIDGE FINALLY OPENED China and North Korea have finally opened a border bridge that was built between the two countries in 2016, in a potential boost to the North’s economy as Beijing tries to balance concerns regarding its neighbour against ongoing international pressure for the Korean country to denuclearise.

A border checkpoint and bridge connecting the Chinese city of Jian with North Korea’s Manpo were open on 8th April, ending three years of delays following construction.

The bridge had remained closed on its completion in 2016, with Beijing taking a cautious approach at a time when it faced international scrutiny of whether it was fully implementing UN Security Council sanctions imposed on the North.

Cuba has presented its new portfolio of investment opportunities in Vietnam, which is this time more diverse in composition by activities and sectors, during a business committee session between both countries, held in Hanoi.

The portfolio includes 525 investment projects valued at more than 11.6 billion dollars, according to the Commercial Counsellor of the Cuban Embassy to Vietnam. The new projects (168) cover livestock, foodstuffs, the light, iron, steel and chemical industries, tourism and mining, and are distributed throughout Cuba, with 45 of them in the Mariel Special Development Zone (about 45 kilometres west of Havana). Vietnam-Cuba trade has averaged over 240 million dollars a year over the past five years, but the two countries’ shared aspiration is to more than double that amount in the short term and reaffirm Vietnam as Cuba’s second most important partner in Asia.

U.S.

HEINZ CELEBRATES 150TH BIRTHDAY Having just emerged from a challenging financial year, Heinz has forked out £12 million for an international 150th-anniversary campaign, shining a spotlight on its heritage through one of its bestknown products: tomato ketchup.

Created by BBH London, the TV ad at the heart of the new push celebrates ‘150 Years of Clean Plates’. Invoking a bit of nostalgia, it plays on the brand’s longevity to show how a humble splodge of ketchup has been transforming meals across the world for decades. The brand’s wider 150th birthday campaign will be a cross-channel drive that includes a print and OOH campaign shot by Gareth Morgan, showcasing more than 30 executions of single empty plates from different eras.

FINLAND

TELENOR TO ACQUIRE MAJORITY STAKE IN FINNISH DNA Norway’s Telenor Group has entered into agreements to acquire a 54% stake in Finnish telecoms operator DNA Plc for a price of 20.90 euros per share, totalling 1.5 billion euros . With this acquisition, Telenor will gain a strong position across fixed and mobile networks in an attractive and growing telecoms market, while further strengthening its position in the Nordic region.

Telenor has entered into separate agreements with DNA’s two largest shareholders, Finda Telecoms Oy and PHP Holding Oy, which hold 28.3% and 25.8% of shares respectively.

The boards of directors of the selling companies will recommend the agreements to shareholders and convene general meetings on 6th May 2019. Telenor expects the transaction to be completed during the third quarter of 2019.

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May

SWEDEN

IKEA HITS NEW BENCHMARK FOR RENEWABLE FURNITURE IKEA, the world’s largest furniture retailer, has announced that it has made significant process towards its goal of achieving 100% of recycled or renewable products by 2030.

In its recently released sustainability report the 2018 financial year, IKEA said that 60% of its range was now based on renewable materials, while another 10% contains recycled materials.

The Swedish retail giant also reported that it had achieved 100% sustainable sourcing for its cotton products and 85% for its wood.

Vocabulary

I am happy not just for the result but mainly that it is possible not to succumb to populism, to tell the truth, to raise interest without aggressive vocabulary. – ZUZANA CAPUTOVA, SLOVAKIA’S FIRST FEMALE UK

ROLLS-ROYCE EARLY INSPECTION

INDIA

LAND ROVER LAUNCHES LOCAL ASSEMBLY OF VELAR Jaguar Land Rover India has announced the start of local manufacturing of the Range Rover Velar model. The Range Rover Velar will be available in 2.0 l Petrol (184 kW) and 2.0 l Diesel (132 kW). Reservations can now be made, with deliveries to begin from early May 2019.

In order to make its vehicles even more affordable in India, Jaguar Land Rover will manufacture engines locally. The company revealed last June that it planned to establish an Ingenium manufacturing facility in India. The company may manufacture the 2.0-litre Ingenium diesel engine first, which would help to significantly boost sales of the entry- and mid-range saloons and SUVs. It is yet to announce a timeline and other specifics of engine manufacturing in the country.

Rolls-Royce has agreed to an early inspection of some Trent 1000 TEN engines by regulatory authorities, a week after Singapore Airlines grounded two Boeing Co 787-10 jets fitted with the units.

The latest version of the Trent engine has been dogged with problems since entering service at the end of 2017. According to Rolls-Royce, by late February a total of 35 787s had been grounded globally due to engine blades corroding or cracking prematurely.

The accelerated inspection regime will allow RollsRoyce to confirm the health of the more than 180 engines in service over the next few months.

Rolls-Royce, which makes engines for large civil and military aircraft, is keen to avoid further problems with its Trent 1,000 engine and last month dropped out of the race to power Boeing’s planned mid-market aircraft.

RUSSIA

ANNUAL LNG PRODUCTION TO BE EXPANDED TO 140 MILLION TONNES Russia expects its output of liquefied natural gas (LNG) to rise more than tenfold by 2035, to 140 million tonnes per year, as global demand for the fuel soars.

LNG shipments from Russia amounted to 12.86 million tonnes last year, while annual production is set to grow to 73 million tonnes by 2025.

“Russia has got a wide range of opportunities for expanding LNG production. Lots of LNG plants are currently being projected and becoming operational. According to our estimates, further additional demand will total 300-350 million tonnes by 2035. That means we will aim to achieve annual LNG production of 100-140 million tonnes by the same year, as part of our energy strategy,” said Russian Energy Minister Alexander Novak, speaking at the 5th International Arctic Forum in St. Petersburg.

TURKEY

SECOND EUROPEAN NATURAL GAS IMPORTER Turkey became Europe’s second largest importer of liquefied natural gas (LNG) in 2018, behind Spain, with 18.59 million cubic metres, according to a report of the International Group of LNG Importers.

This figure shows that Turkey’s LNG imports grew by 13.2% compared to the previous year, while LNG purchases experienced much lower growth at the European level, estimated at 6.4% and a volume of 11.22 million cubic metres.

Algeria, Nigeria, Angola, Norway and Egypt were among Turkey’s main LNG suppliers.

However, in addition to these imports, Turkey received 50.340 million cubic metres of natural gas via different pipelines, from Azerbaijan and Iran, allocating most of it to domestic consumption and another part to re-export.

Turkey’s consumption of natural gas reached 48.9 billion cubic metres in 2018, according to data from Turkey’s Energy Market Regulating Authority.

May

51

Enterpreneur

RICHARD BRANSON

Simple Tricks - The Best Way For A

Successful Business

Sir Richard Charles Nicholas Branson is an English business magnate, investor, author and philanthropist. One of the world’s wealthiest people, Richard Branson is worth an estimated $4.9 billion. This serial entrepreneur has built up eight billion-dollar companies and continues to innovate wherever possible 52

May

British entrepreneur Richard Branson is famous for his blonde mane and his many business interests, including space travel. However, despite his fame and his Virgin Group having its tentacles in several hundred companies around the world, there’s still a lot that most people don’t know about this self-made entrepreneur, including about sex, drugs, rock and roll, and Branson’s businesses.

Born on 18th July 1950, he dropped out of secondary school before recording his first successes with a magazine called Student and then by selling records in what was the first company of the Virgin Group.

His school headmaster once predicted that he would either go to jail or become a millionaire. He did both.

It was Mike Oldfield’s Tubular Bells, and it was Virgin Records’ first big hit. In fact, it was this that prompted Branson to go from just selling records to also making them. He had heard a demo tape of the album and called it “some of the most beautiful music I’ve ever heard”. Branson tried to get other record companies to release it, but they wanted to make changes to the sound and even add vocals, so Branson released it himself.

The music was then featured in the film The Exorcist, which brought it acclaim in the U.S., while the incredible 286 weeks it spent on the British music charts meant that it was such a blockbuster that it turned Virgin Records into a real player in the music business.

It was a full 10 years after the release of The Exorcist that Oldfield actually watched the film – perhaps he hadn’t wanted to ruin his appetite for pea soup.

Branson married American architecture student Kristen Tomassi in 1972. He was 21, while she was 20. Their wedding was announced in The New York Times, but the marriage didn’t last. He claimed that he broke out in a rash whenever he had sex with his wife. “Kristen and I had a bizarre sexual allergy to each other,” he wrote in his book Losing My Virginity. “Whenever we made love, a painful rash spread across me that would take about three weeks to heal.”

In keeping with the swinging mores of the time, the couple tried an open marriage. Branson later said that, in retrospect, he and his first wife simply had been too young to wed.

Branson is most famous worldwide for his companies Virgin Records and Virgin Airlines. Unfortunately for him, he had to sell the former in 1992 to keep the latter afloat, later admitting that he’d cried over having to do so. He is also known for Virgin Mobile, Virgin Radio, Virgin Music, and Virgin Rail in the United Kingdom, among other businesses in the Virgin Group.

But not all of his businesses have been success-

ful. Virgin Cola, hailed by Branson in 1994 as the inevitable successor to Coca-Cola, has practically disappeared, and Virgin Clothes, launched on the stock exchange in 1996, folded with losses to shareholders. There were other failures, including Virgin Vie, Virgin Vision, Virgin Vodka, Virgin Wine, Virgin Jeans, Virgin Brides, Virgin Cosmetics and Virgin Cars—none of which fulfilled their creator’s inflated dreams.

Branson met the former Joan Templeman in 1976. A native of Scotland, she ran a London store and also worked as a nude model. She was married to Nazareth musician Ronnie Leahy at the time, but Richard and Joan have since been together for over 40 years, having two kids together before they finally tied the knot in 1989.

When Branson’s business came of age in England in the 1970s, he was known for partying, and he learned from a rock star known for his love of drugs.

Branson claimed in an interview that Rolling Stones guitarist Keith Richards showed him the finer points of rolling a marijuana joint, while he also admits to

having tried cocaine and ecstasy.

The entrepreneur admitted that he had even done drugs with his son during his gap year. He even helped his son Sam make a 2012 documentary about drugs called Breaking the Taboo. In 2015, Branson called for “treating drugs as a health issue and not imprisoning or otherwise criminalising people for personal use or possession of drugs”.

Branson also helped Culture Club lead singer Boy George kick the habit. The band was once a big seller for Virgin Records, and the singer told Piers Morgan in 2017 that, at his lowest point, Branson “took me away from the glare of publicity … [and] gave me a safe haven at his house, and that enabled me to try and get better”. So, in addition advocating for drug addiction to be treated as a medical issue, Branson also put his money where his mouth is, at least when it came to aiding one celebrity.

Imagine some billionaire stroking his own ego and making money by plastering his name over companies he isn’t really that much involved in. That may sound like Donald Trump, but it also sounds a

When Branson’s business came of age in England in the 1970s, he was known for partying, and he learned from a rock star known for his love of drugs

lot like Richard Branson.

According to The Guardian, “in some cases, he [Branson] simply licenses the brand to a company that has purchased a subsidiary from him, and these include Virgin Mobile USA, Virgin Mobile Australia, Virgin Radio and Virgin Music (now part of EMI).”

Branson rakes in licensing fees, but is never on the hook for investment. It’s kind of like when Jay-Z got a gazillion dollars in publicity for his tiny portion of ownership in the Brooklyn Nets.

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Enterpreneur

RICHARD BRANSON AND PER LINDSTRAND BEFORE LIFT-OFF IN THEIR ATTEMPT TO FLY ACROSS THE PACIFIC

Another thing that Branson has in common with Trump is reality TV. But unlike Trump’s hit Apprentice franchise, the 2004 attempt ‘The Rebel Billionaire: Branson’s Quest for the Best’, proved to be a huge flop. “Branson’s ratings were terrible, down the tubes,” the future president roared in 2004. “The Apprentice is the hottest show there is! Richard Branson, your ratings speak very loudly and you just got fired!” Unlike Trump, Branson has no plans to run for office, but he has funded efforts to repeal Brexit – a measure Trump supported.

Punk rock group The Sex Pistols was continuously being kicked off record labels during its heyday in the mid-1970s, until Branson finally signed them to Virgin Records. He was also on that infamous boat trip down the Thames that the band took in the summer of 1977, during Queen Elizabeth’s jubilee year. And it wasn’t just the song “God Save the Queen” that caused outrage. The album title, “Never Mind the Bollocks, Here’s the Sex Pistols,” also got Branson into a bit of trouble, as “bollocks” is a profanity in the UK. One of his record shops displayed the album title, prompting a policeman to go after him for violating indecency laws dating back to the 1800s.

This led to Branson facing indecency charges, but he prevailed in the case when he and his lawyer found a cunning linguist who argued that the word had a long history. Branson said the linguistics professor, who was also a priest, told him that “bollocks has nothing to do with balls [testicles]” but that “it was a nickname given to priests in the 18th century”. This expert testified in court wearing his religious garb and helped Branson beat the charge. Virgin Money today produces Sex

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A lot of Branson’s global appeal comes from his feats of daring. He was the first to cross the Atlantic in a hot-air balloon, doing so in 1987 with fellow adventurer Per Lindstrand Pistols branded credit cards. If punk wasn’t dead already, that probably killed it. Such bollocks!

When he started his Virgin company in order to sell records in shops and via mail order, he had a scheme to avoid paying taxes. Music shops in England then had to pay a 33 per cent tax on records sold domestically, but this didn’t apply to overseas sales. As he admitted in his 2011 book Losing My Virginity, he’d go to Dover, England, get the paperwork stamped as if he were going to ship the records overseas, then sell them in the country and save on the taxes. “It seemed like the perfect way out,” he wrote.

But he was a little too slick for his own good.

Customs officials caught up with him. Branson spent a night in jail over the practise. His parents had to mortgage their house to get him released and help keep his record business afloat. He also owed £70,000 in customs fines, which is as good an incentive as any to quickly learn how to really run a business.

As David Runciman notes, “his [Branson’s] businesses are registered under complex schemes

across a range of different jurisdictions, including the Virgin Islands, where the holding company for Virgin Trains happens to be based.”Moreover, Branson spends much of his time these days on Necker Island, the tax-free British Virgin Islands property he owns.

And he can only “spend a maximum of between 46 and 183 days a year in the UK”, according to The Guardian – otherwise his tax bill goes up. Yet this billionaire has previously criticised other companies for avoiding UK taxes – of course denying that his move to Necker Island had anything to do with taxes, claiming in his blog that he was living in Necker Island for health and lifestyle reasons.

In 2016, one British politician even called for Branson’s knighthood title (which he received in 1999) to be revoked. “It should be a simple choice for the mega-rich,” he said. “Run off to tax exile if you want. But you leave your titles and your honours behind you when you go.”

A lot of Branson’s global appeal comes from his feats of daring. He was the first to cross the Atlantic in a hot-air balloon, doing so in 1987 with fellow adventure Per Lindstrand. According to The Telegraph, the “Virgin Atlantic Flyer” was a balloon that was “not only the first hot-air balloon to cross the Atlantic, but the largest ever flown, at a capacity of 2.3 million cubic feet, and reached speeds in excess of around 200 kilometres per hour”. Branson said that he did it not just for the sake of adventure, but in order to put the then-fledgling Virgin Airlines on the map. He also successfully crossed the Pacific Ocean in a hot-air balloon with Lindstrand in 1991, with the pair also being the first to achieve that feat. The 9,700-kilometre trip ended in the Arctic.

He has also held a yachting record – with his boat, Virgin Atlantic Challenger II, snatching the transatlantic speed record in 1986, while he set a kitesurfing record in 2014. Not too shabby, especially if you’re only half-certain “kitesurfing” is real a thing.

Richard Branson was riding around Virgin Gorda, one of the British Virgin Islands, enjoying one of his favourite activities — cycling with his two children – in August 2016. Unfortunately, he was enjoying it a little too much and hadn’t prepared properly for a large speed bump that crept up on him, as speed bumps tend to do, and sent him flying over his handlebars.

He thinks his helmet saved his life and, judging by the state of his face, he’s probably right. Of course, like anyone who becomes a millionaire, he had a little luck to help him along the way. While he just face-planted all over the concrete road, at least he didn’t go the way of his bicycle, which disappeared over a nearby cliff.

PROFILE

Maths And The Beauty Of The World I’ve toured the world thanks to mathematics. Congresses and conferences in distant lands freed me of my old self, my authenticity flourished, returning me like winds and waves to my children and the people I love

VESNA TODORČEVIĆ, PH.D., ASSOCIATE RESEARCH PROFESSOR AT THE SASA MATHEMATICAL INSTITUTE; ASSOCIATE PROFESSOR AT THE UNIVERSITY OF BELGRADE’S FACULTY OF ORGANISATIONAL SCIENCES

W

hen my first son Luka was a little boy, I read fairy tales of the nations of the world to him, I think we covered almost the entire edition. But the most beautiful of all, both to him and to me, were Uzbek. Back then I never even dreamt that I would one day visit that country and the city where they were wrote, particularly the fairy tale “Qora sochli pari”, about the precocious, righteous, beautiful dark-haired Qorasoch and her exploits. I found a doll with her features and brought it for my daughter Jana.

Luka went through all my ups and downs with me – moving home, changing, my strangeness and my beliefs. He learnt to appreciate truth and emotion above all, to develop a conscience and good taste.

He is my first joy and my sun, who has shone on my path all these years. And then came Jana, a little torrent of words and laughter who lit up our lives.

Mathematics also led me to the country where dawn breaks first on every morning in

the world – Japan. There I met the meditative fullness of everything beautiful, the beauty of nature that resounded deeply within me; that harmony and rhythm that penetrates within from the outside. It is difficult, extremely difficult, to harmonise the external and the internal. Indeed, we all spend our entire lives harmonising our inner music with that outer music of the world. And we suffer a lot. These are some of our persistent endeavours, but I would say that harmony is being in accord with the outside world. I’ve experienced and felt that. And I experienced that in Japan; that I

Mathematics also led me to the country where dawn breaks first on every morning in the world – Japan. There I met the meditative fullness of everything beautiful can really be in some kind of harmonious state with everything that surrounds me, with nature and its beauty, with people.

I was touched by their relationship towards the world. A powerful country that’s surrounded on all sides by water, the Japanese are aware that this life could disappear at any moment.

A single tsunami or earthquake could destroy everything. Japanese gardens are made in

such a way that you feel that life is present right here and right now when you’re in them.

And the beauty of the world is right there in front of you at that very moment. I tried to feel it. That’s why the beauty of the world is so visible there; that minimalism that actually came from the Japanese, because they looked upon the world in their own way. Minimalism, beauty, harmony, proportions.

They say that you must distinguish everything for yourself. They also say that they need to live truthfully, in harmony with self, step by step. Everything else is a mistake.

My host was mathematics professor Toshiyuki Sugawa. He left space around him in an unusual way, with typical Japanese attention. He lives in Sendai, a quiet seaside city in the north.

That’s how I met mathematician Ege Fujikawa, Toshiyuki’s colleague and the only woman with that name in Japan. Her father named her after the Aegean Sea, which fascinated him.

A Japanese girl with a Turkish name. A beautiful little woman with the smile of a child.

A lady samurai. She was the cutest being I’ve ever met in my life. Small hands, small feet, eyes that laugh, with little dimples in her cheeks.

Everything that she promises to do comes in a minute. Open, honest, direct. She says what she thinks, not hiding her curiosity. There is no kind of pretentiousness or false modesty.

When I hug her she falls into that embrace and doesn’t cross her arms.

A year later, Ege gave birth to a beautiful boy, a small samurai called Saisaku. Two years ago, a little jewel called Marko glistened in our home, enriching all of us, particularly my knight called Luka and my princess Jana.

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Art Contemporary Australian Aboriginal Art

ROVER THOMAS, ROCK COUNTRY ON TEXAS

Storytelling 56

May

Pictures

Australian Aboriginal Art has been identified as the most exciting contemporary art form of the 20th Century

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he Australian Aboriginal art is the oldest form of artistic expression in the world, and the most successful and certainly the longest surviving culture in human history. Art cavings found in the Northern Territory’s Arnhem Land dates back at least 60,000 years. Using soil and rocks, artists are able to produce carvings, ground designs and paintings. The first evidence of Aboriginal ethos or philosophy is evident in the still visible rock art which dates back more than 20,000 years.

Contemporary Australian Aboriginal Art derives its worldwide acclaim from the very roots of Australian Aboriginal Culture and Tradition. It is not new it is not orchestrated it is not devisted it is not designed it is not and never can be a new age “created” wonder.

Although Australian Aboriginals have been using ochres as body paint, on bark and rocks for tens of thousands of years it was not until the 1930’s that the first paintings were done.

These were not done in ochre or in dot art but in water colour at the Hermannsburg mission near Alice Springs. They illustrated desert landscapes. The first exhibition was in Adelaide, in 1937 by the most famous of the first aboriginal watercolour painters, Albert Namatjira.

In 1971, a school teacher was working with Aboriginal children in Papunya, near Alice Springs.

He noticed whilst the Aboriginal men were telling

stories they would draw symbols in the sand. He encouraged them to paint the stories onto canvas and board. This began the famous Aboriginal art movement. It was a major jump for indigenous people to start painting their stories onto western facades which was a very foreign concept to them.

Since then Australian Aboriginal Art has been identified as the most exciting contemporary art form of the 20th Century.

Aboriginal Artists need permission to paint particular stories. They inherit the rights to these stories which are passed down through generations within certain skin groups. An Aboriginal artist cannot paint a story that does not belong to them through family.

Creation Law is the heart of Aboriginal culture and consequently for Aboriginal art. It sets down the Dreaming which provides the identity for Aboriginal people and their association or link to the land.

Dreamtime or Jukurrpa and Tingari (the term varies according to their particular local language) is the translation of the Creation of time for the Aboriginal People. Most Aboriginal Artists paint facets of their Dreaming which forms a share of their inheritance and identity.

Many people believe that dots were used to hide information from white men when the Aboriginal people became afraid that they would be able to see and understand their sacred, private

SARRITA KING, WATER

GLORIA PETYARRE, BUSH MEDICINE LEAVES

ANNA PRICE PETYARRE, MY COUNTRY

knowledge. The dots were used to obscure the secret symbols or iconography underneath.

Aboriginal art differs in character and style depending from which region the artist is from and what language is spoken. Most contemporary art can be recognised from the community where it was created.

Contemporary Aboriginal art has been an incentive for remote Aboriginal communities, in many places being the only business in small communities providing significant income to Aboriginal families.

A great deal is written about names of deceased people not being mentioned, but how many people worldwide know that still, even the young, modern Aboriginal people who live and work with white Australians, abide by the old rules of not saying, for example, the name of a living relative that is inappropriate.

They will say “the father for that young one there” or the like. Taking this into consideration, a collector can be assured that a painting of Purnululu (Bungles) would be done by an Artist entitled to paint that country, a desert style painting would

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Art Contemporary Australian Aboriginal Art

KUDDITJI KNGWARREYE

JORNA NEWBERRY, WALPA TJUKURRPA

Aboriginal Artists need permission to paint particular stories. They inherit the rights to these stories which are passed down through generations within certain skin groups. An Aboriginal artist cannot paint a story that does not belong to them through family not be attempted by an Artist from Kalumburu.

They have no need to depict other than their own country, no desire and no intention.

By the same token, the nature of interaction between tribes in a particular area, means that many Aboriginal people have knowledge of each other’s country and beliefs There are artists to be not only proud of the stories of their paintings, but very truthful.

Aboriginal art requires its own education.

There is an abundance of knowledge that must be learnt before engaging with a piece of Aboriginal art. Most Australians and tourists might think it is just dots and fine lines. This is a myth. Only artists from certain tribes are allowed to adopt the dot technique. Where the artist comes from and what culture has informed his/her’s tribe will depend on what technique can be used. It is considered both disrespectful and unacceptable to paint on behalf of someone else’s culture. It is simply not permitted.

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MELANIE HAVA, CROCODILE DREAMING

THE LATE WILLIAM COOPER AND THE LATE PASTOR SIR DOUGLAS NICHOLLS KCVO OBE MBE HAVE BEEN HONOURED AS PART OF GREATER SHEPPARTON’S ABORIGINAL STREET ART

By author

Aboriginal art differs in character and style depending which region the artist is from and what language is spoken. Most contemporary art can be recognised from the community where it was created

FREDDIE TIMMS, MUD SPRINGS

LILY KARADADA, RAINMAKER WANDJINAS

All Aboriginal artwork tells a story. Most art is based on the artist’s individual journey, which may be about their parents, adoption, warriors or daily life chores such as fishing. In rarer cases, the art is reflective of their tribe or captures the heartache of the stolen generation.

Aboriginal artists cannot paint a story that is not from their lineage. If they are seeking to paint a story concerning historical or sacred information, they must be given permission before they can proceed. It is important that each artist sticks to the stories and artistic techniques born from their tribe. Without words to communicate, pictures take its place. Aboriginal languages in spoken form do not exist like they once did either.

Each tribe has a different dialect; therefore, each

artist has a different story. There are about 500 different Aboriginal languages; so, no two Aboriginal artworks are ever the same, and it comes as no surprise that there are so many varieties of techniques. It is a reflection of the individual artist.

Even though most Aboriginal art is in the form of painting, there are many pieces of art created using other media. For example, there is high demand at the moment for mono prints, which are single prints using natural rock sediments such as ochre (pronounced oak-er) and acrylic oils mostly. For example, artist Dan Kelly, on the Mornington Peninsula in Melbourne, likes to burn symbols onto wood to create his artwork.

Other wooden artwork includes weaponry, boomerangs and plates.

LORNA NAPURRULA FENCER MURKARKI, BUSH PLUM

EMILY PWERLE, AWELYE ATNWENGERRP

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&FACES PLACES 26/3/2019

Celebration Of The Greek National Day

In honour of the National Day of Greece, Ambassador of Greece to Serbia H.E. Elias Eliadis hosted a reception at the Belgrade Metropol Hotel.

The reception was attended by representatives of the Greek community in Belgrade, international institutions in Serbia, many Serbian friends and associates of the Greek diplomatic mission in Belgrade, media representatives and businesspeople.

Choir performed beautiful renditions of the national anthems of both Greece and Serbia.

The Greek national holiday falls on 25th March and is celebrated in honour of the granting of Greece’s independence after the national uprising of 1821.

AMBASSADOR OF JAPAN JUNICHI MARUYAMA AND AMBASSADOR OF CHINA CHEN BO

JOHANNES HAHN RECEIVES AN AWARD

28/3/2019

Johannes Hahn Declared The Ambassador Of The Youth Sports Games

European Commissioner for Neighborhood Policy and Enlargement Negotiations Johannes Hahn was named as the Ambassador of the Youth Sports Games.

At the ceremony, Johannes Hahn said that Sports Games are a great idea, thanks to which young people connect and enjoy the competitions. He also invited investors to help the activity, which in his words contributes to better mutual understanding and reconciliation in the region.

“This is truly a valuable initiative for the whole region that brings new friendships and experiences to young people and the opportunity to spend a wonderful time together,” said the European Commissioner, quoting Serbian President Aleksandar Vučić, who said that Sports Games should also become the Peace Games.

AMBASSADOR ELIAS ELIADIS

ALEKSANDAR VUČIĆ AND JOHANNES HAHN

1/4/2019

Arab Day In Serbia Celebrated

AMBASSADOR SUBRATA BHATTACHARJEE

Embassies of the Arab countries in Serbia marked the Arab Day. The event organised by the Arab Cultural Center and the Embassies of the Arab countries in Belgrade was held at the National Library of Serbia.

The Arab Day in Serbia was attended by Ambassadors of the Arab countries in Belgrade as well as many other members of the diplomatic community and fans of the Arab culture.

29/3/2019

150th Birth Anniversary Of Mahatma Gandhi

Incredible India, the Government of India’s international tourism campaign promoting tourism in India to an audience of global appeal, organised an event in Belgrade, Serbia marking the 150th Birth Anniversary of Mahatma Gandhi.

At the first public presentation of this global project, which, among other things, should show the closeness and differences of European and Indian culture, Ambassador H.E. Subrata Bhattacharjee greeted the audience with the words of Mahatma Gandhi: “Be the change that you want to see in the world.”

Ambassador Bhattacharjee specifically referred to Gandhi’s concepts of truth and nonviolence and linked them with some basic facts from Gandhi’s life and his socio-political action.

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AMBASSADORS OF THE ARAB COUNTRIES

SEE MORE: WWW.CORDMAGAZINE.COM

4/4/2019

Prime Minister Ana Brnabić said at the opening of the Second Digital Summit of the Western Balkans that the government has set digitisation and education as their absolute priorities to take advantage of all the chances that are being offered to us today.

“Today, we send a message to the world to the world that, despite all the challenges and misunderstandings, we continue to work on regional networking, regional cooperation, implementation of previously agreed

agreements and commitments, and opening new perspectives. The Regional Roaming Agreement is not just a document that defines how telecom operators will behave in the region. From the corner of Serbia, it shows the map of the road that we need to follow: that is more cooperation and more agreement, more mutual understanding in the interests of all citizens living in this region. Economically, this summit is important to show that our region follows the time and trends we live in. Therefore, I am pleased that the Digital Summit of the Western Balkans gathered more than 4,000 accredited persons and 200 speakers in three stages this year and that this room is too small today for all who wanted to come,” said Prime Minister Brnabić.

HOULIN ZHAO AND MARYA GABRIEL

MIHAILO JOVANOVIĆ, MARIYA GABRIEL, ANA BRNABIĆ, SEM FABRIZI, MARKO ČADEŽ

Opening Of The Digital Summit Western Balkans

9/4/2019

Vojislav Pavlović, A Historian, Awarded The Order Of Academic Palms

On April 9, 2019, the Ambassador of France, H.E. Frédéric Mondoloni, awarded the Academic Palms Ordinance to Vojislav Pavlović. This solemn award testifies to the gratitude of France for his efforts in the field of historical research and French-Serbian cooperation. Mr Pavlović defended the doctoral thesis “Franca and the Yugoslav space - the birth of Yugoslavia 1878-1918” at Sorbonne. For many years now, he has been contributing to the development of French-Serbian scientific cooperation, and his contribution to the organization of the Scientific Conference “Serbia and France in the Great War” in October 2017, which was supported by Mission du Centenaire - the French Mission to mark the 100th anniversary, is particularly significant.

Vojislav Pavlović received the order surrounded by the closest, colleagues and representatives of the Serbian Academy of Sciences and Arts.

The Order of Academic Palms is a decoration awarded to the French and foreigners for their academic and professional dedication and contribution to the best representation of France in the world.

FRÉDÉRIC MONDOLONI AWARDS VOJISLAV PAVLOVIĆ

HRH PRINCE ALEXANDER AND PRINCESS KATHERINE

12/4/2019

Royal Easter Charity Bazaar

HRH Crown Prince Alexander and Princess Katherine officially opened this year’s Easter Bazaar of handicraft items made by female refugees and children with special needs at Mercator Center in Belgrade. All income from the sale of handicrafts is intended to help these vulnerable groups.

The opening of the bazaar was attended by Mr Vladimir Cucić, Commissioner for refugees and migration of the Republic of Serbia, representatives of the diplomatic corps and other guests from the cultural and public life of Serbia.

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SEE MORE: WWW.CORDMAGAZINE.COM

&FACES PLACES 18/4/2019

13th Annual NALED Assembly

Annual NALED Assembly was held in the presence of the highest representatives of the Government of Serbia, businesses, local governments and the international community.

Daily in Serbia, five entrepreneurs start a business, 40 workers get hired and duly registered for seasonal work, while 730 applications for registering property are filed to the Cadaster. These numbers illustrate the success of reforms initiated and supported by NALED in 2018 - the introduction of tax exemption for new businesses, simplified engagement of seasonal workers and the development of eCounter as the new system for registering property, being the greatest improvement of the business environment in 2018, initiated and supported by NALED. They came as a result of privatepublic dialogue and stand as an example of a successful exchange of good regulatory practices in the region - it was concluded at the 13th annual NALED Assembly.

FLAG RAISING CEREMONY HELD IN GENEVA

23/4/2019

Serbia Becomes The 23rd CERN Member State

Prime Minister Ana Brnabić attended in Geneva the ceremony of raising the flag of Serbia on the occasion of its accession into the European Organization for Nuclear Research (CERN).

Brnabić expressed her satisfaction with the fact that Serbia has officially become the 23rd full member of CERN. This is important so that we could compete with the best ones and win in that race, Brnabić said and added that this is a signal for the scientific community and especially young scientists to remain in Serbia because the membership in CERN will provide them with the opportunity to participate in the most prestigious and most challenging projects in the world.

CERN Council President Ursula Bassler said that Serbia’s membership is important for CERN itself, adding that membership in multilateral organisations contributes to the sharing of ideas and progress through cooperation.

24/4/2019

Dutch Embassy hosts King’s Day celebration

On the occasion of the King’s Day, Dutch National Day, the Ambassador of the Kingdom of the Netherlands H.E. Henk van den Dool and Ms Kasia Pawelska hosted a reception at the Crown Plaza hotel in Belgrade.

The reception was attended by the Dutch community in Serbia, Serbian Government representatives, members of the diplomatic corps, and representatives of the civil society and businesses.

The event was organised in partnership with Heineken, supported by silver sponsors Ahold-Delhaize, Kupujem Prodajem, Levi9, WindVision, Philips (Medicom), Vahali, Shipyard Kladovo and bronze sponsors NulTien, VDL Bus and Coach, Fleunerra, Todebo, Unilever, EXLRT. King’s Day (Koningsdag) is a national holiday in the Kingdom of the Netherlands celebrated on 27 April to mark the birthday of His Majesty King Willem-Alexander.

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MEMBERS OF THE DUTCH EMBASSY

AMBASSADOR HENK VAN DEN DOOL

Bojana Nikitović, Costume designer

By Radmila Stanković

Photo Credit - Sanja Stefanović

My life

I DON’T HAVE COMPLEXES ABOUT BEING FROM SERBIA She’s the most successful woman from this region in the film world.

She was the first associate to costume designer Milena Canonero when she won the 2007 Oscar for Best Costume Design for the Sofia Copolla’s film Marie Antoinette. She has long since operated as an independent costume designer for numerous top-class film productions.

Apart from all of that, she also works in the theatre, which is her first and greatest love, and four Sterija Prizes merely serve to prove that she also does so very successfully May

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My life

Bojana Nikitović, Costume designer

S

he grew up in a house where her father, Dragan Nikitović (1930-1997), was a genuine sporting and television star and legend of journalism. And it was perhaps because of that that she never idolised famous people. Her mother Vojislava, aka Vojka, was a specialist doctor and the real pillar of the home, supporting at all times her daughters Aleksandra and Bojana: “Today I’m increasingly fond of my childhood, I increasingly appreciate my parents for the kind of upbringing they gave me. They had a wonderful marriage and the two of us grew up in the beauty of socialising with friends and with family. Our house was always filled with people; my parents socialised with friends, our friends came round to see us, we went to theirs. Everything exuded intimacy that was lost in the growing up of children during later years. We belonged to that proper, good middle class that devised life in such a way that both children and parents feel good. It was known that once a week we would go for lunch at a good tavern; it was known that lunch or dinner would be eaten with neighbours, with the wishes of us children respected.This way of raising children was a product of a time that had a system of values in which the majority of the inhabitants of our country – and that country was called Yugoslavia – felt good, and we were satisfied.”

The simplicity that characterised her father – with his wide smile, charm and emotions – seem to have been directly transferred to Bojana, who was born in 1965. In both character and stature, her famous father is resembled by her son Vuk, born of her marriage to actor Gojko Baletić. Vuk completed studies in economics and management in the U.S. and now works for an American company. His parents, long since divorced, have very good relations: “I’m very proud of my Vuk. It wasn’t easy, due to my absences, but he understood that the best. That’s because he know that even when I was absent I was with him, and that I would catch the first plane if he needed me. And when I was here, I was devoted to him completely. We mutually shielded each other from typical heartfelt stories and concerned comments that could be very painful. Because, how can a mother work and be a good mother? That’s forbidden here; you have to prove you’re a devoted mother by sitting at home and mainly watching TV shows, not your children. This story of mothers who are always present but are in fact totally absent, and who have the right to cast judgement and comment,

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WITH EMILY BLUNT

I’m sorry my father didn’t get to see the kind of guy that my son Vuk grew up to be. I think he would be very proud... I am grateful to him and my mother for the most beautiful childhood and adolescence that I had today – finally – only makes me smile, but it hurt me a lot for a long time. We are truly connected today; we have a healthy, honest relationship. I’m sorry my father didn’t get to see that we’re doing well and the kind of guy that Vuk grew up to be.

I think he would be very proud. Whenever I start talking about him, I’m overcome by emotions. I am grateful to him, or more precisely to mother and to him, for the most beautiful childhood and adolescence that I had.”

Nevertheless, her father’s glory – regardless of how beautiful it was in providing her with opportunities to meet many wonderful people from the worlds of sport and culture – sometimes also had an unpleasant side: “It happened that a parents’ meeting was dedi-

cated to the blue suit that my dad brought back from Sweden. The truth was that other children also already had some different details at that time, shorts, trainers, although most wore black suits, but that didn’t bother them, Nikita’s daughter was the problem... So I dressed in that suit once and never again. And I’ve remembered it always. I didn’t pass the enrolment to enter the Faculty of Applied Arts the first time around because I was “Nikita’s daughter”. My father returned that day from an athletics event in Zurich that he’d covered and in the car he heard the Studio B radio show ‘From breakfast to lunch’ had a guest director in Applied Arts Faculty professor Aleksandar Mandić. They discussed how children of actors have an advantage when enrolling in acting studies, then some woman called the show and said that this was also the case at the Faculty of Applied Arts, where the entrance exams haven’t yet been completed but it is already known that Nikita’s daughter will be accepted. She also said that I had a special table where I set to work while the entrance exam was taking place, and that my father brings me to the enrolment every day. My father, righteous and honest as he was, went straight to Studio B and said that it was all a lie; that he was just coming back from an official trip, that he had no idea what his daughter had been doing during the previous days because he hadn’t been in Belgrade. Then my schoolmates and teachers began appearing, it was discovered that I’d been the only

By Radmila Stanković

I received my first Sterija Prize at the age of 25, and my second very soon after. I’ve been lucky with awards. However, only great successes in a career mark a serious artist. For me, that was the film Maria Antoinette MILENA CANONERO AND BOJANA NIKITOVIĆ "MARIE ANTOINETTE "

Vukovac [top graduating school pupil] to register for the entrance exam... The entire show gained another direction, but it was all to no avail because they didn’t accept me at the Faculty of Applied Arts that year. I was the first below the line, which – as anyone who has ever taken an entrance exam to any academy knows – is the worst possible variant.

But they actually did me a great service, because that generation was extremely poor. Nobody did anything serious. I spent that year studying English and Italian, which would prove really worthwhile later in my life, and the next year I was accepted in a class that was excellent.”

She already knew when she finished primary school that she would be either a costume designer or nothing. She gained her first job at Jugoexport, which was then still a powerful firm. However, she resigned the same day she was called by Egon Savin to dress his actors for the play Laža i paralaža at the Serbian National Theatre in Novi Sad. She couldn’t have wished for a better entrance into the theatre. She spent a short time assisting Ljiljana Dragović and Mira Čohadžić, when famous actor and director Branko Pleša invited Bojan to design the costumes for his play Kus Petlić. The actors were Branimir Brstin, Dara Džokić, Aljoša Vučković, Rale Milenković et al. The set designer was Geroslav Zarić.This call came after the discovery that she was the assistant of Ljiljana Dragović, who Bojana simply adores:

“In the National Theatre, where I’m actually employed, there are no longer those old seamstresses who would say as soon as they saw me, ‘Here’s that one of Dragović’s!’ And I’m sweeter, growing. I remember the talent and tranquillity with which Mira Čohadžić worked. She undertook enormous, demanding tasks with the kind of ease that I’d never seen before and haven’t seen since. I was left with the regret of not having worked with the great Božana Jovanović, but I always remembered how she communicated with actors and ballet dancers.

That was a unique experience.”

Theatre director Dejan Mijač represents a special chapter in Bojana’s career. In his setting for the play Troilus and Cressida, she made costumes that many dubbed as being the best designs devised for the boards of a theatre stage. And when they adapted Krleža’s Leda Dejan didn’t even want to see the sketches of the designs. He made jokes in the style, ‘what should I look at; I know you’re making the wrong costumes’: “Even today I think that the costumes for Troilus and Cressida and for Ice were the best things I created in the theatre. The time came for a dress rehearsal for Ice, and I told Mijač three times that the costumes weren’t adjusted because I’d been waiting to see them on the stage, and it was only after that I’d know which costume to adapt and by how much. However, it was to no avail, because when he saw them he started jumping up and down on

the stage, shouting how nothing was up to scratch and – as if that wasn’t enough – Dejan interrupted the rehearsal from time to time just to give more criticism. Ognjanka Mlićević, a wonderful director and professor at the Faculty of Dramatic Arts, sat next to Mijač to watch the rehearsal and say: “Wow, how beautiful the costumes are!” And he responded: “If I’d wanted pretty costumes I’d have engaged Božana Jovanović”. I decided to keep quiet and to cry when I got home. I adapted the costumes and the next day was a full dress rehearsal with the proper costumes and under the right light, and the great, great Dejan Mijač hugged me and said: “You surely didn’t tell Vojka (my mother) that I scolded you”. I told him that I’d complained to her first, but he’d already repented and wouldn’t stop telling me how great the costumes were, how they were the best. I had the fortunate of working with our best directors, but the experience of working with Dejan Mijač was perhaps the most important for my formation. He knew how to create directions for me, to call me and say: “Turn on the TV, on this or that channel is a fashion review, have a look and tell me what you think”. Through those remarks of his, costumes for plays simply appeared in my mind and I knew what I had to do.”

Bojan’s film career is divided into the periods before and after Milena Canonero. This celebrated Italian lady, who today possesses four Oscars for costume design, came to Belgrade in 2001 to work

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My life

Bojana Nikitović, Costume designer

"POKONDIRENA TIKVA"

on an Italian film, which unfortunately never made it into cinemas, and Bojana was her Belgrade-based assistant. And they immediately clicked. The choice of materials and costume solutions that Bojana proposed were very much to the liking of this great artist. What Bojana did with the costume of a large actor who played the role of an extra tasked with just laughing was particularly fun. She tailored him pyjamas from tricot material with a print of racing horses and a sunset. Fatal kitsch. But she tailored the pyjamas in such a way that the horses crossed on the stomach, where they came together when the buttons were fastened. And when the extra laughed it appeared as though the horses were colliding on his stomach. This solution was very interesting for Milena, who really liked Bojana’s sketches, and so began their collaboration, which would culminate with an Oscar for costume design.

Success with Milena opened doors for our costume designer and she has been independently signing her name to major film projects for many

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years, including – among others – Die Hard 5, Underworld 5, Coriolanus, The November Man, Papillon, The Aftermath etc.

“I am a swot who considers that the most important thing in every job is to work, to prove yourself and to love what you do. It is also important to recognise the right moment to take the initiative.

I learned that working with Milena. However, a person still needs to have a little luck in their career, and mine was that I met Milena; she opened the doors to all of the world’s best costume houses to me, introduced me to the best costume designers, tailors, hairdressers and make-up artists. It was next to her that I learnt everything I know about cuts, silhouettes of epochs, materials – working with her represented my post-graduate studies.

Of course, I was also shaped by the great directors with whom I was fortunate to work, from Branko Pleša, via Rale Milenković, Egon Savin and Dejan Mijač, to my own Jagoš Marković, with whom I have special collaboration, as we both already have

"PAPILLON"

experience, knowhow and identical commitment to work... I received my first Sterija Prize at the age of 25, and my second very soon after. I’ve been lucky with awards.

“However, only great successes in a career mark a serious artist. For me, that was the film Maria Antoinette, directed by Sofia Coppola. I was initially scared of the responsibility, then Milena Canonero encouraged me by saying that we have the same taste that implies simple and minimalistic aesthetics, which was the greatest compliment ever for me.”

Bojana explains for laymen that every trim on the costumes was sewn by hand, that they were made from the same material as the costume, and that there was no consideration to sew them by machine, because then the effect would have been lost. When the trim is sewn manually it is like foam.

And that was the case for each costume individually: “That effort, which all of us in the costume department invested in that film, I don’t think any of us could repeat. For three months, or more pre-

By Radmila Stanković

WITH SON VUK

cisely for 12 weeks, we worked at locations in Paris, and there wasn’t a single day of deviation from the shooting plan there. That was the only way that it was possible to do such a large and demanding job.”

When she creates a costume for an actor, Bojana is in close contact with them, and these famous stars are fairly exposed in front of her – not only physically, because they strip during rehearsals, but also their character is exposed to a great extent: “I really love actors and I wouldn’t be able to work with them if that wasn’t the case. They behave differently, of course, but it’s somehow a rule that actors who can’t relax – who don’t want to work with people who are doing their part of the job for a film – always somehow pass the worst. Their costumes are almost always the worst. Some people are really changed by fame, but there are those who fame suits very well, and one of them is Pierce Brosnan, who I worked with to my great pleasure and remained in good contact with. I hope we’ll work together again. I recall Ralph Fiennes as being a perfect

professional who is unbelievably dedicated to his work. He knows how to avoid sitting all day during shooting just to avoid spoiling the perfectly ironed seam of his trousers. It was a pleasure to work with him. I was at his place in London and we became friends in a certain way.

“Sofia Coppola is a wonderful, intelligent and courageous young woman. Like Anjelica Huston, she has strong family foundations in the profession and in her private life that are very important. There is no improvisation with her; she knows precisely what she wants, so it’s easy to work with her. Her father, the great Francis Ford Coppola, sometimes came to shoots, but only as an observer, of course.

So, if I’ve ever been fascinated by someone while doing this job, that was the moment I saw him at the entrance to our rehearsal hall. I remember calling friends and whispering: ‘I’m standing just two metres away from Francis Ford Coppola!’

“Another great actress and great person is Cate Blanchett. We worked on a film together while she was pregnant, but nobody felt that. She never complained and never asked for anything; she was a real professional.”

Bojana says that the film world is actually small and that directors usually call her because they’ve heard about her from some colleague or friend with whom she’s previously worked. As is the case everywhere, recommendations are important. Everyone more or less knows everyone else in the film world and they tell each other about the experiences they’ve had with the people with whom they’ve worked.

“One of the producers on the film Papillon told me that he wanted to hire me because he’d watched Maria Antoinette. And his great friend was one of the producers of that film. He called him and asked if he recalled Bojana, who was Milena’s assistant on Maria Antoinette, to which his friend replied that he remembered me very well, then he gave me many compliments and that’s how I came to work on Papillon. The director of the film Fallen, Scott Hicks, called the director I worked with on The November Man, Roger Donaldson, who is his old friend, and asked him about me, to which he said that I’m excellent and that he should hire me.”

Or when she worked on a film with Keira Knightley, she was called by director James Kent, with whom she’d already collaborated, and the determining factor in her accepting the job was that she was to work with Keira Knightley for the first time – because who wouldn’t like to dress Keira Knightley?!

In this serious film world it isn’t irrelevant whether they call Bojana Nikitović or have some clear English, Italian or French name. What’s more, Bojana doesn’t allow herself to lag behind the team in any way. She speaks Italian and English excellently, and is very talented, diligent, precise, responsible...

We should also add that she’s a very distinctive character; very slim, tall and dressed with absolute chic. But her career still wasn’t easy. She used to hear comments “This one has come from Serbia to tell us about costumes”, there were even those who were jealous while she was Canonero’s assistant, but she also forged wonderful friendships that remain from

Sofia Coppola is a wonderful, intelligent and courageous young woman. Like Anjelica Huston, she has strong family foundations in the profession and in her private life that are very important. There is no improvisation with her; she knows precisely what she wants, so it’s easy to work with her that period. Thus, Francesca Brunori, who was also Canonero’s assistant at one time, remains her best “Italian” friend, who Bojana can now call whenever she wants to be her associate: “It’s always easy with people who are selfrealised and don’t suffer from vanity. I don’t have complexes about being from Serbia when I work with foreigners. It once may have initially required a little more effort for them to believe in me, but I always felt equal with others in my work. I’m perhaps sometimes to blame because I’m a swot, a perfectionist; because I’ve raised the bar for myself despite nobody seeking that of me.”

Two days after this interview for CorD, Nikitović travelled to Bucharest for the shooting of another American film.

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CHILL OUT WORLD

New Statistics About Water And Hygiene According to new report by UNICEF and the World Health Organization, collected in 2016 from 69 low- and middle-income countries and territories, amounts to the first comprehensive global assessment of water, sanitation and hygiene in health-care facilities ranging from hospitals to rural clinics.

Here are five more takeaways: The problem is particularly common in Africa, but there’s a lot of variation on the continent; Soap is also in short supply. One out of six health-care facilities have no hand hygiene service. Serious lack of toilets, 1 in 5 health-care facilities does not have toilets; In 30 countries more than half of the health care facilities lack basic waste management services. The report authors estimate that each year 17 million women in the world’s poorest countries give birth in health centers with inadequate water, sanitation and hygiene.

SPAIN

Sheeps “Employed” By Madrid City hall

THAILAND

Madrid city hall has employed 500 sheep to munch undergrowth at the Casa de Campo, a former royal hunting ground with pines and scrubland stretching over 1,722 hectares. The goal is to reduce the risk of wildfires by clearing vegetation in an environmentally-friendly way while also helping to educate the Spanish capital’s roughly 3.2 million residents about rural life. As temperatures rise in mid-June, the sheep will return to their home at a ranch run by the Los Apisquillos farm cooperative in the Puebla de la Sierra, a mountain village located about 110 kilometers north of Madrid. The flock will move back to the park in mid-October to spend winter in the city where it is warmer and there is more vegetation.

Cigar Smoking World Championship Tobacco enthusiasts from around the world put their slow-smoking skills to the test at the Cigar Smoking World Championship in Thailand.

The competition, which featured 17 men and five women, saw each person receive an identical cigar and two matches, with the object to smoke the cigar for as long as possible without it going out or losing its ash.

None of the competitors came close to the world record: 3 hours, 40 minutes. The winner of the competition qualified to compete at the next event in September in Split, Croatia.

BELGIUM

Pigeon sold for €1.25 million Joel Verschoot’s bird Armando was sold by auction house Pipa for €1,252,000 after a two-week online bidding war.

Nikolaas Gyselbrecht, the founder and chief executive of Pipa, said: “Matched by any other pigeon. In football terms you have Messi and Ronaldo – it’s that level.” The figure made Armando the most valuable bird ever sold in an online auction, according to Pipa, dwarfing the previous record of €376,000, which was set in November. It also beat the record offline price of €500,000 paid for a pigeon named Mr Fantastic, Mr Gyselbrecht said. Armando attracted bids from countries around the world, including the United States, South Africa and Belgium. But the price, already a record, was pushed up by about €700,000 by two Chinese fanciers in the final hour of the two-week auction.

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PAKISTAN

Festival Of Lights In Lahore People from across Pakistan have been gathering in Lahore to celebrate the 431st Festival of Lights.

Devotees offer prayers and candles, song and dance at the shrine of 16th-century Sufi poet and saint Madho Lal Hussain to have their prayers answered.

The annual, three-day festival celebrates the Muslim poet’s love for a Hindu boy, Madho, and with it interfaith harmony. Known as an occasion for interfaith harmony, the festival sees Christians, Hindus and Sikhs join Muslims, seeking intercession from their patron saints.

USA

Faster Than A Fighter Jet While other automakers packed the Javits Center for the New York International Auto Show, Automobili Pininfarina launched one of the week’s most exciting car debuts at an off-site event. The company’s new all-electric Battista hypercar produces a whopping 1,900 horsepower and reaches 100 km/ph in under two seconds. That makes it the fastest street-legal car ever built by an automaker.

All of that comes from electric motors that are fed by a 120 kWh battery and should be good for around 500 km of range on a single charge. The company — which has roots in the storied Italian design house that styled iconic cars like the Fiat 124, Maserati GranTurismo, Ferrari Testarossa and Alfa Romeo Spider — is targeting a 2020 release date for the Battista, with $2.5 million price tag.

CHINA

Football Kindergartens President Xi Jinping has vowed to make China a footballing force and is prepared to go to great lengths to do it, sending thousands of toddlers to “football-focused” kindergartens.

China, which has a population of 1.4 billion but has continually undera-

NEW ZEALAND

Christchurch Rugby Crusaders Change The Name Following shootings at two mosques in Christchurch, New Zealand, in March, in which 50 people were killed, the current branding of the Christchurch-based team is “no longer tenable” because of associations with religious war.

New Zealand Rugby’s chief executive, Steve Tew said “it was clear that the Super Rugby franchise’s symbolism was “offensive to some in the community due to its association with the religious Crusades between Christians and Muslims.” The team says it will decide the extent of the rebranding — whether to overturn its brand completely or retire its imaging but keep the name — in consultation with an independent research company.

The team will also halt its traditional pre-match entertainment of knights riding horses, The Associated Press reports.

The franchise’s name and wardrobe will remain the same through the end of the 2019 season. The team has invited the public to offer feedback about the branding.

CRUSADERS PLAYERS OBSERVE A MINUTE OF SILENCE

chieved in football, will start trialling the kindergartens this year, state media said. Citing the ministry of education, Xinhua news agency said that “each provincial-level region” will have 50 to 200 football-centric kindergartens. The Chinese Football Association announced plans for 10,000 kindergartens across the country. Football-fan president Xi has expressed ambitions for China to qualify for, host and win the World Cup.

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CALVIN KLEIN 205W39NYC

Hats

felt cowboy hat €272

Define Style Clothing may make up the majority of an outfit, but accessories are more significant than you may think. Is a hat an accessory or clothing?

It could technically be considered both, but it tends to lean more on the accessory side of things. Accessories further emphasise your personal style, taste and preferences. Meaning that a hat isn't a necessity for an outfit.

Necessities would be shirts, pants, shoes,dresses, skirts etc. Clothes give you allure, but accessories give you style. Accessories and clothing have equal significance in an outfit, working together to create an ensemble that expresses your style and identity.

Hats tend to be something that add a little extra flare to your outfit.

Hats are important and becoming more and more important every day, which a great hat can definitely do! Don't underestimate the power of a hat in the right settings! So be sure to choose the right hat for the right outfit and it can tie everything together perfectly.

Just like clothing, certain hats are appropriate for certain occasions.

GIGI BURRIS MILLINERY small straw hat €393

MISSONI MARE

striped beach hat €332

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PRADA

woven fedora €247

NICK FOUQUET

brown Isla Del Tortuga beaver fur hat €1,210

ETRO

paisley print brim straw hat €171

BORSALINO woven hat €154

NICK FOUQUET Cohiba hat €1,227

NICK FOUQUET Donjr hat €931

PAUL SMITH

ribbon woven hat €100

May

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Culture

calendar

Spanish Meter Film Festival

15 May-8 June Since the founding of Spanish Meter in 2008, the festival is introducing the audience with cinematography from Spain, Peru, Argentina, Venezuela and Mexico. The most current film stories coming from Belgrade and Novi Sad year after year and then to other cities in Serbia.

Bravely stepping into it’s the second decade of existence, the festival became an ‘a must’ for fans of the Hispanic culture. This year festival brings three film programs to be held at the three different venues with an enviable film reputation Cultural Center of Belgrade, Museum of Yugoslav Cinematheque and Belgrade Youth Center.

Programme: spanskimetar.rs

Greek Weekend

3-5 – Republic Square Greek-Serbian relations have traditionally been friendly due to cultural and historical factors.

Greek Weekend is held annually and aims to promote Greek values, art, resorts, business, music and national specialties. Event is helping to develop further friendly relationships between Greek and Serbian companies.

It is two days long festival in front of thousands of people, in a very live atmosphere, with great media promotion. Event is presenting the best that is coming from Greece, as tourist offerings, culture, gastronomy and companies that are already present or want to be promoted and present in Serbian market.

Programme: greekweekend.org

Mikser Festival

24-26 – Donji Dorćol The 10th edition of the Mikser Festival will be held from 24 to 26 May 2019, throughout Dorćol, Belgrade. This year’s festival is held under the slogan “Cirkuliši”, and is dedicated to sustainable development as a new culture and work and the launching of the Platform for the circular economy in Serbia.

More than 500 participants are expected, the organisers announced.

It was announced that guests of the festival will be famous innovator from Belgium, the author of the concept of the blue economy, Gunter Pauli, the driving force of the circular economy in Slovenia and Central and Eastern Europe Ladeja God Košir, the Deputy Mayor of Ljubljana, Tjaša Ficko and Rambo Amadeus, the environmental activist and constructors of the first Balkan solar powered sailboats.

Programme: festival.mikser.rs

BELDOCS

8-15 – various Belgrade locations This year’s 12th International Documentary Film Festival Beldocs, which will be held from 8 to 15 May in Belgrade in several cinemas, will feature more than 100 premieres from around the world in 14 different selections. During the past eleven years, the Beldocs Festival has become the most popular spring festival of a documentary film that gathers the best achievements of contemporary documentary. This year, Beldocs will continue to provide quality programs, by building and educating its audience, offering local and international selection and numerous accompanying programs. In addition to the domestic and competitive program, the audience will be able to enjoy music, biographical and artistic documentaries, a selection from the modern Portuguese documentary film, as well as in the retrospective of the authors Kazuo Hare and Goran Dević. Since three years ago, Beldocs has been organising a rich program for film professionals from all over Europe, co-financed by EU funds through the Creative Europe program, the MEDIA subprogram. Program: beldocs.rs

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Tour of St. Petersburg Opera

8,10 – National Theatre/ Madlenianum On the occasion of the 150th anniversary of the National Theater in Belgrade and 20 Years of Opera and Theater Madlenianum, St. Petersburg Opera will have two performances in Belgrade.

8 May 2019, National Theater - Opera of Georges Bosea Hunters of Bison 10 May 2019, Madlenianum - Opera Charla Genoa Faust Once again, Belgrade has the honour to host artists from the Sankt Petersburg State Chamber Music Theater - the St. Petersburg Opera House.

Known as one of the best musical theatres in Russia and beyond its borders, Opera St. Petersburg actively performs on tour. The International Theater Tour, which opened in Nice in the new theatre season, continues in Serbia. The tour takes place within the 150th anniversary of the

National Theater in Belgrade and the 20th anniversary of Opera and Theater Madlenianum. This time in front of the Serbian audience, two performances will be performed, awarded with the highest theatre prize of St. Petersburg Golden Soffit directed by national artist Jurij Aleksandrov: May 8, 2019 - The Pearls of Z. Bizet (on the Great Theater of the National Theater in Belgrade) and May 10, 2019 - Faust (on the Great Theater scene and the Madlenianum Theater). Both performances begin at 19.30. The founder and permanent artistic director of the theatre, the national artist of Russia Yuriy Aleksandrov, is known for his creative experiments and unexpected directing solutions. The theatre he heads is honoured with many awards and merit awards. Thus, in the past season, the premiere performance of Faust was awarded the highest theatre prize of St. Petersburg Golden Soffit in four nominations.

16th Museum Night

18 – various Belgrade locations

RECOMMENDS

LEONARDO DA VINCI Walter Isaacson 1699rsd

Sixteenth Museum Night this year will be held on Saturday 18 May in more than sixty locations throughout Belgrade.

From 17:00 to one hour after midnight, museums, galleries and numerous cultural institutions will open their doors in another May evening that smells of culture, art and curious minds.

Under the program theme “Freedom”, the Night of the Museum will take visitors on a journey through numerous stories that illuminate the glorious pages of Serbian history, the anniversary of the victory in World War I, and countless other successes in life, art, enlightenment, culture and science.

Programme: nocmuzeja.rs

Belgrade Tango Encuentro

1-6- Belgrade Fair/Theatre 78 One of the biggest European tango festivals – six nights and days, best contemporary tango artists and nearly 1000 tangueros from 50 countries on the dance floor.

Each evening of BTE, there will be a new opportunity to enjoy stunning performances of the world-class tango artists.

Programme: belgradetangoencuentro.com

SEE MORE: WWW.CORDMAGAZINE.COM

In a year that marks 500 years since the death of Leonardo da Vinci, publishing house Laguna and Addiko Bank presented his biography from the writings of Walter Isaacson.

Based on thousands of pages from Leonardo’s notebooks and new discoveries about his life and work, Walter Isaacson reveals to us a great artist and scientist by connecting Leonardo’s art and science.

“Publishing this book was not a problem, but if we had failed to find a partner in Addiko Bank, it would have be much more expensive and thus not affordable to many people” said Dejan Papić from Laguna.

Vojislav Lazarević, Addiko Bank CEO, reminded everyone that banks originate from Leonardo’s period of renaissance. “Members of Medici family were benefactors of Leonardo da Vinci. Our bank has supported this book because Leonardo was a leader and a new movement innovator, and we recognize ourselves in that as we wish to be seen as innovators on our field.

A special convenience when purchasing this cover in a bookstore is a 25% discount for all users of Addiko Mastercard, while for other editions Laguna enables a 20% discount.

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AFTER WORK 27 CHINESE ACADEMY MAR OF SCIENCES VISITED SASA On Wednesday, 27 March 2019, a delegation of the Chinese Academy of Sciences (CAS) visited the Serbian Academy of Sciences and Arts (SASA) and signed an agreement of cooperation.

Vladimir S. Kostić, President of the Serbian Academy of Sciences and Arts, expressed his satisfaction over the signing of an agreement on cooperation with one of the most prestigious scientific institutions in the world that has hundreds of institutes, over 70,000 scientists, a budget that, as he said, goes far beyond the dreams of every Serbian scientist. He also pointed out that China is one of the few countries that can bring back its best experts from abroad.

President of the Chinese Academy of Sciences Bai Chunli also expressed satisfaction with the cooperation with the Serbian Academy of Sciences and Arts, recalling its long tradition of SASA and famous scientists, its members, such as Nikola Tesla and Mihajlo Pupin.

AMBASSADOR GUEX, AMBASSADOR CSABA AND AMBASSADOR MONDOLONI

28 THE CLOSING CEREMONY MAR OF THE FRANCOPHONIE MONTH

VLADIMIR KOSTIĆ AND BAI CHUNLI

The closing ceremony of this year’s Francophonie Month took place in the Residence of the Ambassador of Canada H.E. Kati Csaba, an event which united the partners and participants from a diverse program in March that highlighted the value and importance of the Francophonie in Serbia and worldwide.

On this occasion, awards for the francophonie dictation and francophonie song contest were handed. Winners of the francophone dictation competition are Smilja Gorčić, Nemanja Kutlešiću and Nataša Popović, while winners of the francophone song contest are Aleksandra Vinčić and Milutin Milić.

Serbia, as a new Associate Member of the International Organisation of la Francophonie, was represented by Mladen Šarčević, Minister of Education, Science and Technological Development of Serbia.

28 MAR AMBASSADOR MARUYAMA HOSTS REPRESENTATIVES OF THE JAPANESE COMPANIES Embassy of Japan in Belgrade headed by Ambassador H.E. Junichi Maruyama hosted at the ambassadorial Residence the representatives of the Japanese companies and their partners and affiliated companies in Serbia.

On this occasion, Ambassador Maruyama presented useful information about Serbia for the Japanese business community.

The business gathering was attended by Marko Čadež, President of the Serbian Chamber of Commerce & Industry, who took the opportunity to address the representatives of the Japanese companies operating in Serbia.

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AMBASSADOR MARUYAMA

SEE MORE: WWW.CORDMAGAZINE.COM

MINISTAR NENAD POPOVIC, ŽELJKO CIGANOVIC - BABY FOOD FACTORY

28 eKAPIJA AUREA 2019 MAR ACKNOWLEDGEMENTS The Belgrade-based company Baby Food Factory has won the Aurea 2019 Investment of the Year Award, given out by the business portal eKapija for the 11th year in a row. The award was handed out to the laureate at the official ceremony at Aeroklub Belgrade by the minister for innovations and technological development at the Government of Serbia, Nenad Popović.

The winner of the main Aurea 2019 award and the recipients of the special acknowledgements were picked by a six-member jury, and the readers of ekapija. com and aurea.rs also voted. The requirements were that the projects had been realised in the previous calendar year, meeting three criteria: innovation, social usefulness and financial potential.

MINISTER NENAD POPOVIĆ

03 SERBIA DIGITAL WEEK APR OPENING CEREMONY International Day was held in Belgrade, where representatives of the Government, leading domestic and foreign companies and organisations, academic communities, as well as individuals from the field of innovative and digital technologies, digital economy and entrepreneurship will participate in several panels.

Minister without Portfolio in charge of Innovation and Technological Development in the Government of the Republic of Serbia Nenad Popović opened a gathering, held in the framework of the Digital Week in Serbia from April 1st to April 7th.

AMBASSADOR FRÉDÉRIC MONDOLONI

01 START OF THE AIR FRANCE’S DAILY APR FLIGHTS PARIS-BELGRADE MARKED Air France flights connecting Paris Charles de Gaulle airport and Belgrade’s Nikola Tesla airport have started in the 1930s, then in 1967 and now after six years, Air France reintroduces daily flights between two capitals.

The Ambassador of France to Serbia H.E. Frédéric Mondoloni hosted an event celebrating the news in the company of Air France officials, members of the French community in Belgrade and friends of the Embassy. Famous French-Serbian violinist based in Paris, Nemanja Radulović, enriched the event with his performance.

Ambassador Mondoloni said that more frequent flights connecting capitals of France and Serbia would bring closer two countries and further improve FrancoSerbian economic cooperation.

AMBASSADOR FREDERIC MONDOLONI

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AFTER WORK 10 ROMANIAN FILM APR DAYS HELD IN BELGRADE Marking 100 years of Romanian cinema, Romanian embassy in Serbia, in collaboration with the Yugoslav Film Archive Museum, held on the evening of the 10th of April, the opening reception of the “Romanian film days”.

The event enjoyed the presence of Romanian directors Ioan Cărmăzan, Şerban Marinescu and Dan Piţa and over 100 guests from the diplomatic corps, filmmakers and Serbian officials, as well as Romanians living in Serbia.

The reception ended with the projection of “A fost sau n-a fost”, directed by Corneliu Porumboiu, film that received very good reactions from the guests.

11 BENELUX SPRING APR NETWORKING COCKTAIL

AMBASSADOR CRISTINA POPA WITH EU AMBASSADOR SEM FABRIZI AND MS FABRIZI

12 APR SSCC-BSCC NETWORKING EVENT For the first time since its creation, the Swiss-Serbian Chamber of Commerce has established cooperation with a regional chamber of commerce from Bulgaria: the Bulgarian-Swiss Chamber of Commerce. SSCC was honoured to welcome over 30 guests – BSCC members- to Belgrade on Friday, April 12, 2019.

The welcoming word was held by Mr Majo Micovic, SSCC President, Mr Boni Bonev, Chairman of BSCC Managing Board, and Mrs Yana Mikhailova, SSCC Board members and the host of the reunion.

Both chambers of commerce held presentations about their activities and involvement in the development of the dual education system in their respective countries.

After this, guests were invited to a networking cocktail to create new potential business contacts and explore future cooperation. Also, BSCC and SSCC members were invited to visit the Nestlé factory in Surčin on Saturday, April 13, 2019, and discover the company’s new production capacities and product lines.

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Belgian-Serbian Business Association and the newly founded Dutch-Serbian Business Association had their first joint event – Benelux Spring Networking Cocktail at Hilton Belgrade.

Bojan Leković, President of the Board of Directors of the DSBA and Hugo van Veghel President of the BSBA welcomed the guests - around 50 representatives of member-companies and the ambassadors of Belgium and the Netherlands H.E. Koen Adam and H.E. Henk van den Dool, stressing the importance of promoting, encouraging and expanding business relations between Benelux countries and Serbia.

This initiative was warmly welcomed by the guests, marking a successful beginning of a future tradition of various Benelux events with the goal of continuous strengthening and enhancing business cooperation between the members of the associations in all aspects.

SEE MORE: WWW.CORDMAGAZINE.COM

WINNERS OF THE TURKISH AIRLINES AWARDS

15 INTERNATIONAL APR SPEED BUSINESS MEETING Representatives of companies from the French-Serbian Chamber of Commerce (CCIFS), the American Chamber of Commerce in Serbia (AmCham), the Canadian Business Association (CANSEE) and the Nordic Business Alliance (NBA) met at the Speed Business Meeting at the Radisson Collection Hotel in Belgrade.

Networking was the key to this event, and the Speed Business Meeting was officially closed with a cocktail where participants had the opportunity to further interact with each other, and with the organisers of the networking event.

15 TURKISH AIRLINES ANNUAL APR AWARDS FOR TRAVEL AGENCIES Turkish Airlines has awarded annual awards to tourist agencies for best sales results in 2018 on 15th April in Belgrade.

At the award ceremony at the Metropol Hotel in Belgrade, General Manager of Turkish Airlines in Serbia, Mehmet Alagoz, thanked the guests for coming together to celebrate the successes.

“This year we had big changes, including the transfer of flights from Ataturk airport to the new airport in Istanbul,” he said.

Turkish Ambassador to Serbia H.E. Tanju Bilgic said that Turkish Airlines is an example of a successful story.

“It is a company that is not in charge only of transporting passengers from one place to another, but making bridges between Serbia and Turkey and other cities,” he said at the ceremony.

Among the winners are travel agencies Olympic travel, Putnik travel, Filip travel, Travelland, Argus Tours, Big Blue, Jungle travel, Manga trip and Arsico.

ERICH COSSUTTA AND IRENA BRAJOVIĆ

17 CONFINDUSTRIA APR NETWORKING COCKTAIL

MEHMET ALAGOZ, AMBASSADOR TANJU BILGIC WITH IVAN NOVČIĆ, PUBLISHER OF CORD MAGAZINE

A meeting of members and friends of Confindustria Serbia “Art & Wine night” was held in the Belgrade gallery of Drina.

The meeting was an opportunity for the gathering of members and associates of Confindustria Serbia in a pleasant atmosphere before the Easter holidays.

The President of Confindustria Srbija greeted guests, Erich Cossutta, who took the opportunity to officially welcome the Confindustria Business Network all the companies that joined the association in the first quarter of the current year, namely: 3D Mediator doo, Zoppas Industries, Olimpias Knitting Serbia, Gigraphix doo, Sicim spa, Mansider recycling doo, G Certi Italy Srl, Elektroremont and JJ technologies doo.

All participants had the opportunity to enjoy the works of Serbian artist Marko Ladušić, professor at the Faculty of Applied Arts in Belgrade.

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AFTER WORK 18 SWEDISH EMBASSY HOSTS APR EAT SMART CHALLENGE EVENT In the seven-day online challenge of healthy nutrition, the Eat Smart Challenge, implemented by the Swedish Institute in the framework of the “Food for Tomorrow” project, about seven hundred healthy food lovers from 70 countries took part. Every fourth participant in the challenge of healthy nutrition is from Serbia.

The Importance of Food Care and Sustainable Development was the topic at Smart Food Talks, which was organised by the Swedish Embassy in the Public Aquarium in Belgrade.

“It’s important to promote what we eat, how to grow food and how we treat the food that remains. This is not only for our well-being, but also for the benefit of our children. It is important to change the way of thinking and the state of mind about food,” said Joachim Waern, deputy head of the mission of the Swedish embassy in Belgrade.

DANIJELA FIŠAKOV AND AMBASSADOR IZTOK JARC

18 SLOVENIAN BUSINESS APR CLUB ASSEMBLY This year’s Assembly of the Slovenian Business Club was hosted at the In Hotel, also a member of the SPK club.

At the beginning of the session, the newly elected Ambassador of the Republic of Slovenia in Serbia, H.E. Iztok Jarc, emphasised that Slovenia and Serbia have friendly relations and that it will continue in the political, and most importantly for our members and economic cooperation. He used the opportunity to announce the Belgrade visit of the Minister of Foreign Affairs of the Republic of Slovenia Miro Cerar. Željko Atanasković, director of the company Prvi faktor, was elected president of the assembly, who concluded that the quorum was achieved for the assembly.

Club president Danijela Fišakov submitted a report on the work and a financial report for 2018. Both reports were unanimously adopted. She particularly thanked the members of the Board and all the members who contributed to the work of the club in the previous year.

23 APR THE INCEPTION OF THE SERBIAMALAYSIA FRIENDSHIP CLUB JOACHIM WAERN

24 KOREAN EMBASSY APR HOSTS K BEAUTY EVENT Korean Embassy, headed by Ambassador H.E. Choe Hyoung-Chan and his wife hosted a presentation of the Korean cosmetics.

The event was attended by the wives of other ambassadors, who had the opportunity to discuss Korean skincare, test the products and try the Aram Huvis appliances, which is one of Korea’s leading companies in this field.

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The ceremony marking the inception of the “Serbia-Malaysia Friendship Club” was held on 23 April 2019 at the Society for Culture, Art and International Cooperation (ADLIGAT) in Belgrade.

The Club, established as part of the ADLIGAT and with the support of the Embassy of Malaysia in Belgrade, is a nonprofit and non-governmental organisation with the main objective of nurturing the friendship between the people of Malaysia and Serbia and enhancing cooperation between H.E. NIK ADY ARMAN AND VIKTOR LAZIĆ the two countries particularly in the fields of culture, art, education and sports.

In his welcoming remarks, Viktor Lazić, President of ADLIGAT announced that the first project of the Club would be the translation of the anthology of works by famous Malaysian writers into the Serbian language. This inaugural project will be in conjunction with the proclamation of Kuala Lumpur as the UNESCO World Book Capital 2020.

The Charge d’Affaires of the Embassy of Malaysia, H.E. Nik Ady Arman thanked ADLIGAT and its President for recognising the potentials of multifaceted exchange between Malaysia and Serbia and expressed his firm belief that the collaboration between the Club and the Embassy would play a big role in bridging the two countries and their peoples closer together.

In a symbolic gesture, the Malaysian Charge d’Affaires presented a set of bow, arrows and shield from the state of Sarawak in Malaysia to the ADLIGAT Museum.

Transportation

PREREQUISITES FOR THE FAST DEVELOPMENT OF THE COUNTRY

INTERVIEW

MAJA BAKRAN-MARCICH,

Deputy Director-General of the European Commission’s Directorate General for Mobility and Transport

Transportation Is About Values, Not Just Roads Serbia, along with other countries of the Western Balkans, should take a firm commitment to reforming its entire transport system. Having new infrastructure without having a regulatory framework that enables safe, interoperable and efficient transport operations is like having a brand new car without tyres: it looks good, but it isn't going anywhere

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udging by the number of transportation projects currently in the pipeline, it seems that the Western Balkan countries have taken the opportunity to become part of the Trans-European Transport Network, and the EU’s internal transport market, seriously. However, “it is not the number of projects that matters in the end, but rather the quality of the projects,” emphasises our interlocutor – Maja Bakran-Marcich, Deputy Director-General of the European Commission’s Directorate General for Mobility and Transport.

Quality means good preparation to avoid delays in implementation. Good preparation and mature projects are much more attractive to potential investors, says Bakran-Marcich, continuing: “in the region, unfortunately, we see too many examples 4 |

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of projects languishing in the pipeline for many years, with no real development. In my opinion, one of the main priorities for the region, including Serbia, is to remove unnecessary administrative obstacles that delay the implementation of projects.”

• What do you expect of the recently formed Permanent Secretariat of the Southeast Europe Transport Community?

- As Commissioner Bulc has mentioned on several occasions, if the Transport Community is a “game changer” for the whole region, then the Permanent Secretariat will be the instrument driving that change.

What the Secretariat can offer in particular is assistance in the implementation of EU legislation, the preparation of projects seeking financing, coordination of infrastructure

planning and the development of transport strategies at the regional level. The objectives given to the Permanent Secretariat are clear: support the transformation of the transport system of the region with a view to its integration into the EU. Significant efforts need to be exerted when it comes to the alignment and implementation of legislation. Targets are very ambitious for both the EU and Western Balkan partners.

• What would be this body’s role in adopting the legal framework related to interoperability, safety, security, public procurement and the environment, as well as regarding other related issues?

- The role of the Secretariat will be instrumental in providing assistance to all partners in these fields, in order to overcome the

difficulties and prepare their respective transport systems for future integration into the EU’s system. The Permanent Secretariat’s mandate is not, however, to overcome deficiencies in the regional partners’ administrations when it comes to implementing this new regulatory framework, but rather to transfer experience and competences to these administrations. The alignment of transport legislation with the EU’s, driven by the Permanent Secretariat, will advance in parallel with the strengthening of the administrative capacity of each partner to cope with its obligations.

• As was noted recently, the European authorities would “work with China to plan platforms and corridors”. To what extent could that impact on the projects that China has with the region’s countries?

- China is an important investor – through loans – in infrastructure projects in the Western Balkans. In the meantime, Western Balkan partners have ratified the Transport Community Treaty, which represents a tool to foster their integration into the EU transport market. The Transport Community is basically a regulatory framework covering – among other things – the development of the Trans-European Transport network, through well identified priorities and the framing of infrastructure financing through the implementation of rules for sound project management, crucial among which are compliance with both public procurement and interoperability standards.

In short, it is crucial that potential Chinese investments (or those of any other stakeholders involved in the development of infrastructure in the region) fully respect these conditions. In such a case, and considering the very high level of investment needed for Western Balkan infrastructure development, we could be in a win-win situation. If these conditions are not met, it may indeed undermine the benefits that the Western Balkans could derive from their membership in the Transport Community. I would also like to remind your readers that Chinese investment typically comes in the form of loans, and not always with very favourable interest rates. On

the EU side, while we are hoping to have an increase in pre-accession assistance amounts for the post-2020 EU budget, we have a number of other instruments at our disposal, with a number of them actually providing grants from the EU budget (like the Connecting Europe Facility). One element that clearly distinguishes financing from the EU budget is that projects need to be prepared according to the EU methodology, with detailed documentation submitted regarding elements such as economic and environmental sustainability, while tendering procedures need to follow the EU’s procurement rules. There is also a strong element of auditing in all the projects financed from the EU budget.

At the recent EU-China Summit (9th April 2019) we agreed with Chinese colleagues on the outline of key elements for the Joint

mentation of reforms in the transport sector that were identified in the framework of the “connectivity agenda” have not yet been met. The dynamism generated by the Berlin Process has not been followed by concrete results. I regret that fact, but am confident that now – with a new cooperation framework in place – this process could be relaunched with more success. The next “Western Balkan Six” summit takes place in less than three months, and we plan to propose a very ambitious set of activities aimed at improving transport patterns in Southeast Europe as a contribution of the Transport Community to the “connectivity agenda”.

• To what extent are these large projects, which aim to bring growth and create jobs, influenced by continuing political disputes among the Western Balkan countries?

Our goal is to accelerate Europe’s transition towards zeroemission mobility, as well as to ensure a socially fair and competitive internal market for road transport services

Study on Sustainable Railway-based Comprehensive Transport Corridors between Europe and China. The Study will assess the current situation of railway-based corridors between Europe and China, analyse them and propose the most sustainable ones and related key projects. The geographical scope of the Study extends to countries located between the territories covered by the EU’s TEN-T policy, on the one hand, and the territory of the Peoples’ Republic of China, on the other. In other words, the Study will look into corridors connecting our extended TEN-T network (which includes the Western Balkans) and China.

All countries will be consulted during the Study’s implementation.

• The Second Western Balkan Summit is behind us. How would you assess its impact on the ‘connectivity agenda’ within the Western Balkans and with the EU? - Many expectations regarding the imple-

- Large projects will bring growth and jobs if they are combined with an ambitious regulatory and reform policy, to which I would also add the need to resolve the ongoing disputes among regional partners.

• How would you asses the work done by the Serbian government in terms of turning transportation projects into development?

- Serbia has a very ambitious infrastructure programme and, indeed, new or upgraded infrastructure is needed for the country to be better connected with its neighbours and to respond to the increased mobility needs of businesses and citizens. It is also crucial to ensure that the new infrastructure is green, sustainable and digitalised.

That is why we are using our Connecting Europe Facility instrument to finance a number of large rail and inland waterway infrastructure projects in Europe. Serbia is the only non-EU country already profiting from this important financial instrument, M AY

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as you have successfully secured financing for the upgrade of the Iron Gate I (Đerdap I navigational lock) on the Danube (the EU is contributing 40% of the total cost of €28.5 million).

However, I would once again like to insist that – beyond an infrastructure

programme – it is necessary to implement ambitious transport policies aimed at bringing Serbia’s transport system to standards that are much closer to those of the EU. I would like to invite the Serbian Government to exert additional efforts to ensure that Serbia catches up with the EU in terms of road safety – multimodality – and the development of innovative and decarbonised transport solutions. It is only through a comprehensive approach to the transport system that Serbia can improve the situation. This, in a nutshell, is the reason we’ve set up a “transport community”, not an “infrastructure community”. It is therefore important to provide a global response to the transport of tomorrow, rather than focusing only on transport infrastructure which – per se – will not be sufficient to improve the situation.

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• As a former Head of the Directorate for the Coordination of European Affairs at the Ministry of European and Foreign Affairs of Croatia, what experience would you share with your Serbian counterparts when it comes to accession negotiation chapters 14 and 21?

country. From the transport perspective, there are numerous stakeholders – just consider complex systems like national railways or the road transport sector. For Serbia, a country on the Danube, I would say that the inland waterways sector also has great potential. As regards air transport, due to the existing Agreement on the European Common Aviation Area, Serbia is quite advanced in terms of alignment with the EU Acquis. This was not the case at the time when Croatia was negotiating Chapter 14, as this agreement was not in force, so Croatia had to exert truly significant efforts to fulfil benchmarks in the area of air transport.

Some very important reforms lay ahead. Probably one of the most difficult ones will relate to the full liberalisation of the rail sector. Serbia is lagging behind in road safety, while passenger rights need further enhancements. Moreover, harmonisation in the road transport domain will also be very demanding, as there will be a number of new legislative acts entering into force in the EU during this period. I believe that you are monitoring the intensive debate underway in Europe following our proposal for some major reforms in the internal transport market entitled ‘Europe on the move – An agenda for a socially fair

The main goal of the Transport Community Treaty is to help our Western Balkan partners to align with EU rules. We are prepared and motivated to work towards fully connecting the Western Balkans with the EU - Both of these negotiating chapters are very demanding. On one hand, Chapter 14 covers roughly 20 per cent of the entire Acquis, while Chapter 21 is very important as it will define the EU’s transport, energy and digital network in Serbia. I still recall quite well the long meetings between Croatian negotiators and the European Commission on various transport-related issues. However, the most difficult part of the job when it comes to accession negotiations takes part in the candidate

transition towards clean, competitive and connected mobility for all’. Our goal is to accelerate Europe’s transition towards zero-emission mobility, as well as to ensure a socially fair and competitive internal market for road transport services. As these proposals slowly become legislative acts over the next several years, it will mean that Serbia will also be obliged to adopt them. Through the Secretariat, we shall be able to offer assistance to Serbia in implementing all of these reforms. ■

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BUSINESS

DEVELOPMENT OF PASSENGER TRANSPORT

Awaken The Danube VUK PEROVIĆ, TATJANA STRAHINJIĆ AND VELJKO KOVAČEVIĆ

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n this occasion, the main goals, plans and activities of the project were presented. The project partners also presented the unique possibilities offered by the Danube Region of Serbia and the current results of the Port Governance Agency.

“For the fourth year in a row, the Agency’s data show large increases in cargo handling and record quantities of transhipped cargo. A total of 11.8 million tonnes were transhipped on rivers in Serbia Last year, or 11.5% more than in 2017”, said Vuk Perović, Director of the Port Governance Agency.

“International passenger transport has been marked by steady year-on-year growth. According to the Agency’s data, the six international passenger terminals in Serbia recorded 1,150 port calls and over 157,000 embarked and disembarked passengers during last year’s nautical tourism season.The number of port calls was up 15% on 2017, while the number of embarked/ disembarked passengers was up by a fifth.

The Port Governance Agency has announced the continuation of the project "Awaken the Danube", promoting passenger transport and tourism in the Upper and Lower Danube regions, connecting eleven individual cities: Smederevo, Kladovo, Donji Milanovac, Kostolac, Golubac, Veliko Gradište, Novi Sad, Belgrade-Zemun, Sremski Karlovci, Apatin and Banoštor “The international passenger terminal in Belgrade is still the most attractive to foreign tourists, with more than half the total number of port calls and about 80,000 tourists It is followed by the terminals in Novi Sad and Donji Milanovac.

During Easter last year we opened a terminal in Golubac, which completed the nautical season successfully with 44 port calls and more than 6,000 embarked and disembarked passengers. Since the trend in passenger water traffic shows constant growth we expect to double the number of port calls and passengers by 2025.”

The current value of water transport projects is 205 million euros, and additional investment in water transport is expected by the end of the year

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Veljko Kovačević, Assistant Minister of Transport, Construction and Infrastructure, pointed out that the current value of projects in water transport is 205 million euros, and announced that additional investments in water transport are expected by the end of the year.

Kovačević added that, in parallel with projects to improve port infrastructure and waterways in Serbia, the ministry will pay special attention to the renewal of the domestic fleet.

Promotion of the natural resources of the Danube river basin in Serbia will enable the development of the eastern and northern parts of our country, and river-based passenger traffic in Serbia.

The Port Governance Agency aims to place the cities of this region on the tourist map of Europe and for Serbia to be ranked among the leaders in passenger transport. ■

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BUSINESS

VLADIMIR LEKIĆ, General Manager, Dragon Maritime SEE d.o.o. (Ltd.) - an agent of Cosco Shipping Lines Co. Ltd

Serbia & China Have Never Been Closer Thanks to company Dragon Martitime SEE, which is a general representative and agent of Cosco Shipping Lines, China's largest shipping company, the transport of goods - through imports to and exports from Serbia – has been eased considerably. Thanks to this company, Belgrade has become a regional hub for the development of intermodal transport

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ith the increased presence of Chinese companies and major growth of Chinese investments in Serbia in the period ahead, we also expect a significant increase in goods trading between the two countries, as well as our company’s establishing of new services, says Vladimir Lekić, general manager at Dragon Maritime SEE. Your company, as the general representative and agent of Cosco Shipping – China’s largest shipping company, has eased the transport of goods to and from Serbia significantly. To what extent will this contribute to deepening collaboration between Serbia and China?

- Following the successful development of intermodal services between the Port of Piraeus and the countries of central Europe, Cosco Shipping launched a regular rail link between Piraeus and Belgrade in May 2017.

Having gained a direct link to the main Chinese ports, Serbia is becoming the first Balkan country with such a service, while Belgrade is becoming a regional hub for the development

of intermodal transport across the region.

Thanks to its geostrategic position along Corridor 10, Serbia plays a key role in the development of the “New Silk Road” by providing the most efficient transit route that’s traversed annually by more than 1,000 Cosco Shipping container trains, while the current project to construct a high-speed railroad between Belgrade and Budapest will significantly increase the flow of cargo and enable faster transit times compared to traditional transport routes via Adriatic and North Sea ports.

The huge “One Belt, One Road” global project will increase economic activity and the trade exchange between the two countries.

What does your company expect from the Serbian market?

- Cosco Shipping is recording growth of more than 70 per cent on the Serbian market and is also present with all services and transport routes of our company. With the increased presence of Chinese companies and major growth of Chinese investments in Serbia in

With the selection of the most efficient services, clients can rely on an average transit time of 25 to 30 days along the entire transport route from main Chinese ports to Belgrade

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the period ahead, we also expect a significant increase in goods trading between the two countries, as well as our company’s establishing of new services. Cosco attaches great importance to the development of intermodal terminals, i.e. so-called dry ports, which is why there is great interest in establishing them at different locations in Serbia, which will provide an additional boost to economic activity and strengthen Serbia’s role in the strategic “One Belt, One Road” project.

A regular service from the Port of Piraeus to Dobanovci was launched two years ago, which provided Serbia with a direct connection to China’s main ports. What are the main advantages of this service compared to other transport routes?

- This unique service represents the most serious alternative to traditional container shipment routes via Adriatic ports, offering the shortest transit time on the Western Balkan market, as well as very affordable freight rates. Thanks to the high frequency of connections between ports of the Far East and the Port of Piraeus, clients have the option of selecting up to five weekly services with various transit times. Complete transport between loading ports and Belgrade, or in the opposite direction for exports, is covered by the Bill of Lading of Cosco Shipping company. ■

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BUSINESS

STEFAN FIJALA, Executive Director of LTC d.o.o. (Ltd.)

The Solution Is In The Digitalising Of Work Orders Applying information technology to improve the quality of services and after-sales processes

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nformation technology changes the shape of industry and the way companies generate profits. By analysing our generic value chain, we noted certain anomalies that directly impact on models of improving the quality of services and processes within the scope of internal logistics. The only way to spot irregularities and deviations in the process was to create software, which we’ve called LogiMind.

How aware are companies of the importance of digitalisation and do they know what it implies?

- Companies usually strive to keep pace with business trends, but that certainly isn’t enough to create competitive advan12 |

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tages. Digitalisation changes the structure of industry, exposing companies to new opportunities, but also to threats. At the same time, the possibility of choosing strategic solutions increases, such as redefining business processes and changing the traditional approach with clients and suppliers. Digitalisation represents only the final outcome of comprehensive reforms that must essentially be implemented much earlier. As a consequence of this, digitalisation remains at the basic level in Serbia. We face daily challenges in the implementation of high-tech solutions, because there is often a lack of adequate infrastructure that would enable the system’s further upgrading.

What does it look like to launch such a complex project from scratch; in your opinion, what are the advantages and disadvantages of such a challenge?

- Creating software isn’t the most complicated part of this kind of project. It is a much greater challenge to understand the work the client has to do and to harmonise our business processes with their value chain in order to improve quality of service. Being part of a team that creates something unique is a benefit in and of itself. Apart from that, the experience you gain during analysis and project workshops is invaluable. For more than two years, which was how long

the creation of this software lasted, this implied overviewing all aspects of the business we were doing. The focus was on after-sales, because we concluded that the digitalisation of this sector is currently the most important for the further development of the company. After all the situations we had and all the challenges posed, I can freely conclude that the choice of associates, i.e. the project team, is the most important and crucial segment determining success in achieving the goal.

Considering that you’ve been active in this industry for a long time and that you come across various demands, what formed the basis for your selecting of a field of analysis that would later define the software’s structure?

- The focus is certainly improving the quality of service – services in this case. Clients expect accessibility and the swift resolving of problems in a safe way. An inevitable factor is also the value of the service provided. In order for us to be able to do all of this, we analysed our service and asked each other lots of questions. How do we function generally? How do we measure certain things? How do we conduct training? How do we receive requests and how do we handle them? Do we have defined processes? Who tracks and controls them?

How do we improve processes? How do

we utilise anomalies observed? Do we have set priorities? How do we report to colleagues in the service sector? How do we communicate with other sectors in the company? How do we communicate with suppliers? How do we communicate with our clients? And lots of different questions that actually defined the direction in which we should move.

Could you describe LogiMind in brief?

- That’s a good question, and one often asked by clients themselves. LogiMind is a web B2B application which has the main

by a works order that’s actually a link between all sectors, but also a link between the client and LTC. The digitalising of work orders represents the key within the scope of a single service process, i.e. any kind of business dealing with services.

Considering that you do business with global corporations, have you considered expanding your business to other locations?

- Demand and interest exist, which is positive. How this will impact on the future of LogiMind is something that we’re really not able to predict at this time. It is up to us to

improve the software, and its application should generate results that will define new standards of industry within logistics, and more specifically in the field of goods transport. Forklifts were once the main topic of conversation. Now they represent only one of the factors of the business model that we have placed on the market, and which relates to the forming of a completely new look at internal logistics. A key factor in the creation of this business model and its success is digitalisation, which actually gives us the opportunity to think in the direction of serving new markets.

Can you tell us more about how you see the development of internal logistics in the future?

- Manufacturers have traditionally been focused on the production and quality of physical goods, in which they can create added value that they will offer to end users.

Increasingly demanding markets dictate the pace of innovation, where internal logistics offers a range of possibilities for optimising and improving business. Logistics, as one of the primary activities in the value chain, takes a key place in forming the competitive advantage of companies. By observing global corporations, you can notice a focus on improving logistics processes and models, part of which is represented by internal logistics. The way in which forklift fleets are managed, usage models, controls and optimisation are a segment in which LTC continuously exerts efforts to innovate in ways that that will enable the development of these factors. It remains to be seen whether these efforts will also redefine the future of internal logistics at the global level. ■

purpose of ensuring the complete flow of information between the client, on one side, and LTC and its sectors, on the other. After a client initiates a service request, LogiMind will disseminate information within the service sector, warehousing and finances.

The software functions in relationships within the company, i.e. between sectors, in a completely identical way. The central position in the software matrix is occupied

For more than two years, which was how long the creation of this software lasted, this implied overviewing all aspects of the business we were doing. The focus was on after-sales, because we concluded that the digitalisation of this sector is currently the most important for the further development of the company

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NEWS U.S.

INCREASED PAY FOR DRIVERS Pay for road haulage drivers has not been great, with the annual salary in the U.S. averaging around $40,000. However, driver shortages have prompted some companies to drive up sign-on bonuses by as much as $6,000 and increase salaries.

Unfortunately, even with these increases, drivers are still making - when adjusted for inflation - about 50 per cent less than they were in the 1970s. However, it seems we can expect these increases to continue as long as the ELD (electronic logging devices) Mandate remains in effect. Those just starting as drivers, or those intending to stay in the game for a few more years, should enjoy better compensation. The U.S. already has a shortfall of around 60,000 truckers, while that number is expected to increase to around 174,000 in less than a decade.

UK

AIRLINE EMISSIONS GROW OUT OF CONTROL UK-based Jet2 was the fastest growing airline polluter in Europe last year, with its carbon emissions up by a staggering 20% in just 12 months, according to official EU data released last month. It was joined in the top 10 fast growing airline emitters by fellow low-cost operators Wizz Air, EasyJet, Vueling, Norwegian and Ryanair, as well as national carriers TAP, Finnair, Lufthansa and KLM. Airlines’ carbon emissions grew 4.9% on flights in Europe last year – in contrast to the other sectors covered by emissions-trading, such as coal and cement plants, which declined 3.9% overall. Carbon pollution from flying in Europe has risen a staggering 26% in the last five years – far outpacing any other mode of transport.

RUSSIA

CARGO TURNOVER INCREASE AT BERINGOVSKY PORT Another Chukotka priority that forms part of the infrastructure plan is Beringovsky port, which handles over 700,000 metric tons of coal per year from the nearby Nagornaya Mine.

Reconstruction of two of the port’s berths is planned by 2020 at a cost of 1.25 billion rubles, according to the Transport Ministry.

The spending plan includes 927 billion rubles to increase the combined capacity of Russia’s sea ports to 1.3 trillion metric tons.

The Russian government is pursuing a 6.3 trillion ruble ($96 billion) six-year modernization plan to revamp the country’s highways, airports, railways, ports and other transport infrastructure through 2024.

NORWAY

BILLIONS FOR RAIL PROJECTS A total of NOK 27 billion (€2.84 billion) is planned to be allocated to large-scale rail projects in Norway in the state budget for 2019, 12% more than in the current budget.

The construction of an InterCity line in Vestfold, to the southwest of Oslo, and planning for an InterCity line in Østfold to the southeast, plus another rail tunnel in Oslo are among the big projects that would receive increased funding.

The Norwegian government is also pledging a billion for the construction of the Ringerike, an extension of the Oslo-Bergen line from Hønefoss to Sandvika, in the 2019 budget, the newspaper Bergens Tidende reports. This will used on preparatory work, ground drilling and further planning of the long-planned project, which will eventually cut the travel time between Bergen and Oslo by one hour.

Construction is not expected to start until 2021-22, and the Ringerike line is not expected to be completed until 2029.

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MPC PROPERTIES The biggest real estate development company in the region

WORLD CLASS

Real Estate Platform

For more information visit: www.mpcproperties.rs office@mpcproperties.rs

THE BIGGEST REAL ESTATE INVESTOR IN THE REGION 2

MPC IS CURRENTLY INVESTING 250 MILLION EUROS IN NEW DEVELOPMENT PROJECTS, ALL LOCATED IN BELGRADE, THE CAPITAL OF SERBIA: OFFICE BUILDINGS UŠĆE TOWER TWO, NAVIGATOR BUSINESS CENTER 2 AND BEO SHOPPING CENTER, THE OPENINGS OF WHICH ARE PLANNED FOR 2020. THESE INVESTMENTS ENCOMPASS A TOTAL OF 221,000M2 OF GROSS BUILDING AREA

MPC Properties is the largest real estate development company in Serbia and region, with more than 30 projects established since the company’s foundation in 2002. Primarily dedicated to investing and managing real estate with the crucial aim of increasing value through active initiatives, MPC Properties’ development strategy defines new standards. The company currently owns and manages a portfolio of retail and office assets located in prime spots in Belgrade, including the UŠĆE Shopping Centre, the best preforming shopping centre in the region, Ušće Tower One, the business landmark of Belgrade, Navigator Business Center, a modern, A-class office complex with LEED certification, and many others.

MPC Properties is a long term player in the SEE region with deep market knowledge, broad deal experience and extensive contacts. An aspect that differentiates MPC Properties from the competition is that the entire senior management team has prior experience of successfully delivering on investments in the region. For them, their job implies not only the development of real estate, but also the management of the constructed property, and it is therefore extremely important that the MPC Properties buildings are sustainable, functional and harmonised with the principles of green construction.

WELCOME TO THE OUTSTANDING 3

→ BUILDING THAT BREATHES

Ušće Tower Two is a modern, luxury office building, offering A+ class business space on 22 floors, with 23,200 m2 of gross leasable area (GLA). Built next to the existing Ušće Tower One, Tower Two will redefine the concept of premium business space in Belgrade and set completely new standards. Located in the most prestigious part of the city, in the heart of New Belgrade’s central business district, immediately beside the confluence of the rivers Sava and Danube, it offers easy access for all kinds of traffic.

The building is designed in accordance with green building standards and it is in process of BREEAM certification, the aim is excellent. Ušće Tower Two will be a “building that breaths”, with decentralised natural ventilation system integrated into a façade, which enables fresh air in office premises at the touch of the button.

Along with the new tower, MPC Properties is developing a two-level underground garage with 750 parking lots aiming to cover parking needs of both towers.

Aside from the highest quality workspace with flexible rental areas on each floor, Tower Two offers additional facilities and amazing surroundings, perfectly complementing the existing buildings: UŠĆE Shopping Centre, the most visited shopping centre in the region, and the Museum of Contemporary Art.

→ OFFICE SPACE OF THE HIGHEST STANDARDS

Tower Two

→ SUPERIOR WORKING ENVIRONMENT

UŠĆE

MORE THAN A WORKPLACE 4

THE NAVIGATOR BUILDING IS LEED GOLD CERTIFIED, WHILE THE SAME IS EXPECTED FOR PHASE 2

NAVIGATOR

Business Center 2 The Navigator Business Centre is a modern Class A office complex in Belgrade’s central business district.

After the successful completion of first phase of Navigator Business Center, the construction of second Phase of the complex is underway. Efficient, functional, user friendly environment, this is more than just a place for work and a perfect choice for modern and demanding professionals. In addition to a contemporary workplace, Navigator Business Center will also provide a restaurant, daycare unit, a fitness centre, beauty salon, art gallery and other facilities. → GF + 8 FLOORS OF SMART DESIGN, sophisticated and humane office area → 500 PARKING PLACES in a three-level underground garage → EXTREMELY EFFICIENT, with minimised utility costs → HIGH PERFORMANCE office with maximum flexibility and 3.000 m2 area per floor → EFFICIENT VERTICAL COMMUNICATIONS, with destination control → SUPPORTED by a professional management team

BUILDINGS WITH THE HIGHEST STANDARDS 5

ADVANCED

Shopping Experience

→ NEW SHOPPING EXPERIENCE IN BELGRADE with over 43,000 m2 of gross leasable area and total constructed area of 130,000 m2 → THE INVESTMENT of more than €110 million will serve a catchment population of more than 345,000 people within a 15-minute drive. → SPECIALLY CREATED TENANT MIX, with over 130 international and regional brands → CENTRE ACQUIRES ADDITIONAL CONTENT: a multiplex cinema with 8 auditoriums and the latest projection technology, a supermarket covering over 2,000 m2, a children’s play area and a rich gastronomic offer → THE CONCEPT OF BEO follows the latest global trends in retail, with multiple open areas and lots of natural light and greenery

THE OPENING OF BEO SHOPPING CENTER IS PLANNED FOR THE 2020

– BEO Shopping Center

OFFICE ASSETS OF THE HIGHEST STANDARDS 6

WE'RE RAISING STANDARDS

& SHIFTING BOUNDARIES In the developing of new concepts for these business properties, we wanted to shift the boundaries of the domestic market and keep pace with current world standards and properties currently being developed in major business hubs, primarily London, Vienna and Warsaw

NATAŠA BUGARINOVIĆ Head of Techinical & Development, Office Division, MPC Properties MPC Properties integrated its rich experience of the development and management of real estate during the process of designing the concept for two new, exceptional business buildings - Ušće Tower Tower Two and Navigator Business Center 2. The actual names of these facilities indicate that they relate to a continuation, or second phase, of existing projects. Our existing projects – Ušće Tower and the Navigator Business Center – already have leading positions in the offer of business premises in Belgrade and Serbia due to their high quality and specifications.

MPC’s company strategy is to construct state-of-the-art office premises that are in line with the world’s highest standards. We are a company that thinks strategically and long-term, and we don’t compromise when it comes to building quality and sustainability, investing more than the competition in the actual construction of buildings, which we’re recognised for on the market. This doesn’t

only imply the development of real estate, but also the management of the same property, which ensures that it is extremely important for buildings to be sustainable, functional and aligned with the principles of green construction.

The Navigator is the first office building in Belgrade that was awarded with the the LEED BD+C 2009 Gold certificate, new construction.

Considering that our company manages the entire life cycle of the property, I must stress that the adopted concept of green construction already yielded tangible results during the first phase of the Navigator’s operations. It is the property with the lowest operational costs – costs of electricity, heating, cooling and water – in Belgrade. It also has a high-quality working environment, with more fresh air and lots of natural light. While working on the Navigator the highest quality materials and eco-friendly paints were used. We are continuing with the same rhythm, so we are now in the process of green building certification for Ušće Tower Two and the Navigator Business Center 2. Ušće Tower Two is certified in accordance with the BREEAM standard, with the goal being a rating of excellent, while the Navigator Business Center 2 is in the process of gaining LEED certification, with the aim being the GOLD certificate.

During the designing our properties, the standards of A classification represent a minimum.

Moreover, the principles of green construction are also a requirement, as well as our knowhow and experience in asset and property management, in order for properties to be unique on the market.

With the aim of integrating all of the aforementioned, we – as investors – engage leading and experienced designers to provide innovative and optimal design solutions during the creative process. Ušće Tower Two and the Navigator Business Center 2 are important projects for us, for which we organised competitions to select the best design solutions and exceptional design teams. Specifically, for the design of Ušće Tower Two we appointed Chapman Taylor for the architecture and BuroHappold for installations. It was actually the leading engineers of BuroHappold who provided a proposal for new natural ventilation system that will be installed for the first time in Serbia in our Ušće Tower Two project. Climatic conditions in Serbia are ideal for applying this natural ventilation system. This is an energy-efficient product of leading European company, which will enable the flooding of fresh air into the space at any time, with just one push of a button.

All necessary supporting facilities will be secured within both the Ušće and Navigator complexes, such as a restaurant, fitness centre and green relaxation zone, but also cultural contents and much more.

BELGRADE IS BLOOMING

MPC PROPERTIES, THE BIGGEST REAL ESTATE DEVELOPMENT COMPANY IN THE SEE REGION, IS CURRENTLY INVESTING 250 MILLION EUROS IN NEW DEVELOPMENT PROJECTS: THE UŠĆE TOWER TWO OFFICE BUILDING, THE NAVIGATOR BUSINESS CENTER II AND THE BEO SHOPPING CENTER. THESE INVESTMENTS ENCOMPASS A GROSS BUILDING AREA (GBA) OF 221,000M2

7

BELGRADE

– The City Of The Future WITH A P OPULATION OF 1.7M INHABITANTS, BELGRADE IS ONE OF THE FOUR LARGEST CITIES IN SOUTHEAST EUROPE WITH 24% OF THE COUNTRY’S POPULATION LIVING IN THE CITY. IT IS ESTIMATED THAT BELGRADE GENERATES OVER 40% OF SERBIA’S GDP. Belgrade is in the group of the lowest supplied cities in the region regarding shopping centre density, reaching 150m2 per 1,000 residents, and office space, with an overall market vacancy of less than 4%.

CBD NAVIGATOR COMPLEX