Cord Magazine No.8

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interviews | opinions | news | comments | events September 2004

Editor in Chief: Biljana Stepanovic editorial@cma.co.yu Assistant Editor: Mark Pullen m.pullen@cma.co.yu Editorial: Milan Culibrk, Dragan Bisenic, Nina Nicovic, Nebojsa Kotlajic, Jelena Grujic, Maja Vukadinovic,Vesna Musulin, Zoran Milosavljevic, Slobodan Kostic, Dragan Novakovic, Jelica Putnikovic, Lela Sakovic

BRIGHT FUTURE ENVISAGED FOR SERBIA “I am absolutely convinced that the possibility and the potential exist for excellent relations between SCG and the United States.”

H.E. Michael Polt American Ambassador to SCG

Translators: Milos Milosavljevic, Dejan Zubac Photo: Danka Ninkovic, Dragan Milosevic, Andy Dall Photo Agencies: FoNet, Tanjug and Beta Art & PrePRESS Director: Branislav Ninkovic b.ninkovic@cma.co.yu Marketing Director: Jasmina Kamidzorac j.kamidzorac@cma.co.yu Advertising: Milos Krstic m.krstic@cma.co.yu Aleksandra Djokic a.djokic@cma.co.yu Office Manager: Sonja Rados sonja.rados@cma.co.yu General Manager: Ivan Novcic i.novcic@cma.co.yu Director: Ana Novcic ana.novcic@cma.co.yu Printing: Politika AD CorD is published by CMA (Consulting & Marketing Agency), Kneginje Zorke 11a, 11000 Belgrade, Serbia & Montenegro.

Phone: +(381 11) 444 21 53 +(381 11) 444 50 47 +(381 11) 38 07 066 Facsimile: +(381 11) 456 564 E-mail: office@cma.co.yu ISSN no.: 1451-7833 All rights reserved © CMA 2003/2004

30 EMPLOYING BELGRADE “I think I have matured politically and can do a lot to enhance democratic forces in Serbia”

Zoran Drakulic East Point Holdings CEO and candidate for Belgrade Mayor

50 ICE CREAM DREAM Spiros Pyrgidis CEO Delyug

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CorD | September 2004

contents 18 PAINFUL DECISIONS “Sales cannot be cancelled just because someone does not like the buyer”

Predrag Bubalo

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Serbian Minister for International Economic Affairs

STRATEGIC PARTNERS

H.E. Kurt Leonberger German Ambassador to SCG

“Germany remains Serbia & Montenegro's most important trading partner.”

34 PROBLEMATIC PROCESS “The investment atmosphere in Serbia has become extremely risky, which has seen a dip in interest”

Aleksandar Vlahovic Former Serbian Economy Minister

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MAYORAL RACE HOTTING UP

N.Bogdanovic & N. Vucic Candidates for Belgrade Mayor

“Candidates prepare to compete for the country’s third most powerful position”

72 RENAISSANCE ARTIST CorD speaks to world renowned artist Olja Ivanjicki

Olja Ivanjicki artist CorD | September 2004

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Opinion

ACCEPTABLE PARTNERS

Dragan Janjic

The Democratic Party leadership are aware that defecting DSS supporters are likely to give support to both their party and their rivals, and thus they are having to consider bolstering the support of Kostunica and his party.

T

he Government of Serbian Prime Minister Vojislav Kostunica has lost the lion's share of its public support and clings to power almost entirely because powerful rival parties are not interested in provoking their demise.

According to the latest survey performed by agency Strategic Marketing, the current opposition parties have greater voter support than the parties of the ruling coalition. The study revealed that the country's most popular party is currently the swing-support specialists of Serbian President Boris Tadic's (Democratic party), supported by 32% of voters. Second on the popularity list is the nationalist Serbian Radical Party (28%) and lagging way behind in joint third place, with 10% each, are PM Kostunica's (Democratic party of Serbia) and the newly formed Force of Serbia - party of Serbian media mogul Boguljub Karic

to back their moves. Tadic and DS may only be supporting the government because they are aware that they will be forced into a coalition with one or more of the government's parties when parliamentary elections are scheduled, but that support is ensuring survival.

In view of the political offerings currently on offer in Serbia, DSS is still potentially the most acceptable partner for DS, especially since pro-reform oriented G17 Plus - the other logical choice - has lost a great deal of support and is likely to face disaster at the upcoming local elections; a Radical Party - DS alliance is out of the question and, seemingly, Tadic wants to avoid getting too close to Karic's Force of Serbia - yet to build a profile and establish a political presence.

The Democratic Party leadership are aware that defecting DSS supporters are likely to give support to both their party and their rivals, and thus they are In view of the political offerings currently on offer in having to consider bolstering the support Serbia, DSS is still potentially the most acceptable partner of Kostunica and his party. However, the best-laid plans, political dealfor DS, especially since pro-reform oriented G17 Plus - the despite ings can turn out in unexpected ways other logical choice - has lost a great deal of support and and neither Tadic nor Kostunica can is likely to face disaster at the upcoming local elections wield the power needed to control the political situation in Serbia. and family. With only one government party in the top Ultimately, in order to survive the Serbian Government four, and the remaining coalition members - G17 Plus (less has to maintain a majority of support in the parliament, than 4%) and the Serbian Renewal Movement-New Serbia provide a degree of order and an ounce of stability in socicoalition (around 6%) - the ruling coalition only boasts the ety and the economy, and ensure the support of the intersupport of around 20% of the population. national community. Kostunica has not proved successful With such a low approval rating for a minority governwith any of these challenges, which means the future of ment, coupled with the fact that they have an unstable his cabinet remains far from assured. majority in the parliament and depend on the support of Tadic and Kostunica are certainly aware how matters Slobodan Milosevic's Socialist Party of Serbia, it is certain stand, and this very topic is most likely the subject of their that a powered-up opposition could destabilise and topple frequent tęte-ŕ-tęte meetings. In many ways, the political the administration whenever they see fit. situation is such that these meetings are of greater politiFor the time being, the survival of Kostunica's cabinet cal significance than the state of the ruling coalition, relies on DS's unofficial support, and it could remain this whose fate is already practically sealed in stone.• way for some time to come. If the Socialists chose to Dragan Janjic, revoke their tentative support for the DSS-led coalition, Editor-in-Chief of Beta News Agency the government would remain intact as long as DS chose

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CorD | September 2004

H.E. Michael Polt, American Ambassador to SCG, exclusive for CorD

BRIGHT FUTURE ENVISAGED FOR

SERBIA

By Dragan Bisenic, Photo Andy Dall

Earlier this summer, CorD's Dragan Bisenic spoke exclusively to U.S. Ambassador Michael Polt about past and present relations between the U.S.A. and SCG, and the potential for a co-operative future between the two nations.

A native Austrian who now calls Tennessee his home, Michael Polt has been a career diplomat for almost three decades. Holding various posts in Berlin, Bonn and Bremen; Panama City, Mexico City and Copenhagen, Ambassador Polt was also a key member of the U.S. State Department's 20032005 multi-million dollar Diplomatic Communications System reinvention. A father of two Nicholas (23) and Lindsay (18) - and husband of Hallie, Polt served as Deputy Assistant U.S. Secretary of State for Legislative Affairs prior to his arrival in Belgrade.

T

he walls of the embassy are adorned with reminders of the excellent relations enjoyed by the U.S.A. and the former Yugoslavia. Is it possible that the legacy of those relations could be used to develop stronger ties today?

I think the relationship between countries and the relationship between people, individuals as human beings, are always the accumulation of an entire history of interactions from the first time there was contact to the present time and looking to the future. I think with the end of the Cold War a very major shift in the relationships between countries in Europe, and for that matter, the whole world, took place. And certainly, the positive experiences of the past and the relationships between the people of the former Yugoslavia and the United States are ones that can be used to build on, in terms of future relationships.

But I think I have focused, and I intend to continue to focus while I'm here, on the future orientation and where we are going together in the future. I am absolutely convinced that the possi-

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CorD | September 2004

bility and the potential exist for excellent relations between Serbia & Montenegro and the United States. The basis is there.

The reasons for why we should be closely aligned and working together on issues of mutual importance to us are clearly given.

And that's why we have placed such emphasis on integration of Serbia & Montenegro into Euro-Atlantic institutions and relationships. That's where we want Serbia & Montenegro to go and I think the election that you held just a couple of Sundays ago [June's presidential election] saw the Serbian people give a similar answer.

You have suggested that public addresses need to be delivered with a positive handling of history in mind. What exactly do you mean by that; and is it a reference to the recent past or the further past?

When I was talking about the positive dealing with history, I was specifically referring to the recent history of the last decade,

in terms of the complexities and the difficulties of that past history. I take as a given that the positive and constructive and good experiences that the United States and the former Yugoslavia have had together can form the basis of a continued, and even improving, future relationship.

So, when I was talking about a positive dealing with history I'm talking about the complex things that occurred here since the end of the Cold War and the break-up of the former Yugoslavia, which are difficult for people to look at, difficult for people to face and difficult, maybe, even to talk about. And I think we ought to have an honest dialogue about what actually occurred during that time, in order not to look back and to try to relive the past, but rather to move forward and go ahead into the future.

University, which was completely open for any and all subjects.

Where we, as senior representatives of the American Government, opened ourselves to say that we would like to go ahead and answer any and all of their questions. We would like to offer ourselves in terms of questions they may have, make comments, listen to their comments - tell us what they think about issue X, Y or Z and anything is open for discussion. So, it's that kind of thing first of all.

I would like, however, not just to go to the universities, but also high schools and to talk to even younger Serbs and Montenegrins, and other groups of younger citizens of this country to talk about what they understand and what their conceptions are of their history, about the United States and what they feel about us. And then I would like to go out again and talk to as many, what I would call "real people," as possible. Not just governmental leaders - that's important, of course - and engage in a

An open dialogue about the recent past is indeed very important. For instance, many Serbs would fundamentally disagree with the purpose of the 1999 action taken by the Western Alliance I am absolutely convinced that the possibility and the against Serbia. Considering that the U.S. potential exist for excellent relations between SCG has excellent experience at reconciling differences with former enemies, how do you and the United States. The basis is there. The reasons think such a deep misunderstanding can why we should be closely aligned and working together be overcome? on issues of mutual importance to us are clearly given.

It is exactly a frank and open conversation about what happened during that pericoffee shop, in a town hall, in whatever venue that our Serbian od, the specific instances that you are describing. The NATO and Montenegrin hosts are comfortable in, to sit down and have action that was undertaken vis-a-vis Serbia, that was decided by a conversation which I would term a "no fault conversation," 19 democratic nations that were members of NATO at the time, where neither side has to go ahead and admit fault or place blame who decided that after an extensive period of negotiation - after on the other, but simply say let's have an open and honest disevery opportunity was given to the Milosevic regime - to go cussion. You tell me what you think and I'll tell you what I think, ahead and meet what were considered then, and are considered and we'll still go ahead and have a cup of coffee together when today, the standard norms of appropriate behaviour amongst we're finished. states and amongst human beings.

When all those efforts at a diplomatic solution failed, it was It's actually a very good idea. You were at the faculty of those 19 democratic countries that decided that some stronger political sciences. action had to be taken. Their hand was forced in that regard. And even then, there was a pause in the military action to once again attempt to seek a diplomatically negotiated solution. But, again, this did not bring the right results.

We need to talk about that because I can understand when you say to me that obviously Serbs are not going to feel happy about what occurred here. Well, that is a completely natural, obvious reaction. Why would you be happy about that? I would only remind - and that is exactly what I would say in a dialogue that I would like to have with people of this country - I would like to remind people how this military action was undertaken. Was it a broad scale military action that caused a great deal of innocent lives to be lost? No, it was not. Was there some collateral damage, and were some innocent people harmed? Yes, there were. And that is very highly regrettable and that certainly wasn't the intent of NATO's action. But it is exactly that kind of conversation that I think we need to be having so that we can face it, deal with it, hear each other out, then put it behind us and go where we both need to go together and that is the future.

Could you elaborate on how such a dialogue would be achieved and what the context could be?

I've had a couple of ideas, but I'm eager to hear the ideas from the Serbian side because it shouldn't just be an American idea. I would like to pick up on the ideas of people in this country. I'll give you an example. We just had Under Secretary Mark Grossman here from the Department of State and I proposed, and he agreed, that we put into the programme and arrange a very, very good dialogue with a group of students from Belgrade

Ambassador Polt chats with CorD’s editor Dragan Bisenic

Ambassador’s daughter, Lindsay Polt, sings the U.S. national anthem I should add that I was very impressed with the young people we met at the university. Their questions were excellent. Their responses were excellent. They clearly knew what they were saying and they had a very good sense, not just regarding the history of Serbia or issues in the relationship, but also a lot of the global issues that concern us all, which we have to work on together today and in the future which have nothing to do with the relationship between the United States and Serbia.

You mentioned that you want to build new relations between Washington and Belgrade. What would be new about those relations, on a broader scale?

Well, there are a number of things I want to do. Number one: I want to focus on the key issues that concern the Serbian and Montenegrin people, which happen to coincide with the key interests that the United States has in this country and that is economic development, investments and job creation. This is a winwin situation for both of our countries. The United States has an interest in coming here with its corporations and private investors, to go ahead and establish businesses, and make money. Serbia & Montenegro has an interest in having these companies here to provide jobs, economic opportunities and advancement and for the people of Serbia & Montenegro to get a perspective of a better future, rather than thinking about the unhappiness of the past.

The second item is that which we just mentioned about the students at Belgrade University - that there are so many very important global issues facing all nations around the world today.

Serbia & Montenegro is an important country that can play a major role in dealing with some of these key issues that face us all - global terrorism, environmental degradation, population issues, HIV/AIDS. There are an endless number of issues that we should be working together on as we move into the future, rather than worrying about what may have happened in the past.

It's clear that you're an extremely positive and future-orientated person. What will be your priorities as you attempt to encourage such optimism in others? You also mentioned the need to improve the living standards of people in SCG and I wondered how it is possible to achieve that end?

Well, of course, I've mentioned some of them already in terms of attracting U.S. investment. But when you say 'how,' the question is really "how to do that," there are certain kinds of impediments and certain kinds of obstacles in attracting invest-

licensing rules, laws that protect copyrights. The entire standard that has been set for free market economies to operate still needs to be improved in Serbia. That's one thing that we're working on with your authorities here in this country, which they have expressed an interest in doing, and we have expressed an openness to go ahead and help to try and create that climate so investment can go forward.

Some U.S. investments are the largest in Serbia - such as Philip Morris, U.S. Steel, etc. Are you satisfied with the level of involvement of your companies and are there other American companies that are planning to invest in SCG? Roughly, the total U.S. investment in Serbia right now is just around a billion dollars. I'm very satisfied and very with the performance of U.S. companies in ‌I think we ought to have an honest dialogue happy Serbia so far, but I'm never satisfied that it's enough. about what actually occurred ‌in order not to Not in terms of their performance, which is excellent, I know that a lot more can be done and a lot more look back and try to relive the past, but rather but investment here is possible. If some of the key obstato move forward and go ahead into the future. cles that are still in the way - and I forgot to mention one of the most important obstacles and that is the ments because foreign investment, or the global trading scene if entire issue of The Hague and the War Crimes Tribunal and the you wish, all depends on a certain kind of economic climate for meeting of international obligations that Serbia & Montenegro investors to want to go ahead and risk their capital to establish still has to meet. It is very, very important for creating the kind of business ventures, wherever that may be around the world. And political and economic climate for investment to take off. A lot wherever these obstacles exist it is in the interest of both the more can happen here than has already happened so far. investor and the country receiving the investment to do everything they possibly can to remove these obstacles. In Serbia & Following the presidential elections in Serbia, the political Montenegro, for instance, you've got the importance of the rule power structure of the country is now complete. How would of law, the importance of protecting the investment and the you now assess the democratic reform capacity of the current return on the investment, in other words when you make profits political ruling forces of SCG? can you go ahead and keep these profits and repatriate them to I mentioned earlier to you the visit to Belgrade of your companies so you can go ahead and re-invest them in addiUndersecretary Grossman [shortly after the second round of tional capital ventures. You've got bureaucratic restrictions, June's presidential election]. He brought with him congratula-

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Development positively assessed we basically made a clear statement of commitment to the future of the Balkans and South-eastern Europe to go ahead and be a stabilising factor in Europe, rather than a destabilising factor.

tions to the Serbian people and to President-elect Tadic, Prime Minister Kostunica and to the democratic leadership of Serbia for a free, open, fair and honest election, in which a clear decision was made by the people of Serbia as to which way they would like to see their democracy headed. So if you're asking me how I see development? Very good. I think what happened in the elections is a very clear indication of, first of all, the exercise of the basic democratic right and responsibility of citizens in a democracy, and the aftermath of the expressed wish of the current government, led by the Prime Minister, and the country headed by the future president to work together for stability and for a better future for the country. Again, this is a clear indication of respect for the democracy and the dedication to the interests of the people, rather than any one single individual.

Could you estimate what level U.S. investments could reach in this country?

That's very hard for me to do. First of all, because I'm not a businessman so I can't give you any kind of indication as to whether it could be twice or triple that. Let me put it this way, I think one billion, as much as that sounds, is just the beginning.

In my opinion, there is no reason why the level of U.S. investment and economic activity, and for that matter international economic activity, in Serbia & Montenegro cannot reach levels that are equal to any of the best trading relationships that the United States now enjoys throughout Europe. There's nothing that should hinder that in the future.

The U.S. has troops in the Balkans - in Bosnia, Kosovo, Macedonia. How much does that affect American attitudes towards the region and Serbia & Montenegro?

Well, I think the way you have to read the presence of U.S. military forces in the Balkans is that it is yet another demonstration of the level of U.S. interest and commitment to seeing the region safe, secure, stable and democratic. With free markets and peoples living together in a neighbourly and positive fashion and to make sure that South-eastern Europe becomes yet an additional element of stability in Europe and therefore in the world, rather than an area of consistent instability. So, therefore, when we decided that we were going to have U.S. forces present here and actively participating in the security and safety of the region

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Can such a presence contribute to Serbia & Montenegro's integration into Euro-Atlantic institutions; and what does such integration mean as a goal of SCG? Serbia & Montenegro belong in all the European and EuroAtlantic institutions. You are Europe and you belong in all the institutions that Europe has created since the end of World War II, and has created in a trans-Atlantic fashion together with the United States. I see that process as being quite rapid once the major obligations that Serbia & Montenegro still have, have been met. We all know what those are: dealing with the war crimes issue is an absolute requirement that has to be dealt with. It's not an obligation that the United States has put on Serbia. It's not an obligation that any outside force has really imposed on Serbia & Montenegro. It is an obligation that SCG has undertaken for itself to do. Once that is out of the way, the rest is really the same kind of transition that any other country in Europe has had to undertake to meet the standards of the European Union or Partnership for Peace or NATO. But, it is that one key element in meeting of the international obligations of war crimes that first have to be removed before the rest can happen, I would think rather easily.

Is the arrest and extradition of General Ratko Mladic the pivotal point?

That is one of them. It is absolutely critical that Ratko Mladic be arrested now and delivered to The Hague to meet justice. The government has made this commitment and should do it immedi-

Was it a broad scale military action that caused a great deal of innocent lives to be lost? No, it was not. Was there some collateral damage, and were some innocent people harmed? Yes, there were. And that is very highly regrettable and that certainly wasn't the intent of NATO's action. ately. It is equally important that the rest of the indictees be arrested or go to The Hague of their own free will to deal with the issues of justice that have to be dealt with in the international tribunal.

Charles Crawford, former British Ambassador to Belgrade, stated that if Mladic was arrested then others who have been indicted could be tried before domestic courts. Is that so?

It is correct that once General Mladic is in The Hague, and the others indictees of the tribunal have presented themselves in The Hague, the United States will then be able to support credible domestic prosecutions of people other than Mr. Mladic.

Does the arrest of General Mladic depend entirely on the decision of the Serbian authorities?

As far as we're concerned, we believe General Mladic is hiding somewhere in the jurisdiction of Serbia & Montenegro.

Therefore, the authorities here have to go ahead and do what is necessary to arrest him and bring him to The Hague. Yes, it is their responsibility because this is where we believe he is.

Regarding the composition of SCG. Sometimes we hear that certain factions in America are promoting independence for

Ambassador Polt and wife Hallie meet Serbian President Boris Tadic They are a perfect model for inter-ethnic co-operative structures of living side-by-side. I met the mayor of Bujanovac, who is an Albanian, and the deputy mayor, who is a Serb. The two men sat together opposite me and they couldn't have been more positive about the future, despite the difficulties they have faced. I must say I was very impressed. So, this is a great place and you have a bright future. All you've got to do is believe that you can actually make it and if you do it will happen.

U.S. diplomats seem to visit SCG very regularly. Why is that?

It is yet another example of the U.S. interest and commitment to Serbia & Montenegro and the future of this country. Mark Grossman, who is a good friend of mine, an excellent colleague and a very senior member of our government - he's number three in the State Department and has very broad global responsibilities. He spends a good amount of his time in SCG because he believes, like I do, that be it for just a little bit of a tip in the right direction, this place is going to take off. And it's going to take off in the interests of the Serbian and Montenegrin people, including the people in Kosovo, of course, and in the interests of the United States. You never have to encourage him. He wants to engage and he comes out here and makes the complicated trip to Belgrade and on to Pristina and elsewhere in the region to go ahead and deliver the message of the interests of the United States; to check

Kosovo and Montenegro. Would you care to comment on that?

The policy of the United States on the way forward in Kosovo is very, very clear. It has been reiterated over and over by our government. It is an unequivocal policy that deals with the establishment and obserAs far as we're concerned, we believe General Mladic is vance of internationally recognised stanhiding somewhere in the jurisdiction of SCG. Therefore, dards of behaviour. These standards have not been dreamt up by American diplothe authorities here have to go ahead and do what is mats, international arbitrators or the necessary to arrest him and bring him to The Hague.

United Nations. These are standards that we consider to be the core basis of human what has happened since the last time he was here and to go interaction in the 21st Century. These standards have to be met. ahead and engage and listen to what people have to say here as to That means that people have to have life, liberty and the purhow they see the future happening. So, we do not make American suit of happiness. It is a basic principle of allowing people to live policy in a complete vacuum. We do it only after we have underin freedom and lack of fear and without having to be concerned stood what the people here have said they see as their own future. about whether their houses are going to burn tomorrow, whether their churches are going to be defiled. In other words, the majorWould you comment on the value of President Tadic's visit ity has rights, the minority has rights and they have to be protectto the U.S.? ed in a legal structure and judicial system that every individual President Tadic had an extremely successful and constructive can find himself or herself protected and have a future for him or visit to the U.S. Keep in mind that he had been President of Serbia herself. We want nothing different for Kosovo than we want for all of five days when he left Belgrade. So for him, that early in his America. It's the same for everyone. I'm a little surprised when tenure, to meet with Vice President Cheney, Secretary of State I hear the question "what should be the special solution for Powell, Secretary of Defence Rumsfeld, numerous Senators and Kosovo?" There's no special solution. It should be no different congressmen and other high level U.S. Officials indicates the than any other free, modern, democratic society. That's what we importance that we give to our bilateral relations and, more imporwant for Kosovo. The question of Montenegro is easy, at least tantly, to the significance of his victory as President of Serbia. from an American perspective. This is a clear decision for the As I said earlier, the Serbian people sent a very clear signal free people of SCG to make. You will decide in the end what you with their votes on 27 June that they want this country to contineach want for yourselves and when you make a final decision the ue on a path of reforms and, as quickly as possible, to join Eurorest of us will say "you've made your decision and we're going Atlantic institutions and the European community. We heard them to respect that decision". here in Belgrade and they were definitely heard in Washington.

Our support for President Tadic, for Prime Minister Kostunica What do you think of the country as a whole? and for the others that continue the reform processes begun in I think this is an absolutely terrific place. And I say that with2000 is clear, for we believe a Serbia that can be an anchor of staout any reservation whatsoever. First of all, the kind of reception bility in this region of Europe is extremely important. that I and my family have received here has been marvellous.

So, yes, I do think there was a lot of "value" to President Tadic's The people could not have been more inviting and more friendtrip to the U.S. and for the discussions he had in Washington. The ly and more open to us. I have seen various parts of the country. messages of support he received from the highest levels of my I've, of course, been to Montenegro. I've travelled north of the government were clear indications of our commitment to SCG. city, been down to Smederevo where U.S. Steel is. I've been to I will also tell you that President Tadic repeatedly heard that it southern Serbia, along the Macedonian border and the line of is most important and most urgent for Serbia to completely fulfil demarcation - the ABL - with Kosovo. I've met the people down its international obligations in order for us, and the international there and they are wonderful people who have a very difficult sitcommunity, to continue our constructive partnership with Serbia.• uation, but have done tremendous things to help themselves.

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CorD | September 2004

Interview Predrag Bubalo, Serbian Minister for International Economic Affairs

Painful Decisions Under the watch of the new Serbian Government a significant privatisation slowdown has occurred. Foreign investments and takeovers have fallen below expectations and potential international investors remain weary of political instability in the country. In order to get to grips with the government's successes and failures, CorD's Ana Filipovic spoke exclusively to Predrag Bubalo, Serbian Minister for International Economic Affairs and Coordinator of the Serbian Ministry of the Economy.

I

t could not be said that there has been no income from privatisation this year. However, it would be true to say that income was much lower than expected. ‌As regards the privatisation process, I have no dilemmas: this is a process that simply has to be completed. It is a serious element of the reform process, which must energetically and unhesitatingly be brought to a conclusion - so said Predrag Bubalo.

Are we genuinely missing income from privatisation that was expected and did the process, for all intents and purposes, ground to a halt at the start of the year?

It was planned that this year’s income from privatisation would reach a much lower level than 2003, principally because we no longer have such attractive companies. This Government was left with the most difficult cases. For now, the main priority is to privatise and solve the problems of the large metal, textile and other economic systems with major public capital, because those are the most difficult companies. It is very impor-

By Ana Filipovic, Photo Danka Ninkovic tant to achieve success in those fields because every company there speaks for itself.

The basic model has been devised and the first restructured company that will be privatised is the Kikinda Foundry. That will be the model for many others to follow. Recently a lot has been done in the restructuring field, but we have yet to achieve tangible results in the field of privatisation.

Privatisation levels were lower than expected this year due to a number of factors. Deceleration began with the parliamentary crisis late last year and was compounded by the fact that it took two months for the new government to be established. Then new Privatisation Agency management had to deal more with investigating previous privatisations than facilitating new sales. All this created the impression that privatisation had come to a halt.

On the whole, this is a field without quandaries. When the Law on Privatisation was ratified and adopted by the parliament,

Sales cannot be cancelled just because someone does not like the buyer. There are other organs to deal with the origins of the money and its legitimacy. we reached a consensus that this serious reform process has to be completed without delay.

Was the Privatisation Agency's management replaced because they were concentrating all efforts on revising prior sales and not on new privatisations?

That was one of the reasons for their dismissal. It is not that they are not responsible for monitoring and controlling prior privatisations, but rather they should deal with future privatisations to a greater extent. Again, this in no way means that control mechanisms should not be carried out, as this is the best way of avoiding eventual mistakes. However, the Agency should primarily work on privatisations and if it is going to be the agency for revisions then it should be called that.

We have to prioritise our aims. In this case that is privatisation, reform of the country and the economy, transition and joining the market economy. There is no discussion about that.

Controls should be carried out with this in mind and I am even in favour of control mechanisms being outside the authority of those implementing privatisation - the Agency and the Ministry

Bubalo has no dilemmas regarding privatisation 18

CorD | September 2004

Sales cannot be cancelled to appease disgruntled employees - and in the hands of an independent controlling body. We must consider that transparency of privatisations and sales agreements are sacred and we can only discuss the possibility of abrogation if new owners fail to honour contractual obligations or abuse of the process has been identified, not simply because some party is dissatisfied.

al buyer is a different story. However, the basic question is 'does the buyer fulfil the contract's obligations and legal procedures?'

If there are any irregularities, the court deals with that independently and without any influence. Workers can go on strike, that is their right, but they cannot prevent the new management or the new owner from organising the minimum work process.

What do you expect from privatisation by the end of the year?

Some have voiced the opinion that the recent revisions I expect the year to end with the successful privatisations of negatively affected the image of the country in the eyes of forseveral large companies that we plan to privatise following mass eign investors. Would you agree with that? restructuring. That will be a big step because these large compaThe revisions had both negative and positive aspects. If the nies are often subsidized and do not pay for electricity or gas. control process is conducted with dishonest intentions it creates legal uncertainty. However, if it is purely ensuring legal parameters are adhered to it Decisions reached during transition are painful, as is can attract foreign partners because it the process itself. The battle to overcome reforms and demonstrates that this is a serious country that wants to ensure legality in the work of transition is won in the minds of people. That is not easy. all its organs. Personally, I think the review Just the fact that the budget will be unburdened is a great sucwas much more positive than negative, although future revicess. Perhaps not all procedures for these sales will be completed sions should only be carried out in drastic cases when the law by year's end, but I expect the majority of around 60 large comwas breached. panies to have been sold.

Additionally, the privatisation of the banking sector is ahead Levels of dissatisfaction amongst workers of privatised of us: the sales of three banks for starters, as well as the sale of companies are increasing. How would you explain that? stock in companies that form part of the Stock Fund portfolio.

Decisions reached during transition are painful, as is the process itself. The battle to overcome reforms and transition is What about public companies? When can we expect their won in the minds of people. That is not easy. Some things are privatisations? much easier to say than to do. The people who sit in the We will need more time for public companies and we should Government have to be visionary and know what their final aim not be in a hurry there. We should determine the strategic aims is. The path to that goal is often paved with thorns. That does and partners and it is sure that the privatisation of those companot mean that we should allow the reincarnation of socialist selfnies will not be finished during the mandate of this Government, management, but if any case of non-fulfilment of contractual or even if it lasts for four years. Still, this Government will certainprocedural obligations occurs, then of course revision is to be ly start those processes, despite their culmination demanding a demanded. However, sales cannot be cancelled just because lot of time. We will start with the organisational and structural someone does not like the buyer. There are other organs to deal changes of those companies, but the process of their privatisawith the origins of the money and its legitimacy, but whoever tion will take longer because of their size and national impormakes the biggest offer wins. That is the system, that is the law, tance. That does not mean that we will wait. This Government and we have to stick to it. I have noticed that problems usually has to start looking into it, but the end of this process cannot be arise within companies where the workers expected the buyer to expected soon. Some moves in this field have been made, such be a specific company that, in the end, did not make the best as the adoption of the Energy Law. offer. The fact that we liked someone else more than the eventuCorD | September 2004

19

Interview Will the Privatisation Law be amended?

There will be no changes to the basic model of privatisation.

There will always be improvements in places where we can see that everything is not functioning properly in practise, but the basic model is to remain the same. This is because, as with nowhere else in the world, we have already changed four or five models. Legal security for economic subjects and interested parties should be achieved so that the model becomes transparent and allows for legal security. There is no ideal model for privatisation, but the worst thing is to change it all the time.

In your opinion, what was the biggest factor contributing to the European Union's decision to restore preferential export-trade conditions for Serbian sugar?

By recognising the importance of economic relations with the European Union, the new Government immediately approached the radical solving of the inherited sugar scandal. The Ministry of International Relations did everything expected and, in fact, there was not enough political will to implement other measures aimed at identifying the culprits in the sugar affair.

The new Government had that political consensus and did make a step forward. Sadly, that could not be done very quickly.

However, the decisiveness shown by the Government was positively assessed by the European Union and they now have confidence, regarding the elimination of those abuses, and belief that such misuses will not reoccur. This lesson came at an extremely high price indeed, but the European Commission has gained trust in the seriousness of this Government and has restored preferential conditions for our sugar exports.

Sugar affair not yet concluded

are employed in the industry and it used to be a great exporter, mainly to EU member states. The main obstruction to the signing of this agreement was directly connected to the sugar case. Now, with the elimination of that affair and with textile-export negotiations technically more or less completed, all that remains is to sign the agreement as soon as possible and establish a date for its Yet the EU's demand to check sugar export certificates for implementation. I personally expect that to happen after the sum2002 and 2003 remains! mer holidays. The agreement will probably take effect from 1st That is merely to check the competence of the working January 2005. Then there will be no more limitations on export. group comprising representatives of the Interior Ministry, To date we have enjoyed favourable conditions for trade, Customs Administrative Office and the Market Inspectorate. The although we generally filled our quotas within the first quarter.

Ministry of International Economic Affairs has no involvement However, once this agreement is finalised we will be free to or special authority in those processes. export without restrictions under The working group has performed a detailed analysis of preferential conditions; with demand sugar imports and exports, and has informed the EU accord- theAsonlywelimitation. have already filled the ingly. However, the story is not yet over because the EU approved quota for this year and the expects the issue to be brought to a satisfactory conclusion. positive effects of this agreement will not be felt until the start of next year, it would be reasonable to expect the European Commission to The working group has performed a detailed analysis of approve a fresh quota for us by the end of the year, as a token of sugar imports and exports, and has informed the EU accordingsupport and good will to our textile industry. ly. However, the story is not yet over because the EU expects the issue to be brought to a satisfactory conclusion, with those Regarding the macroeconomic plan, how are you expectresponsible for breaching regulations and creating this affair ing the country to be doing by the end of the year? exposed and punished.

The most important factor for our people and our country, Ensuring this is no easy task, of course, simply because this all which will considerably increase our chances of attracting foreign unfolded during 2002 and 2003 and a great number of documents partners, is that we will experience significant growth in the Gross were used and the whole thing was probably carried out with the National Product. Initial joint estimates with the World Bank gave knowledge of some buyers in the EU. There must be cooperation a growth figure of around 4.5 per cent. Then five or six per cent and understanding, but also decisiveness on the part of the govwas timidly uttered. Some economists are evening predicting that ernment and a determination to resolve the case and not allow gross domestic product could grow by up to seven per cent, and such a thing to happen again. The Government is extremely open that's very important. A negative aspect this year is higher inflawith regard to this case and the EU has been invited to join us in tion than the 8.5 per cent predicted by economic policy, but I'm our attempts to investigate and resolve this affair, which will result hoping it won't go over 10 per cent. If we can accomplish it that in a trial being processed before our courts. We know that abuses would be a great achievement, and I think it's attainable. took place. There is specific proof of that. But at this moment The Government is doing its job: agreement with the there is not enough evidence for us to bring criminal charges. It is International Monetary Fund and London Club, settling debt a very serious job, but again, decisiveness was displayed. issues with Russia; forging an agreement with Fiat regarding the cancellation of part of the Zastava vehicles factory debt, and How much progress has been made regarding the export more. A great deal has been done to regulate economic affairs of textile products to the European market? with Germany and Austria. I expect a larger wave of investment A trade agreement for textile products is of paramount importance to the Serbian economy because a great number of people to hit Serbia by the end of this year and in 2005.•

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CorD | September 2004

Interview

Strategic Partners

H.E. Kurt Leonberger, German Ambassador to SCG This month, CorD spoke exclusively to the ambassador of one of Europe's largest and most powerful nations about the reform process, SCGGerman co-operation, the future of pan-European relations and Germany's role as Serbia & Montenegro's most important trading partner.

By Dragan Bisenic, Photo Andy Dall

H

ow do you see the political development of SCG, particularly with regard to the outcome of the presidential elections and its relation to the country's European orientation?

I am glad that, in the presidential elections, the Serbian people reaffirmed the course they set in October 2000. Boris Tadic's victory is both a victory for democracy and an indication of sta-

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bility in Serbia. People voted against political gridlock and for a future in which Serbia & Montenegro will find its predestined place amidst its European partners. The democratic victory also strengthens the State Union in the EU accession process.

However, the government has to gain new momentum in rising to the challenges that lie ahead: to accelerate the reform process, pass a new constitution as the basis for the rule of law, and fulfil the economic prerequisites of the EU's feasibility study.

The internal structure of SCG is a problem that could affect the country's integration into the EU. To be precise, the lack of harmonisation of relations between Serbia & Montenegro is a problem. In your opinion, should the republics strive for EU accession together or separately?

The lack of harmonisation between the constituent republics remains a problem. For the next few months, it is important to achieve progress regarding the common market of Serbia & Montenegro. The completion of the feasibility study depends strongly on this question. Politicians in Serbia and Montenegro must ask themselves how to secure the best chances for the future. And the only answer to be given is that this is not by nationalist ways of thinking that were fashionable in the 19th century and ended in the devastating wars of the 20th century, but rather by tearing down mental and physical borders, and by closely co-operating within an ever more integrated Europe. This is the only way to master the challenges of our globalising world. Germany regards the Belgrade agreement as the basis for integration of Serbia & Montenegro into the European Union. Our European partners share this point of view. A strong and functioning state union will ease the path into European structures.

Another problem is Kosovo. We have seen a few informal proposals from German think-tanks and some political parties, stating that Kosovo should become a European "protectorate". What should be the content of those concepts?

As you said, these concepts were forwarded by think-tanks and political parties. They reflect a public discussion and are part of an opinion building process rather than an official policy of the German government.

One of the last remarks of former Foreign Minister Svilanovic was that Germany, or rather Mr. Schoeffer, blocked a stronger UN resolution on the March unrest in Kosovo. Has this episode been clarified?

I can only repeat what I said before: the statement of former foreign minister Svilanovic was not based on facts. Germany did not block the Security Council resolution related to the events in Kosovo.

What is your opinion about last Monday's EU proposal that the status of Kosovo should be resolved in negotiations between Serbia, Montenegro and Kosovo?

By expressing his own ideas, Minister Bot reaffirmed that this region remains one of the EU's top priorities under the Netherlands' chairmanship. We are strongly committed to supporting stability and regional co-operation in the Balkans.

Leonberger: a strong state union will ease the journey to the European Union How much has the loss of Prime Minister Zoran Djindjic affected these relations?

Late Prime Minister Zoran Djindjic was an outstanding politician and our relations with him were brilliant, albeit very personalised. Unfortunately, Zoran Djindjic is not with us anymore. Therefore we must increase the continuity and broaden the institutional basis of relations between our two countries.

What are Germany's political and economic goals in the region as a whole, and in SCG itself?

How would you evaluate the quality and scope of GermanThe European perspective has become the most important SCG political and economic relations? catalyst for reforms and regional co-operation in South East Political relations between Germany and Serbia & Europe. At the Salonika summit in 2003 the member states reafMontenegro are marked by our common vision of a stable, prosperous, and united Europe. To us, Serbia stands as a cornerstone of stability and secuEconomic relations between our two countries have rity in the Western Balkans region. We give traditionally been close. Germany remains Serbia & special importance to our relations with Montenegro's most important trading partner. The Serbia & Montenegro because economic development and political stability are prework of the Economic Co-operation Council, which conditions for SCG to live up to its responsiwas founded last year during Chancellor Schroeder's bilities. These developments have repercussions not only on the situation in the visit, is adding new impetus to our economic relations.

Balkans, but in all of Europe. Economic relafirmed their willingness to welcome the Western Balkan countions between our two countries have traditionally been close. tries into the EU. Salonika was a promise, but also a reminder.

Germany remains Serbia & Montenegro's most important trading The countries in this region must assume their political responpartner. The work of the Economic Co-operation Council, which sibilities by implementing the necessary reforms. The German was founded last year during Chancellor Schroeder's visit, is government is determined to support SCG in this process. adding new impetus to our economic relations.

CorD | September 2004

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Interview therefore, afraid that this affair will continue to hinder an increase in German investment in Serbia.

You once stated that Serbia was often close to countries that weren't its genuine friends. I suppose you were referring to some historical legacy in modern times. How do you see the value of this legacy in current relations between countries and between Serbia and Germany?

When I first met late Prime Minister Djindjic I wanted to express my sympathy for Serbia, which has often been victimised throughout history in the struggles of the great powers.

He, however, stated that many of Serbia's problems had been caused by inadequate self-assessment concerning the security situation, as well as its own strengths and weaknesses. Knowing the history of a country is important. But even more important is to learn from history, to be able to shape a country's future in the best possible way.

Are you satisfied with the position of German minorities in Serbia? Is there any progress concerning a solution to the property and other issues related with the events in Vojvodina after World War II? Nowadays, of a once thriving German community no more than 4,000 remain in Serbia. Following the events of World War

Germany regards the Belgrade agreement as the basis for integration of SCG into the European Union. Our European partners share this point of view. A strong and functioning state union will ease the path into European structures.

II many families fled to Germany and other countries. Of those who stayed behind, thousands died in detention camps. Having in mind this sad story, I am all the more glad to see that lately there have been signs of reconciliation. Germans who had to leave their Serbian homelands as children are now travelling back to their villages to reminisce, and Serbian inhabitants are welcoming them. In the last ten months, two memorials were inaugurated at the sites of mass graves in Knicanin and Gakovo - impossible without the support of local authorities. With the inauguration of a cultural centre for the Germans in Vojvodina in July we were able to open a brighter and more future-oriented chapter.

German support assured for Serbia & Montenegro Are there any obstacles to German economic activities in Serbia & Montenegro? More precisely, do you know of any justified objections of German companies regarding corruption cases or anything similar?

At present, the government's approach to the SARTID case is still inconsistent with the wish for more direct investment from Germany. Instead of making an effort to find a fair solution - as promised in talks with Labus [deputy Serbian PM] and Bubalo [Serbian minister for Foreign Economic Relations] - the government is trying to draw the curtain over the SARTID case. I am,

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CorD | September 2004

Comparing the privatisation process in Serbia and Eastern Germany, can you give any useful advice; for instance, what should be specifically avoided in that process?

Germany had a very particular situation due to the fact that our transformation process was linked to the unification process. But generally speaking, transparency is most important. Any impression of irregularity must be avoided. Moreover, during the transformation period one should not concentrate on the privatisation process alone. You also need to foster investment in the open countryside. You need as much investment as possible and any investment should be welcomed, whatever that might be. Once privatisation has been completed there should be no lack of investment. You need a sound investment strategy, of which privatisation should be an integral part.

On a lighter note, how have you found it to live in Serbia and do you like living here?

I enjoy living in Belgrade, with its beautiful scenery by the two rivers. During the summer I love to go on boat trips or hiking in the green hills surrounding the city.•

Economics

london club AGREEMENT

REACHED

$1.6billion written off

By Milan Culibrk

Following two and a half years of intensive negotiations, the Serbian Government and the International Coordination Committee of the London Club finally managed to reach agreement in June this year.

T

he London Club's committee - comprising representatives of JP Morgan Chase Bank, Calyion, Citibank N.A., Sao Paulo IMI, Societe Generale and West LB - agreed to cancel $1.6billion of debt and re-label the remaining $1.08billion debt as a 20-year loan with a five-year grace period. The writtenoff debt is to be replaced with bonds in October, or by year's end, with an annual fixed interest rate of 3.75% for the first five years, followed by a 6.75% fixed annual rate of interest for the remaining 15 years.

According to the Serbian Government and officials of the Serbian National Bank, connected individuals who earlier purchased part of the SCG debt at a reduced price would get nothing because those transactions had been illegal.

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CorD | September 2004

On 23rd July, a month after the June agreement, the Serbian Parliament ratified the 'Memorandum of Understanding', relating to the agreement. This latest development has given rise to the possibility of finalising the agreement by which Serbia's foreign debt will be reduced to just $200 per capita - enough to cover statewide pension payments for eight months. The Serbian administration intends to make a $40million repayment in October of this year, thereby settling their debt for the entire duration of the grace period.

The Serbian state is to begin issuing bonds by year's end, with foreign currency support provided by the National Bank. Once the London Club debt has been converted to new bonds, these could be traded on the Luxembourg stock market, should the need arise.

In light of initial informal indications that the London Club would not be prepared to cancel more than half of Serbia's debt, the general feeling now is that the Serbian Government managed to forge an excellent deal. Even the few experts vocally opposed to the deal only complained that the interest rate to be paid after 1st May 2010 is too high. However, Serbian Finance Minister Mladjan Dinkic rebuffed the criticisms, noting that average interest rates are dependent on the credit rating of the debtor. He explained that annual interest rates for Germany stood at 3.5%, Russia - 5.8%, Ukraine - 7.8% and for Turkish bonds it was at 10.1%. Thus, he argued, Serbia is placed between the credit ratings of Russia and Turkey.

Radovan Jelasic, Governor of the Serbian National Bank, emphasized the additional positive aspect that the agreement includes provisions to permit Serbia to settle the debt before

issue of Serbian debt in May 2005 - is likely to consider re-branding methods for Serbian debts towards other lenders.

Accordingly, the agreement with the London Club had to correspond to propositions of the Paris Club (a grace period of 6 years, 66% debt cancellation, with the remainder converted to a 22-year loan at EURIBOR interest rates increased by 0.5%).

CONNECTED INDIVIDUALS Signing the Memorandum of Understanding with London Club lenders is not enough to entirely solve the crippling debt problems. If Serbia is to save several million dollars more it must ensure that the 'connected individuals' who purchased the debt with state funds do not receive a penny. Messrs Dinkic and Jelasic have already announced their intention to pursue this end.

Dinkic also noted that the London Club had not cancelled a single cent of the Croatian or Slovenian debt, and had been much more stringent in reducing Macedonia's debt. Only Bosnia & Herzegovina had been granted more favourable conditions, largely due to the destructive impact of the Balkan wars on the country. maturity, given that no payments are overdue. As such, Serbia could feasibly settle the debt by 2010 if it finds sufficient funds or is granted favourable loans. According to Jelasic, provided Serbia remains on schedule with loan repayments there will be no limit to their ability to convert bonds into local currency or shares in Serbian firms and banks.

A number of experts contend that the new bonds to replace the remaining London Club debt could be sold on the secondary market at lower than nominal prices and, should the price of the bonds drop to 80 cents on the dollar, Serbia could buy the $1.080billion debt for as little as $864million. To date, the New Financial Arrangement (NFA) - dating back to September 1998 did not provide the opportunity to purchase the debt from the London Club at a discount price.

Dinkic also noted that the London Club had not cancelled a single cent of the Croatian or Slovenian debt, and had been much more stringent in reducing Macedonia's debt. Only Bosnia & Herzegovina had been granted more favourable conditions, largely due to the destructive impact of the Balkan wars on the country.

According to Serbian PM Vojislav Kostunica: "The agreement with the London Club relieves Serbia of a burden of debt that was a serious obstacle to co-operation with foreign commercial banks. Serbia will, therefore, be assigned a credit rating for the first time, which will allow local companies to enter the world capital market".

Concurring with the prime minister, Dinkic explained that domestic companies would soon be able to take out loans on the world market with lower interest rates than those offered by domestic banks and without the state having to act as guarantor, which has been the case to date. This will also curb local interest rates in the long term, Dinkic added, while some ministers believe the reduced debt will hasten privatisation of local banks and companies due to their increased attractiveness to potential strategic partners - as a result of reduced debts.

Dinkic, also deputy leader of the G17 Plus party, insisted that the country had reached an excellent agreement with the London Club, which equates to a debt reduction from 150% to 60% of gross domestic product (GDP). In terms of status, the deal moves Serbia away from the group of overburdened countries towards the global average in terms of foreign debt.

Throughout negotiations with the London Club, Serbian representatives, keen to bear in mind the potential reaction of the Paris Club, had been most concerned with the current net value of the debt. This was because the Paris Club - due to address the

The Serbian National Bank is to attempt to remove all connected individuals from the picture and thus further reduce the debt. Such a move is nothing new: the newly formed countries established during the collapse of the former Yugoslavia did exactly that to reduce their debt.

Economics The connected individuals - most of whom remain anonyClub. However, Slovenia, Croatia, Macedonia and Bosnia & mous - came to the fore after Serbia stopped servicing its foreign Herzegovina all reached agreement with the lenders that condebt when the international community imposed economic sancnected individuals be excluded from the debt repayment process tions in 1992. After isolation was imposed, the price of Serbian of the former Yugoslavia, inclusive of SCG. As such, it has been debt fluctuated between 10 and 30 cents on the dollar. At that evaluated as 'absurd' for the Serbian state to allow individuals to time some individuals in Serbia opted to buy the debt. Some did convert illegally purchased debt into new bonds. With this in so with private funds in their own names, which was permitted, while others did so ‌ domestic companies would soon be able to take out with state money in the name of the state, or loans on the world market with lower interest rates rather the then Central Bank of Yugoslavia, which was not permitted because the NFA than domestic banks and without the state having to forbade states from buying their debt in act as guarantor, which has been the case to date.

1998. The National Bank of Serbia is now to attempt to identify the latter before receivables are converted to bonds, and the Serbian Government plans mind, Jelasic has announced that the National Bank is to seek to exclude anyone who purchased the debt with state money assistance from the EU and the ICTY in The Hague. from the upcoming conversion.

Jelasic insisted: "it would be quite pitiful if those who illegalJelasic confirmed that state money was used to buy the ly purchased our debt with state money now received bonds London Club debt on the secondary market and a number of from the new Serbian state. As there is a vast amount of money these transactions were made under the guise of the Central at stake here, the National Bank cannot assume full responsibilBank of the former Socialist Federal Republic of Yugoslavia. ity for preventing such an eventuality. In other words, the govAccording to the National Bank governor, records show that the ernment and the police should roll up their sleeves and ensure original creditors sold $800million of Yugoslav debt during the the new bonds do not end up in the hands of these connected

SFRY conflicts. Meanwhile Dinkic - then Central Bank Governor - claimed to have reached agreement with the London Club to reduce the nation's debt by $600million because of the purchases made by connected individuals.

With the exclusion of these individuals Serbia would save some $230million. Jelasic, who claims such an outcome is imminent, stressed that it is the responsibility of the state's authorities to determine who exactly used state funds to purchase foreign debt at 20% of its worth.

Rumours have circulated that the Cyprus-based branch of the Belgrade Bank and other now defunct state-owned banking institutions were tasked with purchasing Serbia's debt on the secondary market for the benefit of the state and the then regime of Slobodan Milosevic.

At the time, the administration considered that such cut-rate purchases would not only reduce the debt, but could also generate a profit by being charged at a higher rate to former Yugoslav republics once agreement had been reached with the London

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CorD | September 2004

individuals. A great ethical hazard looms ahead and, if proper measures are not taken, taxpayers could end up with a great burden on their shoulders".

Taking the rare step of naming one such connected individual, Jelasic said that Serbian media mogul Bogoljub Karic had purchased debt on the secondary market. The Tax authorities refused to allow the BK Group owner to settle an extra-profit tax bill with $29million of Yugoslav-Serbian debt that he had previously purchased. In 1996, Slovenia also refused to allow Karic to exchange part of the Yugoslav debt for bonds that had been issued following their agreement with the London Club.

However, Karic claims that he bought the $29million of debt legally. The Mobtel, Astra Bank and BK TV owner announced that he would appeal to the International Court of Justice if he is excluded from the process of converting London Club receivables in Serbian bonds. Karic and Dinkic have been publicly at loggerheads since the G17 Plus deputy leader announced his intention to reverse tax breaks granted to Karic during the Milosevic years.•

Zoran Drakulic, owner of East Point Trading, Belgrade Mayoral candidate Zoran Drakulic first gained recognition as a swimmer. Later on, he was considered as one of the young, upand-coming directors of Genex - then one of the biggest companies in Yugoslavia. He continued his career abroad, as the President and CEO of East Point Holdings Ltd. - a successful enterprise operating in Europe and Asia. Drakulic is now turning his hand to politics.

By Jelica Putnikovic, Photo Dragan Milosevic Mr. Kostunica decided to take on the job of prime minister after the parliamentary elections. This was a logical step, considering the important political matters needing to be solved regarding The Hague, Kosovo, relations with Montenegro and such. I decided the time was not right for me to enter politics. I have now been nominated for the position of Mayor, which is a significant post. It offers great authority, but also demands a manager with top skills and vast experience.

Employing

You have announced your withdrawal from business. Will you continue to be in politics even if you do not win the mayoral elections? If so, why, and how will that reflect on your company?

I think I have matured politically and can do a lot to contribute to democratic processes in Serbia. I will remain in politics even if I don't win the elections on 19th September and to do two jobs concurrently is almost impossible. When I put myself forward as a candidate I intended to work seriously. When I get elected as Mayor I will pass my responsibilities towards running East Point on to someone else. Our company is organised in such a way that the management can be turned over to others.

Belgrade Z

oran Drakulic, confirmed as the Democratic Party of Serbia's (DSS) candidate for Belgrade Mayor, has promised to use all his team-leading skills and business connections to improve life, employment and the youthful appeal of the city he loves, in order to turn the Serbian capital into the catalyst of change for the whole country.

After the parliamentary elections you were considered a candidate for Serbian Prime Minister. However, you chose to put your move into politics on hold until now. Why?

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CorD | September 2004

After swimming you embarked upon an ultimately very successful career as a business manager. However, you left Genex somewhat abruptly.

That happened after I returned from Cyprus, where I was posted as Genex representative. This was prior to the dismissal of Milorad "Miki" Savicevic. His idea was to elevate me to the top position in the company, as he believed I could continue the company's success.

Mr. Savicevic left in January 1990 and I left a month later.

The question of employment is of crucial importance to the youth of Belgrade, and indeed the whole of Serbia. How are you planning to halt the intellectual exodus, the so-called "brain drain"?

The programme I have planned will assure that. Young, educated people will not leave if we create conditions for them to

Interview work here and be paid well. That is only possible if we improve the economy in Serbia, and that is my main task.

There are sceptics suggesting you will be unable to keep your promise to use your business connections to bring foreign investors and restart the economy in Belgrade.

I have heard that. The reason for their scepticism is an attempt to undermine what I offer. But if I cannot bring investors, who can?

What would Zoran Drakulic offer to Belgraders as Mayor?

I offer to employ Belgrade. To kick-start the economy in Belgrade, which means in Serbia, by rebuilding the manufacturing companies that are currently not working. I am planning to make Belgrade and Serbia develop and function. Belgrade and Serbia are inextricably linked, as Belgrade controls around 50 per cent of the Serbian economy.

I also plan, in a relatively short and acceptable period, to raise the standard of living, build the infrastructure and other objects to facilitate the development of the city and a better life. I will also offer citizens other services that may seem of lesser importance at first glance, but are in fact of daily importance: an improvement of the health services, solutions to traffic problems, school and pre-school problems, the legalisation of illegally built objects, solutions to the drainage and water supply problems…

Corruption is a massive problem in Serbia. How will you tackle the issue?

Like other countries in transition, Serbia is fighting the problems of corruption. Sadly, a great number of young people are included in that. Corruption is solvable and, if I become Mayor, I will eradicate it. The city has a relatively large budget and manages enormous public procurements, and this field demands great attention. Attention should be paid to jobs connected with the Belgrade Construction and Land Bureau.

Your company successfully operates abroad. How would you assess the economic situation in Serbia, compared with abroad; what needs to be done to attract foreign investors to Serbia, to improve the investment climate?

In an economic sense, the world is currently on an ascending path, in contrast to Serbia. Serbian has enormous problems accumulated in the past and during the period of sanctions. The economic situation in Serbia is also the result of transitional changes and the investment climate is not good. In order for for-

“Like other countries in transition, Serbia is fighting the problems of corruption. Sadly, a great number of young people are included in that. Corruption is solvable and, if I become the Mayor, I will eradicate it.” eign companies to start investing in Serbia, we need to create a stable political climate and legislative framework, as well as trust in the market and the people making the crucial political decisions. The new Government began that job, but the main thing was not done: the implementation of necessary laws that would protect investors in Serbia. This has to be done by the end of the year. The Government has to make an interesting programme to attract investors, and it has to give them greater privileges than those currently on offer.

In what sense?

Building sites are expensive. I was recently talking to some foreign investors who visited Belgrade. They saw how much things cost here and immediately left to invest their money in Bulgaria, Romania and Croatia, where it is cheaper. Therefore,

How do you plan to rejuvenate the economy in Belgrade and Serbia, and how will you make it competitive?

Numerous changes are needed in order to ensure competitiveness, and these are painful in a transition period. Essential changes include increased productivity and are conditioned by a decrease in the number of employees, changes in technology and management methods. In order to accomplish that, we have to work together with the Agency for Privatisation in privatising, as soon as possible, small and mid-size companies that have not yet been privatised. We have to do that in the first year. Regardless of the price, those companies must change ownership.

We will restructure the large companies and then bring in strategic investors or organise tenders for their privatisation. We have to bring big foreign companies that will spearhead new projects in both Belgrade and Serbia.

Which companies are those and in which fields will they invest in Belgrade?

Those are big construction and production companies, as well as investment foundations and banks. These companies would invest and finance the infrastructure projects, business and housing objects, sports and fun parks, underground metro system… I am talking all the time about big companies such as Caterpillar and John Deers or companies like Klas, already in the area and in Belgrade itself. Of course, we will also bring in big companies that will work together with domestic companies to help us build much-needed roads.

Economic prosperity on the horizon CorD | September 2004

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Interview nar "Mecca". However, today the city doesn't boast enough quality hotels to facilitate that sector. How are you planning to address this issue?

That is an ongoing problem. We want to host the world and organise great sporting and cultural events, and yet in four years we have not built a single hotel. We urgently have to build several four or five star hotels. We already have hotels in excellent locations, for example the "Metropol" in the city centre, which needs around €20million for modernisation.

We will try to find a strategic investment partner. If not, we will sell this and similar hotels, with the condition that the new owner has to build a new hotel of the appropriate category. The next step is bringing the great hotel chains such as Hilton, Accor, etc. When we have hotels, those events will return by themselves. The organisation itself is not a problem, accommodation is. The European Bank for Reconstruction and Development has scheduled its General Assembly to be held in Belgrade in 2005.

However, they are already threatening to have it elsewhere, due to a lack of quality accommodation.

“If I can’t entice investors who can?” we have to create conditions that are the same, if not better, than in the surrounding countries. Why would foreigners invest here otherwise?

The Serbian Diaspora is often quoted as saying that Serbs living abroad are willing to invest in their homeland, though we have yet to see tangible examples. What is your comment on that?

My wish is to create conditions to encourage the return to Belgrade and Serbia both the young people who have recently left to pursue careers abroad, and those who moved abroad a long time ago and have been living out of Serbia for generations.

You have increased your personal presence in Serbia in recent years. You were involved in the privatisation of the metal and food industries. East Point is one of the rare Serbowned companies deciding to invest in Serbia. Why is that?

In contrast to some other markets, where we checked all conditions in detail, in accordance with international criteria before investing, our investment in Serbia was not one hundred per cent rational. The emotions did their bit. We wanted to buy certain companies, even though we knew it was going to be neither quick nor easy. These days, however, those are the most successful companies in Serbia. We have increased production by at least 40 per cent, and in some of them productivity is up six fold.

We are very proud of productivity and the fact that some of our companies are exporting 95 per cent of their production.

What are East Point's plans for the future?

We are planning to expand in two directions: in the field of non-ferrous and rare metals, and in the grain trade. As far as privatisation goes, we do not intend to expand more. Out of the seven companies we purchased, we have completed restructuring of all but one, and now need only to complete the investment part. The remaining company is Sevojno, within which we are currently finalising the social programme. We have already paid around €3.5million for the social programme and have reduced the number of employees from 2,090 to 1,626. Our plan is to concentrate on investments now. In the next three years, we will invest €21million in Sevojno, in order to bring the factogreat around ry up to world levels of quality and competitiveness.

“We want to host the world and organise sporting and cultural events, and yet in four years we have not built a single hotel. We urgently have to build several four or five star hotels.”

Still, the criteria that applies to other foreign investors should also apply to our expatriates, since they live and work in economies that enjoy investment security. After all, they have been burned so many times before in Serbia. I would like to ensure they are able to invest safely, at least in Belgrade if not the rest of Serbia. In order to entice expatriates to return and invest in Serbia, we have to pass denationalisation legislation. Until such a law is implemented, the chances that any of them will invest large amounts remain slim. Of course, there are those with a nostalgic sentiment for Belgrade, who would find it easier to invest if someone who has managed large investments led Belgrade. As Mayor of Belgrade, I will be the host of the city, leading the Belgrade economy.

Belgrade was once a profitable tourist and business semi-

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CorD | September 2004

Is the partnership with RTB Bor confirmation of East Point's involvement in privatisation of the plant?

At the moment East Point does not have any plans for the privatisation of Bor. Our desire is to increase production from the current 750 tonnes to 3,500 tonnes per month, which would enable Bor to manage its affairs commercially and produce enough copper to cater for the demands of domestic industry. Our factories in Sevojno and Zajecar need 3,500 tonnes of copper each month, and we are now importing this copper.

At RTB Bor we can see the classic mistake of a poor country that did not work rationally. During the past four years, the Serbian Government has spent over $120million on Bor's social programme. By so doing, they enabled the workforce to survive on minimum wage. In order to restart RTB Bor with just half of its capacity, only $35million is needed. It would have been more rational to do that in 2001 than now, with production below 10 per cent of capacity. In addition, it is necessary to decrease the number of employees and find adequate solutions for the surplus manpower.•

Privatisation Aleksander Vlahovic, former Serbian Economy Minister and former head of the Privatisation Agency

Problematic Process

By Ana Filipovic, Photo Dragan Milosevic

The international community heaped praise on the previous Serbian Government for its handling of the privatisation process. However, the new government has somehow managed to buck the positive trend and send potential investors scuttling en masse for the safety of their accountants' offices. This month CorD's Ana Filipovic spoke to the man formerly responsible for guiding Serbia through the privatisation process.

A

leksander Vlahovic, former Serbian Economy Minister and former head of the Privatisation Agency, was happy to note that: "industrial production has significantly increased during the first half of this year, thanks largely to investments achieved during last year's privatisation process.

However," he insisted, "the current atmosphere created by announcements of general audits, investigations and reviews of privatisations has caused the process to stop."

How would you assess the current situation in Serbia, regarding implementation of the privatisation process?

The investment atmosphere in Serbia has become extremely risky, which has seen a dip in interest among both

The investment atmosphere in Serbia has become extremely risky, which has seen a dip in interest among both foreign and domestic investors. I'm afraid trust in the process has been lost. foreign and domestic investors. I'm afraid trust in the process has been lost. Income envisaged for privatisation has been lost and this has jeopardised chances of achieving the somewhat unrealistic projected budget income for this year. By attempting to subsidise this nonexistent revenue in other ways - mainly by increasing VAT and other taxes - inflation has started to knock on the door. This, in turn, has proved to be a catalyst

Vlahovic vents his frustrations over the stalled process 34

CorD | September 2004

for an even more restrictive monetary policy that will have an additional negative influence on economic activity before the end of the year. Simultaneously, the Government is increasingly yielding to the growing demands of workers unions, and that endangers implementation of reformist measures integral to economic transition.

In your opinion, what were the main factors leading to the privatisation standstill?

The Government has realised, albeit too late, that it's wrong to attack privatisation without due cause and to use this field to score cheap political points. The catastrophic results of the government's privatisation policy are, amongst other things, a consequence of bad team solutions in the key institutions tasked with carrying out privatisation. Here people who are political populists with no elementary professional experience, references or knowledge were appointed.

Of all the previously announced revisions of privatisations, the Economy Ministry is currently only performing regular supervisory audits of 13 processes: five tender sales, seven auctioned companies and one minor package of shares from the Stock Fund portfolio. That equates to regular supervision that the Economy Ministry is tasked with carrying out in accordance with the law. The previous ministry team also performed this duty.

Nobody denies the necessity of the ministry's constant control of the Privatisation Agency or the Stock Fund, or the Privatisation Agency's responsibility to monitor the fulfilling of sales contract obligations. Until all professional standards have been reached and respected, I will welcome every decision made by the Economy Ministry and the Privatisation Agency, regardless of political affiliation. There is no place for politics here.

What did the Government achieve on privatisation while you held the post of Minister of the Economy and Privatisation?

The Government's achievements between 2001 and March 2003 can be divided into three basic parts: firstly, the government established the necessary legislative framework for priGovernment realised its mistakes too late vatisation and, during those first months, worked to prepare laws on privatisation, the privatisation agency and the stock fund; the second phase saw the government prepare instituDue to the state of the Serbian economy, those positive tions to implement those laws and the third phase was impleeffects could not immediately be felt on the economy as a mentation and the results that followed. whole because time was needed for implementation of busiMore than 1,200 companies were privatised, of which ness plans and financial restructuring. around thirty larger firms were sold through public tenders, with the remaining smaller enterprises sold at auction or What progress has been made on the privatisations of through sales of minor stock options from the Sock Fund portlarge systems? folio. Those processes yielded a total privatisation income of During that period [DOS rule of 2000-2003] we began the â‚Ź1.3billion. In addition to initial capital, investors were obliged process of restructuring around 50 large systems. This to invest a combined additional total of â‚Ź750million and social involved companies that simply could not be privatised as programmes for companies sold on tender are valued at I am genuinely sorry that the truth is often hidden - under the more than â‚Ź300million. slogan of workers' rights, union representatives are really yearnIt is important to emphasise ing for public ownership and social self-management and some that around 20 multinational companies invested capital in such unions don't care one iota about the rights of workers.

Serbia during the 2002-2003 privatisation process. Today we are reaping the benefits of they stood. It was first necessary to enforce social programme those investments in the scope of industrial production, which measures aimed at reclaiming surplus manpower, transformhas increased significantly during the first six months of the ing status with the aim of dividing cumbersome departments year. This [GDP] increase is a direct consequence of large into smaller working units, restructuring existing debts and company investments, other lesser privatisations and the solid amending other smaller elements. Much was done to realise operating of companies previously sold. this end. Social programmes were implemented and transfor-

CorD | September 2004

35

Privatisation Factory and Matroz from Sremska Mitrovica. Our plan was for 2004 and 2005 to see the final privatisations of those restructured companies.

The results sound good in theory, but in reality some of the cases you mentioned were sharply criticised and even disputed. How would you explain that?

Privatisation is a sensitive and controversial process which, coupled with a genuine lack of political quality on offer, was abused by demagogic opposition parties to promote their partisans goals. That populist policy was mainly agitprop with very few sound arguments. It is noteworthy that relevant international institutions assessed privatisation in Serbia [during that period] as one of the most successful of any transitional country, while some political parties tried anything they could to destabilise the process and encourage groundless public condemnation. In such a way, they garnered election campaign support from a variety of groups opposed to privatisation and expecting the impossible. Consequently, the new government has paid a high price in privatisation and the general economic policy simply because of promoting such unrealistic expectations. Moreover, it should not be forgotten that some individuals have an ideological opposition to privatisation and the general atmosphere created by the mass reviews and investigations caused the Serbian privatisation process to ground to a halt.

Would you say that employee discontentment is increasing in private companies?

You will not find a single case of privatisation that does not result in a disgruntled workforce. This is because a change of ownership inevitably changes approaches to operations, working discipline and sees implementation of different standards. Thus you will, of course, face resistance from workers and employee unions not ready to adapt to the new environment and value system defined by the new private owners.

I am genuinely sorry that the truth is often hidden - under the slogan of workers' rights, union representatives are really yearning for public ownership and social self-management and some such unions don't care one iota about the rights of workers. This, on the whole, does not have to be a problem obstructing privatisation and economic transition in itself.

However, genuine problems arise when the executive power encourages unrealistic expectations among those fundamentally opposed to privatisation. Such an atmosphere leads to protests and strikes.

Privatisation - a sensitive and controversial process

In an effort to speed up the privatisation process, what advice would you give to the Privatisation Agency and the Economy Ministry? mation of organisational status was achieved in all companies It is crucial to recommend a change in political relations earmarked for restructuring. towards privatisation. The Economy Ministry should offer Some of those companies were then privatised - such as genuine political support to the Privatisation Agency in its the Zajecar-based Cable Factory, Sevojno Copper Mill, sections efforts to implement the privatisation processes. Afterwards, of Nis Mechanical Industries and Prva Petoletka [heavy industhey need to ensure a minimum of politicisation in this process It is worth noting that relevant international institutions level and the professional and complete assessed privatisation in Serbia [during that period] as one implementation of legislation. of the most successful of any transitional country, while Representatives of the Privatisation should make as few public some political parties tried anything they could to destabilise Agency statements as possible and the the process and encourage groundless public condemnation. agency should concentrate on controlling sales, with the ministry monitoring and controlling the work of the agency. Finally, try] - while other companies were on the brink of finalising plans to eventually change the current Privatisation Law their privatisations in March 2003. These included Suboticabased Sever, the Kikinda Mine, Paracon's Serbian Glass should be deemed out of the question.•

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CorD | September 2004

Local elections

Mayoral Race

hotting up

Local elections scheduled for 19th September will see Serbian citizens elect their city mayors through direct elections for the first time ever. The mayoral posts will be afforded much greater authority and include a complicated appointment and dismissal procedure, as local autonomy reaches new levels in Serbia. However, not all citizens will have the chance to vote for their mayors, with 13 provinces having already appointed mayors in the past two years and 17 Belgrade boroughs prevented from voting for the mayor by the Statute of the SCG capital city.

interests can be claimed if he wins the election. The mayoral candidate said: "I will resign from all my positions within the company. In a period that cannot be too short - six months minimum ith less than three months elapsed since Serbian citi- I will sell all my shares". The DSS candidate also pledged to zens last took to the polls, Serbian Parliament Speaker bring foreign investors to Belgrade, repatriate his Cyprus-based Predrag Markovic has scheduled local elections and family and offer his resignation from the post of mayor within a polling stations will be open on Sunday, 19th September, giving year if he fails to keep his promises.

Serbia's leading political parties another chance to go head-toIn contrast to the recent presidential elections, DSS will be head so soon after the presidential elections. going it alone at the locals, with fellow government coalition parAnother first for these elections is that they will be organised ties fielding their own candidates. G17 Plus, party of deputy in accordance with the Local Election Law adopted two years ago.

Serbian PM Miroljub Labus, have nominated MP Branka Bosnjak The legislation's most significant innovation is that mayors will as candidate for Belgrade mayor. Having changed their status be elected on the basis of direct voting and not by local assembly from think-tank to political party just last year, G17 Plus have MPs, which was the case until 2000. decided that standing alone at the locals is the only way to build The biggest pre-election surprise has been the decision of PM the party's identity and improve its status. According to party Vojislav Kostunica's Democratic Party of Serbia (DSS) to nomispokesman Ksenija Milivojevic, coalitions at local level should nate Zoran Drakulic as their candidate for Belgrade mayor. only be formed after the elections.

Drakulic, a business entrepreneur and owner of East Point Differing from G17, local branches of the Serbian Renewal Holdings Ltd., has been one of DSS's biggest donors in recent Movement (SPO) - party of state union Foreign Minister Vuk Draskovic - have been permitted by to form pre-election coaliBogdanovic's candidacy was not as straight forward as Draskovic tions with whomever they wish, expected, with Serbian President and DS leader Boris Tadic except Vojislav Seselj's Serbian Party or Slobodan Milosevic's originally proposing Sinisa Nikolic - Director of the Bel- Radical Socialist Party of Serbia. SPO initially grade City Construction Bureau - for the party's candidate. announced that they would nominate Avram Izrael - well known for heading years, though he only announced he would be joining the party up the Belgrade Centre for Information during the 1999 NATO after his nomination was announced. Drakulic's business has bombing campaign - as Belgrade mayoral candidate. However, branches in 12 countries and also co-owns several Belgrade the party later performed a U-turn and announced that their canBakers Industry enterprises and two metal processing factories. didate would be Dragan Kojadinovic, Serbian Minister of Culture In February this year, Belgrade daily Blic named Drakulic as the and a close personal friend of Draskovic. sixth most powerful Serb.

After several weeks of deliberation, the Democratic Party In an effort to avoid unwanted criticism, Drakulic has vowed (DS) have nominated Nenad Bogdanovic as their candidate for to resign from all his business positions and ensure no conflict of Belgrade mayor. Bogdanovic, currently Executive President of

By Milos Teodorovic

W

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CorD | September 2004

Nenad Bogdanovic, DS Aleksandar Vucic, SRS Zoran Drakulic, DSS the Belgrade Council Assembly, is generally accredited with spearheading all work undertaken on Belgrade's infrastructure over the course of the past four years. His candidacy was not as straight forward as expected, with Serbian President and DS leader Boris Tadic originally proposing Sinisa Nikolic - Director of the Belgrade City Construction Bureau - for the party's candidate. However, the DS Belgrade Party Committee, famous for traditionally resisting the recommendations of the party leader, vetoed Tadic's choice and chose Bogdanovic.

Bogdanovic, a popular favourite among Belgraders, is running his campaign under the slogan "let's continue what we

Branka Bosnjak, G-17 +

started", which alludes to his hope of continuing to restore Belgrade's status as a splendorous European capital, which was lost during the wars of the 1990s.

Rumours had previously circulated that Ruzica Djindjic, widow of former Serbian PM Zoran Djindjic, would be the DS choice for mayoral candidate, but the idea was dropped fairly quickly and Bogdanovic will prove tough to beat.

The Serbian Radical Party have nominated their Secretary General Aleksander Vucic for the post of Belgrade Mayor. Vucic, recently criticised for not paying his phone bill, promises to make Belgrade a Serbian "Manhattan". He has also pledged to estab-

Local elections tions for various reasons. These municipalities include Ub, Barajevo, Razanj, Despotovac, Leskovac, Alibunar, Cuprija, Priboj, Kraljevo, Pirot, Cicevac, Bujanovac and Medvedja. By excluding these districts, Parliamentary Speaker Markovic avoided escalating local disputes between committee members of differing parties, which had threatened to paralyse implementation of local affairs. In Kraljevo and Leskovac, for example, authorities had all but ceased to function, demanding new elections be held.

However, once Markovic announced that there would be no local elections in those municipalities the local government began functioning once again.

The Belgrade boroughs of Vozdovac, Zvezdara, Zemun, Novi Beograd, Palilula, Stari Grad, Savski venac, Cukarica, Rakovica, Vracar, Grocka, Lazarevac, Mladenovac, Surcin, Sopot and Obrenovac will also be excluded from direct elections. This is in accordance with the Belgrade City Statute, which states that borough presidents in these areas are still to be elected by committee members. G17 Plus were the only party to oppose the statute amendments, arguing that they are unacceptable because they were implemented just prior to the elections and electoral regulation changes in an election year are unacceptable.

S. Vuksanovic, NDS J. Mitrovic Maric, SS However, Milos Aligrudic, DSS Parliamentary whip, insisted that the move was appropriate, and asked what would happen if lish city river taxies on the Danube and Sava rivers. one man was running for the post of Belgrade Mayor and anothMedia mogul Bogoljub Karic, encouraged by favourable er 17 were running for Belgrade's borough presidencies. results during the presidential elections, has nominated Jasmina Renewal Movement party whip Veroljub Stevanovic, said it Mitrovic Maric as Belgrade mayoral candidate of his Force of was absurd that "at this election, inhabitants of small borSerbia party. Mitrovic Maric, director of the Braca Karic (Brothers oughs, such as Kosjeric with 12,000 residents, will directly Karic) Foundation, is confident of her chances. Analysts are also elect their president, while residents of the biggest boroughs in reluctant to discount the Karic candidate, considering the huge Serbia, Novi Beograd and Vozdovac, will be unable to do so". support - 18.25% - won by Karic at the presidential elections.

Though the public eye is focused primarily on Belgrade, tight Slobodan Vuksanovic, president of the marginal People's contests are brewing elsewhere in Serbia. In the Vojvodina capiDemocratic Party, commenced his campaign for Belgrade mayor tal of Novi Sad, a city of 250,000 occupants, around 15 mayoral a month before the local elections were even scheduled. candidates are expected. The League of Vojvodina Social Vuksanovic, a former DS vice-president until a falling out with Democrats (LSV), led by Vojvodina Assembly President Nenad Zoran Djindjic prompted him to split from the party in 1999, was Canak, has nominated current Novi Sad Council President counting on support from DSS, but the PM's party chose not to Branislav Pomoriski. back his candidacy. According to Vuksanovic: "we supported Sending shockwaves through the province, Canak announced DSS at the parliamentary elections in December last year. At the that LSV would not form a coalition with DS or the Alliance of time they said they would support my candidacy for mayor. That Vojvodina Hungarians. This surprised many as the three parties did not happen, but we've decided to go for it by ourselves." have jointly governed Vojvodina for the past four years.

Completing the line-up for the Belgrade Mayoral race is MP Anonymous senior sources claim that Boris Tadic personally Zarko Obradovic, candidate of the Socialist Party of Serbia. said he did not want to form a coalition with Canak and Co., while Many consider the post of Belgrade Mayor as the third most DS have a strategic agreement on future cooperation with the powerful position in Serbia, which perhaps explains why nomiAlliance of Vojvodina Hungarians. DS candidate for the post of Novi Sad mayor will be current In an effort to avoid unwanted criticism, Drakulic has vo- Mayor of the city Boris Novakovic. has nominated local party wed to resign from all his business positions and ensure no DSS leader Dejan Makavica for the Novi conflict of interests can be claimed if he wins the election. Sad top job, while the Serbian Renewal Movement has given supnations are so difficult to obtain. Candidates must be nominated port to Vojvodina Reformist candidate Miodrag Isakov - former by political parties or citizen groups, and they need to confirm deputy Serbian PM. The Radical Party have nominated party their support with 45,000 signatures - four and a half times as deputy leader Maja Gojkovic, a close ally of Vojislav Seselj. She many as are needed for Presidential candidates. Dismissing mayunofficially launched her campaign a year ago by creating a webors is also a complex procedure. In order to dismiss a Belgrade site that she uses to respond to any and all questions posed by Mayor, the support of 150,000 citizens is required, or a proposal Novi Sad residents. from the majority of the City Assembly. These factors combine to Velimir Ilic, New Serbia leader and Serbian Minister for ensure that the post of Belgrade Mayor is very strong and influCapital Investments, has nominated controversial figure ential in both governmental authority and party politics, with the Smiljko Kostic for the post of Mayor of Nis. Kostic, former direceventual winner likely to considerably increase the rating of his tor of Nis Tobacco Industries, was released from jail after 36 party. As such, victory for Drakulic could undermine Kostunica's months of incarceration on suspicion of abusing his position of party authority, a win for Bogdanovic could jeopardise Tadic's authority. He was released due to a lack of evidence. New position as party leader and victory for Vucic would ensure his Serbia have invested much effort into convincing Nis residents status would be higher than former presidential candidate and of their appeal, calling on all citizens who hope to secure a new Radical vice-president Tomislav Nikolic. job, better business contacts or employment advancement to As previously mentioned, local elections will not be held in join the party. More than a hundred Nis residents joined New 13 municipalities that have already staged extraordinary elecSerbia in the first week of August alone.•

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CorD | September 2004

Bulletin U.S. supports police reforms

be finalised by the end of September. The pair are said to have given highly positive appraisals of the quality of cooperation between Montenegro and Norway to date.•

Italian businessman eye cooperation

F

ollowing meetings between Serbian and Italian businessmen at Belgrade's Hyatt Regency Hotel on 15th July, it was announced that the Italian Businessmen, from the Emilija-Romanja region, are interested in cooperating with Serbian businessmen.

H.E. Antonio Zinardi Landi, Italian Ambassador to SCG, emphasized that Serbia and Italy both have similar small and mid-sized companies. He added that there are "healthy possibilities for the production of new products" in Serbia. •

said that Serbia & Montenegro was vitally important to regional security and could count on the support of Turkey in its efforts to join NATO's Partnership for Peace programme.•

Frenchman decorated

by State Union

O

n 23rd July, Serbian Parliamentary Speaker, Predrag Markovic, awarded the Order of the Yugoslav Star - Third Level to Christian Timonie, Ministerial Counsellor of the Embassy of France to Belgrade. The award, presented by

SCG and Turkey agree weapons industry cooperation

H

.E. Michael Polt, U.S. Ambassador to SCG, officially handed over equipment worth $110,000 to the Serbian Interior Ministry on 27th July.

Speaking to press, Ambassador Polt said the U.S. Government donation was to assist border guards in disabling human trafficking operations - one of the most serious criminal activities of the new century.•

A

n agreement has been struck on cooperation between the military industries of SCG and Turkey. The agreement, signed by State Union Defence Minister Prvoslav Davinic and Turkish Defence Minister Vecdi Gonul in Belgrade on 19th August, will see joint development, production and sales of arms and military equipment.

According to Minister Gonul, Turkey will support SCG in its efforts to acquire mili-

New Chinese Embassy unveiled

B

elgrade's new Chinese Embassy located at 29 Uzicka Street, Dedinja, Belgrade - was the venue for a reception on 29th July to mark both the opening of the embassy and the 77th anniversary of the formation of the National Liberation Army of China.

Public and political figures, representatives of diplomatic circles and the military attended the event.•

Norway aids Montenegro to the tune of €3million

F

ollowing talks on 28th July between Deputy Montenegrin PM Branimir Gvozdenovic and Norwegian Ambassador to SCG, H.E. Hans Urstad, it was confirmed that the Norwegian Government has approved almost €3million of aid to the coastal republic.

According to a Montenegrin government announcement, Montenegro's application for donations from Norway for 2005 is to

tary equipment. Expressing his hope that relations between the two countries would strengthen over time, the Turkish minister noted that the aims of the SCG defence policy were in line with Western values.

Also speaking to press, Davinic announced that a series of mutual visits would be arranged in the near future, in order to quickly agree tangible steps on cooperation.

Speaking later to Serbian PM Vojislav Kostunica, the Turkish Defence Minister

Markovic on behalf of SCG President Svetozar Marovic, was given in recognition of Timonie's devotion to developing cooperation between SCG and France.•

Germany to support Serbia's EU accession

H

.E. Kurt Leonberger, German Ambassador to the state union, stated in Nis on 14th July that Germany and other partner states would support SCG's approach to the European Union.

Speaking at a reception in the Nis City Assembly, Leonberger said: "We will help to remove obstacles primarily in the harmonisation of the relationship in the State Union, the harmonisation of the market and the fulfilment of international obligations".

The German Ambassador also held talks with Nis-based businessmen and attended an exhibition of German photographer Günter Gras's works, which was opened in Nis's European House. A week of German Film is also to be held in the southern Serbian city.•

Milo and Polt hold powwow

M

ontenegrin PM Milo Djukanovic hosted talks with U.S. Ambassador to Serbia & Montenegro Michael Polt in Podgorica on 5th July.

The talks centred on relations in SCG and the Montenegrin Government's intentions regarding the reform plan.•

CorD | September 2004

41

Kosovo

Oliver Ivanovic meets KFOR officers tasked with securing the province

INDEPENDENCE In June 1999 Kosovo was formally handed over to the UN Mission in Kosovo (UNMIK) and NATO's Kosovo Force (KFOR) and declared an international protectorate. Since then, the Kosovo-Albanian leadership have made a number of unofficial steps towards political independence from Belgrade.

By Velimir Ilic

T

he latest Kosovo-Albanian move towards independence was amendment of the internationally recognised Constitutional Frame for Kosovo in early July, by which the Albanian leaders took advantage of their parliamentary dominance to express their political confidence that independence will be granted.

Speaking to CorD, Oliver Ivanovic, senior official of the Coordination Centre for Kosovo, described the move as "impudent provocation by which Kosovo's Parliament is testing the international community and the new UNMIK head. It is ruthless political exhibitionism. The Albanian leaders are demonstrating to their people their strong determination to create an independent state of Kosovo. However, this game will not succeed because the procedure for altering the Constitutional Frame is common knowledge and is impossible without the UN Security Council.

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CorD | September 2004

Belgrade and Serbian officials in Kosovo are convinced, without exception, that UNMIK will revoke the amendments that were adopted in spite of a boycott by Kosovo-Serb MPs. According to Ivanovic, a member of the Kosovo Parliament's presidency, "the Albanians are taking advantage of the vacuum that exists while we wait for the new UNMIK head to take up his duties. The boycott of the Return Coalition MPs practically confirmed Belgrade's position that changes to the Constitutional Framework are impossible without the say so of representatives of all national communities, in accordance with the exact procedure by which the first version of this document was adopted.

After all," continued Ivanovic, "that is the position of the international community, which was confirmed to us in parliamentary talks with American under-secretary Mark Grossman".

In practical terms, by amending the Constitutional Frame Kosovo's Parliament has transferred all of UNMIK's authorities to transitional institutions. This includes authority over the fields of international affairs, public order, public security and protection during states of emergency.

UNMIK, without a head since the premature departure of Harri Holkeri for health reasons, has warned that the Kosovo Assembly can merely suggest changes and not adopt them. The international mission explained that any revision of the document is only possible with the express approval of the UN Security Council.

Marko Jaksic, president of the Society of Serbian Municipalities in Kosovo (a group not recognised by either UNMIK or the Albanian contingent) and a leader of the Serbian National Council of Northern Kosovo, stated unequivocally that "the amendments to the Constitutional Frame are yet another

Goran Bogdanovic, the sole Serb minister in Kosovo's government, noted it was "unacceptable to negotiate and sign anything without a clear position from Belgrade, which is jointly responsible for Kosovo in the eyes of the international community".

Meanwhile, in mid-July the new "Austrian Plan" for the troubled province was made public. According to the plan the question of Kosovo's status should not yet be posed and instead Kosovo's largely mono-ethnic government should be given more authority and, in return, Serbs should be provided with greater opportunities to organise self-management through a decentralisation process. However, greater attention was aroused by the suggestion of Bernard Bota - acting president of the EU Belgrade and Serbian officials in Kosovo are Council of Ministers - that a solution for Kosovo be sought through a tripartite agreement beconvinced UNMIK will revoke the amendments should tween Serbia, Montenegro and Kosovo. Kosovo-Serb adopted despite a boycott by Kosovo-Serb MPs. representatives reacted positively to the proposal, noting with satisfaction that "the EU has understood that stability in Kosovo cannot be achieved with the independence of problems that have to be solved - the security of Serbs and the prothe province" and that a "peaceful and compromised solution is vision of conditions for the return of those displaced". now being sought through relations between Belgrade and Pristina".

He continued: "The new UNMIK head, Soren Jesen Petersen, Conversely, Kosovo-Albanian leaders rejected the notion that will now have to waste his time on futile discussions. This was a "the status of Kosovo is connected with the relationship between blatant misuse of the institution of a parliament that does not Belgrade and Podgorica and the eventual solution of the status of have the authority to change internationally recognised docuMontenegro". They rejected an eventual confederation of Serbia, ments. Meanwhile, the Albanians are progressing towards indeKosovo and Montenegro - a proposal that is unacceptable to pendence while the Serbian Government and our diplomats Montenegrin PM Milo Djukanovic. remain idle. The international community must decisively and Now the province awaits the belated arrival of new UNMIK energetically stop this masquerade of Albanian leaders. Petersen governor Petersen, whose late arrival is reportedly due to the fact should react like Paddy Ashdown has in Bosnia". that he "has not yet received clearly defined instructions on how Rada Trajkovic, Kosovo Serb Return Coalition MP, said: "It is to disentangle the Kosovo knot". • obvious the Albanian strategy is to employ violence to proclaim step towards the creation of an independent state".

He continued by describing the unilateral move as "the legal and political tyranny of the majority over the minority. I expect an urgent reaction from both the international community and the Serbian Government. However, so far we have only heard a warning from UMNIK that the Albanians are choosing not to take into consideration".

Also reacting to the move, Milan Ivanovic, leader of the Serbian National Council of Northern Kosovo, said that the political act clearly displayed "the intention of the Albanians to trick the new head of UNMIK and divert attention away from the real

BY THE

BACKDOOR

the Constitution of Kosovo before June 2005, when negotiations regarding the final status of Kosovo are expected to commence."

With the dust yet to settle on the newly amended Constitutional Frame, Kosovo's political scene was sent reeling once again by a joint declaration of the Kosovo-Albanian leadership and three representatives of the Return Coalition.

The details of the declaration would probably not have provoked such stormy reactions had the pre-signing meeting not been presented as an official dialogue between the Serbian and Albanian sides, and if the three Serbs - Oliver Ivanovic, Dragisa Krstovic and Milorad Todorovic - had signed the declaration with the support of Belgrade and Kosovo-Serb political representatives.

Several Kosovo-Serb officials described the move as a "classic act of betrayal", and Ivanovic, Krstovic and Todorovic have been accused of "not representing the legitimate will and interests of the majority of Serbs".

Many have also complained that the meeting, held in the US office in Pristina, was scheduled without the knowledge of other Return Coalition members and the Serb National Council, and without any consultation with Belgrade.

Trajkovic called the signing "an historical blunder" noting that the three had "granted themselves the right to fulfil Albanian wishes to the disadvantage of Serbs without any support or prior consultation". She continued: "Simultaneously, they are destroying Belgrade's efforts to prevent the creation of an independent Kosovo and resist the Albanian's tactical game of excluding Belgrade from the political decision-making process in Kosovo".

KFOR failing to protect minorities in Kosmet

Telecommunications

Telecom Serbia’s Belgrade Headquarters

COMMUNICATION One of the Serbian Government's key priorities is to implement the Telecommunications Law ratified by parliament back in April 2003. Other aims include selling state shares in the country's two mobile phone operators and preparing the market for an end to the fixed-phone monopoly contracted to Telecom Serbia until June 2005.

By Lela Sakovic

S

peaking at a recent press conference, officials of the Serbian Ministry for Capital Investments described the foreigners' view of Serbian telecommunications as "a neglected sector requiring great reform and considerable investment. A field displaying conflictive and complex relationships in fixed telephones, inherited from the previous (ten year) period; an insufficiently developed regulatory framework, i.e. the Law of Telecommunications and an independent regulative body that was supposed to have been formed by now".

With this in mind, the priorities of the ministry, led by New Serbia's Velimir Ilic, will be to develop the fixed subscribers network, complete digitalisation by the end of 2007, replace around 600,000 party lines and develop a domestic industry capable of producing around 100,000 connections. Potential annual investments for the telecommunications sector are â‚Ź500million, with the only prerequisites for international aid being privatisation, de-monopolisation and liberalisation of the market.

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The strategy for development of telecommunications in Serbia by the end of the year 2007 is already being concluded, as promised several months ago, and its official version will be made public as soon as adopted by the Government.

Adopted: Not yet Implemented Digitalisation, reconstruction and expansion of the network and telecommunication services are, undoubtedly, part of the development strategy for this field in Serbia. However, after waiting several years for telecommunications legislation, it is somewhat alarming that the Telecommunications Law, approved spring 2003, has yet to be implemented. The crucial legislation was to be implemented immediately following formation of the Telecommunications Agency - the special body tasked with controlling the industry. However, with the deadline for formation of the Agency long since expired, many people have raised suspicions that the lack of action is working to the advantage of some individuals influencing the process. Early in 2003, PTT Serbia bought out their Italian partners STET, prompting the hope that

Mobtel Serbia’s New Belgrade Headquarters

LACKING

For business users, the end of the monopoly would equate to better accessibility, greater profit margins and an increase in the interests of foreign investors - easy accessibility and a high quality telecommunications infrastructure is often a crucial factor for those considering investment in the services sector.

According to Branislav Andjelic, former director of the Serbian Government's Information Technology Agency and currently an independent information and telecommunications consultant, "preliminary analysis shows that tax collected from Telecom Serbia is much less than that which would be collected from the hundreds of companies that would be established if new telecommunications resources were available."

What would the end of the monopoly mean for Telecom

they would reach agreement with the 20% Greek OTE ownership.

However, such a result was not forthcoming. According to Telecom Serbia, this was because it would not be "convenient to suddenly expose this disorganised and weak organisation in domestic telecommunications to the merciless competition on the market, with wolves with lots of money who can gulp us up quickly".

Velimir Ilic, Serbian Minister for Capital Investments, As adoption of the new law does not said that his ministry received instructions from the Euconsider suspension of the monopoly, but ropean Bank for Reconstruction and Development which rather bans new contracts pertaining to monopolisation, the only reason for postclearly stated that the State cannot own two mobile ponement of implementation of the law operators and must sell one if they wish to use EBRD fuand formation of the Telecommunications Agency is - according to anonymous sonds and foreign investments to develop new technologies. urces - simply that if the law is not enforced before the monopoly expires in June 2005 then Telecom Serbia's Serbia itself? People in the company believe that the death of grip on the market could be extended. their monopoly would spell disaster for both the company and Serbia's telecommunications sector as a whole. This is because, Post-monopoly moves the way they see it, small providers will acquire all international and business traffic through local networks, which is much An end to the monopoly would mean that Telecom Serbia more expensive, and investments in the fixed phone network would have to start leasing capacity to companies dealing with would ground to a halt. end-users, and allow those companies to offer their own servicIt is undeniable that the State will face great difficulties with es and set their own pricing scales. In such a way, Telecom this company - principally because of the vast number of would generate income from tenders by leasing capacities and Telecom Serbia employees. However, global experiences show offering services, but would be forced to participate with other that the suspension of a monopoly can encourage development companies enjoying equal rights. of a sector, as opposed to causing a calamity.

CorD | September 2004

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Telecommunications to a company able to revitalise operations and continue work on the existing infrastructure.

Off-loading mobile networks A condition leading to acceptable levels of international financial investment in Serbian telecommunications is the establishment of order in this field. Amongst other requirements, this means the state should cease to act as owners of one of the two existing mobile telephone operators.

When Telecom Serbia began dealing with mobile telecommunications, ownership ratios were divided and state company PTT Srbija, after purchasing shares from the Italians, owns 80% of shares in mobile operator MTS 064. The state also boasts a 49% share of Serbia's first mobile operator Mobtel 063 - the majority of which is owned by the BK Group.

Velimir Ilic, Serbian Minister for Capital Investments, said that his ministry received instructions from the European Bank for Reconstruction and Development which clearly stated that the State cannot own two mobile operators and must sell one if they wish to use EBRD funds and foreign investments to develop new technologies.

In order for the state to sell its shares in Mobtel, it is first necessary to establish exactly how many shares the state controls.

A couple of years ago rumours began circulating that BK Trade, 51% owners of Mobtel, had not incorporated proportional ownership value into the company, which they were required to do in accordance with the founding contract. While the public heard from "reliable sources" that they held between 70 and 90% ownership of PTT, the Government attempted to negotiate a majority takeover of Mobtel with BK Trade.

In September 2003, BK Trade front man Bogoljub Karic agreed to give six per cent of his shares to the state in order for the majority of shares to be sold. However, the then Serbian Government of PM Zoran Zivkovic did not accept the offer, for reasons that remain unexplained. At the end of the same month a commission tasked with establishing "the real situation in Mobtel" was formed, but political events intervened and the government collapsed before work could commence.

Since then a number of working groups and commissions have been established to investigate the ownership ratio of Mobtel and, finally, the Serbian Government accepted a Working Group report that confirmed Moscow-based BK Trade owns Andjelic told CorD: "Under the monopoly conditions, 41.24% of Mobtel and PTT Srbija owns 58.76% - making the state Telecom Serbia grew into a successful company. However, the the majority owner. existing organisation of business costs and quality of services, Nevertheless, in October last year BK Trade filed charges with technical equipment and staff training are not nearly sufficient the International Chamber of Commerce in Zurich because they disputed the ownership claims of the Serbian According to Telecom Serbia it would not be "conve- State. As a result, some experts claim that the Working Group report is nient to suddenly expose this disorganised and government-approved irrelevant, and some BK Trade representatives weak organisation in domestic telecommunications have said the report is tantamount to "the BK Managing Board deciding that 70 per to the merciless competition on the market, with wo- Trade cent of the company belongs to them". lves with lots of money who can gulp us up quickly".

A serious reason why the state is unlikely to sell its majority share of MTS 064 is that the to make this company competitive on the market. Even though mobile services of the company are not divided from fixed servthey are aware of those facts, Telecom has not initiated restrucices, as explicitly required by the as yet un-implemented turing, regardless of the fact that the Ministry for Capital Telecommunications Law. Experts claim that division of the Investments has secured the finances and expertise to assist company's services would take several years, even if the Agency with this complex job. were set up tomorrow.

"Since continuation of the monopoly is politically impossiOverall costs should also not be ignored. Many claim that ble in a situation where the country is trying to return to the Mobtel is worth a great deal more than MTS 064, though it path of EU accession, this company could experience catawould be more profitable for potential investors to await strophic consequences after its expiry. approval of a third operating licence. It could cost no more than He added that Telecom Serbia's sale, survival or bankruptcy will ₏30-40million for a third operator to gain access to the potentialdepend on the State, who must decide whether or not to sell it ly very lucrative Serbian mobile market.•

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CorD | September 2004

Global trade village affects all Domestic and global trade issues have been hitting the headlines and sending shockwaves throughout the political world of late: domestic farmers have been striking, EU diplomats have sought to restore sugar trade with Serbia, the U.S. and EU have succumb to African pressure, and Brazil and India have achieved a victory for developing world nations.

WORLD TRADE ISSUES

By Dragan Novakovic

Serbian Government has exerted much time and effort to improve customs controls and the EC has now restored trade relations.

Serbia & Montenegro are also eager to sign a textiles deal with the ere in Serbia, raspberry growers have blocked highways EU, which could provide a production boost to the 200,000 and caused transport bedlam in protest over the low employees of the dilapidated textile industry. prices they receive for a product that is bought by EU Negotiations on the Association and Stabilisation agreement companies. The Union of Cold Storage Enterprises, which buys between SCG and the EU have been stalled, as has the EU and prepares the raspberries for export, has refused to meet the Feasibility Study, which should form the basis of the negotiagrowers' demands for higher prices. The Union argues that comtions. The standstill is a result of the failure to harmonise trade petition from new EU member states Hungary and Poland has and customs relations between the two state union partners. The seen a reduction in the price of raspberries on the open European Montenegrin Administration is refusing to introduce tariffs on 56 market. The disruptive motorway blockades were met with draagricultural products that Serbia hopes to protect. The Serbian conian intervention by the authorities, who fear that the blocking Government is anxious to protect According to EU Trade Commissioner Pascal Lamy, the EU's the agricultural products, which up the staple economic sector, decision to cut sugar subsidies to appease the developing make while Montenegrins argue that they nations will eventually have ramifications on the preferen- should not be forced to import more expensive products from Serbia tial treatment afforded to Serbian sugar producers. when they could buy them cheaper elsewhere. Forging a sustainable agreement has proved all but of the south-east European Corridor 10 route to Greece is unacimpossible and the impasse is halting the European integration ceptable at the time of the Athens Olympics. aspirations of both states. The harmonisation process simply The European Commission recently lifted its ban on imports must be remedied, else Serbia & Montenegro cannot become full of Serbian sugar, which it had imposed as a response to abuses of members of the World Trade Organisation (WTO). the EU's preferential treatment granted to Serbian growers and Despite trade relations between SCG and the U.S. being norrefiners. The scandal, a major affair for the previous government malised in November of last year, the state union is still awaiting of PM Zoran Zivkovic, arose when several Serbian sugar traders U.S. approval of its request to be included on the list of beneficiwere found to have repackaged previously imported sugar from aries of the U.S. general preferential system. Inclusion on the the EU and then resold it to EU consumers for a profit. The

H

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America's biggest growers of rice, wheat, corn and soybeans.

Moreover, as a major concession to the African cotton growers, the U.S. agreed to make major cuts to subsidies provided for domestic cotton growers, which has caused the price of cotton on the world market to bottom-out and has impoverished developing-world producers.

Meanwhile, the EU agreed to cut $3million dollars of export subsidies for its farmers, which has also impacted on the world market. Developing nations, which have fought for a change in farm subsidy policies of the Despite normal trade relations between SCG and the U.S. West, see the Geneva agreeas a major victory and being normalised in November of last year, the state union is ment proof positive of their ability to still awaiting U.S. approval of its request to be included on the convince the world's wealthilist of beneficiaries of the U.S. general preferential system. est nations to cut some of its in annual subsidies Inclusion on the 'list' would provide duty free access to the $300billion and support for farmers.

The result is perhaps indicaAmerican market for an array of products originating in SCG. tive of the fact that Brazil, one of the leading nations in the group of 20 developing nations, had The poorer nations contended that preferential export credfiled law suites with the WTO against the U.S. (for unfair cotton its and support systems were destroying the chances of their subsidies) and the EU (for sugar subsidies). farmers to compete and sell agricultural products on the world According to EU Trade Commissioner Pascal Lamy, the EU's market. Those arguing particularly fervently included cottondecision to cut sugar subsidies to appease the developing nations producing African nations Mali, Benin, Chad and Burkina Faso. will eventually have ramifications on the preferential treatment They jointly condemned the U.S. for unfairly providing export afforded to Serbian sugar producers. credit to its cotton growers to the detriment of producers in subIf nothing else, the international talks have proved that the Saharan Africa. world is indeed a global village, as decisions made in Geneva by However, more recent WTO talks in Geneva saw a breakEU and U.S. diplomats, under pressure from African, South through, which heralds better times for world trade and the globAmerican and Asian nations, will affect the livelihoods of farmal economy. After long nights of debate, the U.S. finally agreed to ers in Serbia.• make a 20% cut in the $19billion annual farm subsidies it pays to 'list' would provide duty free access to the American market for an array of products originating in Serbia & Montenegro.

Also on the international front, trade negotiations, and particularly agricultural trade negotiations, have been a hot topic of late. International talks, under the banner of the Doha world trade talks - Cancun, ended in complete failure after a group of 20 developing countries, led by Brazil and India, called an end to the discourse after the U.S. and the EU refused to eliminate export subsidies for their farmers.

Interview Spiros Pyrgidis, CEO Delyug

ICE-CREAM DREAM Ice cream producing Delyug, daughter-company of Greek firm Delta, received the Investor of the Year award in Serbia this year. Having initially begun probing the local market in 1997, Delyug gradually moved lock-stock and barrel onto the Serbian market, built a factory, established a distribution network and adopted a philosophy of market domination.

Spiros Pyrgidis accepts Delyug’s “Investor Of The Year” avard from Richard E. Hecklinger deputy Secretary Generale OECD

By Biljana Stepanovic, Photo Danka Ninkovic

R

eceiving the award at the Investment Compact Conference of South-Eastern Europe's Economic Ministries in Vienna was Delyug CEO Spiros Pyrgidis. Mr. Pyrgidis spoke to CorD about Delyug's experiences in Serbia, problems of foreign investment and future plans of the fast-growing firm.

What's the story behind Delyug's involvement on the Serbian market?

We first came to this country in 1997, initially operating as a trading company. We tested the market for a year and saw that there was huge potential to invest and produce in Serbia. People here like ice-cream and we saw an opportunity. Having already

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established a presence in the region - firstly in Bulgaria and then in Romania - we decided that Serbia also had a very promising market. Because of that we built a factory in Stara Pazova in 1998.

Following construction of the factory, we commenced operations and set up our own distribution channels, developing our network little by little because of a lack of any modern local distribution network. We now have six major distribution centres across SCG, including one in Vojvodina, Nis, Cacak, Jagodina and Budva in Montenegro. We now cover 100 per cent of the country; there is nowhere in Serbia where we don't deliver ice cream.

You received the Investor of the Year award. How much has your company invested in the country?

The total investment is €40million, and our attitude to the country is also important - we have displayed determination

from day one, despite not making a profit for the first four years we were here. We continue to invest and attempt to establish a larger market and develop the ice-cream market in a western manner. This is because we have always felt that Serbia has good consumers and deserves better quality. Since I came here in 2002, we have re-invested each year's profit into the business.

For example, last year we made a profit of â‚Ź3million and investment for 2004 totals â‚Ź6million. This is because we want to dominate the Serbian market, establish ourselves fully and increase the overall quality. This is not just about ice cream. It's a complete philosophy of company operations. I want to be certain that my product is 100 per cent controlled by Delta.

You mentioned market domination. Is it really possible for you to dominate this market whilst big Croatian ice cream producer Agrocor, which bought domestic producer Frikom, has such a presence?

The fundamental difference between us is that they are introducing Ledo products to the market. They may be producing here, but that is Ledo's technology and not Frikom's. Frikom ice cream products are no longer available to Serbian consumers.

Is that legal?

Of course it is. Nobody claims anything to the contrary.

However, we believe that market domination is dependent on lots of factors other than simply advertising. Our competitors believe that market dominance can be achieved just through advertising. We have a different philosophy. We do believe that advertising is important, but at the same time we do a hundred other things that are equally important to maintain market leadership. All these things must work together simultaneously quality of service, quality of products, maintenance. We have

products to suit every pocket - for poor people, the middle classes, any type of people.

Considering your experiences here, is the environment in Serbia good for investors of are there some problems that the government has to solve?

I've been here since 2002 and have noticed much. I would like to mention three general observations I've made. Reforms here began in 2001. Compared to Romania and Bulgaria, which each took ten years to succeed with transitional reforms, the base for reforms was laid very quickly here and only slowed

I would now like to see a rigid export plan and steps aimed at increasing competitiveness in order to reduce the trade deficit. If this does not happen you cannot lessen the gap. down last year. That is very important. A second positive factor I've noticed is the stability of the political situation, if you consider how fast reforms went in the first two years [after Milosevic's ousting] and why they slowed down. This has to do with political stability. It is an obvious reflection. If you have a strong, stable government that's determined to join the EU, I am sure reforms move faster.

The third point is the trade deficit. Serbia needs money to clear the debt. Where can that money be found? Direct foreign investment. You need this money urgently. Let's look at some economies on the European scene. The Irish model: all European countries are now examining the Irish model and ask-

Interview

Pyrgidis: “This is not just about ice cream. It’s a complete philosophy..” ing why Ireland's GDP is growing by 6 per cent every year. It is because they lowered corporate taxes to 10 per cent, which doesn't lose you anything. There are other countries, like Slovakia.

How has Slovakia managed to attract large foreign investment in the automotive industry? They gave them land and houses for free, built houses for workers and said to big European auto firms like Volkswagen "move to our country and it will cost you less to produce". Thus they attracted serious European investment and are manufacturing and exporting, which ensures the country makes a profit.

What precisely does the Serbian Government need to do?

It has to be more aggressive. Like Estonia, for instance. That country has just joined the EU and they offer very interesting incentives for investors like Delta, who are looking at that market. They don't tax companies that reinvest their profits. This is

macroeconomic stability in Serbia in the years ahead if the trade deficit spirals out of control. Simultaneously, the government has to look at productivity levels in major sectors like agriculture and manufacturing and offer incentives to increase productivity.

How that can be done is perhaps the biggest question in this country?

I am sure that politicians and their consultants know exactly what could be done to increase productivity in the agricultural industry. They need fresh investments. Farmers need modern equipment and loans from banks.

What would you recommend the government do to improve the investment climate and attract new investors?

Two things. First of all they have to accelerate reforms. This is possible if there is one decision maker. If you need four people to make one decision then the process is impossible.

That's the difference. So, in order to get out of this quagmire you need a strong government that can pass reform legislation quickly, and you also need more incentives to entice investors. For example, property rights. When an investor comes here he doesn't want to get bogged down in the bureaucracy of the system's institutions.

This particularly applies to serious Western investors who want to be assured of political stability and government assistance in establishing themselves quickly. If I make a business plan to construct a building in May 2005, I don't want to end up slugging through bureaucratic regulations in 2006. As an investor, a one-year delay would cost me a million euros. I could have put that money in another country that would allow me to commence operations in three months. Time is a crucial element.•

Serbia needs money to clear the debt. Where can that money be found? Direct foreign investment. You need this money urgently very important for foreign investors. Fundamentally, this requires political and monetary stability, low inflation, devaluation and exchange rates. These are macroeconomic factors.

Let's be fair, I think the government here did a very good job in maintaining very low inflation levels and stabilising the dinar.

On the other hand, I would now like to see a rigid export plan and steps aimed at increasing competitiveness in order to reduce the trade deficit. If this does not happen you cannot lessen the gap. Such a result would make it more difficult to maintain

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Finance

IMF FOCUS With the government's fiscal plans in tatters and the threat of inflation on the horizon, the International Monetary Fund (IMF) has submitted its latest report on Serbia, with recommendations that it feels could pull the Serbian state from the financial quagmire and get the country back on the fast track to profitability.

By Milan Culibrk

T

Fresh monetary-system restrictions, couple with a stricter fiscal policy, have helped justify the warnings and recommendations made to the Serbian Government by the IMF. Simultaneously, Dinkic admitted that, by June, the Serbian budget deficit had reached 20billion dinars - two-thirds of the annual

he situation in Serbian state finances is almost as unstable as it seemed until recently. With taxation revenue and public expenditure not yet harmonised, the Serbian National Bank was forced, after 18-months of inaction, to once again raise statutory reserves of comThe state seem prepared to accept the IMF recmercial banks from 18 to 21 per cent - thus draining ommendations, with Dinkic announcing that 4.3billion dinars ($70million) from the country's public expenditure must be reduced in the secbanking sector. Anxiety over finances - although partially fogged by technical terminology - is obvious in ond half of the fiscal year. Funding will be the details of the latest IMF report, issued after the reduced for all ministries and the Roads Direthird review of the extended three-year arrangement signed in May 2002. ctorate will see its budget cut by a billion dinars.

Mladjan Dinkic, Serbian Finance Minister, has also voiced concern and reacted by announcing a more restriclimit agreed with the IMF as recently as April. Perhaps more wortive fiscal policy for the second half of the year. With the ryingly, Dinkic confessed that he hadn't thought budget deficit National Bank warning that inflation cannot be held below the problems would have had such a strong affect so quickly. projected 8.5% high, measures are afoot to keep inflation with With privatisation income proving scarce this year and the "approximate" limits, while economists warn that inflation state yet to receive a single dollar in foreign loans to bolster the could hit highs of 165 this year. budget, the state has been forced to dip in to depleted deposits

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superfluous public sector labour, even if projected GDP growth in order to cover the shortfalls. With these funds now all but is reached. spent, the only option open for Dinkic and his finance team is to Having found itself deprived of substantial privatisation tighten the proverbial belt and cut public spending, which won't income and foreign loans, the Serbian state has already found prove easy with the deficit planned prior to the IMF arrangement itself indebted by 3billion dinars on the local financial market. sitting at 45billion dinars.

The IMF has permitted Serbia to cover only 4billion dinars of its According to Dinkic, he is giving serious consideration to the debt through these methods this year, which implies a serious IMF's latest recommendation that salary growth be capped in reduction in loans to be forthcoming prior to year's end. public companies and only harmonised through projected inflaAdditionally, the IMF noted the appropriateness of enforcing a tion, in order to reduce pressure on the process and support the stricter fiscal policy for the remainder of the year. release of redundant labour.

IMF Experts have been critical of the tendency for fiscal poliAt a time when Serbian industry has been held to ransom by cy to be highly dependent on income and, accordingly, suggest dissatisfied workers, striking in demand for higher salaries and that the budget deficit be kept to the agreed level of 30billion better conditions, Dinkic insisted the state coffers were unable to support wage increases in the public sector in excess of 8.5% - the projected rate of inflaThough predicted annual inflation levels of eight to nine tion. He added that most public enterprises per cent appear overly ambitious at present, the IMF is had already reached the upper-limit of salary increases and further growth could confident that the goal is still attainable. However, they only be considered after confirmation of an insist that production subsidies be further reduced - a increase in GDP (Gross Domestic Product). recommendation supported by many local economists.

The Finance Minister warned that further uncontrolled income increases would dinars. Such a requirement calls for a reduction from last year's only jeopardise market and currency stability - a claim that 3.9% of GDP to just 2.5% - implying additional cuts in expenditure. holds water when one considers that real wages have grown ten The state seem prepared to accept the IMF recommendatimes fast than production levels between 2000 and 2004 (real tions, with Dinkic announcing that public expenditure must be wages have increased by 114.5%, while GDP has only grown by reduced in the second half of the fiscal year. Funding will be 16.5%). reduced for all ministries and the Roads Directorate will see its According to the IMF, consumption has to be reduced to conbudget cut by a billion dinars. The IMF placed special emphasis form to the realistic capabilities of the country. The report notes on the need to further economise and reduce public expendithat Serbia must respect the obligations that form an integral ture, which would lead to growth in exports, the increased compart of this year's fiscal programme. Moreover, the internationpetitiveness of Serbian companies and an improvement to the al body reminded that fiscal stability would prove hard to liquidity of the country on the international market. achieve without a marked reduction in budgetary subsidies and

Finance

Highlighting that monetary and exchange rate policies were facing new challenges, the IMF's representatives called for caution over the large budget deficit and further cash demands.

Prior to the National Bank's decision to withdraw $70million of local currency from general circulation, the IMF unequivocally supported the Bank to "endure with efforts to maintain strict loan conditions and insist on measures aimed at increasing the competitiveness of Serbian companies with the long-term goal of keeping the inflation rate within projected limits and safeguarding foreign currency reserves".

Though predicted annual inflation levels of eight to nine per cent appear overly ambitious at present, following the excise duty increase, the IMF is confident that the goal is still attainable. However, the IMF insisted that production subsidies be further reduced - a recommendation supported by many local economists. Stojan Stamenkovic, a research fellow at Belgrade's Economic Institute, believes that the previous government made a serious error when deciding to restructure problematic companies prior to privatisation. He maintains that they should have been sold immediately, with necessary restructuring left up to the new private owners. Instead, he noted, we find their situa-

tion much the same, with a fall in price the only noteworthy change. With this in mind, Dinkic has announced that he is to suggest the Ministry of the Economy abolish budgetary funding for the restructuring of companies resistant to privatisation. The Finance Minister and G17 Plus deputy leader said that subsidies could be reduced without these measures, while companies should become increasingly self-reliant. He concluded that reductions in public expenditure were inevitable "not because the IMF demands it, but because we need to implement such measures if we are to maintain economic stability and create conditions to allow sustainable economic growth".

The IMF is confident that Serbia is in a good position to receive funds from abroad, considering that gross foreign currency reserves, through donations and loans, could reach $3.6billion by year's end - enough to cover importation expenses for 4.3 months. The Fund also expect budgetary subsidies to be further reduced by the newly ratified Law on Energy and the government's revised railway transport strategy, which calls for the closure of unviable lines and opening-up to competition. This is primarily because ZTP (the Public Railway Company) will consume only 0.7% of GDP this year, as opposed to last year's 0.9%.

Finally, positive observations that this year's first-quarter development is largely consistent with the Serbian Gover-

The IMF is confident that Serbia is in a good position to receive funds from abroad, considering that gross foreign currency reserves, through donations and loans, could reach $3.6billion by year's end nment's economic goals have prompted the IMF to state that GDP growth of four to five per cent this year, along with expected growth in agricultural output, will lead to the further recovery of industry and investment and restructuring-based development. Thus, the Fund expects the Serbian Administration to hasten steps to restructure public companies - with public power company EPS to be "partially restructured" and the recent 10% electricity price-hike enabling adequate maintenance, investment and the servicing of foreign debt.•

Newly Accredited Swiss Confederation ( 8.July 2004.)

H.E. Mr Wilhelm Meier, Ambassador Extraordinary and Plenipotentiary Born 1948, Iona, San Gal canton, Wilhelm Meier graduated from the Zurich Polytechnic Academy with a physics degree in 1978. Formerly employed by the Swiss Federal Foreign Affairs Ministry, Meier was interned as a member of the Bern and Switzerland Mission to the European Commission in Brussels. His previous diplomatic experience includes a stint as Secretary for Economic Issues at the Swiss Embassy in Peking, and advancement as advisor to the Swiss Ambassador in Moscow. In 2001, The Swiss Federation nominated him for the ambassadorship of Uzbekistan, Kyrgyzstan and Tajikistan in absentia.

Ambassador Meier is a married father of one.

Guinea ( 08.07.2004.)

H.E. El Hadj Mohamed Issiaga Kourouma, Ambassador Extraordinary and Plenipotentiary Mr. Kourouma began his diplomatic career in 1979 as First Secretary of the Embassy of Guinea in Kinshasa, Democratic Republic of the Congo.

A high-ranking official of the Guinean Foreign Ministry, Ambassador Kourouma took up his first ambassadorial post in Cairo, Egypt.

Since May 2004, the married father of four has held the secondary ambassador's post in Belgrade.

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Comment

CHOICE OR NECESSITY? F

Political instability is seriously jeopardising the privatisation process in SCG. A lack of quality investors, coupled with populist demands that the assets of healthy companies be freely distributed and failing companies be run by the state, are all leading to an impasse in this essential sector of economic reform.

ourteen years have passed since the introduction of a multiparty system in Serbia, and almost four years Global experiences of transition have thus far shown that all have elapsed since collective democratic countries succeeding with the process will first have to endure a forces came to power in Belgrade. Yet key rough patch - either monetary instability whilst reducing the transitional issues remain unresolved, deficits of companies and the state; troubles with the process of despite earlier predictions that transition liberalising prices, exchange rates and interest rates; problems would be easier for the states of the forarising from privatisation and the complete restructuring of mer Yugoslavia. industrial and financial sectors with an acceptable safety-net The belief was that Serbia, along programme. Success, however, has been eventually gained due with all other former republics of SFRY, to an overriding national consensus.

Miodrag Zec would have a more comfortable journey Alas, here in Serbia the initial consensus over the reform and through the process of democratic transition because of their accession aspirations of the country, forged by democratic poworganised system of "soft", self-managed socialism, inclusive of ers in the build-up to 5th October 2000, has been severely shakelements of a market economy, civic rights and stronger ties to en and is now seriously imperilled. Principally, the problems are the West. However, this has turned out not to be the case and, rooted in the impossibility of restructuring a splintered political with the exception of Slovenia, all former SFRY states have been scene - littered with one-man parties and unstable coalitions, forced to submit to a painful process of social adjustment that has scores of presidential candidates and trade in parliamentary seen them fall significantly behind those countries making the mandates - into two or three logical and clearly distinctive blocs transition from "hard" Eastern Bloc socialism to EU integration. able to ensure rational political competition upon which the Here in Serbia, unfortunately, socialism has only capitulated verfoundations of economic reform can be built. bally and one decision crucial to the entire process has yet to be Contrary to this ideal, we are now in the situation where the answered: can we simply tinker with the old structure and accomplishments of 2000 could collapse and send us hurtling upgrade it, or do we need to scrap the entire system and replace back to square one. Monetary stabilisation through decree canit with a new one? not survive unless deficits at company and state level are permaThe former system remains more or less intact to this day. nently eliminated. The last few months have shown that there is However, this unviable system costs more resources than it is a reluctance to curb consumption, while resources for covering able to generate and its ever-increasing budget shortfall is in constant need of patching up - with With the exception of Slovenia, all former SFRY, states redistribution programmes, loans, inflation etc.

The system is surely doomed to spiralling debt; have been forced to submit to a painful process of with financial rights claimed by individuals, social adjustment that has seen them fall significantly groups and companies constantly rising and in behind those countries making the transition from constant need of increased, unobtainable production capacities. In order to break from the viscous "hard" Eastern Bloc socialism to EU integration. cycle of increased dependence and financial meltdown, the entire society will need not only to change its politithe deficit - donations, foreign investments, etc. - have dried up. cal and economic models, but also its system of values.

The road towards an inflation crisis lies straight ahead.

The current value system holds high regard for collectivism, The market liberalisation that was rather clumsily impleegalitarianism, redistribution and the paternalism of the state mented now faces demands that the internal market be shut over companies and individuals, as opposed to individualism, down and the state be promoted as a key buyer; privatisation is efficiency and competitiveness. The present political model under threat from instability, investor shortages and populist allows for the unaccountability of the political elite, particularly calls for the assets of profitable firms to be distributed free of in terms of their duty to clearly inform the people that the true charge. Restructuring the public sector has inflamed passions, reform of the country will require a radical split from the expeleading to the curse of the 90s - "I hope to God your house is riences of the past and a switch to a system that will ensure highshown on CNN" - to be replaced by the curse of the new millener levels of production than consumption. nium - "I hope to God your company gets restructured".

If such a statement was made and transition to such a system If we cannot guarantee political consensus for the reform truly commenced, the foundations of integration would be laid process, and if reformists fail to be accountable and explain the and the chance would arise for debts to be paid, investment to ethos of transition - investment before effectiveness - we will be forthcoming, and survival and EU integration to be assured. undoubtedly find ourselves back at the crossroads of choice, With today's inconsistent, incoherent, irrational and, ultimately, with transition put on hold for some point in the future. extremely costly political system, the environment for political Unfortunately, some people still seem to think that commitinfighting and fluctuating political power will remain through ting the country to reforms is a matter of choice, and not an the hard times that still lie ahead for Serbia & Montenegro. absolute necessity. • Miodrag Zec, PhD

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CorD Club ATLAS GROUP

Atlas Pils - Legendary beer Atlas Pils, Valjevo brewery's latest product, arrived Serbia & Montenegro market at the beginning of August. A beer of sophisticated taste, top quality and palatability, Atlas Pils is sold in 0.5L cans and 0.33L glass bottles and there are plans for

non-returnable bottles and 0.33l cans.

Atlas Pils promoters and TV advertisement stars are famous basketball stars Drazen Dalipagic Praja and Vlade Divac. Of course, they were not selected by chance.

The campaign slogan will be: The beer for legends.

The Atlas System owned Valjevo brewery's production strategy is aimed in three directions. The first is continuation of the further introduction of modern equipment, the second is development of new technologies and the third regards the market, which apart from Serbia and Montenegro and the Republic of Srpska, also includes Greece.

The Valjevo brewery's current capacity is 500,000 hectolitres of beer and 50,000 hectolitres of soft drinks. The modernisation of the factory has started, and contracts with renowned world manufacturers of tapping and filter techniques will soon be finalised.

The brewery's 140-year tradition of maintaining high standards of beer production has ensured the continued existence of Valjevo brewery, as well as the possibility of expanding both its capacity and assortment. Atlas Pils is just the latest example of that.

HEMOFARM

Brail packaging for visually-impaired Intent on producing safe and affordable medicines for the blind, Hemofarm now includes a brail version of the name and recommended dosage of medicines on its packaging. The first such packages, produced by Hemofarm and affiliates Panfarm, Hemomont and Zorka-Pharm,

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were available from the start of August 2004. The first such medicines are Panfarm's Minelol - a beta blocker - and Vozatol - a anti-hypertensive, and Sabacproduced Flunisan - an extremely effective antidepressant.

These three medicines are the first to incorporate brail into their packaging, which is produced by the factory in Banja Luka, Republic of Srpska. According to Ljiljana Solomun, head of Hemofarm's package development branch, all packaging for medicines, auxiliary medical remedies and mineral-vitamin preparations will be gradually replaced with the new brail packaging.

The blind-friendly packaging is being produced by Zannini Hemofarm, which has also acquired similar technology to ensure it is able to incorporate the brail alphabet into other forms of packaging.

News about Hemofarm's endeavours to produce packaging to ease the lives of the visually-impaired has provoked great interest among those directly involved in the sector. According to the Serbian Alliance of Blind Persons, Serbia has around ten to twelve thousand blind people, the majority of whom are old and in need of regular medication. Considering

that the elderly generally live alone, Hemofarm's innovation will increase their independence and their ability to use prescribed therapy more confidently.

Late last year the European Parliament adopted legislation revising regulations applicable to pharmaceutical products. At the request of the European Association for the Blind, obligatory marking of packages in brail was included in the new legislation. With hemofarm's latest move, they have ensured that medicine produced by the Serbian pharmaceutical giant conforms to European union regulations tht have yet to be enforced in the EU itself.•

FRESH & CO

NEXT and The Graduate - a partnership example The hot season for The Graduate in

Belgrade: new production and cultural marketing approach bears fruit Fresh & Co Company, worldwide exporter of fruit juices, and the creators of "Broadway in Belgrade" found themselves with the joint aim of transforming the idea of performing The Graduate in Belgrade into a reality.

According to Fresh & Co.: "It is a great pleasure for us that, through cooperation with the producers of The Graduate play,

we have enabled Belgrade theatregoers crying out for world cultural events to see the Graduate at the same time as citizens of other world metropolises.

"It is also a great honour that our company had the privilege of facilitating the return of our great star, Snezana Bogdanovic, to Belgrade's stage in the role of the legendary Mrs Robinson.

"Cooperation between Serbia's most successful fruit juice company and the West End production company promoting The Graduate play is a good example to all domestic companies that by investing in fresh and innovative cultural projects they are able to change and improve their surroundings as well as their own image."•

US STEEL

Smederevo local becomes senior forge director Smederevo native Vladan Mihailovic, long time operations director of the blast furnace, has been appointed to the position of general manager of Primary Production in US Steel Serbia.

In his new post, Mihailovic will supervise the whole process of production of iron in the blast furnace, convectors for the production of steel and the continual casting of pig steel. Those sections contribute over 75% of the production's variable expenditure.

According to Thomas Kelly, general man-

CorD Club ty and technology in 1998 and director of the blast furnace plant in 2000. The Smederevo man has become one of U.S. Steel - Serbia's most important managers at a time when the company is forming strategic plans for continuing recovery and strengthening the competitive position of their factories in Smederevo and Sabac. •

importance which this work will gain in the forthcoming reforms of the pension system in Serbia, Raiffeisen is fully prepared to offer its clients the services of balancing and preserving commercial documentation and a variety of other primary and secondary services, such as trade in stocks, bonds etc. •

ZEPTER RAIFFEISEN

Raiffeisen endorsed

by National Bank

ager of U.S. Steel - Serbia: "Vladan Mihailovic is one of the most eminent operators in the US Steel company's plants not only in Serbia, but in Europe and America. Now he has been appointed as one of our most important managers. We have great trust in his skills and his potential for this job".

Kelly emphasized that Mihailovic started to work as a blast furnace engineer and operations manager in Smederevo in 1993, one year after he acquired the title of graduate engineer of metallurgy from Belgrade's University.

Mihailovic started his career in Smederevo from the lowest level on the managerial scale. Soon afterwards he was appointed as director of production in the blast furnace section. He was told that this part of the forge was in great need of talented young engineers, even though the only blast furnace currently operating blast furnace number 2 - was not working at that time.

Mihailovic advanced through various posts, becoming deputy director for quali-

Raiffeisen BANK a.d. Belgrade has become the first Serbian-based bank to be approved as a custodial bank by the National Bank of Serbia.

The endorsement, which was preceded by comprehensive organisational and staff training preparations, allows Raiffeisen to contribute considerably to development of the financial market in Serbia.

Considering that custody affairs, apart from investment banking, are the basis of a well-organised commercial/valuable documentation market, as well as the

ZEPTER PASSPORT puts Serbia back on tourist map The ZEPTER PASSPORT Agency has contributed to the re-branding of Serbia as an international tourist destination by successfully incorporating the country into the 2004 cruising season, in conjunction with French agency RIVAGES

By organising four cruises on the MS DELTASTAR along the Danube, ZEPTER PASSPORT offered 400 French and 100 Italian tourists sightseeing services around the riverbanks of Belgrade and Novi Sad, excursions to Oplenac and Fruska Gora, and lunches and diners with music in national restaurants.

ZEPTER PASSPORT will continue its very successful cooperation with the French agency, specialising in river and sea cruises. Four long tours have already been announced for 2005.•

Interview

Vlade Divac, L.A. Lakers’ star reveals: "I have invested 3 million dollars in Serbia, but now I'm putting plans on hold"

By Vladimir Stankovic

I’VE HAD

ENOUGH! NBA star and SCG basketball legend Vlada Divac speaks exclusively to CorD magazine about politics, business, patriotism and the manipulation tactic of those leading basketball in Serbia & Montenegro.

J

ust prior to this summer's presidential elections many were surprised to see national basketball hero and living legend Vlade Divac appear and speak publicly at a Boris Tadic rally in central Belgrade. Indeed, as the campaign entered its final stages Divac's involvement in Tadic's campaign become more and more apparent. As such, we felt it appropriate to begin the interview with a retrospective look at Divac's decision to become involved in the already overcrowded world of domestic politics.

Some people might say it’s easy for you to support one politician or another because you don't live here. How would you respond to that?

My parents live here. My brother lives here. My friends live here, and my whole family can't wait for the end of the NBA season so we can come back and spend a few months in our country. This is my country, my people and my choice, which is quite enough to ensure I am very concerned about what goes on here.

Why did you opt to publicly support Boris Tadic?

Did you ever consider entering politics fully and not limitFirst of all I would like to emphasise that I am not a member ing yourself to supporting a politician you prefer? What comes of the Democratic Party [of which Boris Tadic is leader] or any to mind when you hear or read "Divac for President"? Did you other political party for that matter. I will never join a political ever stop and think that you party in my lifetime …. And could actually be the my political involvement is a I have known President Boris Tadic for a President of Serbia? personal matter, as it is with long time and I am confident that he is I am a realistic person. I any citizen of this country.

I never associate myself an able and honourable politician. know what is possible and is not, and I know that with parties or ideas, but However, if he fails to deliver I will be what something like that is not realrather people - especially among the first to criticise him. istic. It could be worth the sacthose I know. I have known rifice and neglect of my family Boris Tadic for a long time if I knew that I could change Serbia in a short period of time, but and I am confident that he is an able and honourable politician. since that is not the case I think it is better not to waste any more I felt it was both my personal duty and in the best interests of time on that issue.

Serbia to support such a person. If I managed to haul in some votes for him then that's all the better, because I believe he is the So, you are not professionally interested in politics, but best option for our country today. However, if he fails to deliver you are involved in politics to some extent?

I will be among the first to criticise him.

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That's right. Politics is part of us and our everyday lives. We have to be involved since it is our duty to influence politicians and not the other way around.

BUSINESS ENTREPRENEUR

long as the game goes on. Personally, I enjoy being back at LA Lakers because I still have a lot of friends there.

Why haven't "our Kings" [Sacramento] taken the championship this year?

We slumped in the play-offs and I myself am not certain why.

It all coincided with Chris Webber's return to the roster, but it wouldn't be fair to accuse him of causing the slump.

Aside from enjoying a glorious sporting career that is nearing the end of its second decade and has seen him enjoy 15 seasons in America's NBA, Divac has also grown into an accomplished businessman.

My return to LA Lakers gives me the chance to get His business enterprise has branched out in the NBA title at the end of my career, but also repreboth the U.S. and SCG and is expected to sent the fabled ring to round up my NBA career. grow further.

Even under the present circumstances in We simply stopped playing as we had been. We all played our country, which are far from stable and normal, it is possible below our best and that resulted in our elimination at the knockto invest and make a profit, but not in the short term. One has to out stage. be patient and look further ahead‌ However, following my resignation of the Partizan presidency I intend to take a kind of timeStojakovic's average points per game dropped considerout from my long-term investment plans for the region. ably in the play-offs. Is that the reason the Kings failed to I hope the election of Boris Tadic for Serbian President will progress further? provide political stability, since I have witnessed US businessmen Peja played fabulously for most of the season, as we all did, withdraw from investing or spending considerably less due to the but when the bad spell crippled the team he didn't manage to fact that Serbia is still considered a high-risk country for large shrug it off either. The problem was that we all slumped in form investments. I perfectly understand American businessmen who and there was no escape from that situation. want a clean situation and have no intention of "finding their way", and it would be difficult now for me to persuade them to What do you think about the increasing number of young join me in investing further if I am not sure what to do myself. I players joining the NBA? need some time to find my way out.

I don't think there is an "ideal age" to start playing for the NBA. It all comes down to the individual. Some can succeed at If it isn't a secret, how much money have you invested in the age of 19 and someone at 29, but what is necessary is to preSerbia? pare oneself for the NBA, both mentally and physically. There is I have put more than 3 million dollars into various business no sentimentality in the NBA - either you are worth it or you endeavours, but I am now putting my investment plans on hold, aren't. If you are, then you play, and if not you sit on the bench at least for the foreseeable future. and in the worst case they don't renew your contract. Generally speaking, I don't think it is good to join the NBA too young.

What happened with "Knjaz Milos"?

Darko Milicic can serve as an example to everyone. I hope that he I haven't given up and neither have my American partners. If will pull though and get on top in the NBA, but many young playthis one goes through it will be one of the largest investments in ers could find themselves in his current situation. Remember Serbia to date.

Aleksandar Radivojevic and Slavko Vranes? They were too impatient and passed through the NBA without making a notable Has the image of Serbia begun to change in the US? impact on the game.

Yes, slowly. For us it's good news when we are off CNN news, because that means that there is nothing bad happening. A counWhy are NBA teams increasingly turning to Europe for try has to invest in its image, to promote and represent itself players? Has the quality of play in American colleges dropped through its best and most capable citizens, to take advantage of influential individuals and lobby to fulfil goals and protect interests. However, to do this there has to be a minimum of political cohesion in the country, from radicals and socialists to democrats. As far as the U.S. is concerned, I think that basketball players are still our number one export product.

DIVAC AND THE NBA When he was selected by the LA Lakers at New York's Madison Square garden as the 26th pick of the 1989 NBA draft, Vlade Divac's unique NBA career took off in the world's strongest basketball league. Today he is not only a European player with the longest NBA career, but also one of the league's true veterans. There are not many players who have notched up 15 seasons in the NBA. During his American career Divac has played for the LA Lakers, Charlotte Hornets and spent the last six years playing for the Sacramento Kings.

Speaking about his future, Divac said: I have decided to play at least one more season. I feel that I can do it and that is most important. My return to LA Lakers gives me a chance to get the NBA title at the end of my career, but also represent the fabled ring to round up my NBA career. I know this requires a lot of things to click into place, but there is hope as

Interview and left the NBA without a steady stream of domestic talent?

PARTIZAN ROOTS The ongoing expansion of the NBA unavoidably dilutes the quality of the teams. Every new NBA franchise directly or indiIt is common knowledge that Divac proved extremely sucrectly sucks in a certain number of players and weakens the other cessful during his time as president of the Partizan Belgrade teams. On the other hand, young players in Europe definitely get basketball team. Even from across the ocean he managed, better training than American players in the same age group and with the help of fellow Partizan player Sasa Danilovic, to sucthus have better technical and tactical dispositions for the game. cessfully lead the team that has dominated the national The crucial difference had once been strength, since Americans league for three seasons. After the departures of Nenad Krstic were capable of "eating up" Europeans in almost any game.

- New Jersey Nets - and Djura Ostojic - Spain's Breogran - a However, since European players started to put more emphasis on new team is emerging at Partizan this season. New acquisi'powering-up' and hired physical trainers, the gap is narrowing fast.

Danilovic and I have to use our personal acquaintances,

connections, reputation and so on. We kept having to

How would you comment on the withfind people of good will who were keen to help the club drawals of certain players from the Serbia & Montenegro Olympic team? and many times we had to patch the holes ourselves.

What happened last year, ahead of the European Championships in Sweden, and to a lesser extent this tions include Dejan Milojevic and Predrag Suput, while a year, ahead of the Athens Olympics, is not good. Still, before we question mark still hangs over the transfer of Luka label someone as lacking patriotism or something else, let's look Bogdanovic from arch rivals Red Star. There are also plans to at the facts. I am aware that the players aged between 20 and 24 bring two foreign players to the team. today care much less for the national anthem 'Hej Sloveni' than I did at that age. They grew up in a country that did not have its What does Partizan mean to you? own anthem, flag or name, but instead had sanctions, wars, isoThis basketball club was my steppingstone towards the top lation and a negative image in the world. I watched the football flight in the NBA and a club where I spent three unforgettable played in Portugal and envied the normal countries in which the seasons, learned a lot and made many friends. Partizan is simply players and fans sang their own national anthems, when on the a club that has a special place in my heart. other hand half of our fans are silent while the other half jeer Danilovic, Paspalj and I took over the leadership of the club when the anthem is played at sporting events. A lot more time is after the changes in Serbia in the year 2000 in an attempt to give needed for things to return to normal. back a little of what we were able to achieve as athletes with the Perhaps this seems trivial to some people, but it is very influhelp of Partizan. I think the results show that we have lead a fruitential in the minds of young people here. ful club policy, although only we know how much nerve and effort were needed to achieve those results.

Since we have mentioned the national anthem and the flag, it is only natural to ask how you see future relations between CORRUPTION RIFE IN DOMESTIC BASKETBALL Serbia and Montenegro? Do you believe in a common state?

I could not accept to speak about Serbia and Montenegro as What about the financial side? two separate states. We are one people and that is the only comI won't talk about money. Suffice to say that nobody forced petent position in my mind. I believe that all the talk about sepame to get involved so there is no sense in complaining. However, rating will either stop or be drastically reduced when the stanI want to point out the problems that I've faced and which have dard of the people improves, when the economy gets on its feet proved too difficult to resolve. That's why I resigned my presidenand when people generally start living better lives. cy at Partizan. There was simply too much pressure and too many irregularities all over the place. In the long-term these problems have to be solved, not only for the sake of Partizan as a club, but for the benefit of the game of basketball in this country in general.

For example?

The general status of the whole sport remains unresolved.

There is no law that regulates basketball. There is no law on privatisation in this field. I am not saying that Danilovic and I should be the owners of the club. I even think that institutions such as Partizan and Red Star should not be privatised completely, but they could transform into shareholding franchises and start operating on different foundations. Furthermore, the regulations are too complicated, outdated and unstimulating. A few years ago I wanted to send some money to the club, my personal funds, but I was told that I couldn't send them to the club directly, but rather through mediator banks. I was also given a list of a whole host of taxes that had to be paid for this simple transaction.

I asked Mladjan Dinkic, who was the National Bank Governor back then, why this was so, and he explained that "it's just the way it is"‌ The situation has improved somewhat since then, but there are still too many complications and bureaucratic obstacles.

Was that the main reason you tendered your resignation?

That's one of the problems, but the main reason is the overall situation within the Basketball Association. I'm simply not prepared to play the "games" behind the scenes or be involved in

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the destruction of our basketball by participating in things that will ruin the achievements of so many generations of our players over the course of the past half a century.

There have been thousands of players and officials, and millions of fans, who have helped make our basketball a world brand and now someone wants to delete all that. Because of that we won't stand behind the decision to play in the Adriatic League.

We want to play our own league and develop Serbian basketball.

If our best clubs play in the Adriatic League then our league will be destroyed. Furthermore, the affects will soon lead to the collapse of the whole basketball scene and the sport would eventually disappear from the world map.

Moreover, we have lost our motivation to fight the strong anti-Partizan lobby that has been fighting us since we took over the club and particularly since we opted not to participate in the Adriatic League. I mentioned earlier the lack of any serious rules and regulations regarding privatisation in sport. Danilovic and I

and many times we had to patch the holes ourselves.

To be honest, if it weren't for Mobtel's sponsorship Partizan would not be the team it is today. Still, the way we got by of late is not the answer but rather a day-to-day solution that was based on personal connections and not on healthy business foundations.

Football is not much better off either. I read in the papers the other day that Red Star had sold their player Vidic for $6 million, Partizan sold Duljaj for $5 million… In basketball these are enormous and unimaginable sums of money. The NBA lures off our players for not more than $350,000 and with a lot of luck you can cash in a player for a million every five to six years, since you can't produce a world-class player every season.

What is the solution?

Apart from implementing basic laws and legal regulations, the answer is in an improved standard. When we come close to filling our 7,000-seater "Pionir" stadium and earn some €300,000 from tickets priced at €40-50 for a This is the end of my engagement in club basketball - at least match against say, Alba from Berlin, we can talk about an economy, as long as the current basketball board and the atmosphere then market laws, taxes and the rest…

they create remain in place. I don't want to be party to the achievements and results of these people, to be manipulated and involved in political or other "games". I have had enough of compromises, promises and useless deals. have been waiting four years to officially define our positions at Partizan and there has been no sign of any solution.

Depsite the fact that we are Partizan fans and former players, there is a limit to how much we can take. We have spent a lot of time and exerted all our effort - absolutely free of charge - to develop the club and the sport. Instead of receiving gratitude we are blackmailed and threatened by some officials. This is just too much and we are out of it.

Which officials are involved?

For a start, we disagree that someone like BC Reflex president Nebojsa Covic [leader of the Serbian political party Democratic Alternative and head of the Serbian Government's Coordination Centre for Kosovo] has such a powerful position within our basketball scene. Also the president of our basketball association, who has threatened that Partizan will be relegated from the first division if they don't participate in the Adriatic League…I have my name and my dignity in the sport. All that I have achieved was done publicly and in front of millions of basketball fans worldwide, so nobody can manipulate me, my fellow basketball players and my club. I have nothing to hide and when I decided to pull out of Serbian basketball I did so publicly.

The Basketball Association should belong to people from the sport of basketball, as it used to be in our country and still is in all successful basketball associations around the world.

Can you imagine yourself playing for Partizan at least one more time?

I still do, or rather I dream of it. I would like to play another season in Partizan like Arvidas Sabonis did for Zalgiris, but I cannot guarantee that the dream will come true.

What else do you dream of?

Maybe playing a last game with Sale Djordjevic, Rebraca and Bodiroga for Partizan, in front of a crowd of 20,000 in our new Belgrade Arena and with basketball the talk of the town. Still, I said at the beginning of this interview that I am a realist and so I'm well aware that it would prove extremely difficult to make this dream come true. But if you don't have dreams, wishes and goals to begin with you can never come close to fulfilling them.•

Would you ever contribute to Serbian basketball again?

This is the end of my engagement in club basketball - at least as long as the current basketball board and the atmosphere they create remain in place - but I will follow the national team. I don't want to be party to the achievements and results of these people, to be manipulated and involved in political or other "games". I have had enough of compromises, promises and useless deals.

Do you believe it will one day be possible to do business in basketball as in every other branch of the economy?

I believe it will, but when will this day come? Who will live to see it and survive in the meantime? Do you know how Partizan keeps afloat? Danilovic and I have had to use our personal acquaintances, connections, reputation and so on. We kept having to find people of good will who were keen to help the club CorD | September 2004

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Faces & Places

Ivan Novcic of CMA and Harris Orfanidis Director of the Greek Embassy's Press Office, address the guests

Aldo Vitale, Director of FIBA Stydy Centre and Patrick Baumann General Secretary of FIBA, talking to Sanja Laban, Secretary EP2005

CMA Company, publishers of CorD magazine, hosted a lively reception in the grounds of Basketball House, Dedinje, Belgrade on 4th August.

The CMA event, to celebrate the participation of the SCG National Basketball team at the Athens Olympics, was attended by well-known local sporting figures, representatives of World Basketball Association FIBA, members of the SCG Basketball Federation and many others.

Promotional stands were provided by Sinalco and Daimler-Chrysler, and the gathering in the pleasant gardens of the home of the basketball World Champions was addressed by Harris Orfanidis, Chairman of the Diplomatic Press Club and Director of the Greek Embassy's Press Office, and CMA General Manager Ivan Novcic.

M.Harissons of Harisson’s, P. Harpur of Mobtel and S.Willis of BAT enjoying the party.

Canadian Ambassador, H.E. Donald McLennan, welcomed a large number of guests at his official residence to mark Canadian National Day on 1st July.

The event was opened with renditions of the Canadian and Serbia & Montenegro national anthems, performed by the Kir Stefan Serbian Choir.

Guests included ambassadors of fellow Commonwealth countries Australia and Great Britain, as well as ambassadors of Austria, Cuba, Tunisia and China. Domestic celebrities and military representatives also came to pay tribute to Canada.

H.E. Donald McLennan greeting H.E. John Oliver, Ambassador of Australia, and wife

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Faces & Places American Independency Day, 4th July, was marked by a traditional reception at the U.S. Embassy in central Belgrade. Ambassador Michael Polt greeted high officials from the State Union of SCG, representatives of the diplomatic community and many celebrities of public and cultural life.

In a pleasant atmosphere, the Ambassador welcomed his guests by reading a message sent by President George W. Bush regarding this great national day.

The reception was attended by newly elected President of Serbia, Boris Tadic, Serbian PM Vojislav Kostunica, SCG Foreign Minister, Vuk Draskovic, Chief of the General Staff, General Branko Krga, and many other VIPs.

U.S. Ambassador addresses guests

Ambassador of Belarus to SCG, H.E. Vladimir Matskevich, hosted a recepetion at Belgrade's Hyatt Regency Hotel on 2nd July to celebrate the National Day of Belarus.

The event was attended by many diplomats, government representatives, media representatives, belgrade socialites and friends of the embassy.

H.E. Lavany Prasad, Ambassador of India to SCG, and H.E. Yaffa Ben-Ari, Ambassador of Israel to SCG, during the reception marking the National Day of Belarus.

Republic of Korea representatives, Park Jae-kyung and Kim Won-kyong, present the donation to University officials The University of Belgrade has stepped further towards creating a better education and learning environment thanks to a gift of the Embassy of the Republic of Korea.

The donated items - which include audio-visual presentation equipment, conference staging equipment for the University Rector, simultaneous translation hardware and 300 political science textbooks in English - were officially handed over at a ceremony held on 8th July at Belgrade's Faculty of Political Science.

The donation project is aimed at upgrading the educational environment of Belgrade university students.

Faces & Places Belgrade's French Embassy celebrated its country's National Day on 14th July with a reception hosted by newly accredited Ambassador of France to SCG, H.E. Hugues Pernet, and Mrs. Pernet.

The event, marking the Fall of the Bastille in 1789 and the end of oppressive Aristocratic rule, was attended by a number of local politicians, public and cultural figures, media representatives, students and academics.

H.E. Amr Khodeir welcomes the guests at he reception Ambassador of Egypt to SCG, H.E. Mr Amr Khodeir, hosted a reception to mark Egyptian National Day on 23rd July.

A number of diplomats, friends of the embassy and other respected guests attended the gathering at the Egyptian ambassadorial residence.

French Ambassador H.E. Hugues Pernet with Vojislav Kostunica at the reception Laura Fygi and her Band performed a concert in Belgrade's Sava Centre on 2nd July 2004. The concert, which was supported by the Royal Netherlands Embassy, marked the commencement of the Netherlands' Chairmanship of the European Union in SCG (July-December 2004). Belgrade-based diplomats, political figures, artists and socialites of the SCG capital enjoyed the cultural event in the grand New Belgrade venue.

Ambassadors to Belgrade enjoy the evening

H.E. Walter Negreiros, ambassador of Peru to SCG, hosted a reception in the ambassadorial residence on 28th July to commemorate the 183rd anniversary of the Republic of Peru's Declaration of Independence. A number of ambassadors, representatives of the Serbian and SCG governments, business figures, political figures, Belgrade socialites, media and tourism representatives, Peruvian residents of SCG and friends of the South American country attended the event.

The event's lively atmosphere saw guests sample Peruvian cuisine and Peru's national drink - Pisco sour.

Peruvian Ambassador H.E. Julio Walter Negrerios Portella, greeting H.E. Mrs Lavanya Prasad Indian Ambassador

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Faces & Places H.E. Hugues Pernet, Ambassador of France to SCG, awarded certificates to journalists completing the European Affairs course at the French Ambassadorial residence on 7th July.

The course, organised by the Embassy of France in conjunction with Belgrade Media Centre and the Association of Francophone Journalists - SCG, saw journalists attend a series of lectures in French and English performed by representatives of European institutions in Belgrade, embassies and French governmental experts.

Ambassador Pernet awards certificates to journalists

In honour of the fifth anniversary of the coronation of King Muhamed VI, H.E. Kemal Faqir Benaissa, Ambassador of Morocco to SCG, held a well-attended reception on 30th July.

The event was held in the cosy atmosphere of Vila Jelena and guests included crown-price Aleksandar Karadjordjevic and a number of ambassadors, members of government, friends of Morocco and many others.

Right to left: Ambassador Benaissa, Crown Prince Aleksandar, son & daughter of the Ambassador & Moroccan Embassy official Ahmed Benriane

On 19th August, Ambassador of Indonesia to SCG, H.E. Ladjuris, held a reception at the Belgrade Hyatt Regency Hotel to mark Indonesian National Day. The event, which included performances of traditional Indonesian dances and offerings of traditional Indonesian fare, marked the date of Indonesia's independence from Japanese rule.

Guests in attendance included members of the diplomatic community, representatives of the SCG Government and international organisations, and members of Belgrade's social and cultural elite.

Traditional Indonesian Dance

Interview

Wroclawski Theatre: Cleansed

Inextricably linked In a similar way to when he suddenly appeared during the eighties on theatre stages with dramas such as Bergman's Home, Metastable Grail, Fear for the Border and Homo villains, Nenad Prokic has unexpectedly stopped writing and recently dedicated himself to theatre directing. The 50-year-old Kragujevac born playwright and director is a busy man indeed: lecturing at Belgrade University's Drama Faculty, managing the Bitef Theatre - known for its nurturing of contemporary theatre expression - and directing Belgrade's International BITEF Theatre Festival for several years.

By Slobodan Kostic, Photo Danka Ninkovic

P

rokic's direction of Ksistof Bizje's Let's Talk About Life and Death and Ingmar's Vilkvist's Helvera's Nights represent a personal Copernican turn of speech in a similar way that his early scripts were portrayed in theatres.

Considering the level of interest in Bitef Theatre's plays that you direct and the numerous positive critiques, has this house of art's policy of opposing commercialism of the theatre finally started to bear fruit?

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Nenad Prokic, Director of Bitef Theatre

Judging by results achieved in the last few seasons, I have the impression that our determination and consistence was partially rewarded by performances that can enter the corps of theatre achievements, and are of interest to people outside the domestic and local milieu. This was one of the main missions we gave ourselves: to enter the universal code; to talk in forms and contexts understandable all around the world. In that way we were simultaneously fighting the stubborn provincial aspect that was always responsible for creating a closed society and proved helpless in communication with the world and therefore often appeared ignorant, full of complexes and even vindictive.

It seems that such a repertoire policy is only part of your criticism of the cultural model dominating this country?

Our approach does not exclude the commercial aspect, but the question is of which kind of commercialisation this concerns: one which flatters the monstrous cultural model and which foolishly giggles even about tragic events and national catastrophes, or the one which is skilfully balanced with more important aspects of artistic achievement. In any case, one who sees the commercial aspect as an excellent aim in theatre should reconcile himself with the fact that within the frame of every consistent cultural policy, he will be less on the budget than the one who promotes some other values too. The theatre must remain the institution that creates culture and not merely yields to the present level of culture.

How does the Bitef Theatre's repertoire fit into some other European standards, regardless of whether it concerns the trend of presenting brutal reality or performances of contemporary dance?

Our secondary mission over the years has been to support the most neglected theatrical expressionism here: contemporary

have passed through the Bitef Theatre and joined us in our efforts to buck that trend. We have been one of the rare, and often the only, theatres offering cooperation and a helping hand.

Many such performers have made great advances and appear on the world stage.

Can domestic theatres, with their rather conservative theatre language, catch up with the dance theatre dominating the world and reach a level of competence facilitating foreign performances of acceptable quality?

There are pre-conditions for that.

Our mission over the years has been to support the The first is desire and the lack of that is most neglected theatrical expressionism here: contem- more or less the end of the story. On the porary dance and the theatre of movement, which other hand, knowledge and persistence is needed, because nothing can be happens to be the most represented around the world. also achieved overnight. Then contact with the world's educational institutions is necesdance and the theatre of movement, which happens to be the sary because we do not have a school for contemporary dance. most represented around the world. The local trend of ignoring We are trying, in the Bitef Theatre, to help our dancers with that is illogical and an example of our often anachronous socieworkshops that are taught and led by world famous dancers and ty. Numerous independent theatre companies and individuals choreographers. In September, Keren Malkit, who dances in

Interview the engagement of intellectuals in society, which has rather corroded during the last few decades.

Some would say that the reality of recent years in this country ensure people have had their fill of stories about this kind of reality and would rather expect the theatre to provide a break from everyday life?

That may apply to some other society, but theatre in our country has hardly ever had a showdown with real problems. On the contrary, the theatre lulled us with imbecilic lies, thus it was the collaborator of our everyday grief. Sometimes it was completely corrupted, so it lied like Milosevic's TV News, thus the theatre is yet to approach confrontation with itself, society and history.

Have these directing challenges prevented you from writing any new dramas, or do your texts simply not correspond with the aesthetic of sovereignty rules and so-called boulevard theatre excels on the domestic stages?

I am currently finishing Alfa Foxtrot, a novel I have been writing since 1991. I have not written a dramatic text for almost ten years. However, my last dramas were only staged abroad.

There are several reasons for that, but one of the main reasons is that my way of writing is far from the current interests of Serbian theatre.

Bitef Theatre & Artistic workshop: Eden

How do you see the current theatre's approach towards what happens in reality? Is our theatre at all capable of confronting its time?

The stubborn determination not to confront society with its own mistakes, nor even the crimes committed in its name, surely obstructs the recovery of all segments of life. It took sixty years for a German Chancellor to receive an invitation to visit Normandy and Warsaw on the celebration of D-day. Sixty years of general consistent rejection of the former policy. With the present speed, and regarding the differences in committed events, we will need less time, but we must start and then be consistent in our condemnation of the politics that brought us to such a catastrophic position.

To what extent is that just a reflex reaction to the general crisis in society, followed by the impossibility of making a uturn regarding the happenings of the last decade? When will this juncture of the past and the complex problems of transition, which have created a very specific mentality among the What is it that attracts you personally to contemporary people of this country, become a lighter load that we can European writers from the East, such as Ksistof Bizje in the carry into a united Europe? play Let's Talk About Life and Death or Ingmar Vilkvist in A Copernican rotation is needed for that; a general acclaHelver's Nights? Is that some sort of direct response to our mation of society that something like that is wanted. Without society's problems? the willingness to live in a different and there is no transformation.

We are trying, in the Bitef Theatre, to help our dancers better Atway, one time I was vaccinated against with workshops that are taught and led by world enthusiasm for patriotic delirium, that famous dancers and choreographers. In September, which shook many in the Balkans. Now too, I give myself the right not to be Keren Malkit, who dances in Batshev, is coming from delighted with the current integrations taking place. Europe is a rapidly aging Israel to hold a workshop for our professionals. society. Those who get older spend less and those who spend less produce less; those who produce less Apart from the two previous aims, we have kept our interest will in turn strike at basic capitalistic values. Because of that, we in classical theatre text and performance, though Bitef's long will witness the selfish preservation of conquered values. How tradition of bravely trying to overcome established borders and that will influence the sacred idea of justice and equality standards has to be present. As regards any personal directing remains to be seen. engagement, in recent seasons I have directed the works of new However, let's not lull ourselves with false hope. We have Polish writers, Bizje and Vikvist. They are examples of how you to be integrated. The conditions will be dictated there, and can combine a clever and faultless aesthetic form with courabecause of that it is better to be in than out. In fact, we do not geous civil engagement at the highest level. These are artists have any choice in the matter.• who do not make compromises at any level and return faith in Batshev, is coming from Israel to hold a workshop for our professionals.

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The artist and her works

OLJA IVANJICKI

RENAISSANCE ARTIST A Medijalist* and pop artist; female Leonardo and sculptress; graphic artist and writer, Olja Ivanjicki is best known as a classic renaissance painter.

By Maja Volf

B

orn in Serbia of a Russian immigrant family, Olja claims that genetic memory alone is enough to link her to her family homeland. This is reflected in the taste and aroma of the food she enjoys; the choice of jewellery she wears and the porcelain art, classic paintings and furniture of her home.

Olja lost her mother at an early age and was raised by her father. During the '60s, she became the first to introduce pop-art to

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Belgrade and has also pioneered a number of artistic styles, staging numerous courageous events and founding the Medijala avantgarde artist group alongside Medijala guru Leonid Sejk in 1957.

Today her paintings and sculptures are included in worldwide museum exhibits and private collections, and her works can be seen in the Metropolitan, Santa Barbara gallery, the Museum of Contemporary Art, the National Museum in Belgrade and many more. Also a literary figure, many of her works of poetry and prose have been published.

Art emerging in the form of technological progress. That progress was just a trickle in the mid-20th century. They had only just constructed the A-bomb, but the fear of total destruction had a great impact on everything that went on since Hiroshima."

Without evaluating each and every member of the group, Ivanjicki gave a general outlook on Medijala: "We complemented each other. We did one painting all together and worked on it only twice. The canvas remained unfinished and each of us could continue working on it within ourselves, which was good. Each member of the group was special and unique and I cannot say who was the strongest among us. Remembering Medijala today is important and there will soon be a retrospective exhibition of the group, which should prove refreshing in the present situation."

As a surrealist and total painter, Olja has used her works to perpetuate the apocalyptic vision of the past century and the many personalities that it was marked by. For precisely that reason she staged an exhibition of imaginary inhabitants of Kosancicev venac - the part of Belgrade that she calls home.

Many historical and contemporary figures have also found their

Medijala was created in the '60s as an avant-garde group that saw enthusiasts pioneer styles and achieve new artistic horizons in the cellars of Belgrade restaurants such as Ruski Tsar and Presernova klet, using such materials as matchboxes, rags, wires and stuffed dolls.

Declared the best Yugoslav painter of the 20th Century, Ivanjicki has received many awards in recognition of her artistic achievements and the both the Cambridge Biographical Centre and the American Biographical Institute have included Olja Ivanjicki among their list of the world's top 500 most influential figures. *Medijala was created in the '60s as an avant-garde group that saw enthusiasts pioneer styles and achieve new artistic horizons in the cellars of Belgrade restaurants such as Ruski Tsar and Presernova klet, using such materials as matchboxes, rags, wires and stuffed dolls.

Not considered a "school" of art because of its inconsistent aesthetic concept, Medijala artists created diverging tangents of the style, which became associated with the individuals: SejkaBradic, Vukovic-Velickovic, Ivanjicki-Samardzic. Nonetheless, Medijala had a greater influence on Yugoslav painters than many art schools and, as a critique of modern art, the movement spread under the influence of Parisian aestheticism between the two world wars. According to Olja, Medijalists were opposed to the regime and, just as today, art provided stronger opposition than protest. She said: "If we juxtapose mainstream art at the time and what Medijala was doing, we can see that these two artistic trends were worlds apart. Our world was based on something that was

place on her canvasses. Though she was fascinated by Emperor Hadrian, the public decided that her picture of Leonardo was the most popular.

Olja Ivanjicki was among a number of artists who applied with a solution for the New York's Twin Tower Memorial.

Among 1100 works that included creations by Foster, Mayer and Libeskind, Olja's work was chosen by a majority of votes by the citizens of New York. In her creation, Ivanjicki placed the symbol of New York, an apple, on top of the future highest building in Manhattan. The apple would emit messages to the world through light signals. We asked her how she ever came upon the idea to take part in the project.

"I simply looked at the solutions that were on offer and none of them left an impression," she explained. "They were terrible. I said to myself that I could, perhaps, give it a try. The twin towers were built cleanly in cohesion with the happy 1960's and 70's. It was a relatively tranquil and peaceful period. Then came the time of rising poverty and increased strain on the planet caused by an accelerated race for resources. The projects that were in contention were quite ugly. Imagine that one applicant made a picket fence! Literally, a picket fence with slant edges, two horizontal strips, all painted in white. A picket fence on a building! Or Like the building in Strasbourg that looks like a sheepfold."

According to Olja, the idea to make the big apple came naturally and her message was that it was high time the world united. "There was a need for a happy moment for humankind world peace for the sake of the future. They understood me well, in the sense that they agreed it was high time for world peace and reconciliation." Ivanjicki is confident that the third millennium will be time when man set foot on Mars. "The north pole of Mars was recorded in 1972. In one corner of the canvas I placed the picture of this pole and imprinted my thumb enlarged twenty times. Next to this are the facial contours that are, according to some accounts, a configuration of a mountain range on Mars. The third segment is a vehicle for Mars, while the base of the whole picture are the figures of a man and a woman, since the base of our existence is their union".• CorD | September 2004

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Spanish cultural centre

Javier Ergueta, Cervantes Institute Director

CorD’s Maja Vukadinovic with Javier Ergueta

Belgrade's Cervantes Institute is treating residents of the SCG capital to a fest of activities with their comprehensive summer programme, realised thanks to a substantial budget made available to the Spanish Cultural Centre. Of particular interest to Belgraders, some of Cervantes' events have been directly inspired by the Serbian capital.

CERVANTES

By Maja Vukadinovic, Photo Andy Dall

T

he Cervantes summer programme, aimed at refreshing the cultural climate of Belgrade, opened on 26th July with an exhibition of sculptures, entitled "Belgrade: unique city", in the Cervantes Institute's gallery on Knez Mihajlova street. A second Belgrade-themed art exhibition is to be launched in early autumn. The event will present portraits of Belgrade citizens, painted by well-known portrait artist Sotirov. The great painter's works represent images of those who have made the greatest impact on the city of Belgrade over the course of the past fifty years. These include artists, politicians and other notable citizens.

Talking exclusively to CorD, Belgrade Cervantes Institute Director Javier Ergueta explained: "We don't want to promote Spanish culture by itself that much, but it's important for us to present the way Spanish people understand cultural activities. For example, we often prepare exhibitions of local artists and exhibits change every fortnight. We are working

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ENTERTAINS

very quickly and are trying to create an artistic atmosphere similar to that of Spain.

"Belgrade is an ideal place for such rapid pace," he continued, "because the city's approach to art and culture is similar to the Spanish cultural concept. There are many talented artists in Belgrade who have the need to express their rich creativity, which is why there is always something on in Cervantes."

Mr. Ergueta has spent the past three years in Belgrade as an official of the Spanish Embassy. He told CorD that he has been very impressed with the richness of Belgrade's cultural life, the abundance of talented artists and the inquisitiveness of the local audiences. According to the Cervantes director, the Spanish cultural centre would not have been opened in Serbia at all, were it not for the realisation of Belgrade's worth as a world city of cul-

"It is so easy and such fun to organize cultural life in Belgrade, with so many excellent artists who are not difficult to contact and establish cooperation with.

On the other hand, all cultural events in Cervantes are organized according to precisely established principles and therefore they can quickly revolve." ture and leading regional city. He noted that the cultural centre may only have been open for a few months, but it has already proved to be more actively involved then many similar institutes in central European capitals.

He explained: "The initial idea was to open just one centre in the region, in Budapest, but then we realised that Belgrade

Relaxed atmosphere at the Cervantes Institute was a very important cultural spot and seat for the whole region.

As a result, it was decided to establish one Institute in the Hungarian capital and one in the Serbian capital, which were supposed to be opened simultaneously. However, the centre in Belgrade started much earlier then the centre in Budapest, which has not yet been officially opened. Hence the delay in official inauguration of the Belgrade centre - we are waiting for the Institute Cervantes to become operational in Budapest".

Spanish cultural centre Almost fifty institutes bearing the name of the worldrenowned Spanish author add to the cultural life of 25 countries around the world, and the "red ribbon" is cut on three or four new centres in non-Spanish speaking countries every year.

The main objective of the Cervantes Institutes is to promote the Spanish language - the world's fourth most spoken tongue after Chinese Mandarin, English and Hindu - but this is not the only aim of the institute. Promotion of domestic art and culture with a Spanish twist is also high on the list of priorities for Cervantes Institutes worldwide. Dynamism is truly the major

Sofia and Sarajevo. He attributes the success of the centre to the welcoming attitude of Belgrade's artistic community: "It is so easy and such fun to organize cultural life in Belgrade, with so many excellent artists who are not difficult to contact and establish cooperation with. On the other hand, all cultural events in Cervantes are organized according to precisely established principles and therefore they can quickly revolve. Every week there are several artistic programmes taking place simultaneously".

In addition to intensive summer language courses and exhibitions of domestic works, visitors to the Cervantes Institute can

Musicians entertain the Belgrade public in front of the Cervantes Institute factor of the youngest cultural centre in town, perhaps due to the entrenched spiciness of the Spanish temperament. Each Saturday sees filmgoers flock to the centre to enjoy the cinematic productions of lesser-known Spanish film directors; intimate

also look forward to participating in such courses as Argentine tango, modern dance and economic policy of the European Union, amongst others. The cultural centre boss explained that similar programmes are being run within Spanish universities this summer and, he notes, as "‌the Spanish cultural centre would not have been opened in Spaniards and Serbs have simitemperaments and interests Serbia at all, were it not for the realisation of Belgrade's worth lar it is expected that these proas a world city of culture and leading regional city. He noted grammes will be to the taste of that the cultural centre may only have been open for a few the Serbian public.

Remarking that both months, but it has already proved to be more actively involved Spanish and Serbian artists are then many similar institutes in central European capitals." actively involved in the planning of new projects for the centre, concerts are regularly held in the institute's 100-seat hall and the Ergueta explained that art has become heavily commercialised Cervantes gallery - located in the heart of Belgrade's pedestriin Spain, while artists in this region have a traditionally raw talanised zone - attracts many regular visitors. The centre also proent, particularly in the fields of sculpture and music. He added vides Spanish language courses at eight different levels and curthat the centre's patrons - whether professional artists or laymen rently has around 500 language students; and boasts a volumi- are completely open to the multifarious cultural menu. nous library and translation centre, fully equipped with the With their comprehensive programme and undeniable most modern information technology equipment. enthusiasm for promoting both Spanish and Serbian culture, Mr. Ergueta explained that the Institute has proved so poputhe Cervantes Institute have proved that much can be achieved lar that plans have been developed to launch mini-centres in in only a short period of time.•

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Sport

By Todor Milenkovic

T

he newly built Belgrade Arena recently hosted international basketball tournament 'The Diamond Ball' and a one-off contest between world champions SCG and fathers of basketball USA. The events saw ten top international matches played here in Belgrade in just seven days and the national attendance record for a basketball fixture was broken when 16,254 people turned up to watch the match against the Dream Team.

Simultaneously opening the Diamond Ball and the arena in which it was to be played, Bora Stankovic, honorary SecretaryGeneral of World Basketball Federation FIBA, was the first to receive a standing ovation in the grand stadium - one of the biggest in Europe.

It was somehow fitting that Stankovic - one of the fathers of Yugoslav basketball - open Belgrade's first world standard, specialised basketball venue. Back in 1945, Stankovic, Nebojsa Popovic, Aleksander Nikolic, Radimir Saper and others brought the game of basketball to Belgrade, playing on the Kalemegdan

World champions Serbia & Montenegro and the champions of five continents Lethuania, Argentina, China, Australia and Angola, played the Diamond Ball. turf a sport that decades later would become the country's "best national product".

World champions Serbia & Montenegro and the champions of five continents - Lithuania, Argentina, China, Australia and Angola, played the Diamond Ball. The tournament was dedicated in part to those founding fathers.

Belgraders were treated to Olympic level competition, albeit at world level prices, with package tickets priced between €60 and €250. The matches of the tournament proved to be the group decider between Lithuania-Argentina, which saw

Igor Rakocevic against US “Dream Team”

DIAMOND BALL Argentina gamble a 15-point lead in the final quarter and eventually lose 90:79, and the tournament final between Serbia & Montenegro and Lithuania, which the home team won 93:80.

The award for Most Valuable Player of the tournament went to Houston's Chinese star 24-year-old Yao Ming, who topped both the points and rebounds list, and best in assists was declared as Lithuanian Sarunas Jasikevicius.

The first Diamond Ball was staged in Hong Kong four years ago and many FIBA officials, including Swiss General Secretary Patrick Baumann, agreed that Belgrade had made a better job of hosting the tournament in every aspect. Thanks to the state of the art facility that is the Belgrade Arena, attendance was much higher this year, with the competition Final attended by some 12,384 spectators.

Just three days after the tournament closed, Belgrade's basketball lovers were on their feet again as the U.S. Olympic team, led by coach Larry Brown and captains Tim Duncan and Alan Iverson, made the trip to the SCG capital to prove that they are the best in the world. The Americans came here with a point to prove after their 81:78 defeat in the quarter-final of the World

Cup in Indianapolis two years ago. Determined to show their class, the U.S. team swept to a comfortable 78:60 victory.

Supporters of the Blues may have been disappointed by the result, but they seemed content to console themselves with the fact that they remain World Champions.

The U.S. v SCG contest broke a number of significant records: it was the most watched sports contest to take place in Serbia & Montenegro, with several hundred million watching the match worldwide; it was the first basketball contest in SCG to be broadcast on three television signals (U.S., SCG and the rest of the world); it saw the highest attendance for a basketball contest on the territory of the former Yugoslavia, with the 16,245 turnout breaking the 43-year record of 12,500 - from the European Championship final between USSR and Yugoslavia.

The match was also a magnet for sponsors, media companies, sport lovers and politicians. The event also proved the first postelection opportunity to gauge the public ratings of the country's two leading political figures. Suffice to say that Serbian President Boris Tadic received a standing ovation, while Serbian PM Vojislav Kostunica faced a barrage of wolf whistles.• CorD | September 2004

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The Cira train chugs again after 26 years in a museum

ROMANTIC JOURNEYS Serbia's Sargan Eight railroad has already regained its status as a lure for both domestic and foreign tourists. Last year holidaymakers from Japan travelled on the seductive steam train and this year the number of western tourists choosing to take to the rails has begun to increase. The route of the line is spotlessly clean - no rubbish clutters the fields and the scattered traditional restaurants glisten like the sun-dappled steam of the Cira train. Polite, starched waiters attend to every need of diners, as they enjoy the fresh and tasty cuisine.

By Jelica Putnikovic

T

he whistle of the locomotive drowns out the commotion of passengers embarking on the two carriages that date back almost a century. Like a stylish painting of old, the aged engine blows black clouds of smoke into the air and rattles its way into a new journey through the rolling mountainous slopes of Zlatibor, Zlatar and Tara on the narrow-gauged Sargan Eight railroad.

The entire area of the journey bears the name Mokra Gora (Wet Summit) and the train exposes areas of natural beauty that no other source can reveal. Indeed, Mokra Gora residents proudly claim that Western attempts to use satellites and spy planes to observe the hidden wonders of those hills and valleys have remained unsuccessful. An illuminated stretch of railroad, Sargan's Eight gets its name from the fact that night time aerial views of the track make it appear like a bright figure eight nestled in the black hills.

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The original "Iron Horse" began travelling the Sargan's Eight route on 25th January 1925, and for almost 50 years it chugged from Uzice, through the Sargan Saddle and on to Visegrad and Dubrovnik on the Adriatic coast. Sadly, transport experts decided the train was no longer viable and trips were discontinued on 28th February 1974, as were all other narrowgauge railways spanning Serbia. Rails and sleepers were removed and the railroad was allowed to return to nature.

Without the steam train and its tourist pull, the 500 former Mokra Gora rail workers lost their livelihoods and human life on the mountain all but disappeared. It is hardly surprising then that a group of Mokra Gora natives initiated the reconstruction of the railway and the return of the famous stream train, although this time the tourist train merely cruises around Sargan's Eight and does not go on to Visegrad or the Croatian coast. Reconstruction commenced in 1999 and the first trips on the narrowgauge railroad resumed in 2000, after a 26-year break.

Whilst boarding the rickety old carriages, representatives of the railway explain that Serbia is not the first to restore narrow-

Sargan's steam train to set off once again, the driver gives a sharp blow of his whistle gauge lines, with Switzerland also creating a tourist attraction to call back wandering passengers who have clambered down out of its antiquated tracks. According to those responsible for the hill in search of mountain flowers and wild strawberries the re-emergence of the route, the tourist train has brought The ancient Romans also travelled through this area in employment back to an otherwise total-unemployment area, search of mineral-rich springs, one of which - Bele Vode - is still with local residents finding work on the railway or in the hotels, popular today. A coin dating back to 28AD and bearing the head restaurants, souvenir and local produce shops needed for sucof Emperor Tiberius was found in the mineral water cylinder and cessful village tourism. legend has it that the water possesses miraculous qualities and Construction of the railroad commenced in 1916 under the can restore the sight of the blind. Locals, however, pour scorn on guidance of the Austro-Hungarian Government. The hope had the claim, insisting that many who have washed their faces in been to connect Visegrad in Bosnia, which the Austrothe wondrous waters still wear spectacles. Still, local residents Hungarians then ruled, with Uzice in Serbia. However, work was do agree that the water is good for other discomforts, such as halted when 200 workers - Italian and Russian prisoners of war quenching the thirst. Moreover, they claim that the well dried up - were killed when an uncompleted tunnel collapsed after a rockafter the Romans departed, and water re-appeared of its own slide on Budim Hill, deep in the Sargan massif. Today, a modest accord fairly recently. memorial plaque, upon which only the date of 1916 is noticeFeliks Kanic visited this area in the second half of the 19th able, reminds us of this tragedy. century, remarking in his journal that the area contains around The railroad was finally completed in 1925, when the first thirty mysterious sarcophaguses. To date, 28 sarcophaguses steam engine set off along the 22.8 kilometre route, calling at have been found and it is estimated that they are from the end of Sargan Vitas, Jantare, Mokra Gora and Vardiste. The railroad the 14th and beginning of the 15th centuries. fluctuates some 250 metres in height - from 572m above sea level in Mokra Gora's valley to 810m along the ridge of Sargan's Saddle - in an area Nowadays, the tourist trip is a 55-minute whistle-blowing, of track just 2.7km long. The drastic engine-steaming journey through an area where time has height differences and rough terrain were what prompted engineers to conseemingly stood still. Indeed, it is as though a time machstruct this area of track in a figure eight. ine has began operating deep in the Serbian countryside.

The difficult, mountainous terrain also ensured that tunnels would be a must Apart from retracing the footprints of previous civilisations, for any train route through the range, and Sargan's Eight boasts visitors to Mokra Gora can now see fully restored looms and some 22 tunnels. Of the stations traditionally visited by the spinners, and even buy handcrafted national peasant costumes. train, Jantare remained curiously unpopular: not a single ticket Here only elderly women still hand-spin the wool used to make was ever bought at the station in the 49 years that the train ran socks, jumpers and traditional waistcoats, shawls and traditionthe route. ally patterned hats.

When restoration of the railroad began, railway company The distillery used to create Uzice's distinctively strong ZTP Belgrade had to remove the old carriages and engine from brandy is also here and everything remains authentic. Film their retirement home at Belgrade's Railway Museum. director Emir Kusturica has made his own contribution to the Nowadays, the tourist trip is a 55-minute whistle-blowing, Sargan tourist industry by opening an ethnic village that is to be engine-steaming journey through an area where time has seemused as a film studio and shooting location. The buildings of the ingly stood still. Indeed, it is as though a time machine has village are all original 19th century structures that have been began operating deep in the Serbian countryside. preserved for posterity. The only dilemma the village has caused The locomotive pumps black smoke from its funnel, which is for locals is to leave them undecided about whether to call their later swallowed by the passengers during the tunnelled sections. tourist railway the Nostalgia Railroad or the Sargan Express.

"I use two tonnes of coal for each trip", the red-faced stoker World travellers who have visited the railroad claim that such a proudly tells us as the train grounds to a halt at the first station. tourist experience only exists here in Mokra Gora and in the The day is sunny and the view simply breathtaking, with wild mountains of Switzerland. Encouraging the comparison with nature to be seen in every direction. The viewing spots were Switzerland, locals have attempted to add to the similarity by positioned in order to provide tourists with the most stunning give their village a sense of order, building a hotel and paving the vistas, without the danger of rockslides. Cameras snap all around previous dirt roads with tarmac. Their logic is that if they cannot and passengers briefly turn their attention away from the mounget to the European Union by fast train, then steam train can tains and towards the engine, where the a driver in traditional carry them to a Euro-town in the Serbian mountains.• apparel strikes a pose for the photographers. When time comes

Pristine villages and breathtaking views mark the Sargan Eight route

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Wide smiles of curious youngsters

THE

VENICE OF THE

The majestic city of Suzhou, with its multitude of ornamental gardens and picturesque canals and waterways meandering through the city by way of the Yangtze River, has inspired the Chinese to create the adage "Heaven is in the sky and Suzhou is on the Earth", to remind visitors to the great city that it is merely the work of man.

By Vojin Zalom

S

uzhou, often dubbed the Venice of the Far East because of its location and utilisation of the Yangtze's vast river basin, has a population of some 6 million and is considered the pearl of China's most populous province of Jaingsu, which is home to 72 million.

The Jaingsu province, sprawled over the lower course of the Yangtze and taking in the main course of the Hunaghe River and the Yellow Sea coastline, boasts 13 district towns, 31 national

the Great Wall of China. The Grand Canal, which stretches some 1,794km from Beijing to Suzhou and Hanzhou, was built during the reign of Emperor Yangdi of the Sui Dynasty (581-618AD).

Around 12 million tourists a year visit Suzhou - or Su, as it is called by the locals - to see the city with the reputation of being the most beautiful city in China, and to participate in the local custom of watching those watching you - such seems the fascination local residents show for those visiting their fair city.

After stepping from the bus, foreign tourists Suzhou residents show no restraint when observing often have the odd sensation that they have just as part of a travelling circus, such is the visitors and newcomers will soon grow accustomed arrived local fascination with all things unfamiliar; the to returning the wide smiles of curious youngsters. pantomime of the street seems to say: "you look at us, we look at you". cities and a million hectares (around 2.5 million acres) of fertile Indeed, Suzhou residents show no restraint when observing land. It is affectionately referred to as the Land of fish and rice visitors to their city and newcomers will soon grow accustomed because of its pivotal role in China's agricultural industry. to returning the wide smiles of curious youngsters and shaking The province is also home to another of China's great feats of hands with welcoming strangers on the street. One of the most engineering: The Grand Canal - in its own way just as famous as appealing places in Suzhou is the open market on the banks of

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China the Yangtze. Traders sell a wide variety of produce - from ivoryhandled fans, to sweet potatoes and green tea - while rickshaw drivers yell their way into another fare.

Suzhou is also a cultural capital, boasting over 130 theatres, 234 cinemas, 11 libraries and 28 museums. The colourful local opera provides excellent entertainment with its extraordinary costumes, colourful masks and graceful dancers. Stars of the opera are very open to visitors and like to be photographed with foreign tourists. Local restaurants specialise in turtle soup, shrimp noodles and Jaingsu fried snake cutlets, and the exotic flavours of the local cuisine are washed down with lashings of

According to local legend, sword-loving He Lu - Chinese hero - was buried alongside the lake along with 3,000 of his beloved swords. He is said to have founded the city in the fifth century BC. jasmine tea. After Suzhou's citizens have satisfied their appetites they can often be found in the city's many parks practicing the art of chi gung - a tai chi style exercise technique using meditative breathing methods and slow, fluid movements of the body.

Locals also enjoy exercising with a game of table tennis and mass competitions are a daily sight on the concrete squares of the city. The ping-pong balls bounce their way into traffic and along the streets of the city until they end up floating in the nearby ponds frequented by peace-seeking anglers.

Suzhou, which lies just 80 kilometres from cosmopolitan Shanghai and its 18 million residents, is almost free of conven-

FAR

EAST

The colourful Yang opera provides entertainment with its extraordinary costumes tional suburbs because it has been decentralised into a number of districts with their own central areas that citizens tend to use as gathering points.

The area surrounding Suzhou is also a magnet for tourists, featuring such sightseeing marvels as the Tienping (Flattop Hill) Mountains, Lingyen (Fairy Rock) and Dianchi Lake (the Lake of Swords) nestled high in the Hu Shi Hills (Tiger Hill).

According to local legend, sword-loving He Lu - Chinese hero and founder of the city - was buried alongside the lake along with 3,000 of his beloved swords.

Suzhou dates back to the fifth century BC, when the semimythical He Lu is said to have founded the city and given it a

The majestic view of Suzhou’s colourful riverbank walkways from the famous Yangtze River

China

The changing face of Chinese industrialisation Chinese as the third longest river in the world (6,300km) after the Nile and the Amazon.

This is perhaps because the noisy teahouses and red lampions of Suzhou are only the peripheral images of the city which is, in fact, a town of fishermen, boatmen and rafters living on the banks of the Yangtze.

The city is also renowned for its beautifully landscaped gardens, which are used to stage theatre plays to this day. The four

Suzhou is also a cultural capital, boasting over 130 theatres, 234 cinemas, 11 libraries and 28 museums. The colourful local opera provides excellent entertainment with its extraordinary costumes, colourful masks and graceful dancers.

Chinese fishermen jostle for position on the quayside radius of 40 li (20 kilometres). Though the city has been subject to many changes over its 25-century history, it has managed to preserve a taste of the ancient charm of Imperial China.

Historical records also claim that Venetian Marco Polo visited Suzhou in the year 1280, describing it in his journals as a city of captivating beauty. All tales and fables about Suzhou begin and end with the Long River (Yangtze), proudly hailed by the

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most magnificent gardens, known as the grand gardens of Suzhou, have been given such names as the Surging Waves Pavilion, the Lion Grove Garden, the Humble Administrator's Garden and the Lingering Garden. The city's 30 smaller gardens are arranged in the horticultural styles of four dynasties - the Song, Yuan, Ming and Qing - and feature the natural splendour of numerous flowerbeds and areas of lush greenery, interspersed with pagodas, small lakes and ornamental ponds.

The local government have exerted great efforts to establish strong economic links with neighbouring Shanghai and the wider area of Suzhou includes a burgeoning 70 km2 industrial zone - built in co-operation with Singapore - that currently houses 18,000 companies, including almost 7,000 established with foreign capital from 90 countries. Over the course of the past five years, $28billion of foreign money has been invested in Suzhou's industrial projects and $9million has been spent to build factory complexes. Foreign investors are encouraged to directly invest in the industrial development of the city by special benefits.

The city would undoubtedly dwarf most of the great cities of Europe with its sheer vastness, and the beauty of the ancient city is a wonder that must be seen to be believed.•

Techno Talk MOTOROLA MPx url:

description:

price:

www.hellomoto.com

Slinky dual-hinge design makes the MPx the fashionista's moist dream. It's aimed at the professional market and offers Wi-Fi and a host of organisational features, including full palmtop functionality built on Motorola's MOTOPro Innovation Platform. Internal memory is expandable to up to 1GB and the integrated 1MP camera delivers the imaging goods.• Retail price : tba

MITSUBISHI WAKAMARU www.sdia.or.jp /mhikobe-e/products/etc/robot.html The Wakamaru, expected to go on sale later this year, is intended to integrate into family life; it has a 10.000 word vocabulary and can engage in simple conversation. It can also perform basic household tasks and is among the first robots created to help Japan's increasingly ageing population.• Retail price : cca € 720

url:

description:

price:

THE PORTABLE VIDEO - Archos AV380 www.archos.com

The latest version of Archo's AV300 series is the best yet. An enormous 80GB hard drive puts it in 'proper' PVR territory and the ability to programme up to five different record points means that you can leave it at home to record all your favourite TV programming one day and then watch it on the train the next. Nearperfect.• Retail price : cca € 885

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Techno Talk P ENTAX OPTIO MX www.pentax.co.uk Given the size of the MX, it isn't particularly heavy.

Almost all of that retro handle is battery,which contributes the lion's share of the 250g weight, but should let you shoot on and off all day. The biggest snag is the camera's bulk: it isn't pocketable, unlike rivals from Panasonic and Sanyo. Unlike dedicated camcorders, the MX has a healthy 3.2 megapixel engine at its core and a 10x optical zoom adds more imaging precision. Given that it looks so much like a video camera and not a still camera, your biggest problem will be keeping your subjects still while you take a picture.•

url:

description:

price:

Retail price : cca € 525

JUMPBOARD

www.jumpboard.net Skateboards are flawed: the tiny wheels trip on the smallest stone, ollies are difficult and, after a couple of years, your ankles can't take the impacts. The Jumpboard addresses these problems, albeit slightly clumsily: big wheels, a strap to help you jump and foolishly over-engineered suspension. A clinical solution but is it cool? • Retail price : cca € 150

Goodmans Micro 1980DVD www.goodmansdigital.co.uk Most gadgets are priced optimistically, then feel the gravitational pull of the bargain bin. Goodmans products, though, tend to get sucked straight in. This means you can get brand-new beauties such as this 5.1 Dolby Digital micro DVD system for frankly insane prices. Looking somewhat like the perfect Denon D-M31, it can play DVDs, CDs, MP3s, and Kodak picture CDs, and churns out an impressive 130 watts, via a sub and five satellite speakers. There's also an MW/FM radio with 50 station presets. And if you're still twiddling your thumbs, try to find a better-priced gadget on the net. You could be there a while.• Retail price : cca € 240

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Techno Talk VOQ PROFESSIONAL url:

description:

price:

www.voq.com

The Voq (rhymes with Coke) Professional is a bussines-orientated device running Microsoft Smartphone 2003, complete with Voq's own corporate email software as well as the usual selection of consumer gubbins. Real businessmen don't do talk, of course, which explains the need for a teeny folfout QWERTY keyboard.

The Professional has a 2.2in 64k-colour screen, 32 MB RAM, and an Intel XScale PXA 262 processor running at 200Mhz. That's 77 MHz more than an SVP e200 can claim, hoiking the Professional to the top of the smartphone chip-ratings tree.• Retail price : tba

MUSTEK DVD-R100A

www.mustek.de

The sneaking feeling that we're all about to have to buy a DVD recorder is getting stronger-soon having a DVD player will seem as backward as having a VHS player. At time of going to press, this Mustek was the cheapest DVD recorder in the universe, coming even cheaper on the internet than the manufacturer's recommended price. Crucially, it doesn't look cheap, with a silver, mirrored finish and solid build quality. It records on DVD+R and DVD+RW discs, but reads all formats, including MP3-CD, VCD and JPEG CD. The age of DVD players is over:long live the recorder!• Retail price : cca € 360

PARTY BOT

www.thesharperedge.co.uk.

The radio-controlled Party Bot is designed to help you clear up the morning after the night before, when you're too wasted to lift a finger. What's it good for? Well, it'll bring you more beer, as long as you have someone to load it up. It'll act as a guard dog, though not a particularly ferocious one (it does emit what's claimed to be a 'barking sound' when it moves). It'll clean up fag-ends and similar debris with only slightly more effort than picking them up yourself. It's rubbish at French polishing but, hey, it's only €45 - a rather more appealing price than the four figures you'd have to shell out to secure the services of Sony's Aibo cyberdoggythingummy. And though it won't actually cure your hangover, it might at least make you smile.• Retail price : cca €45

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CorD | September 2004

Techno Talk SIEMENS S65 & M65 www.my-siemens.co.uk

As though emerging from the mobile-phone equivalent of Noah's Ark, Siemens' new designs keep arriving in twos. The S65's main attraction is undoubtedly a 1.3megapixel still and 15fps video camera with 4x digital zoom. Its 65k-colour screen provides plenty of acuity for previews, while Bluetooth and PIM management allow you to send and synchronize until life's necessites intervene. The M65, meanwhile, challenges Nokia's 5140 to fisticuffs with its intimidating build and terrifying multimedia features. But under that splash-,shock-and dust-proof hardnut housing it's a gadget-laden geek, with tri-band ability, VGA video and photo camera with optional flash and 'Bike-oMeter' add-ons. The polyphonic ringtones, however, might result in a less attractive double: beatings, one for the phone and one for you.• Retail price : tba ....................................................

GAMETRAC www.gametrac.com Beating N-Gage at its own game would be no mean feat and that's exactly what the GAmetrack is attempting to do. There's no voice capability but you can send SMS and MMS messages using the gadgets's virtual keyboard. There's a builtin VGA camera and a GPS receiver to boot and the Windows CE architecture means that developers will get to grips with it in no time.• Retail price : tba

ROBERTS POOLSIDE www.robertsradio.co.uk

The jolly good chaps at Roberts have given us a radio that's not only water-resistant but, thanks to its rugged casing, also capable of withstanding impacts. Designed for use outside, the new all-weather three-band wireless set has twin loudspeakers providing the usual fine Roberts sound quality. Weighing just over 3kg, it has a heavy-duty handle and uses four batteries.

Could be just the companion you need for this summer's beach parties and barbies.• Retail price : cca €120

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descrip.

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Gourmet Polenta Ingredients 1l water, salt, 500gr white and yellow corn flour local soft, young white cheese kajmak, chopped bacon sour cream Salt and boil the water, before adding the corn flour and stirring until thick.

Add the cheese, kajmak and bacon and brown on a high heat.

Serve with sour cream.

Harvester's Kebabs A traditional dish with a modern twist that gives an excellent taste Ingredients 300gr cubed steak, bacon rashers, Onion.

Wrap the individual cubes of steak in rashers of fatty bacon, skewer and grill over a charcoal grill. Meanwhile, chop an onion and fry until golden. Add the kebabs to the frying pan and fry until meat softens.

Serve hot with your choice of accompaniment.

Cacak's Ustipak Ingredients 400gr beef , 150gr chopped bacon, boiling kajmak sweet red peppers.

Boil the beef before finely chopping it and allowing two hours for cooling. Add the finely chopped bacon to the beef and mix together. Press meat into medallions and grill over a charcoal grill with sweet red peppers. Once grilled, place the meat into boiling kajmak and cover with sweet red grilled peppers.

Serve hot with your choice of accompaniment.

Traditional dessert The oldest Serbian dessert - pear in wine, apple in honey Ingredients One pear, Glass of white wine, One apple, Walnuts,Dried plums, Honey.

Peal and poach the pear in wine, adding a small amount of honey. Once the pear turns the colour of the wine it is ready to serve. Hollow out an apple and stuff with walnuts, dried plums and honey. Bake in the oven, adding diluted honey. Once the apple changes to the colour of the honey it is ready to serve.

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The British Council of SCG, in conjunction with the London Photographers Gallery, is to exhibit the works of Vesna Pavlovic in an exhibition entitled 'Idyll on the beach' within the framework of the 'Mediterranean' group exhibition, exploring the permanent cultural significance of Mediterranean society.

Pavlovic's photographs, shot between two wars, represent relations between people on film and unknown photographers.

• ETHNOGRAPHIC MUSEUM Studentski trg 13, Belgrade, Tel: 3281-888 www.etnomuzej.co.yu

Belgrade Directory

26.th August - 9.th September - exhibition of weaved tapestries depicting motifs from pictures of Ilija Bosilje, organised by 'Atelje 61'

• SAVA CENTRE

EXHIBITION

Milentija Popovica 9, Belgrade Tel: 2139-840, 311-4322 www.savacentar.com

Friday 10th September

September 7th, 20.30h FILM PREMIERE - 'FARENHEIT 9/11' Director: Michael Moore September 8th, 20.30h FILM PREMIERE - ' TERMINAL' Director: Steaven Spielberg September 21st, 22nd BITEF L.N.Tolstoj; "FIRS CHAPTER OF WAR AND PEACE' Masterskaja, P.Fomenko, Moscow, Rusia Director: Pjotr Fomenko September 25th Opera: P.I.Cajkovski: "EVGENIJE ONJEGIN" Ensambles and soloes of Belgrade Opera Conductor: Bojan Sudjic September 28th Opera S.Guno: FAUST Ensambles and soloes of Belgrade Opera Conductor: Mladen Jagušt

Programme for September

Joanna Rajkowska (Poland) - Cruising Around Great War Island

7.th September - 17.th September - exhibition of Ljudmila Stratimirovic's photographs, under the title 'Pilgrims'

The Faculty of Fine Arts Gallery - Knez Mihailova 53 5pm - Johhen Gerz (Germany) - Your chair

21.th September- 30.th November - exhibition of 'Traditional vessels' created

by Zoran Rodic

Belgrade Cultural Centre - Belgrade window - Knez Mihailova 6

28.th September - 17.th October- exhibition of 'still life - treasury out of time'

6pm - Vlasta Delimar (Croatia), Mature woman, performance

• MUSEUM OF YUGOSLAV HISTORIC ART

Belgrade public baths - Cara Dusana 46 7pm - J. Radovanovic and D. Andelkovic (SCG), 2004, performance 7.30pm - Vladan Radovanovic (SCG) Prayer Breakfast

Trg Nikole Pašica 11; tel.339-8532 Working hours: 12noon to 7pm

Belgrade Cultural Centre - Belgrade window - Knez Mihailova 6 8pm - Vlasta Delimar (Croatia), Mature woman, performance 25th May Museum - Museum of Yugoslav History - Boticeva 6

Currently running- exhibition 'In the beginning there was ivory' - comprising over 150 works of ivory art given to Josip Broz 'Tito' by African statesmen during the second half of the 20th century.

The exhibition is being realised by custodian Moma Cvijovic and will run until the end of September.

• MUSEUM GALLERY OF CONTEMPORARY ART

Saturday, 11th September September 29th, 20.00 FILM PREMIERE: - 'STEPFORD WIVES' Director: Frank Oz September 30th, 20.30 FILM PREMIERE: - LIFE IS MIRACLE Director: Emir Kusturica

11am - 45th October Art Salon / Continental Breakfast Opening and Awards Ceremony

Thursday 2nd September from 7pm Opening of the Shop for the soul and body care

Friday, 15th October 7pm - special event,

….. to be confirmed

• BELGRADE CULTURAL CENTRE Knez Mihailova 6/1, tel. 621-469 www.oktobarskisalon.org 45th October Art Salon /Continental Breakfast 10th September - 31st October 2004 Art Director: Anda Rottenberg (Poland)

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Pariska, 14, 11000 Belgrade Tel. 011 630 940 Working hours: 12noon to 8pm

•BRITISH COUNCIL - SERBIA & MONTENEGRO

Multimedia interactive installation with performance elements

Terazije 8/1; tel: 3023-800 www.britishcouncil.org/yugoslavia

Project author: Tanja Ostojic Project custodian: Dejan Sretenovic

From August 10th - Oktober 3rd - Exhibition of Vesna Pavlovic

The exhibition will last until 20th September 2004

Saturday 25th September from 7pm Presentation of the work of Karim Rasid, one of the world's most famous designers, in cooperation with MIXER The exhibition will last until 8th October • THE MUSEUM OF CONTEMPORARY ART Usce Save bb, 11070 New Belgrade, tel +381 11 3115-713, 3115-771, 3116 -971, e-mail: msub@msub.org.yu www.msub.org.yu Working hours: From 10am to 6 pm Closed on Tuesdays Saturday 18th September at 1pm Opening of the exhibition of selected works from the collection of Stedelijk Museum, Amsterdam ART 1950 - 2000 Exhibition custodians: Geurt Imanse, Stedelijk Museum custodian and Branislav Dimitrijevic, Museum of Contemporary Arts, Belgrade custodian The exhibition will last until 18th December 2004 Friday 24th September at 1pm The opening of the exhibition the The Legacy of Radmila Bunusevac Exhibition custodian Zana Gvozdenovic The exhibition will last until 24th October 2004 Sunday 26th September at 6pm The Museum of Contemporary Arts, Belgrade lecture hall

Steaven Spielberg “The Terminal”

Micael Moore “Fahrenheit 9/11”

Micael Moore “Life is miracle”

Belgrade Directory • Croatia, Rijeka Croatia National Theatre Eduardo de Filippo: Filumena Marturano Director: Jagos Markovic September 20th, Jugoslav Drama Theatre, 20.00h • Serbia & Montenegro, Belgrade Jugoslav Drama Theatre William Shakespear: The Merchant of Venice Director: Egon Savin September 21st, Jugoslav Drama Theatre, 20.00h • Russia, Moscow Masterskaja P. Fomenko L.N.Tolstoy: War and Peace Scenes Director: Pjotr Fomenko September 21st, 22nd, Sava Center, 20.00h • Italy, Rimini Motus Theatre Jean Genet: Splendid's Directors: Enrico Casagrande and Daniela Nicolo September 22nd, 23rd, Hotel Hyatt, 18.00 and 20.00h • Slovenia, Ljubljana Slovenian Youth Theatre A.P.Cehov: Three sisters Director: Tomi Janezic September 22nd, 23rd, National Theatre, 20.00h

BITEF 04 - PROGRAMME 38.TH BELGRADE INTERNATIONAL THEATRE FESTIVAL-BITEF NEW THEATRICAL TRENDS...AND OTHER PASSIONS • Serbia & Montenegro Co-production: Bitef Theatre and Artistic workshop 'Kanjiski circle' Eden Choreographer : Josef Nadj September 15th, Atelje 212, 20.00h • Poland, Vroslav Wroclawski Teatr Wspolczesny Sarah Cane : Cleansed Director: Krzysztof Warlikowski September 16th, 17th, Jugoslav Drama Theatre, 20.00h • Serbia & Montenegro, Belgrade University of Art, Belgrade and TKH - center for theory and practise of performing arts Author's psychosis and death: Algorithm - YU03/04.13 Director: Bojan Djordjev September 17th, Special area, 18.00h

• Serbia & Montenegro, Backi Petrovac Slovak Theatre of Vojvodina Miroslav Benka: Panem et circenses Director: Miroslav Benka September 23rd, Belgrade Drama Theatre, 18.00h • Germany, Munich Muncher Kammerspiele Heiner Muller : Anatomie Titus Fall of Rome Director: Johan Simons September 24th, Jugoslav Drama Theatre, 20.00h • Great Britain, Edinburgh Traverse Theatre Henry Adam : The People Next Door Director: Ian Grieve Pre-premiere: September 24th, Premiere: September 25th, Atelje 212, 20.00h • Georgia, Tbilisi City Theatre of Tbilisi Rezo Gabriadze: The Battle of Stalingrad Director: Rezo Gabriadze September 26th, 27th, CZKD, 20.00h

• Israel, Tel Aviv Yossi Yungman Dance Company Joy Choreographer: Yossi Yungman September 18th, 19th, Atelje 212, 18.00 and 20.00h • Lithuania, Vilnius Oskaras Korsunovas Theatre William Shakespear: Romeo and Juliet Director: Oskaras Korsunovas September 19th, Jugoslav Drama Theatre, 20.00h • Albania, Tirana Akademia E Arteve Sarah Kane: Psychosis 4:48 Director: Alfred Trebicka September 20th, 21th, Bitef Theatre, 18.00 and 20.00h

Slovak Theatre of Vojvodina: Panem et circenses

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Belgrade Directory as well as cable television with over 50 channels and extra Payper-view options. A modern call centre, equipped with over 60 lines, is available anytime on 011 330 5252.

... partake of the Bonsai art?

How to...

CorD's editorial staff will attempt to find and give answers to questions of current interest to our readers, so please send in your questions for future editions. In this issue, we reply to the most frequently asked questions amongst newcomers to Belgrade.

... subscribe to foreign newspapers and journals?

• Receive international newspapers or journals at your home or workplace by subscribing to publications or ordering deliveries via specialist companies. Details of such services are available from Global Press. Tel: 011 344 3624, or check out the website at: www.globalpress.co.yu

... obtain repair and maintenance services?

• The ancient art of Bonsai, popular in China and Japan and dating back some 1500 years, is a relaxing and rewarding horticultural hobby of growing and nurturing sculptured trees in miniature. If you want to know more about this interesting pastime, pick-up some useful tips and learn new growing techniques, join the Bonsai Section of the Serbian Cactus Society.

Tel: 011 304 6849 or enquire online via www.bonsai.org.yu.

... obtain an angling/fishing licence?

• Licence holders are permitted to fish on both the Danube and Sava Rivers, and elsewhere in the area. Angling and sport fishing licences can be obtained from the following organisations: The Sport-Fishing Association of Belgrade phone: 011 361 3590 The Association of Serbian Fishermen phone: 011 361 3379 The Association of Serbian & Montenegrin Fishermen phone: 011 361 3398

... hire a limousine?

... wash your car around the clock?

• Luxury transportation is available from Limousine Service.

With their luxurious, stylish and glamorous vehicles, Limousine Service will ensure an unforgettable ride for those choosing to hire one of their cars. Make reservations by email, fax or phone.

First-time riders should visit the centre in person with valid ID. Subsequent trips can be booked 48-hours in advance over the phone or via email. Contact Limousine Service on 063 1235555 or visit them online at www.limoservis.co.yu.

• If you need to wash your car in the middle of the night, visit

... learn to speak Serbian?

• If you require minor repairs or maintenance services for your home or workplace, simply call for the expert services of Hauzmajstor - Tel: 011 3034 034, or visit the website: www.hauzmajstor.co.yu. Hauzmajstor's fast, efficient and professional team include plumbers, electricians, carpenters and others.

the carwash centre at Hotel Yugoslavia, Bulevar Nikole Tesle.

The hotel's non-stop carwash centre provides a complete car cleaning and valet service. Simply drop your car off, or call in advance to book on 011 3191 220.

... hire high-quality party caterers?

• When organising any kind of party, function or reception, hiring the services of a quality caterer is an important element, allowing you to save time, relax and enjoy your celebration.

Agency Well Done Catering has an excellent reputation for providing first-class food and refreshments.

The agency prepares, delivers and serves appropriate food and beverages for children's birthday parties, christenings, family celebrations, weddings, seminars, office parties, official receptions, graduation parties, wakes and other. Contact Well Done Catering on 064 1686 371.

... install broadband cable internet?

• Internet connection too slow? Help is at hand from Serbia Broadband, which is now providing fast and reliable cable internet connections. 24-hour phone-line free connections available,

• Of the many language schools offering Serbian language courses, the oldest and perhaps the best is the Kolarac Centre for languages. As well as teaching English, German, Italian, Spanish and many other languages, the institute also runs special courses in Serbian for foreigners, as well as highly specialized language courses for the medical profession, building trade, marketing, business managerial and law sectors.

For more information call 011 635 073 or visit www.kolarac.co.yu

... arrange your garden or balcony?

• Belgrade's Garden Centre provides all your horticultural needs under one roof, including indoor and outdoor plants, garden and window-box plants, seeds and seedlings, bulbs, artificial flowers, garden tools and machinery, and much more.

The Centre also offers specialist help, advice and assistance for any botanical problem, as well as selling stylish ceramic ornamental decorations, fountains and other water features.

Visit the Garden Centre at 102 Partizanska Street, Vidikovac.

For further information, call the Centre on 011 5322 322 or visit the website at www.gardencentar.co.yu.

CorD | September 2004

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