CorD Magazine, October 2018 issue, no.168

Italian Ambassador to Serbia

STEVO TODORČEVIĆ

New Heights For An Old Friendship

Live For The Spark Of Discovery

Indian Ambassador to Serbia

www.cordmagazine.com

Glass Half Full

H.E. SUBRATA BHATTACHARJEE

Mathematician

OCTOBER 2018/ ISSUE NO. 168

H.E. CARLO LO CASCIO

interviews opinions new comments events FOCUS

Big Questions For Small PERCENTAGE POINTS OPINION

EUROPE STRUGGLES WITH NEW BALKAN HEADACHE

Exclusive

ANA BRNABIĆ

783002 771451 9

New Industrial Policy Leads To New Growth Model

ISSN1451-7833

PRIME MINISTER OF THE REPUBLIC OF SERBIA

CONTENTS

COMMENT

DANIEL GROS, PROJECT SYNDUCATE

SEX AND POPULISM Even as the flow of refugees into Europe dwindles, anti-immigrant sentiment continues to rise, and is now being expressed violently in some areas. Economic factors probably play an important role, but to understand opposition to immigration also requires taking evolutionary psychology into account

12 NEW INDUSTRIAL POLICY LEADS TO NEW GROWTH MODEL

ANA BRNABIĆ Prime Minister of the Republic of Serbia

26 BIG QUESTIONS FOR SMALL PERCENTAGE POINTS FOCUS

32 NEW HEIGHTS FOR AN OLD FRIENDSHIP

H.E. SUBRATA BHATTACHARJEE Indian Ambassador to Serbia

35 BUSINESS DIALOGUE 51 EDUCATION IS INHERITANCE FOR THE FUTURE

NADA POPOVIĆ PERIŠIĆ founder and professor of the Faculty of Media and Communication

52 CONTEMPORARY ART OF MONGOLIA ART/EXHIBITIONS

56 FACES & PLACES

18 GLASS HALF FULL

59 IDENTIFYING EXTREMISTS ONLINE

H.E. CARLO LO CASCIO Italian Ambassador to Serbia

34 FROM INTERNATIONAL ATHLETE TO PRIME MINISTER

NEW RESEARCH

60 LIVE FOR THE SPARK OF DISCOVERY STEVO TODORČEVIĆ Mathematician

IMRAN KHAN NIAZI Pakistan’s Prime Minister

64 CHILL OUT 22 GLOBAL DIARY @CORD_MAGAZINE

@CORDMAGAZINE

CORD MAGAZINE

DESIGNER: Jasmina Laković j.lakovic@aim.rs CONTRIBUTORS: Rob Dugdale, Maja Vukadinović, Mirjana Jovanović, Miša Brkić,

FASHION

24 EUROPE STRUGGLES WITH NEW BALKAN HEADACHE

68 CULTURE CALENDAR 70 AFTER WORK

OPINION

Radmila Stanković, Steve MacKenzie, Zorica Todorović Mirković, Sonja Ćirić EDITOR: Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com

66 SOMETHING IN BETWEEN

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Comment DANIEL GROS

PROJECT SYNDUCATE

Sex And Populism Even as the flow of refugees into Europe dwindles, anti-immigrant sentiment continues to rise, and is now being expressed violently in some areas. Economic factors probably play an important role, but to understand opposition to immigration also requires taking evolutionary psychology into account

T

he rate at which migrants are arriving has diminished considerably almost everywhere in Europe since the huge inflows seen in 2015. Yet migration continues to dominate political debate throughout the European Union. This suggests that populist, anti-immigrant sentiment is not actually being driven by claims that mainstream politicians cannot defend Europe’s frontiers.

The decline in new arrivals to Europe began well before anti-immigrant political leaders took power in Italy or immigration pressure nearly toppled Germany’s ruling coalition. It is largely the result of EU efforts, such as the agreement with Turkey to prevent Syrians from crossing into Greece, its cooperation with Libyan militias, and the massive pressure it has placed on the Sahara transit states to close their borders. Thanks to these measures, Europe has become a de facto fortress against migration.

So why does immigration remain at the top of many Europeans’ minds? The answer could be economic: those who arrived in 2015-2016 have already created labor-market imbalances, with low-skill immigrants increasingly competing for jobs with low-skill citizens.

But there are reasons to believe that more than economic issues are at stake. For starters, anti-migration (more accurately, anti-foreigner) sentiment is beginning to be expressed violently, not just in Italy, where there have been several instances of shootings aimed at migrants, but even in generally well-ordered Germany.

In the eastern German city of Chemnitz, violent clashes broke out recently between right-wing protesters and police and counter-demonstrators, following the killing of a German by two young men from Iraq and Syria. Support for the rightwing Alternative für Deutschland (AfD) party is strong in Chemnitz and the wider region, with

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most of the attacks on foreigners having occurred in the new Länder of the former East Germany.

Crime and unemployment (7%) cannot explain this eruption. Chemnitz is home to fewer foreigners than many similar-size German towns, and crime is generally under control there But there is another potential explanation, rooted in evolutionary psychology. One trend that is rarely mentioned in migration discussions is the rise in the share of men among refugees and asylum-seekers. In the last three years, men – many of whom are aged 18-35 – comprised more than two-thirds of all people seeking protection in Germany. Whereas the total number of refugees as a share of Germany’s total population is small (2.5%), refugees form a far larger share of Germany’s young male population.

The impact is particularly noticeable in eastern Germany, which already suffered from a gender imbalance – the male-to-female ratio among the younger cohorts approaches 115:100 in most parts of the region – because educated women have a much higher propensity than men to move to western Germany for higher-paid jobs. As a result, a significant share of eastern Germany’s young male population has little chance of finding a partner and starting a family.

Research shows that when there are significantly more men than women, the increased competition for female partners can lend itself to violence. One study links polygamy, which leaves low-status males without wives, to civil wars.

The implication is that hostility toward foreigners across Europe may be rooted partly in a primordial defensive response by local men, who want to protect their territory, including “their” women, from other men. It is probably not a coincidence that Chemnitz, which has shown a readiness to vote for extremist parties, has the highest male-to-female ratio among 20-40-year-olds in all of Germany.

Not all men are affected equally by this state of affairs. Since women tend to “marry up,” or find partners with higher socioeconomic status, it is less educated and poorer men whose romantic prospects are most affected by an influx of male asylum-seekers.

And, indeed, less educated and poorer groups tend to show the most opposition to migration.

Notably, the problems created by gender imbalances cannot be solved with better education or more income redistribution, because mating preferences are relative, not absolute. Those among the native population with the lowest incomes and education levels will always be worse off, if they have to compete with a large number of young male immigrants.

To be sure, gender imbalances are not the only driver of anti-immigrant sentiment, let alone populism more broadly. But evolutionary psychology, which stresses competition for females, can add another dimension to our understanding of these phenomena, while helping us to predict when and where civil strife might erupt.

There is little that can be done to change gender imbalances in a particular place. But, even if the problem cannot be “solved,” understanding it might help to limit the damage, not least by enabling leaders to avoid policies that are either not useful or would exacerbate tensions. For example, restricting family reunion (to limit the number of foreigners) might make matters worse, because the male asylum-seekers would be more likely to be single and seek partners in the local population.

Countries like Germany that have recently admitted a large number of young male refugees will have to manage the fallout of the resulting societal shifts. Doing so effectively requires their leaders to recognize that those shifts are not just a matter of economics.

The author is Director of the Brussels-based Centre for European Policy Studies

Interview Exclusive ANA BRNABIĆ

PRIME MINISTER OF THE REPUBLIC OF SERBIA

Building on the successes of the previous Serbian government, which successfully implemented fiscal stabilisation, Prime Minister Ana Brnabić’s cabinet has continued working on structural reforms and creating conditions for accelerated economic growth.

“Our first aim is to improve the business environment,” says Prime Minister Brnabić in this interview for CorD. This is a complex job that implies the modernisation of state administration through the introduction of e-governance, education reform that should lead to the creation of professional personnel who will more easily engage in work processes thanks to their knowledge and skills, and to encourage the capacity for innovation and the introduction of advanced technological solutions to the economy. “We create conditions for the development of knowledge-based and innovation-based economies, because that is precisely our development opportunity,” says PM Brnabić.

New Industrial Policy Leads To

New Growth Model We must continue to confront the changes brought about by the fourth industrial revolution. That’s precisely why I insist on the importance of digital transformation, which is not limited only to the introduction of IT solutions, but rather represents a process that permeates all spheres, changes the way we live and work, in culture, medicine, agriculture, healthcare, communications and all other areas 12

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DEDICATION

The Serbian Government is committed to intense reform processes in the areas of the rule of law, public administration, tax administration, freedom of the media and dialogue with civil society

By year’s end a new industrial policy strategy should be expected. “We want to define, through dialogue with the economic and scientific community, areas in which we have the capacity to offer competitive and innovative products and services to the global market,” says CorD’s interlocutor.

Adopting this strategy is a formal condition for closing EU accession negotiations on Chapter 20, but Brnabić says that the Government isn’t only interested in fulfilling its obligations in the European integration process, but is rather primarily interested in seriously considering this issue with the aim of ensuring a better future for Serbian citizens.

Apart from that, note our interviewee, the Government is dedicated to intense reform processes in the area of rule of law, public administration, tax administration, media freedom and dialogue with civil society. “All these processes include the public and experts, because we want to have understanding with them in reforming these areas,” notes PM Brnabić.

COMPETITIVENESS

We want to orientate ourselves towards a high technology economy, in order for us to become more competitive and to catch up with the economically most developed countries

arrangement, the Government of Serbia will continue to cooperate with the IMF

Does the Government have sufficient resources and professional capacity to devote itself fully to the demands set by the new agreement with the IMF?

The successfully completed previous arrangement with the IMF, for which we receive plenty of praise and which now serves as an example to other countries, as well as the continuation of responsible and sustainable fiscal policies, clearly show that the Government is capable and has the capacity to implement reforms. The IMF uses its experience from Serbia as an example of successful consolidation of public finances in other countries. That’s great acknowledgement for every country. The new arrangement with the IMF is of an advisory nature and differs from all previous ones. Through this

Although everything seemed like an impossible mission just a few years ago, thanks to our commitment and responsibility we’ve succeeded in finding good and lasting solutions for some of the biggest stateowned enterprises

RESPONSIBILITY

This and the previous government take care of our country’s strategic resources by finding foreign partners that not only retain jobs, but also invest and improve operations

on the further implementation of structural reforms. The aim of the new arrangement

is to ensure higher and sustainable GDP growth and higher earnings for the citizens of Serbia, which is fully in line with the priorities of this Government, so it is in our interest for this arrangement to be implemented successfully. One of the biggest issues is to find permanent solutions for public and state enterprises. According to your assessment, to what extent is the Government of Serbia on the road to making progress in this area?

Significant progress has already been made.

Better planning and control of work resulted in us achieving net profits of RSD 23.7 billion

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Interview Exclusive

for public enterprises in 2017, in which 31 of 37 public companies operated positively.

This is a significant shift compared to 2014, when we had losses of about 65 billion dinars.

Moreover, good and lasting solutions were found for some of the largest state-owned enterprises. Following the successful resolving of the Steelworks in Smederevo, we brought investors for former giants like Magnohrom, IMT, Galenika, and successfully found a strategic partner for RTB Bor. Although all of this seemed like an impossible mission just a few years ago, we’re demonstrating that commitment and responsibility yield results. We continue to work on solving these problems and solving the issues of companies like Ikarbus, BIP, Ravanica, FAM Kruševac, the Valjevo Brewery and others. This and the previous government take care of our country’s strategic resources by finding partners that not only retain jobs, but also incorporate investments and the improvement of operations into their business plans.

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The indirect influence that the work of the Tax Administration has on the competitiveness of our economy is huge and its transformation can considerably accelerate the modernisation of our economy, but it would be unrealistic to expect changes to occur overnight In your opinion, when will the Government be in a position to deal, to its full capacity, with creating conditions for the building of a new economy in Serbia?

We are working actively to create the conditions for building a new economy. Here I’m primarily referring to a better business climate, a well-regulated and efficient state administration, education that prepares personnel for the jobs of the future and an economic policy that stimulates innovation, research and development.

Our first goal is to improve the business environment. We’ve improved 50 places on the list of the World Bank’s Doing Business Index in the last four years (2014: 93rd place, 2018: 43rd place). We’re working actively on the reform and modernisation of state administration through the introduction of e-governance, in order for us to have an efficient public administration in the service of citizens and business, which will ease operations, increase efficiency and reduce corruption. We’re working on the modernisation of education through the reform of curricula, the introduction of computer programming, entrepreneurship, financial literacy and the introduction of dual education, in order to prepare our youth as best as possible for the increasingly demanding labour market. We are also considering a set of measures to even further stimulate innovation and the creation and use of new technologies. These are just some of the steps that, over the long-term, create conditions for knowledge-based and innovation-based economies, as that is precisely our development chance.

We must continue to confront the changes brought about by the fourth industrial revolution. That’s precisely why I constantly talk about and insist on the importance of digital transformation, which is in no way limited only to the introduction of IT solutions, but rather represents a process that permeates all spheres, changes the way we live and work, in culture, medicine, agriculture, healthcare, communications and all other areas. What is your approach when it comes to formulating industrial policies?

A new industrial development strategy is currently being developed, which should represent the backbone of our policy in this field. It’s important for us to orientate ourselves towards

a high technology economy, in order for us to become more competitive and to catch up with the economically most developed countries.

We also need to better utilise the resources we have and create added value out of them.

It should be emphasised that the development of a new industrial policy is not only a formal condition for closing negotiating Chapter 20 with the EU, but also a document with which we need to define how we plan to reform the domestic economy. We don’t just want to fulfil the condition for closing the chapter, rather we’re dealing seriously with this issue with the aim of creating a better future for our citizens. The new industrial policy strategy is significantly linked with the adoption of a smart specialisation strategy, which we’re working on diligently and we expect to have the first draft of this document by the end of the year. The goal of this strategy is to define,

through dialogue with the economic and scientific community, areas in which we have the capacity to offer competitive and innovative products and services to the global market.

Innovation is a driver of social development. The tax system, Tax Administration and the efficiency of public administration are assessed by domestic and foreign investors as a key obstacle to better operations.

Why, despite the intensive professional assistance of many donors, does Serbia still not have a better rating in these areas?

The goal of transformation is an efficient Tax Administration with a modern, integrated information system that supports business processes that are simple, understandable and harmonised with the best international practises.

The process of transforming a system like the Tax Administration is long and complex. In

cooperation with the IMF, reforms should be conducted by 2023, although we expect to finalise this process much earlier. We want to enable an increase in tax revenue and better tax discipline.

This process is one of the cornerstones of structural reforms. The indirect influence that the work of the Tax Administration has on the competitiveness of our economy is huge and its transformation can considerably accelerate the modernisation of our economy. Simpler and predictable confirmation and payment of taxation will encourage the opening up of new enterprises and, in parallel with reducing the scope of the grey economy, this reform will contribute to stabilising public finances.

We’ve so far established a new organisational structure of the Tax Administration, reduced the number of branches from 178 to 78, with the tendency of further reduction and striving to strengthen them, while centralising

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Interview Exclusive

collection and control in order to increase efficiency in work. Digitisation is an integral part of the reform of this important institution, so since the beginning of this year all tax returns have been transferred into electronic form, which has enabled taxpayers to file all tax applications through the portal of the Tax Administration.

The changes we’re implementing are systemic and comprehensive and require a lot of time.

Considering how many years have passed since these things were accounted for and how long the system was in a state of disrepair, it is unrealistic to expect all the mistakes dating back several decades to be remedied in two, three or five years. It is an encouraging fact that many results are now already visible. Throughout the entire course of the reform of the administration, as a responsible government, we have been strengthening the tax culture of our citizens and I will always repeat that the highest patriotic act is the payment of taxes. It seems that, if we gauge progress on the basis of the opening of chapters, Serbia hasn’t advanced particularly far in the field of European integration. Does this bring into question Serbia’s status as the first possible candidate for membership? Has the original hope that this might happen fallen away on both sides?

I wouldn’t agree with your statement. Earlier this year, the European Commission clearly presented Serbia as the country most likely to become a full member of the European Union by 2025, as a the potential date of accession. Serbia has to date opened 14 of the 35 negotiating chapters and temporarily closed two. There are currently three chapters that are fully ready to open – Chapter 9, concerning financial services; Chapter 18, which relates to statistics; and Chapter 17, linked to the

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economic and monetary union – which we expect to be open by the end of this year. All of these chapters are related to specific results in the implementation of economic reforms.

I believe that the measure of success in

I believe that the measure of success in European integration should not only be represented by the speed of opening chapters and their number, but rather the essence of this adjustment is in the reforms and modernisation of the society that we conduct

European integration should not only be represented by the speed of opening chapters and their number, but rather the essence of this adjustment is in the reforms and modernisation of the society that we conduct. The Serbian Government is committed to intense reform processes in the areas of the rule of law, public administration, tax administration, freedom of the media and dialogue with civil society. The public and experts are included in all of these processes, because we want to have understanding with them in reforming these areas.

The debate on constitutional changes and judicial reform was the subject of a recent conversation I had with representatives of civil society organisations at a meeting with the National Convention on the EU. The European Commission has just praised Serbia’s progress in the field of constitutional reforms, as well as the formation of a working group and a dialogue team that’s working on the drafting of the media strategy. I would particularly emphasise the government’s cooperation with media and journalists’ associations and the open dialogue that the Government has, after many years, with representatives of the media. That’s a newly established format that didn’t previously exist in political practise in Serbia.

The government that I head has set full membership in the European Union as a strategic goal. Serbia is dedicated to EU integrations and shares European values and ideas. However, I must clearly highlight that the point of all these reforms and the alignment of our legislation with EU law are not the goal in and of themselves. The end result of this process will be a better standard of living for the citizens of Serbia, and EU membership will come as a result of these reforms.

Interview H.E. CARLO LO CASCIO

ITALIAN AMBASSADOR TO SERBIA

Having arrived in Belgrade as the new Italian ambassador to Serbia, His Excellency Carlo Lo Cascio has returned to a city he knows well! As far back as 2005, he was posted as a counsellor at the Italian Embassy to Serbia, so today he is able to see the degree of changes that have occurred over the past 15 years in the country and across the Balkans, with which he is also familiar.

Ambassador Lo Cascio believes in the European perspective of the region, refusing claims that Eurosceptics in the new Italian government are also bringing into question the survival of the European Union itself. He’s convinced of the strengthening of bilateral relations between Italy and Serbia, as well as the continued existence of carmaker Fiat in Kragujevac!

In this interview for CorD Magazine, he explains why recently, while hosting a reception marking Italian national day, he said to his colleagues in Serbia: “help us to help you”.

Glass

Half Full

Your Excellency, you’ve returned to the Embassy of Italy in Belgrade for a second time. How does Serbia look today compared to 2005, when you also served at the embassy?

I am indeed honoured to be back in Serbia, this time as the Italian Ambassador. Italy and Serbia share a genuine friendship and excellent bilateral relations. At that time we thought that investing here, politically and economically, was a good

Serbia needs to adopt and implement good reforms to guarantee a better future for the entire country. We are here to support Serbia in its commitment on reforms, especially in the rule of law area, and to cooperate with Belgrade for a more stable and interconnected region.

It’s a joint effort and, as always, it takes two to tango, but we are confident in the progress that has been made-Carlo Lo Cascio 18

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By Ljubica Gojgić, Photo Zoran Petrović

FRIENDSHIP

Italy and Serbia share a genuine friendship and excellent bilateral relations

way to offer a vision, based on the European perspective, for the future of Serbia, which in those years was recovering from a very difficult period. We decided to make an“investment” in our relationship, which proved to be successful and rewarding. Serbia nowadays is a key country in the region. Major changes include robust economic growth, a number of institutional and public sector reforms, improved relations with neighbouring countries and, most of all, the ongoing European integration path. Although several challenges are still ahead, Serbia has definitely gained a better level of consciousness regarding its own future.

We fully support Serbia’s European choice and are very pleased to see that it is well underway.

MIGRATION

It is pivotal now to reaffirm those founding values of the EU like solidarity and responsibility

Italy be included among those countries, given that the new government includes politicians with a strong anti-EU rhetoric?

First of all, Italy has a strong interest in providing help and support to Serbia on its path towards the EU. Secondly, to answer more specifically your question, Italy wants the EU to become closer to its citizens, to protect them, and to feel

INVESTORS

All the Italian investors in Serbia I have met are satisfied with what they are doing here

European countries – like Italy – start objecting to a political community that does not seem to show any solidarity and leaves the countries of first entry alone to manage arrivals. It is pivotal now to reaffirm, also in this crucial area, those founding values of the EU like solidarity and responsibility, which we celebrated last year at the 60th anniversary of the Treaty of Rome.

You are well-acquainted with the Balkans.

Do you believe the region is moving closer to EU membership, or is it possible that there will be new tensions and conflicts – as warned of by Jean-Claude Juncker, but also local leaders?

Over the last few years, the situation in the Balkans has improved significantly and all the countries of the region have clearly stated that EU membership is their common strategic goal.

The reform path is very important for the EU accession process, aimed at increasing stability and democracy in the Balkans. At its most basic core, it promotes peace and prosperity in the region, which are our main priorities. Unfortunately, occasional resurgences of nationalist rhetoric and some unresolved controversies may cause unnecessary volatility, reflected both in political internal dynamics and bilateral relations among some countries in the region.

That’s why I believe that the more tangible the European perspective becomes for them, the better it will be for Western Balkans’ stability and prosperity. Belief in European integration has also been brought into question in Serbia due to the situation within the European Union, as well as the fact that populism and Euroscepticism are strengthening in member states. Could

I believe that the more tangible the European perspective becomes for Western Balkans, the better it will be for their stability and prosperity ready to face emergencies, such as that of migration. Having said that, the change in popular perception regarding this issue has prompted many politicians across the whole of Europe to tighten their stance on migrants, closing borders and leaving the burden to their neighbours.

This, in turn, explains why citizens in front-line

One area of dispute within the EU is the stance regarding migrants. In your opinion, why is this issue again in the focus of the EU, especially during a year in which the number of migrants coming from the Middle East is nowhere near the figures from the largest waves of migration?

There are both political and factual elements that contribute to explaining why this issue is still high on the agenda of European leaders. Southern EU Member States continue to experience high levels of pressure from Africa. And Europe as a whole is still facing the consequences of the wave of migrants of 2015-2016, with several Member States still struggling to build adequate reception facilities and implement integration policies. As I said, these difficulties in facing this process

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Interview have a considerable impact on Europe’s public opinion, particularly in its front-line countries.

Migration is now perceived more as a problem than an opportunity, and the capacity of states to govern it through border controls is now under the spotlight of public opinion.

Therefore, we must put the migration issue into perspective: although the Syrian war and, even before that, turmoil in Northern Africa

Returning to Serbia, can you explain the message you relayed from the Belgrade reception commemorating Italian National Day? You said, “help us to help you”; what were you referring to specifically?

As I said, we fully support Serbia on its path towards the European Union. We know that the accession negotiation process is a demanding and challenging one, but we don’t see any reason for

future for the entire country. We are here to support Serbia in its commitment on reforms, especially in the area of the rule of law, and to cooperate with Belgrade for a more stable and interconnected region. It’s a joint effort and, as always, it takes two to tango, but we are confident in the progress being made. You’ve said that in 2005, when you were First Counsellor at the embassy in Belgrade, Serbia was already part of Europe. What do you consider as being the key challenges of the EU integration process?

Serbia’s efforts are shaping the country’s position regarding the EU. Others may have different opinions, but I tend to see the glass as being half-full. Serbian authorities are well aware that Chapters 23 and 24 represent the bulk of negotiations. Indeed, a good performance in these areas, especially in the area of the rule of law, in line with the requested standards, is key to advancing the European integration process.

On the other hand, Serbia’s role in the region, as a provider of stability, could also positively influence Belgrade’s European path. Can the lack of a swift solution to relations between Belgrade and Pristina jeopardise continuing EU membership negotiations?

countries are the main causes of the crisis currently impacting the EU, migration is still a worldwide and a long-term phenomenon rooted in demographic, economic and environmental factors that are here to stay, and that European governments must deal with. Deputy Italian Prime Minister and Interior Minister Matteo Salvini gave his support to Austrian Chancellor Kurz’s idea of setting up migrant campsites beyond the EU’s borders. Do we know where such camps would be located and does Serbia have any reason for anxiety regarding such plans?

As far as we know, no proposal has officially been made by Austria, during its rotating Presidency of the EU. Should these plans ever be formally presented by Vienna to the other EU governments, I am sure Rome would assess them seriously. In any case, there is still no official proposal under consideration.

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Italy wants the EU to become closer to its citizens, to protect them, and to feel ready to face emergencies such as that of migration Serbia to be discouraged. On the contrary, we believe that some important steps have already been taken, especially in the economic sector, and we are aware – as the Serbian authorities – that there is still a lot to do on the road to Brussels. For this reason, we are convinced that Serbia’s European track actually belongs to the Serbian citizens and is aimed at increasing the quality of their lives, as Prime Minister Brnabić has said. Serbia needs to adopt and implement good reforms in order to guarantee a better

A comprehensive agreement between Belgrade and Pristina on the normalisation of their relations is certainly one of the goals to be achieved along the path to EU membership. Ideally, a compromise solution would be beneficial to both sides and the region as a whole. We are therefore encouraging Belgrade and Pristina to intensify their efforts in order to achieve an agreement, which should ensure the well-being of their citizens and grant a peaceful future in the Western Balkans. From this point of view, the purpose of the Dialogue goes even beyond the EU accession process. There is so much at stake here, and not only for those – like Italy – that are geographically close to Serbia and Kosovo.

Peace and stability in the region are key priorities for all of us. Although there is still a lot of work to be done, we believe there is a chance to find a viable and lasting solution. To what extent are bilateral relations between Italy and Serbia conditioned by the pace of Serbia’s EU accession?

By Ljubica Gojgić, Photo Zoran Petrović

Diplomatic ties are sometimes anticipated by friendship among populations. This is certainly true in the case of Italy and Serbia’s bilateral relationship. My mission is to further strengthen our fruitful cooperation, especially in light of Serbia’s EU integration. The more Serbia progresses in the EU accession process, the better it will be for Serbian citizens. Better living conditions, better standards, better climate for business - to be achieved through reforms - would benefit not only the Serbs, but also those who invest in the country, like Italy does. How do you think we could further develop the strategic partnership between Italy and Serbia, established in 2009, following the bilateral arrangement?

In the ten years of our strategic partnership, which will be celebrated next year, we have had some significant achievements. First of all, we are Serbia’s largest foreign investor and second largest trade partner. We are also Serbia’s first customers. The Italian presence in Serbia is a

Our strength is to be able to share our pattern of economic development with Serbian management and workforce reference in several sectors: textiles, agriculture and the metal, automotive, banking and insurance industries. Our strength is in being able to share our pattern of economic development with Serbian management and workforce. We are not here to impose ourselves, but to find ideas and solutions for a common future of growth and well-being.

While we enjoy a well-balanced relationship, there is still a lot we can do together, for example in infrastructure or the defence industry. Italian companies can offer quality and expertise in both of these areas, so we should think about some joint efforts to intensify cooperation in these

sectors. As for the most promising investments in the medium term, I would consider that as being agribusiness – in particular organic farming – as well as renewable energy production and energy efficiency related industry. Moreover, I would like to emphasise the growing relevance of scientific research and information technology, which in my view could soon become the “new frontier” of our strategic partnership. September sees the culmination of the ten-year contract between Italian company Fiat and the Government of Serbia on business and technical cooperation at the former Zastava factory in Kragujevac. Is this Italian investor remaining in Serbia?

All the Italian investors in Serbia I have met – from the biggest companies to the smallest ones - are satisfied with what they are doing here. They are willing to stay and possibly increase their presence and business. So far, I have not detected any single exception to such an encouraging trend.

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GLOBAL DIARY

Sportsman “Maybe 10 years ago I would say I’m not so happy to be part of this era with Nadal and Federer. Today I really am. I feel like these guys, rivalries with these guys, matches with Federer and Nadal, have made me the player I am, have shaped me into the player I am today.

I owe it to them.” – NOVAK DJOKOVIC, TENNIS PLAYER

THE RIACE EXPERIMENT

RIACE MAYOR DOMENICO LUCANO (BLUE SHIRT)

The town of Riace is a little more than a handful of dwellings atop a small hill in Calabria, the southernmost region of Italy. Here, it can feel like the clocks stopped ticking decades ago. Modern infrastructure is almost nonexistent. In Riace as in many other villages, the young locals that moved away looking for jobs were never replaced, and the town was left in the hands of an increasingly elderly population. But Riace wasn’t going to go down without a fight.

At the beginning of the 2000s, the city decided to combat depopulation with a surprising strategy: welcoming thousands of migrants in search of political asylum and integrating them into the local economy. This move made the town famous and Mayor Domenico Lucano—or Mimì Capatosta (Hardheaded), as the locals call him— something of a global celebrity. He was listed as one of the world’s 50 “greatest leaders” by Fortune in 2016.

NORTH KOREA AGREES TO SHUT MISSILE SITE North Korean leader Kim Jong-un and South Korean president Moon Jae-in agreed on the summit to continue their efforts to ensure long-lasting peace and prosperity on the Korean Peninsula. Korean president Moon said that the North had agreed to “permanently close” a missile engine testing site and launch facility in Tongchang-ri, “in the attendance of experts from relevant nations”.

On the other hand, Kim said that his meeting with Moon would serve as a “historic chance” for the Korean people, who want to see the strengthening of inter-Korean relations and building peace on the peninsula, Yonhap News Agency reported. Kim expressed hope for a progress in the denuclearisation talks with Washington and thanked President Moon for playing a role in the improvement of ties between North Korea, South Korea and the Unitedn States. It was the third meeting between Moon and Kim.

SOUTH KOREAN PRESIDENT MOON JAE-IN (LEFT) AND NORTH KOREAN LEADER KIM JONG UN

TEN FATTEST COUNTRIES IN EUROPE

New research by WHO, an arm of the UN, assessed data on around 900 million obesity people in 53 countries in a vast geographical area stretching from the Atlantic to the Pacific. The European average is 23.3%. Obesity is defined as a body mass index (BMI) score of more than 30, while a tally higher than 25 is classified as overweight. European countries such as France and Italy are supposedly less susceptible to American advertising because of the language barrier. The ten most obese European nations: Turkey - 32.1%; Malta - 28.9%; United Kingdom - 27.8%; Hungary - 26.4%; Lithuania - 26.3%; Israel - 26.1%; Czech Republic - 26.0%; Andorra - 25.6%; Ireland - 25.3% and Bulgaria - 25.0%

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ARCHITECT KENGO KUMA IN FRONT OF THE MUSEUM

Support “As for Nole (Novak Djokovic), we watched him last night, if we had a chance, we will watch him again. Thank you for all the nice words he has given us these days. He is our fan, and we are supporting him. We want him a good luck!” – LUKA MODRIC, CROATIA FOOTBALL MIDFIELDER AND UEFA’S PLAYER OF THE YEAR

PRINCE HARRY: I PANIC AT THE SIGHT OF MY GRANDMOTHER

Prince Harry has revealed he still “panics” when he bumps into the Queen walking along the corridors of Buckingham Palace, despite being her grandson.

Speaking in a new documentary that explores behind-the-scenes moments of the Royal family, the Duke of Sussex recounts to visitors that he still gets nervous when he sees the Queen coming.

Addressing a group of hospitality professionals from the Caribbean, who are spending time at the palace as part of a new scheme headed up by the Queen, the newlywed Duke offers some words of encouragement.

“You guys have spent way more time in Buckingham Palace than I ever have - and you’ve only been here two weeks,” he says. “Have you bumped into the Queen yet? If you suddenly bump into her in the corridor, don’t panic. I know you will. We all do!”

THE SAME TYPE OF LOCOMOTIVE MANUFACTURED IN 1884 IN VIENNA

STOLEN LOCOMOTIVES During September the management of the Railway Museum in Belgrade noticed two exhibits missing. The exhibits were two locomotives, over 150 years old, representing the oldest and most valuable items in the museum.

Two weeks later the police arrested several persons responsible for the theft of the locomotives, learning that the valuable exhibits were cut up and sold as scrap. The stolen locomotives were a “Pula”, and a “Presek“.

The “Pula” locomotive from 1864 was the oldest exhibit in the technical collection of the museum. It operated at the Oil Factory in Pula and the Ottoman railways of the time, in the Smyrna harbour (İzmir). This type of locomotive was used to build the Suez Canal. The “Presek” locomotive was also from Pula, manufactured in Vienna in 1884.

It remains unclear how the exhibits were stolen from a protected area in the construction yard of “Belgrade Waterfront”.

V&A DUNDEE MUSEUM OPENS TO THE WORLD Scotland’s V&A Dundee museum opens its doors for the first time to the public on September 15, designed by acclaimed Japanese architect Kengo Kuma. As Scotland’s first design museum, V&A Dundee tells a global story, investigating the international importance of design alongside presenting Scotland’s outstanding design achievements. At the heart of the museum, the Scottish Design Galleries feature 300 exhibits drawn from the V&A’s rich collections of Scottish design, as well as from museums and private collections across Scotland and the world.

At the centre of these galleries stands the magnificent Charles Rennie Mackintosh Oak Room meticulously restored, conserved and reconstructed through a partnership between V&A Dundee, Glasgow Museums and Dundee City Council. Its co-production had to be relieved due to considerable overspend (from a £27m start to a £80m finish).

SIR ELTON JOHN ACCEPTS LIBEL DAMAGES Sir Elton John and David Furnish have accepted “significant” libel damages over The Sun on Sunday’s allegation that their dog inflicted seriou injuries on a child at a play date. The couple brought proceedings against News Group Newspapers over a front page story in The Sun on Sunday in February. Solicitor Jenny Afia said the story had claimed the child had been “subjected to a serious attack” and that Sir Elton and Furnish had “failed to make any attempt to find out how the little girl was... despite being aware of the incident….The injuries were not serious and the allegation was “false and seriously defamatory”.

Neither Sir Elton nor Furnish were at SIR ELTON JOHN AND DAVID FURNISH WITH THEIR SONS ELIJAH AND ZACHARY London’s High Court.

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23

Opinion

Europe Struggles With New Balkan Headache

PRESIDENT ALEKSANDAR VUČIĆ (LEFT), FEDERICA MOGHERINI, HIGH REPRESENTATIVE FOR FOREIGN AFFAIRS AND SECURITY POLICY AND PRESIDENT HASHIM THAÇI,

This one is not on the scale of the predicament the EU faced in the 1990s, when leaders argued and agonized over how to respond to the wars that tore Yugoslavia apart, including whether to intervene militarily 24

October

By Matthew Karnitschnig and Charlie Coope, Politico

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ut the latest headache is over a legacy of those wars, the frozen conflict between Serbia and Kosovo, after the presidents of both countries announced they want to discuss changing borders.

Officials and diplomats are still trying to get their heads around the implications of the announcement, which goes against longstanding Western policy. For years, EU and U.S. officials have argued that any change of borders in the volatile region could spark violent campaigns for other boundaries to be redrawn.

But faced with the desire of both presidents to break the taboo and the Trump administration’s willingness to entertain such a move, EU officials and diplomats have decided they cannot dismiss the plan out of hand — for now, at least.

“We of course support all conversations that lead to goals but at the same time we say that the territorial integrity as it has been created today is of great importance” — German Chancellor Angela Merkel No one much likes it but no one seems willing to torpedo it either.

“In an ideal world, this would probably not have happened,” said an EU diplomat. “But this isn’t an ideal world, this is the Balkans, so we should look at it.”

EU diplomats say they fear a border change also carries risks of upheaval far beyond the Balkans, for example giving Russia fresh ammunition to argue that the West should also accept its annexation of Crimea.

Any border change would form part of a peace deal to tackle issues unresolved by the 1998-1999 war that ended Serb control of Kosovo. Serbia continues to regard Kosovo, whose population is mainly ethnic Albanian, as a rebel province and Belgrade’s ally Russia has blocked the country’s path to U.N. membership.

Both countries aspire to join the EU but Brussels has made clear they must resolve all bilateral disputes before that can happen.

Sceptical Germany

So far, Germany has been the most vocal skeptic of the proposal, made public by Kosovo President Hashim Thaçi and Serbian President Aleksandar Vučić at a conference in Austria.

“We of course support all conversations that lead to goals but at the same time we say that

the territorial integrity as it has been created today is of great importance,” Chancellor Angela Merkel said. Merkel has slightly softened her rhetoric since flatly rejecting border changes in the Balkans earlier last month. But German Foreign Minister Heiko Maas is expected to make plain Berlin still opposes the idea at a meeting with his EU counterparts in Vienna.

“Normalizing relations between Serbia and Kosovo is crucial for the security, stability and prosperity of both countries and the wider region,” a U.K. Foreign Office spokesperson said. “The government believes that this should be on the basis of recognition of independent sovereign states within their current borders.”

Neither Vučić nor Thaçi has provided details of what they are considering. But talk of some kind of

Faced with the desire of both presidents to break the taboo and the Trump administration’s willingness to entertain such a move, EU officials and diplomats have decided they cannot dismiss the plan out of hand — for now, at least land swap has rumbled around the region for years.

Under the most commonly discussed scenario, part of northern Kosovo, which is predominantly inhabited by Serbs, would be allocated to Serbia. In return, the Preševo Valley area of southern Serbia, which is home mainly to ethnic Albanians, would become part of Kosovo.

“We have concerns about an agreement based on ethnicity,” said a diplomat from one EU country. “We also have some ethnic groups who could jump on it.”

A third EU diplomat said his country is “very skeptical,” especially because of the potential consequences for Bosnia and Herzegovina, where leaders of the Serb-dominated region, Republika Srpska, frequently raise the idea of seceding and becoming part of Serbia.

“It’s all very risky,” the diplomat added.

Three former international high representatives to Bosnia and Herzegovina spoke out against the idea, urging EU foreign policy chief Federica Mogherini to push Vučić and Thaçi to drop their plan.

“We know the region well enough to know that moving borders like this will not solve divisions, it will deepen them,” Paddy Ashdown, Carl Bildt and Christian Schwarz-Schilling wrote in an open letter to Mogherini.

Mogherini has made clear she will not follow their advice. She hosted the two presidents for the next round of an ongoing EU-mediated. A couple of days later, Vučić expected to unveil more details of his proposals in Mitrovica, northern Kosovo, in what he has told ambassadors supposed to be “the speech of his life,” another EU diplomat said.

Few fans

So far, no EU country has voiced outright support for the plan, although Austria is keen to play a mediating role and has signaled a willingness to explore it.

Officials from the EU’s institutions, such as Johannes Hahn, the enlargement commissioner, have sought to strike a balance — not rejecting a land swap out of hand but insisting it would have to be accompanied by guarantees that no other borders in the region would be changed.

EU officials also stress that any deal between Serbia and Kosovo would have to tackle much more than just borders — such as minority rights and property disputes going back to prewar times.

But some diplomats say they suspect they will never have to decide whether to endorse a land swap — because the two sides will be unable to reach an agreement.

Giving away territory will be a hard sell to voters in both countries — and looks particularly tough in Kosovo, where political opinion is bitterly divided over Thaçi’s plan. Prime Minister Ramush Haradinaj has emerged as a particularly strident opponent of the idea.

“It would mean war,” Haradinaj told the Irish Times. “If we reopen what has already been agreed, it means reopening the past, and in our region reopening the past means reopening wars.

All these borders are the result of tragic wars.”

Source: Politico

October

25

Focus

Relaxing The Tax Burden On Enterprises: For Whom And How, If At All?

Big Questions For

Small Percentage Points The Ministry of Finance’s announcement that it could consider lowering the tax burden on businesses could have multiple effects on the economy and on employees, depending on how it is tailored. The context of such a measure is not only fiscal, rather any potentially larger intervention in this sphere would also require the reform of pension and health insurance

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espite the small fiscal room to manoeuvre, the fiscal relief of the economy measure that’s been announced by the Ministry of Finance could, depending on the modalities adopted, stimulate economic growth by allocating all the exempted funds towards enterprises without having an effect on employee earnings, to contribute to reducing the ‘brain drain’ outflow of quality personnel from Serbia by creating space to increase net earnings, giving an extra chance for small and medium-sized enterprises to catch up with the rest of the economy and embark on the road of development, or to impact

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on reducing inequality in the society. And the level of unburdening of taxpayers and the way it could be conducted depend largely on the political preferences of the Serbian Government and the set of values that policymakers, directly or inherently, support. If there was, however, discussion of a more significant redistribution of budget funds to the economy, the context of such a measure would spread beyond the issue of mere fiscal policy and touch upon the fundamental issues of expected economic growth and the possibility of financing pension and health insurance sustainably under the current model.

DRAGOLJUB RAJIĆ BUSINESS SUPPORT NETWORK

HIGH LEVIES ON EARNINGS SEE US LOSE OUR BEST PEOPLE REDUCING THE BURDEN ON EARNINGS WOULD ENABLE COMPANIES TO INCREASE THE NET EARNINGS OF THEIR EMPLOYEES AND REDUCE THE DEPARTURE OF QUALIFIED PEOPLE WHO HEAD ABROAD IN SEARCH OF BETTER PAID JOBS AND IMPROVED WORKING CONDITIONS Serbia is lagging a full 15 years behind most Eastern, Southeast and Central European countries, which have reformed their tax systems and thus sought to relieve their economies and enable them to be competitive on the European single market. Bulgaria and Czechia have twice reduced their rates of taxation and contributions on labour, while Hungary, Romania, Slovakia, Poland, Croatia, Macedonia, Estonia, Lithuania and Albania have each done so once. The Prime Minister and President of Serbia constantly stress the desire for net monthly earnings in Serbia to average 500 euros, but that would have long been the case had taxes and contributions been reduced to the Eastern European average of 40.4% (viewed in real terms, not according to the Gross I and II earnings formula, which blurs the picture of the total burden on the employer, who now realistically pays about 64.3 dinars on every hundred dinars paid to an employee). With a reduced burden on earnings, employers would have room to pay higher net earnings and thus motivate high-quality personnel to stay in the country and working at their companies.

Moreover, all of these countries have significantly cut the number of total para-fiscal charges, and the highest number of them are in Croatia, with around 190, while Serbia has, according to the latest statistics, exceeded a total of 550 para-fiscal levies that are paid by businesses.

High burdens on earnings and excessive para-fiscal charges lead to average payment deadlines for the econo-

my of between 135 and 140 days and to many companies facing occasional illiquidity issues, all of which results in an inability to increase the net earnings of their employees. This is one of the reasons why Serbia is abandoned each year by between 25 and 35 thousand people (according to various sources and research), who leave in search of better paid employment and improved working conditions abroad. Most worryingly, three-fifths of

SINCE 2014, SERBIA HAS ALSO EXPERIENCED AN INCREASE IN THE IMPORT OF LABOUR, AND THIS TREND IS EXTREMELY TROUBLESOME, BECAUSE AS A COUNTRY WE ARE LOSING THE BEST PEOPLE IN MANAGERIAL POSITIONS - ENGINEERS, TECHNICIANS AND TRADESMEN - THE VERY PROFILES OF WORKERS THAT FORM THE CORE OF EVERY DEVELOPED ECONOMY them are not unemployed, but rather they leave domestic companies that must then struggle to find adequate staff with the necessary experience to replace them. This has meant that, since 2014, Serbia has also experienced an increase in the import of labour, and this trend is extremely troublesome, because as a country we are losing the best people in managerial positions - engineers, technicians and tradesmen - the very profiles of workers that form the core of every developed economy.

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27

Focus

Relaxing The Tax Burden On Enterprises: For Whom And How, If At All?

MILADIN KOVAČEVIĆ

DIRECTOR OF THE STATISTICAL OFFICE OF THE REPUBLIC OF SERBIA

RELIEF IS MOST NEEDED

BY THE WEAK POOR LIQUIDITY STILL HAMPERS SMALL AND MICRO ENTERPRISES. IT IS CERTAIN THAT THIS LARGEST AND MOST VULNERABLE GROUP OF COMPANIES HAS THE MOST PRONOUNCED NEED FOR THE IMPROVEMENT OF THE BUSINESS ENVIRONMENT AND PARTIAL TAX RELAXATION For a long time, the focus has been on a so-called tax wedge, which implies taxes and social security contributions (pension and health insurance, and primarily retirement funds). The “Programme Statement” of the current arrangement with the IMF (Policy Coordination Instrument) directs, in fifteenth points, towards the use of the existing fiscal space for improving the business climate and supporting growth, while the most effective measures would be to reduce contributions for social insurance and terminate para-fiscal charges. The brunt of change is definitely on possible reductions in social security contributions.

The context of such a measure is not only fiscal in the narrow sense. Specifically, the existing fiscal balance, both budgeted and consolidated, and the prospects for GDP growth in the future are not sufficient to guarantee the sustainability of socially acceptable pension and health insurance due to the aging process of the population and the persistently low employment rate and high number of pensioners. As such, the possible relaxation of social contributions must be linked to reform of the pension system, which must rely for a long time to come on the first pillar, i.e. the State Pension and Disability Insurance Fund (certain rationalisations can be reviewed, the application of the individualisation of accounts, as well as the creation of additional sources of income). The relaxation of contributions can also be partial.

Specifically, analysis of company liquidity and profitability on the basis of financial statements for the 2014-2017 period indicates a positive change in the performance of companies in this period, in terms of higher profitability, a better financial position and increased liquidity. However, this progress is not uniform.

Namely, poor liquidity still hinders small and micro enterprises.

It is evident that this most numerous and most vulnerable group

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of enterprises has the most pronounced need for the improvement of the business environment and tax relief. It is also possible to link fiscal relaxation for business with more progressive fiscal standards e.g. tax on total earnings tax or with the segregation of property tax according to the criteria of its use.

SRĐAN DROBNJAKOVIĆ DIRECTOR OF THE SERBIAN ASSOCIATION OF EMPLOYERS

REDUCING CONTRIBUTIONS BY 2% IS REALISTICALLY POSSIBLE

MILOJKO ARSIĆ

PROFESSOR OF THE FACULTY OF ECONOMICS

POLITICAL AND DEVELOPMENTAL INTERESTS - WHICH ARE STRONGER? A POLICY THAT GIVES PRECEDENCE TO GROWTH OF THE ECONOMY AND STANDARDS WOULD, IN THE LONG RUN, UTILISE A LARGER PART OF THE EXISTING FISCAL SPACE TO STIMULATE ECONOMIC GROWTH, BUT THE GOVERNMENT’S SHORT-TERM POLITICAL INTERESTS AND THE DEMANDS OF CITIZENS POINT TOWARDS THE HIGHEST POSSIBLE GROWTH IN SALARIES AND PENSIONS Serbia last year achieved a fiscal surplus of 1.2% of GDP, while this year, with an unchanged fiscal policy, its fiscal surplus will amount to about 0.7% of GDP. Given the relatively high GDP growth expected in the coming years, it is estimated that a suitable deficit for Serbia would be between 0.5 and one per cent What concerns every employer are fiscal and para-fiscal charges that don’t allow an enterprise to function normally and which are, unfortunately, unpredictable. These levies exist at both the national and local levels. Local governments permit themselves to determine them on their own, generally at those moments when the municipal coffers are emptying. It is estimated that there are around 510 of these levies at present.

There is room in the budget to reduce taxes and contributions from the current level of 64 per cent. It has unofficially progressed in that direction with the abolition of the 0.75% that was allocated for unemployment, and fallen on the burden of the employer. At this point, it is realistic to reduce contributions by two per cent.

A problem that most employers aren’t currently aware of is the property tax, which has been increased in some municipalities by up to three hundred per cent. The Serbian Association of Employers has submitted an initiative to the national Social Economic Council for restoring the calculating and determining of tax per square metre, in such a way that the only basis for taxation can be the accounting ‘book value’ recorded with all legal entities or the purchase value, or value in accordance with International Financial Reporting Standards (IFRS).

A specific question to be posed is whether the same basis applies for taxing the property of profit and non-profit entities.

of GDP. Such a fiscal deficit would enable a continued reduction in the ratio of public debt to GDP, while the fiscal policy would encourage economic growth. From the aforementioned it follows that room of around 1.5% of GDP exists to increase the expansiveness of fiscal policy. That space can be utilised to stimulate economic growth, through reductions in the tax burden or increasing public investment, but also for increasing current spending through increases in salaries and pensions. A policy that gives precedence to growth of the economy and standards would, in the long run, utilise a larger part of the existing fiscal space to stimulate economic growth, but the government’s short-term political interests and the demands of citizens point towards the highest possible growth in salaries and pensions. As such, one can expect - as some sort of compromise - that part of the fiscal space will be utilised to increase public investments and reduce taxes, while part will be used to increase salaries and pensions.

Taking the aforementioned into consideration, it can be concluded that room exists to reduce taxes, but that room is not large, amounting to around 0.5% of GDP, or 20-25 billion dinars. This modest fiscal space could be used to reduce taxes on production, labour and capital factors, as these taxes are the great hindrance to economic growth. Specifically, it is possible to reduce the fiscal burden on labour, which today amounts to about 64% (in relation to net earnings) by about two percentage points, through a reduction in contributions.

Furthermore, it is possible to increase the non-taxable part of earnings by a few percentage points. Provided increases in salaries and pensions don’t exceed GDP growth, room would exist to introduce additional tax breaks when it comes to tax on profit, as well as to unburden the economy with the abolishing or reducing of some quasi-fiscal levies.

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29

Focus

Relaxing The Tax Burden On Enterprises: For Whom And How, If At All?

SAŠA RANĐELOVIĆ

ASSOCIATE PROFESSOR AND VICE DEAN FOR FINANCE AND INTERNATIONAL RELATIONS AT THE UNIVERSITY OF BELGRADE – FACULTY OF ECONOMICS

COMPETITIVENESS AND/OR INEQUALITY IF THE AIM IS TO REDUCE THE FISCAL BURDEN BY RELIEVING THE ECONOMY, THERE COULD BE A LINEAR REDUCTION IN THE TAX RATE OR CONTRIBUTIONS. IF, HOWEVER, THE GOAL OF TAX REFORM IS TO IMPACT ON REDUCING INCOME INEQUALITY, THEN THE NON-TAXABLE PART OF EARNINGS SHOULD BE INCREASED MARKEDLY Serbia has established macro-fiscal stability in the previous period, so a solid fiscal surplus will be realised in 2018. However, from the perspective of stimulating economic growth while maintaining the sustainability of public finances, leading a policy of a mild fiscal deficit, ranging from 0.5 to one per cent of GDP, would be justifiable. This means that there currently exists significant fiscal space of around one per cent of GDP, i.e. over 300 million euros annually, which should be used primarily for a more noticeable and lasting increase in public investments and for reducing the tax burden, given that research shows that such a fiscal stimulus would have a significantly higher positive effect than, for example, a more significant increase in salaries and pensions.

Although the majority of taxes in Serbia are, in terms of level, close to or below the European average, and also the taxation average of Central and Eastern European countries, it has been assessed that the focus in reducing the tax burden should be on the fiscal burden placed on earnings, in order for the tax reform to have a positive impact on the economy’s international competitiveness and reducing the grey economy. The way fiscal burdens are reduced depends on the goals to be pursued. If the goal is primarily to unburden the economy, it could be adequate to conduct a linear reduction in the rate of tax or contributions. If, however, the goal of tax reform is to impact on reducing income

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inequality, then fiscal easing could be carried out through a more noticeable increase in the amount of the non-taxable part of earnings. Reducing fiscal burdens could in some cases, such as occupations that are in high demand, lead to the growth of net earnings among employees, while with some professions, such as those in which there is a large number of unemployed, reducing the fiscal burden would

THE WAY FISCAL BURDENS ARE REDUCED DEPENDS ON THE GOALS TO BE PURSUED. IF THE GOAL IS PRIMARILY TO UNBURDEN THE ECONOMY, IT COULD BE ADEQUATE TO CONDUCT A LINEAR REDUCTION IN THE RATE OF TAX OR CONTRIBUTIONS lead to a drop in costs for the employer, without a direct impact on the position of employees, but with an indirect positive effect on future growth in labour market demand.

In addition to reducing fiscal burdens, strengthening the competitiveness of the domestic economy also requires work on reducing the space for tax avoidance (e.g. through abuse of the rules on lump-sum taxation payments for entrepreneurs), and improving predictability through a clear and unambiguous formulation of the rules of taxation by legislators, and their consistent interpretation and application on the part of the Tax Administration.

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Interview

H.E. Subrata Bhattacharjee, Indian Ambassador to Serbia

New Heights For An Old Friendship Through two high-level visits in two consecutive years, and particularly in the year of the 70th anniversary of bilateral diplomatic relations, India and Serbia have made a major political statement underlining the depth of their relationship year 2018 is also a special year as it marks the 70th anniversary of the establishment of diplomatic relations between the two countries.

W

e spoke with newly appointed Indian Ambassador to Serbia H.E. Subrata Bhattacharjee about the new dimensions of the 70 years of friendship between our two countries.

What could the new era of diplomatic relations between India and Serbia bring in the future?

The visit of Vice President of India, H.E. M. Venkaiah Naidu, to Serbia this month was a visit from India at the level of Head of State (HOS) or Head of Government (HOG) after a gap of 29 years, with the previous visit being that of then Prime Minister of India Rajiv Gandhi in 1989. The January 2017 visit to India of Aleksandar Vučić, then Prime Minister of Serbia and now Serbian President, was also a landmark visit, as this represented the first visit from Serbia at the HOS/HOG level after a gap of 30 years. With these two visits, both countries have sent a clear message of the continuation of their old friendship, despite many changes in global geopolitics. In the 1980s, the world was still viewed as a bipolar world, while subsequent developments have changed that perception dramatically. Both India and Serbia introduced sweeping economic reforms, and the two countries still share common views on many major global issues. On the bilateral front, the economic content of the relationship has grown tremendously in recent years. The

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What common political and economic goals could the two countries work on together?

Vice President Naidu was received very warmly in Serbia. He had meetings with President Vučić, Prime Minister Brnabić and Spear Gojković. Vice President Naidu also addressed a Special Session of National Assembly of Serbia, where the first NAM Summit took place in 1961, and the very venue where then Prime Minister of India Nehru spoke. The visit of Vice President Naidu took place against the backdrop of a few recent Ministerial exchanges.

Serbian Agriculture Minister Nedimović visited India in November 2017. This was followed by the visit of Serbian First Deputy Prime Minister & Foreign Minister Dačić in May this year.

The priority in the coming days will be to further boost bilateral trade and attract investment in key areas Our strong bilateral ties are likely to continue with regular exchanges at various levels.

On an issue of crucial importance to Serbia, Vice President Naidu reassured Serbia of India’s principled support to the sovereignty and territorial integrity of Serbia. This will continue to be an important element in close cooperation between the two countries. Similarly, President

Vučić assured India of Serbia’s support in the United Nations and other multilateral forums.

Both countries are now looking more closely at each other’s economic strengths and working out strategies for mutual benefit. Since 2017, Serbia has participated in two major economic promotion events in India - the Vibrant Gujarat Summit 2017 and World Food India 2017.

Indian companies understand the economic potential of Serbia and have invested in diverse sectors in Serbia, such as tractor manufacturing, IT infrastructure, food processing etc.

How would you rate the success of the IndiaSerbia Business Forum?

The Business Forum was a great success and was well attended, with more than 50 Serbian companies participating. The Indian delegation included leading entrepreneurs from apex bodies, such as the Confederation of Indian Industry, the Associated Chambers of Commerce & Industry of India, the PHD Chamber of Commerce & Industry and the Trade Promotion Council of India. The Indian delegates represented sectors like agriculture, infrastructure, IT, education, real estate, legal & financial services, manufacturing, sports tourism etc. Underlining the importance of including a business delegation in a high-level visit, Vice President Naidu reaffirmed India’s commitment to greater economic engagement with Serbia. President Vučić highlighted Serbia’s economic potential and invited Indian investors to Serbia. Serbia’s Free Trade Agreements with a number of countries makes it an appropriate manufacturing centre for duty free access to these countries. As one of the world’ fastest growing major economies, India could be an ideal partner for Serbia.

Leaders’ Meeting Point

cordmagazine.com

Feature

Imran Khan Niazi, Pakistan’s Prime Minister

From International Athlete To Prime Minister Imran Khan Niazi, born in 1952, in Lahore, Pakistan into a welloff Pashtun family to Ikramullah Khan Niazi and Shaukat Khanam, graduated in philosophy, politics and economics from Keble College, University of Oxford. Hailing from a cricketing family, he played the game as a teenager in Pakistan and continued in England

K

han was schooled at Lahore’s elite all-boys Aitchison College before graduating from Oxford University in 1975 with a Bachelor’s degree in philosophy, politics and economics.At the age of 18, Khan made his international debut for Pakistan’s national cricket team and soon gained a reputation as a playboy with his well-publicised social life, residing in the British capital, London.

Oxford-educated Khan had an illustrious career in international cricket spanning two decades from the 1970s. His pin-up looks and private life have ensured he’s been a favourite of the world’s media for decades. He developed a reputation as something of a playboy on the London nightclub circuit, though he denies that he ever drank alcohol or engaged in any activities that may be considered inappropriate for a conservative Pakistani Muslim.

As the captain of the national cricket team, the legendary all-rounder famously led the country to its first and only victory at the 1992 World Cup defeating England, thereby being termed as the most successful and prominent cricket captain of Pakistan. This champion cricketer surprised the

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world as an exceptional fast bowler and a great all-rounder, making the game of cricket more popular in his country. Immediately afterwards, he retired from cricket in 1992 and entered politics by forming his own party – Pakistan Tehreek-eInsaf (Movement for Justice).

As a politician, Imran Khan’s views have often shifted or been vague. Many accuse him of U-turns. What he will actually do in power is largely unclear He retired from cricket in 1992 and entered politics by forming his own party – Pakistan Tehreek-e-Insaf (Movement for Justice.

In 1995, at the age of 43, he married the 21-year-old British heiress, Jemima Goldsmith

- the daughter of one of the world’s richest men at the time, Sir James Goldsmith. The marriage produced two boys but was dissolved in 2004.

The split was amicable, and Khan appears to have maintained a friendly relationship with his ex-wife.

A second marriage in 2015, to BBC journalist Reham Khan, lasted less than a year. He wed again in 2018 in a low-profile ceremony in Lahore. His third wife Bushra Watto, a mother of five, was described as his spiritual adviser, and observers say the match plays well with his public shows of devotion to Islam.

In the meantime Khan launched Pakistan’s first specialised cancer centre, Shaukat Khanum, named after his late mother who succumbed to the disease, and in 2008, he also established a private technical college in Punjab’s rural Mianwali district, called Namal College.

As a politician, Imran Khan’s views have often shifted or been vague. Many accuse him of U-turns.

What he will actually do in power is largely unclear.

He upholds liberalism but at the same time appeals to Islamic values and anti-West sentiment, especially when it comes to perceived interference in Pakistan’s internal affairs.

Leaders’

JEAN PIERRE MESIĆ, Managing Director of Renault Nissan Adriatic

ANDREJA PAVLOVIĆ, Executive Director of the Nordic Business Alliance

HARDER. digital SOVA

Record Year

Good News Ahead

Night Vision For The Future

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MEETING POINT HOM PARVIZ, General Manager

Hyatt Is More Optimistic Than Ever About The Future PAGE /42

MILE TODOROVIĆ, CEO of ATB SEVER d.o.o., SUBOTICA

Electric Motors And Generators For The Whole World PAGE /46

NICOLAS BERGGRUEN

Homeless Billionaire PAGE /28

JEAN PIERRE MESIĆ, MANAGING DIRECTOR OF RENAULT NISSAN ADRIATIC

Record Year We’re extremely satisfied with our results in the Adriatic region, for which I am responsible: in the first six months, private vehicle sales across the entire region increased by 11% and light commercial vehicle sales were up 15% compared to the same period last year, highlights Renault Nissan Adriatic Managing Director Jean Pierre Mesić

T

he automotive industry has become extremely demanding.

Huge competition has massively imposed new standards in production, and the WLTP protocol, which came into force on 1st September, will also change the European automotive scene.

The last few years have been record-breaking ones for the Renault group, with a market share of almost 20 per cent. Which models have been the most popular and why?

Last year was another new record year for the Renault group globally.

Commercial and financial results are a result of the strategy we’ve applied over the past few years and the efforts of all employees of the group.

We are also extremely satisfied with our results in the Adriatic region, for which I am responsible: in the first six months, private vehicle sales across the entire region increased by 11% and light commercial vehicle sales were up 15% compared to the same period last year.

When it comes to Serbia, the most important models leading to this success are the Renault Clio, which found its place among many private buyers, but also among a significant number of large companies that opted for its deliv-

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ery version. As for the Dacia brand, the leader in sales is the Sandero model, of which we are particularly proud, considering that it represents the best-selling model on the private buyers market, and continues to firmly occupy that position so far in 2018.

The new Worldwide Harmonised Light vehicles Test Procedure (WLTP) protocols for measuring exhaust emissions and fuel consumption were introduced in Europe as of 1st September. How will these protocols impact on the markets of the Adriatic region?

The WLTP protocol has compelled

By 2022 we will have eight Z.E. 100% electric models and 12 electrified solutions

all automotive manufacturers to efficiently process engines with the goal of reducing emissions of harmful gases.

New technologies are distinguished by the reduced environmental impact of vehicles, but apart from that they also have their own cost. We will, as manufacturers, take on part of that cost ourselves, but part of it should also be taken on by our customers. This will lead to cars being more economical and environmentally friendly, but also

somewhat more expensive. In response to market demands, we’ve designed a range of petrol and diesel engines that meet the new standards, and by 2022 we will have eight Z.E. 100% electric models and 12 electrified solutions.

In many European Union countries, including Croatia and Slovenia, which are part of our Adriatic region, there are still uncertainties about when application of the WLTP protocol will precisely begin, and how special taxes on motor vehicles will be calculated. The impact of WLTP will be felt the least in Serbia, as the tax on vehicles is not linked directly to harmful gas emissions.

Renault recently introduced innovations to operations in Poreč. What is at the basis of these changes?

Presentations of automotive companies often boil down to the presenting of new models, modern engines and innovative technologies. We wanted to go a step further by telling the other side of the story. It was with this in mind, in June, that we organised a great media presentation of all the new innovations that the Renault Group offers in its post-sale services. Thus, we offer our clients multiple programmes, including “Program 5+”, “Extended Guarantee”, “Maintenance Agreement” etc., and as of next year - in the spirit of digitalisation - we will provide them with our “Online offer”.

ANDREJA PAVLOVIĆ, EXECUTIVE DIRECTOR OF THE NORDIC BUSINESS ALLIANCE

Good News Ahead We have high expectations regarding the Nordic Month and the Nordic Business Forum, which we expect to involve the visit of the largest Nordic trade and commerce delegation in recorded history

T

he Western Balkans are coming into the focus of many Nordic players, including international organisations like the Nordic Council of Ministers, the Swedish International Development Agency, Innovation Norway, Team Finland and Danish Industries. It would be an understatement to say that we have an opportunity, but since that is so, the agenda of the Nordic Business Alliance will be to utilise that opportunity to the benefit of all - says Andreja Pavlović, executive director of the Nordic Business Alliance, in an interview conducted just days prior to the start of this year’s “Nordic Month”.

What can we expect during this year’s Nordic Month event?

The efforts of the Nordic Business Alliance, the Embassies of Denmark, Finland, Norway and Sweden, the support of the Nordic Council of Ministers – this all led to our activity plan that is making October a month when we will have a peak in Nordic business interest compared to previous years. The concept we developed has been a result of our years of experience and work, and is based on analytics, feedback and our long-term strategy. Starting with

our Digital Conference on 9th October, “NorDig”, we will be moving on to receive business delegations from Denmark, Finland and Sweden who are visiting the Western Balkans region in the four-day format of the Nordic Business Forum.

This Forum will start on 16th October and conclude on 19th October with an Investment Conference in the Palace of Serbia, which we are co-organising

We are very excited about this year’s Nordic Month, as it is the first time we’ve been active at this level in terms of the coordination and intensity of commercial and trade projects and activities

with the President of Serbia, the Government of Serbia and the Western Balkans Chamber Investment Forum. This event will feature a roundtable discussion with the President of Serbia that will be attended by all our member companies and will include an open discussion with several Ministers of the Government of Serbia, while we will have B2B meetings with Western Balkan companies chosen by reputation, size and success. At the end of the month, we will go further by organising a joint B2B event with our partners in the EU delegation and

the business associations of Belgium, Croatia and Greece. As a direct result of us focusing on all aspects of using the opportunity we have, we will be a partner in organising the “Nordic Business Transformation” global conference, to be held in Stockholm from 19th to 21st November. This is one of the most significant annual business events in the Nordic region, with its relevance confirmed by the participants that will this year include the Global Vice President of Carlsberg, the Director for Continuous Improvement of LEGO, the Head of Banking Operations of Nordea, the Vice President of Novo Nordisk and the HR Operations Director of Telenor, among many other prominent Nordic business figures.

What are your expectations of this forum? Are we still in the phase of familiarisation or will be more about convergence and collaboration?

The expectations are high. We expect the Forum to involve the visit of the largest Nordic trade and commerce delegation in recorded history, and we will have good news in the department of Nordic investments that will be made public during the Forum. We have gone through the phase of getting to know each other, and I am jubilant to see that we are now on the verge of gaining the long-awaited results of efforts exerted to date. We have the ambition to make this Forum an annual event, and we will be working hard to make our first such event the best it can possibly be.

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Taste “If Mitrovic (owner of Pink TV) considers me to be the inquisitor against bad taste, spiritual poverty and profanity, I see that as a kind of compliment and I thank him.” – VLADAN VUKOSAVLJEVIĆ, SERBIA’S CULTURE AND INFORMATION MINISTER

LOCAL NEWS

ALIBUNAR WIND FARM

WIND ENERGY FOR 38,000 MORE HOUSEHOLDS Belgian company Elicio opened another wind farm in Serbia, with 21 turbines with a total capacity of 42MW. The €80 million will be supplying 38,000 more households with wind energy.

The official opening ceremony for the Alibunar Wind Farm was attended by Minister of Mining and Energy Aleksandar Antić, Ambassadors of the Kingdom of Belgium and Switzerland, representatives of IFC, UniCredit Bank, representatives of the Provincial Government, Municipality of Alibunar and Financial support to the project was also provided by the IFC Group of World Bank, UniCredit Bank, FMO and GGF, which invested €60 million, confirming their dedication to green energy projects and the fight against climate change.

SBERBANK SRBIJA

IN FIRST HALF OF 2018 PROFIT OF €6.44 MILLION During the first six months of 2018, Sberbank Srbija made a profit of €6.44 million, which is 25 percent more than in the same period last year. At the same time deposit growth was recorded of as much as 32 percent compared to the same period of 2017, as well as the increase in total loans and advances, while the number of non-performing loans decreased by 43%, reaching an NPL ratio of 11.52%.

Such good results have been achieved thanks to the increasing confidence of the existing but also of numerous new clients, process optimization and constant innovations that Sberbank Srbija implements in its operations.

MERCEDES-BENZ

NEW GENERATION MERCEDES-BENZ C-CLASS Star Import, general distributor for Mercedes-Benz in Serbia, Montenegro, Bosnia and Herzegovina and Albania, organized a regional presentation of the new generation of C-Class for media and customers on 24 September in the exclusive Hilton Hotel. The undisputed leader in technological innovation in world motoring fascinated guests both with a car presented with the perfect musical and light performance, and high level of luxury and aesthetics. Now, in the fifth year of production, the C-Class is the most successful series of Mercedes-Benz models and can boast many improvements. The focus of the redesign was the front of the vehicle and the front and rear lights, while the electronic architecture is completely new. The premiere was attended by selected guests, who after the performance had the opportunity to get to know the new model in a pleasant atmosphere supported by the performance of the string quartet Mystic Cellos and the choire Glasne Žice.

TIGAR AD PIROT

GLOBAL SPORTS GOODS RETAIL CHAIN IN SERBIA FROM 2019 Representatives of Decathlon, a global sports goods retail chain, which operates in more than 40 countries and which will have its stores in Serbia from 2019, pronounced Tigar AD in Pirot and company with good practice and raised its rating to class B following the tour of the Pirot-based footwear factory.

The cooperation is based on the production of sports and hunting boots, as well as sailing boots and boat crew boots in the past months. This scope of the cooperation will probably make the said chain the most popular among the purchasers of the goods made in the facilities in Pirot next year. These facilities are the main suppliers of rubber boots combined with metal for the armed forces in the Nordic countries.

Decathlon is one of their most important partners, with which they’ve cooperated for eight years. In this period, the realization of the arrangements with Decathlon has grown by as much as 120%, whereas, financially, the increase amounts to as much as 185%.

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UNDP

“LET’S GET TO KNOW EACH OTHER”

In what ways can citizens participate in the local budget planning process? How can they suggest for which purposes the budget will be spent? Can they assist in the decision-making process as to what in their municipality or town should be financed from the local budget, what is a priority for restoration or construction? Answers to these and similar questions referring to greater transparency of the public finance at the local level were provided on September 18 by representatives of the State Audit Institution, Standing conference of towns and municipalities (SKGO), Belgrade Fund for Political excellence, Municipality of Ruma and the United Nations Development Program (UNDP). They gathered at the presentation of the national promotional campaign “LET’s get to KNOW each other” organized by UNDP with the support of the Government of Switzerland, within the project entitled “Audit improvement at the municipality level with the aim of strengthening responsibility and effectiveness in public finance management”.

Manners “I told you already yesterday that I know you are not too smart, but there is no reason to make you more stupid than you are and that you do not understand what you have said about your own people. You said that people are stupid” – ŽELJKO MITROVIĆ, OWNER OF PINK TV

Placements postings

&

appointments@aim.rs

LIZ BENISON, NEW MANAGING DIRECTOR OF ARRIVA GROUP Arriva Group has announced the appointment Liz Benison the new managing director who will be responsible for its operations in several countries, including Serbia.

During her career she led the transformation of companies in several fields, including engineering, manufacturing and financial services. Most recently she has worked Divisional Chief Executive leading one of two operating divisions for Serco Group in the UK and Europe. She will report directly to CEO Manfred Rudhart and will be responsible for Arriva Group’s operations in several countries, including Serbia Part of the managing directors responsibilities is to grow the companys presence and innovation efforts to support specific passenger transport solutions required by local authorities, Governments and passengers in those markets.

JELENA JAZIĆ, NEW DIRECTOR OF THE MCCANN BELGRADE AGENCY Jelena Jazić is the new director of the McCann Belgrade agency. Jelena Jazić was previously marketing director of Air Serbia. She knows the agency processes very well because on two occasions, as marketing director of Carlsberg and Vice President Marketing & Strategy at Delhaize, she worked closely as a client with McCann Belgrade.

“It is a great honour, but also a great challenge to become part of the McCann team. Our task in future remains to improve the results of the companies we work for, using realistic, innovative and creative ideas. I am confident that my experience, which I have gained working for the most important multinational companies, will be of great help, and that together with my new colleagues I will enable McCann to maintain a leadership position in innovation and communication with clients”, says Jelena Jazić.

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HARDER. digital SOVA

Night Vision For The Future Stable markets and increasing exports over the longer period, significant investments in and expansion of infrastructure, continuous R&D in different fields, modern-organised production with a major database controlling every step in the process and investments in human resources - these were the key factors of success

H

arder Digital Sova has a tradition in vacuum technology dating back more than 40 years.

Specialised in the production of electro optical vacuum devices in the field of night vision technologies, its production portfolio includes a wide range of image intensifier tubes and night vision devices for image transfer in poor visibility conditions.

The company was privatised in 2008 and its main strategic partner is German company Harder Digital, which is responsible for the complete international marketing. It was a big challenge to develop such a specialised electro optical company in competition with the multinational corporations that are the top players in this field.

Harder Digital Sova is today ranked among the world’s top ten companies specialising in night vision technologies.

Stable markets and increasing exports over the longer period, significant investments in and expansion of infrastructure, continuous R&D in different fields, modernorganised production with a major database controlling every step in the process and investments in human resources - these were the key factors of success.

The company has received many awards from Serbian institutions as the

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most advanced company, as well as the Serbia Chamber of Commerce Award - The Best of Serbia.

A strategic decision of the company to head in a new direction in terms of R&D was considered carefully over the last two years, and the main guideline is to focus on the use of developed technologies for civil applications, combined with a sophisticated multisensory platform and specialised cameras, always with improved image software for higher picture quality.

The main platforms for the launch of

We don’t only look through the night, we look to the future

such R&D projects were the Horizon 2020 EU Projects and the Serbian Innovation Fund.

To create a base of the elements necessary for success in those projects, a few important activities were undertaken. Namely: creating and educating engineering staff within the company who will focus solely on projects; and establishing cooperation with universities in Belgrade and Niš, including the Belgrade Faculty of Electrical Engineering, Niš Faculty of Mechanical Engineering and Niš Faculty of Electrical Engineering, all of which will participate in projects.

HD Sova has already applied to these

Funds and received two projects as a result: one Horizon 2020 project and one Serbian Innovation Fund project.

The first of these project, under the HORIZON 2020 programme, is SMART (Smart Automation of Rail Transportation), in which four 4 universities are presented (two from Germany and one each from Bulgaria and Serbia) and HD Sova is the industrial partner. The goal is to develop a system for detecting obstacles at long distances on rail lines, both during the day and at night, and regardless of weather conditions, and to incorporate the solution into the ATO module (Automatic Train Operation – Autopilot). The project is halfway through - a prototype has already been made and was on display at the INNOTRANS exhibition in Berlin from 18th to 21st September this year.

Potential major customers include Deuce Ban and Bombardier-France.

The other project, co-financed by the Serbian Innovation Fund, is to develop an intensified day/night digital camera with image enhancement. This camera can be used for border controls, surveillance and in various crisis situations. It has also attracted interest from possible customers, especially police forces and border control services. This project is in the early stage of realisation.

The benefits of these innovative projects will be the creation of a new range of optoelectronic products with significant financial support from Funds. HD Sova will be very active with more new projects in the period ahead, as a new model for R&D financing.

Guarantees

REGIONAL NEWS

“If we ever reach an agreement (with Pristina), Serbia would need to get clear guarantees that it would become an EU member state in 2025”. – ALEKSANDAR VUČIĆ, PRESIDENT OF SERBIA CROATIA

A DECADE OF THE INNOVATION INSTITUTE

MONTENEGRO

NATO - THE BIGGEST INVESTOR Montenegro’s Central Bank announced the data for foreign investments that reveal that during the first half of this year there is a doubling of the investments from NATO’s country members compared to the same period last year when the country still wasn’t a member of the Alliance.

During the first half of 2018, there were direct foreign investments in Montenegro in the amount of €403,5 million, and €215,2 million were investments from NATO’s country members, which is significantly more compared to the same period, last year when the countries from the alliance have invested €96,6 million in the Montenegrin economy. The biggest investors in Montenegro are Italy, which is at the top of the list with invested €72 million, Hungary (€54 million), Turkey (€29 million) and Belgium (€11 million). On the other hand, the latest data about the direct foreign investments published by the National Bank of Macedonia reveal that during the first half of this year, the foreign investors have invested €325 million.

BULGARIA

The Innovation Institute, Zagreb is a non-profit organization that combines knowledge and practice in the form of developing the innovation potential of individuals and companies, has celebrated ten years since its establishment in 2008.

In the Westin Hotel over 150 key people from leading regional companies and partners of the Institute gathered to mark and celebrate this anniversary together. The focus of the Innovation Institute is on structuring value creation strategies, instead of redistributing existing ones, in order to successfully develop ambidextrous innovation systems. In this way, the company at the same time balances efficiency where it exploits and maximizes value in the existing business (exploitation), and innovation where it explores and develops new strategic opportunities to create value in a new business (exploration).

ROMANIA

UAE WANTS TO INCREASE INVESTMENTS Emirati Sheikh Hamdan bin Zayed Al Nahyan made an official visit to Romania during which he had a meeting with president Klaus Iohannis. The two officials talked about EMIRATI SHEIKH HAMDAN BIN ZAYED the development of the bilateral relations AND PRESIDENT KLAUS IOHANNIS between the two countries, especially in the business area. The Emirati high official said that his country is interested in increasing investments in Romania, according to a press release of the Romanian Presidency. Al Dahra, a group of companies controlled by Sheikh Hamdan bin Zayed Al Nahyan, recently bought Romanian company Agricost, which operates the biggest farm in Romania, located on the Great Braila Island on the Danube.

BULGARIA HAS SOME OF THE BEST CONDITIONS FOR DOING BUSINESS

ALBANIA

According to Bulgarian Prime Minister Boyko Borisov, this country has some of the best conditions for doing business in Europe. “Financial stability is something that is usually appreciated in time, and there are temptations of populists to spend money in every country,” he said.

The prime minister reiterated that Bulgaria has a diminishing foreign debt and a growing gross domestic product.

During his meeting with members of the American Chamber of Commerce, Borisov said that the share of cigarette smuggling will fall below 5%. He reminded that when the government came to power, this share of smuggling was 34%.

“Now that we hit such a large number of illegal factories, it will fall below 5%,” the prime minister said.

Good results in the fight against smuggling and corruption will allow salaries in the budget sector to rise by 10% from 1 January.

Albania’s first national airline company, a joint venture with Turkey’s flag carrier Turkish Airlines (THY), launched its first test flight mid last month. Albanian Prime Minister Edi Rama, Turkey’s ambassador to Tirana Murat Ahmet Yöruk and Albanian ministers as well as officials from Turkish Airlines participated in a ceremony at Tirana’s Mother Teresa Airport. Speaking at the event, Rama said Air Albania was a strategic and long-term institution backed by Turkish Airlines, an undisputed global actor in the airline industry. Turkish Airlines said the new company will operate in the field of passenger and cargo transportation. The new company will be established with capital of up to $30 million. The flag carrier said stakes of 49 percent, 41 percent and 10 percent are being held respectively by Turkish Airlines, MDN Investment SHPK and Albcontrol, which manages Albania’s airspace and air traffic, representing the government of Albania.

AIR ALBANIA LAUNCHES MAIDEN FLIGHT

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HOM PARVIZ, GENERAL MANAGER

Hyatt Is More Optimistic Than Ever About The Future True to the origins of the brand, innovating through architecture and interior design, from the way the space is used, to the “one stop experience” philosophy

R

enovation projects will carry on into 2020, which conveys a clear and positive message that the company continues to invest in the property and upgrade of the building, and puts an end to the recent circulating story as Our Hotel is NOT for Sale.

The sophisticated luxury of your hotel has contributed for almost three decades to Belgrade’s prestige as a destination. What are the values that distinguish the Hyatt chain from the competition?

We are committed to delighting our guests around the world, enriching every visit and inspiring meaningful connections with colleagues, with friends and family, and with us.

In terms of business objectives, with various hotel projects being developed in the city of Belgrade, we will ensure to continue having a cutting-edge approach to our product offerings.

The market imposes its own demands and, in this sense, also changes to ownership structures. Is that also a current issue for you?

Belgrade Mixed Enterprise (BMP), the owning company of Hyatt Regency Belgrade has heavily invested in revamping and renovation projects at the hotel since purchasing the property in 1989, and much

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more lies ahead. Belgrade’s hotel market is based on a value-for-money perception; we therefore need to ensure that we place our products within reach of those consumers without compromising on the services offered.

Our renovation projects over the last five years included all the 39 suites, four guest room floors representing a fresh, open and welcoming feel, with smart furnishings allowing guests to go from working to playing to relaxing with ease.

The well-known and popular Crystal Ballroom and all event areas went through a major renovation, while our new reception and lobby brought a multifunctional concept to the heart of the hotel encouraging connections and lively conversation among our guests.

In the past two years our popular Olympus

Spa and Fitness Centre also had a face lift, representing modern swimming pool and brand new male and female spa facilities.

Stronger demand for meetings and small conventions, across the entire year has helped boost our revenues. In the final quarter of 2018 the hotel will commence transformation of our renowned Focaccia restaurant to a unique venue, giving our guests new place to meet or celebrate. Multipurpose furnishings allow for flexible usage, and variable workspaces will offer the perfect setting for creative meetings, formal presentations, workshops, art exhibitions and celebration gatherings.

Hotels have in recent years entered the ranks of the most dynamic businesses. How has this impacted on your business results?

The challenge and the plan for Hyatt is clear: to ensure that our guests are able to differentiate between Hyatt and their competitors, and to invest constantly in its business and be among the Top 10 Hyatt Regency hotels globally in overall customer service standards.

The current projects in the pipeline for 2019 and beyond – include design work in progress for adding 650m2 of new events space in the lower lobby area, allowing our guests the choice of a formal setting in Crystal ballroom or an alternative space for less formal events. Transformation of the Tea House outlet to a café-style Market offering food, drinks and regional items. It’s a onestop shop for everything guests need in an elegant and airy space in the heart of hotel.

Renovation of a further two guest floors will complete this stage of 2019 reconstruction, featuring the most spacious standard hotel rooms in the city measuring at 38 sq./m.

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Action

WORLD NEWS

“I have ordered the Atomic Energy Organisation of Iran to be ready for action if needed, so that if necessary we can resume our enrichment on an industrial level without any limitations.”

– HASSAN ROUHANI, IRAN’S PRESIDENT POLAND

CARGILL TO BUY KONSPOL

SWITZERLAND

MULTI-BILLION INVESTMENT PLANNED IN SWISS ROADS The Swiss government has earmarked more than CHF16 billion for projects to extend Switzerland’s national motorway network and to upgrade roads in urban areas.

The government proposes spending CHF14.8 billion for projects notably around the cities of Lucerne and Lausanne as well as in the Jura mountains and for the construction of a second road tunnel through the Alps, a project approved by voters in 2016.

An additional CHF1.34 billion have been set aside for cantonal road projects in more than 30 urban areas, including Geneva, Basel, Bern and in Valais.

Switzerland has a motorway network of about 1,800 km, including tunnels and bridges across the country.

TURKEY

TURKISH POST TO UNVEIL DRONE FOR CARGO SERVICES The Turkish Post and Telegraph Organization (PTT), which has ranked seventh in world cargo transportation with innovations in recent years, will further raise the bar with the drone cargo transportation services it will initiate soon. Following stunt flying at Teknofest, the PTT will perform its first test flights between Bostancı in Kadıköy district and the Prince’s Islands.

The drone developed by Turkish engineers with completely local and national means will be used predominantly at points where geographical conditions hinder transportation. Thus, the PTT will first carry out drone cargo transportation over water. Drones to be used by the PTT will be autonomously controlled from a center without a driver, with a control stick. The address to where they will deliver cargo will be defined on drones. After the package reaches the designated spot of the defined task, drones will be able to return to the region where they take off, again without a driver.

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Global food and agriculture giant Cargill will buy Polish poultry producer and processor Konspol.

Under the agreement, which is subject to regulatory approvals, Cargill will purchase the Polish assets of Konspol’s food and fresh chicken business. Cargill will also acquire Konspol’s portfolio of products, including branded and private label offerings, as well as its customer and supplier relationships. Upon completion of the acquisition, Cargill plans to continue to grow and develop the business.

Konspol hires over 1,700 employees.

NETHERLAND

DUTCH BANK PAYS HUGE FINE IN MONEY LAUNDERING CASE Dutch bank ING has paid €775 million to settle a huge money laundering case in the Netherlands.

The country’s financial prosecution service said in a statement that ING for years failed to adequately implement a law aimed at preventing money laundering and the financing of terrorism by not carrying out adequate background checks on clients and not sufficiently investigating suspicious transactions.

The prosecution service said that the bank “didn’t prevent accounts of ING clients in the Netherlands being used to launder hundreds of millions of euros (dollars) between 2010 and 2016.”

The settlement included a €675 million fine and a disgorgement payment of €100 million to the Dutch government that represented the amount ING did not spend on staff and procedures to implement anti-money laundering rules.

SLOVAKIA

JAGUAR LAND ROVER NEW PLANT The British carmaker Jaguar Land Rover will begin making cars in Nitra,Slovakia Jaguar Land Rover started building the factory almost exactly two years ago and today they are looking at a factory that is nearly finished, with the aim to start shipping cars to the customers at the end of the this year.

At present, Jaguar employs more than 1,300 people in Nitra, of whom 97 percent are Slovaks, and three quarters of them come from this region. Jaguar will make 150,000 cars per year in Nitra.

The plant should have about 2,800 employees by 2020.

LJUBIŠA VELJKOVIĆ, CEO OF MILENIJUM OSIGURANJE (INSURANCE)

LEONI

BECOME LARGEST INDUSTRIAL EMPLOYER IN SERBIA Leoni will create jobs and employ more than 10,000 people in Serbia once the new plant in Kraljevo is fully operational.

Leoni, a global provider of energy and data management solutions in the automotive sector and other industries, will open its fourth plant in Serbia in the city of Kraljevo, becoming the country’s largest industrial employer.

In early 2020, Serbia will be the only European country in the WSD network with four production facilities, which will almost double the number of their staff in the country.

Since setting up its business in Serbia in 2009, Leoni has invested approximately EUR 90 million. It is currently employing approximately 6,000 people and looking to increase the number to more than 10,000.

“We need a stable and predictable political and economic environment to continue to ensure the growth of our business here in Serbia”, said Martin Stüttem, Member of the Board of Directors of the Leoni Group and Head of Leoni WSD. GENERALI

INSURANCE OF MOBILE PHONE SCREEN - SMART PACKAGE Make a SMART move and secure your mobile phone screen against damage Your mobile phone has become your new best smart friend. You have fun with it, buy and photograph with it, communicate, keep memories on it. So it is no fun when the screen is damaged. Apart from disrupting the look and functionality of the phone, it can be quite expensive. Secure the mobile phone screen against damage and use it without a care.

YOUR BENEFITS • For the first time in Serbia, you have the ability to secure your mobile phone screen from damage • In the package you also get free on-call doctor service, organization of replacement driver and special services - all 24 hours a day CAREFREE USE OF YOUR MOBILE PHONE Protect your mobile phone from damage to the screen due to fracture, cracks or dents.

Conclude the insurance for one month, three months, six months or a year.

You have STANDARD and PREMIUM packages available.

HOW TO BUY THE SMART PACKAGE? You can purchase a mobile phone screen insurance through the Generali application or at Generali dealerships and services.

The Evolution of Insurance This year brings us the more intensive digitalisation of processes for most participants

U

sers can see external recognisability in the increasingly present online sales of most insurance companies, says Ljubiša Veljkovic, Chairman of the Executive Board of Milenijum Osiguranje, speaking to CorD.

Your results show that the Serbia market is slowly starting to understand the necessity for insurance. How do you see this trend?

If we were to look at major infrastructure projects, as well as insurance models, life insurance programmes, ever more present health insurance and variations in coverage, we would see that they are not lagging behind developed markets. Over the past two decades, the market has been in a transition process from an almost completely dominant corporate insurance segment towards retail and SME customers. Today experiences of this segment are also different, but there is certainly a lot more room at this level and that’s precisely where growth generators are seen in the coming years. An equilibrium of balance between these types of clients also ensures the industry’s adequate profitability.

What kind of innovations can we expect on the Serbian market?

This year brings us more intensive digitalisation. Users can see external recognisability in the increasingly present online sales of most insurance companies.

Our five-year development policy is reflected not only in product development, but rather primarily in the development of processes, personnel and sales infrastructure in the form of new branches and representative offices throughout the country, all with the aim of providing greater customer satisfaction.

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MILE TODOROVIĆ, CEO OF ATB SEVER D.O.O., SUBOTICA

Electric Motors And Generators For The Whole World In the year marking the 95th anniversary of its operations, Subotica-based ATB SEVER is opening a new chapter in its business

D

uring its rich history, company Sever has experienced numerous changes in ownership, organisation, programming, production and technology. Privatised in 2005, under the name ATB SEVER, it then became a member of the ATB Austria business system.

“Since 2008, ATB FOD d.o.o, a factory for the production of machinery equipment for mining and energy, has been operating under the ownership of ATB SEBER in the eastern Serbian city of Bor. “In 2011, ATB became part of large Chinese group WOLONGA, marking the start of a new phase in the development of factories in Serbia,” says CEO Mile Todorović in this interview for CorD. What changed at ATB SEVER and improved with the arrival of the new owner?

The arrival of China’s WOLONG group was a turning point and a springboard for our rapid growth. ATB SEVER and our Bor-based company ATB FOD ended last year with a 22 per cent higher turnover than in 2016, or with 24.7 million euros of total turnover, which is incredible growth.

Alongside the production of all types of electric motors and generators, what else is included in your production programme?

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We offer the very latest in complex technical solutions for electric motors and drives for various applications and energy sources. We’re also recognised as a supplier of complete electrical equipment and services for electrical engineering in mining, energy, black and non-ferrous metallurgy, industry and water management.

We manufacture and deliver electric motors that meet the most complex technical requirements of electric motor drives in nuclear and thermal power plants, surface mines of coal and copper, underground mines, refineries and rigs for oil and gas exploitation. We have production technologies that enable the operation of our products in the harshest and most extreme climatic regions.

We have production technologies that enable the operation of our products in the harshest and most extreme climatic regions

Which products would you identify as being the most important?

These are both low and high voltage electric motors, synchronous and asynchronous generators of low and high voltage, engineering works in the energy sector, surface mines, as well as regulated electric motor drives. We also receive requests for complete technical solutions. One example of that is the complete equipping of small hydro-electric power plants.

In the area of renewable energy sources, our company specialises in the modernisation of existing energy facilities, but also the construction of new ones. In the equipping of small

hydro-power plants up to 10 megawatts, we have begun producing both synchronous and asynchronous generators.

ATB SEVER isn’t only growing in terms of production operations, but also in terms of personnel.

What are your plans?

We started this year with 437 employees, while now we already have 465 at ATB SEVER and 227 employees at ATB FOD. The plan is to increase the number of employees. The specificity of our company is certainly our Engineering development department, within which we formed a special team of ten engineers last year who are exclusively engaged in development work, designing and constructing engines for WOLONG companies from Europe, but also increasing for the WOLONG group as a whole. It is clear that, alongside our production workforce, we also constantly employ a highly educated staff of electrical and mechanical engineers.

With the end of 2018 approaching, are you satisfied with the results achieved and what are your further plans?

This year will also be a year of growth for ATB SEVER. According to a decision of the WOLONG Group, three centres will be opened in Serbia for the production of parts for factories in Germany and the UK: the Centre for punching and packaging sheet metal packages; the Centre for the production of coils for both low and high voltage engines and the Centre for welded constructions and processing that we will form within ATB FOD. I’m generally satisfied with achievements during this year, as constant progress has been noticeable, but we expect a lot of work in the next year, because the owners’ expectations are high, both when it comes to the implementation of planned investments and increasing production capacities.

Innovative List

The Most Innovative Companies 2018 Most innovation rankings are popularity contests based on past performance or editorial whims. Forbes set out to create something very different with the World’s Most Innovative Companies list, using the wisdom of the crowd. Their method relies on investors’ ability to identify firms they expect to be innovative now and in the future

C

ompanies are ranked by their innovation premium: the difference between their market capitalization and the net present value of cash flows from existing businesses (based on

a proprietary algorithm from Credit Suisse HOLT). The difference between them is the bonus given by equity investors on the educated hunch that the company will continue to come up with profitable new growth.

To be included, firms need six years of public financial data and be among the world’s 500 largest publicly traded companies by market capitalization. Here are the first 10, out of 100 most innovative companies, according to Forbes list

COMPANY

INDUSTRY

VALUE/ Billion

ServiceNow

Software & Programmin

$31.6

US

Workday

Software & Programming

$29.3

US

Salesforce.com

Software & Programming

$97.0

US

Auto & Truck Manufacturers

$51.1

US

Amazon.com

Internet & Catalog Retail

$777.8

US

Netflix

Internet & Catalog Retail

$141.9

US

Incyte

Pharmaceuticals, Biotechnology & Life Sciences

$14.2

US

Household & Personal Products

$50.1

India

Naver

Computer Services

$22.1

South Korea

Facebook

Computer Services

$541.5

Tesla

Hindustan Unilever

COUNTRY

US

October

47

Enterpreneur NICOLAS BERGGRUEN

Homeless

Billionaire

Nicolas Berggruen (54) was born in Paris, went to boarding school in Switzerland, attended university in New York, and began his investing career in London. What followed was a legendary career in finance and a life spent primarily in hotel suites and aeroplanes around the world 48

October

Nicolas started out with a trust fund of $250,000 and is now worth over $2.3 billion.

He’s spent his life turning around companies in Europe, and has also put time and funds into improving things here state-side (he’s invested in public work efforts in Oregon and California).

Nowadays, the German and American dualcitizen travels the world in his private jet, lives out of hotels and has been dubbed the “homeless billionaire” by the press.

So, why would a billionaire choose to live in an apartment in a mid-century, high-rise tower block? The answer could be find as soon as you step through the front door of Nicolas Berggruen’s home on one of the upper floors of Sierra Towers, and take a moment to contemplate life, the universe and everything.

Floor-to-ceiling windows running the width of the palatial apartment create a view that serves up the whole of Los Angeles on one big, breathtaking platter — from the hills to the east and the green oasis that is Beverly Hills below to the clustered skyscrapers of Century and Culver Cities, and the sweep of Santa Monica bay with the shimmering Pacific Ocean beyond.

“The Peninsula was great,” Berggruen says of the five-star hotel that served as his former LA residence. “But it didn’t have a view.”

That Berggruen, who has made a fortune — almost $2bn, according to Forbes — investing mainly in real estate, should be interested in anything associated with settling down may come as a surprise: for years, he was known as the homeless billionaire, jetting around the globe in his Gulfstream while living and working out of the world’s finest hotels.

The son of Heinz Berggruen, the German art collector, and Bettina Moissi, a German actress, Berggruen grew up in Paris in a predominantly German-speaking household. He studied finance and international business at New York University.

His father then lent him $250,000 to kick-start his investing career, and made it clear he expected to be repaid.

In the past, Berggruen, who was known for his A-list parties at Davos and his annual Oscars bashes at LA’s Château Marmont Hotel, was often photographed in glitzy settings with even glitzier women hanging on his shoulder.

But the 56-year-old bachelor, who holds German and American citizenship, says that he

Mr Berggruen is an investor and art collector who was once known as the “homeless billionaire” because he lived in itinerant luxury in five-star hotels has finally decided to put down roots because he has entered a new chapter of his life. “It’s a rediscovery of the curiosity that I have always had for the world of ideas,” he says. “I took a long detour in business but I have come back to it.”

Two forces have been at work. The first is having children following the 2016 births (from the same egg donor and two surrogates) of Olympia and Alexander, biological sister and brother, who are barely three weeks apart.

“I felt the same hormonal need that I think a lot of women must experience,” he says of having children. “It was an urge to create life beyond one’s own but that is still connected.” He lives with his children and sees them every day, even taking them and their nanny on his numerous international business trips.

The second force is his Berggruen Institute, a think-tank he founded in 2010 with the mission to develop “new ideas to shape political, economic and social institutions in an era of Great Transformations”.

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Enterpreneur “We are totally independent, we can think very long term, and we can focus on key ideas that will improve humanity,” he says of the institute.

“We may never get there but we are willing to take the risk.”

The institute is young but its reputation is growing. Among its many activities, it puts up a $1m purse — similar to that of a Nobel Prize

— every year to somebody whose work in the area of philosophy and culture have “profoundly shaped human self-understanding”. Last month, the prize went to British-born philosopher Onora O’Neill. The Institute described her work as “a critical development of the Kantian tradition in ethics, in which she combines profound historical scholarship with a deep analysis of the central questions of moral life”.

In 2015, Berggruen’s institute, for which he has set aside $500m in funding, bought 447 acres of land in the Santa Monica mountains for a Scholars’ Campus. This “secular monastery”, as he describes it, is a startling Herzog & de Meuron-designed centre in which up to 50 visiting thinkers from around the world will be able to find the time and space to deepen their ideas.

With such lofty goals, why settle in LA, a city that is so often tagged as superficial, void of history or even a true centre? “New York is a very exciting, most dynamic city but it owns you,” he says. “Being in LA is about open space,

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not just physical but also mental. It’s more a state of mind than a city.” Besides, he says, “the American west coast is a place that has always been about the future. It is open to new ideas and is non-judgmental”.

Berggruen has occasionally been described as a Mick Jagger lookalike. On this particularly hot afternoon, he wears fitted black cotton trousers,

Today Berggruen is in talks to start Africa’s first regional commodities exchange with the East African Community—an organization of countries from Kenya to Burundi a slim black T-shirt and aviator-style Ray-Bans.

“I wear these because I suffer from migraines,” he explains, pointing at the black lenses.

Every year, the night before the Oscars, Berggruen throws a party in Los Angeles. Celebrities like Leonardo DiCaprio and Paris Hilton have been known to attend.

Looking around his home — he also owns a $40m mansion in LA’s Holmby Hills but has no plans to live there — gives glimpses into a

man with a hawk eye for detail and design, and a heightened passion for art.

The south-facing apartment is one long, open space with a huge living room at its centre.

Open-ended book shelves house hundreds of tomes. Several rows are taken up by books about China — a present, he says, from his friend David Tang, the bon vivant, luxury goods entrepreneur and Financial Times columnist, who died this year.

However, Berggruen stays at a hotel in California for several months of the year, and has recently been politically active in helping the near-bankrupt state. He’s promised to donate $20 million to back proposals that he Think Long Committee for California proposes for the state.

The committee is made up of high powered names such as Google CEO Eric Schmidt and former Secretary of State Condoleezza Rice.

The interest in art is perhaps unsurprising given his family background: his German-Jewish father was not only an important art collector but also a personal friend of Picasso when he eventually settled in Paris after fleeing Nazi Germany for the US. Olivier, Berggruen’s brother, is an influential New York-based art historian and curator.

On the eastern wing of the apartment, Berggruen has arranged a collection of 20th-century furniture, including a sofa and two armchairs upholstered in white, and a square wooden table and chairs designed by Pierre Jeanneret, cousin and collaborator of Le Corbusier. On top of the table sits the exquisite chess set that surrealist artist Man Ray designed between 1920 and 1924.

Berggruen owns other apartments in the Sierra Towers, and uses this floor for working, thinking, relaxing and occasionally inviting friends and guests. He prefers staff to prepare his meals elsewhere, as he does not like the smell of cooking. That may explain why the small galley-style kitchen, with its minimalist wooden cabinets and pristine work surfaces, looks more like a period art installation than a place for making dinner.

The modular arrangement is working well for this new chapter of his life, it seems. “I realised that living in a high-rise meant that I could add apartments,” he says. “I have created a house — a vertical home — within a building.”

Today Berggruen is in talks to start Africa’s first regional commodities exchange with the East African Community—an organization of countries from Kenya to Burundi.

Source: FT

PROFILE

Education Is Inheritance For The Future However it may sound today, I’m still an irreparable leftist. However, I don’t see that which I believe in on today’s political scene

NADA POPOVIĆ PERIŠIĆ, FOUNDER AND PROFESSOR OF THE FACULTY OF MEDIA AND COMMUNICATION

B

e strict towards self - I learned that in my early youth. That strictness implied that I don’t spend time wastefully, that I live a full life. It implied that I complete my studies of philosophy and literature, that I earned my doctorate. Due to circumstance, France became my first choice when it comes to my professional and scientific work.

My leftist leaning is partly a result of my family upbringing. However that sounds today, I’m still an irreparable leftist. However, I don’t see that which I believe in on today’s political scene. I think that the Left (whatever that term covers today) fell too quickly before the industrial and consumer order. Freedom of expression, the right to vote and representative institutions are conditions of democracy. But that’s just the starting point. Democracy also demands powerful trade unions, tax that’s proportional to revenue and government control over industry (socialisation of the means

of production.) I still believe that the idea of a world not abandoned to the appetites of private ownership is possible, a world of free associations and equality. As French philosopher Alain Badiou would say: Communism - what can philosophy think of under that name? The philosophical term, thus, eternal rebellious subjectivity.

Today I’m reading the book Memoroman, by my colleague and friend from my youth Aleksandar Petrov, in which he also wrote a story about how we defended the poet Gojko Đogo. I’ve long been aware of how much of a political risk it was to defend a poet convicted for poems (the collection of poems Woollen Times) that the authorities considered inappropriate for readers in 1981.

However, back then, when we wrote our peti-

I still believe that the idea of a world not abandoned to the appetites of private ownership is possible, a world of free associations and equality

tion in support of Đogo and authored articles against the decision of the government, for me it was implied that I was supposed to do that. Not out of any kind of act of courage, but out of intellectual duty. That would repeat itself in some other situations, so my behaviour, my decisions, in the testimonies

of others, would gain much greater significance than I see today.

My idea of the importance of the existence of the Left took me, after the Communist Alliance, to which I belonged, to the Socialist Party of Serbia, as the political framework of my social engagement.

That period was marked by my mandate as minister of culture in the Government of Serbia from 1994-1998. Today, after 20 years, I experience a very interesting forum in Belgrade which had a topic that was exactly the activity that I came up with at that time - Life’s more beautiful with culture!

My happiness is to forget bad things, so I’d rather remember that the budget for culture that I fought for back then has remained unsurpassed.

If everything I did in my career was somehow implied, I didn’t imply that I would establish the Faculty of Media and Communication, and that today, after more than ten years of its existence and very successful work, I would say that I have finally concluded my choice. That’s because education was at the base of everything I did, and when you erect an institution that offers the kind of system of education that I’d desired as a young person, then that’s actually the realisation of one’s own dream.

I’m sometimes sorry that I gave up o my career in science career, which would have implied that I’d have wrote more books and scientific works than I did, but I’m calmed by the thought that my last great endowment, the Faculty of Media and Communication, is the best inheritance I can leave behind for all future students and future professors. And to my children, Professor Aleksandra Perišić and son, editor Vladimir Perišić.

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Art/Exhibitions

Contemporary Art

Of Mongolia 52

October

Mongolia has a rich cultural and artistic tradition, which has been evolving from ancient times until today’s era of globalisation. Mongolian art is as rich and colourful as its nature, and as complex as its history

I

ERDENEBILEG.B: PEACEFULL EVENING

n the 20th century, Mongolian artworks had a strong influence from European art, as many Mongolians went to study in the finest art schools and universities in Russia and other Eastern European countries. They possessed styles and techniques of European art of last centuries, but combined unique elements of ancient art and historical and lifestyle themes. Nowadays realism, impressionism, expressionism, abstract and surrealism styles are dominant in Mongolian art. These artworks are produced mostly by artists, who are above 50 years old by now.

Mongolia’s capital city, Ulaanbaatar, has experienced sweeping changes in attitudes towards its arts and culture. From the celebrated religious artworks of monk and artist Zanabazar to the near destruction of Buddhist culture during the Communist purges of the 1930s, Ulaanbaatar is now steadily building a vibrant contemporary art scene that celebrates Mongolia’s long-standing cultural traditions, while encouraging modern art creation.

Teh economic transition period of the ‘90s had a severe impact on the cultural and artistic development of Mongolia, which nearly collapsed in the first decade, then very slowly recovering in the second decade. With the opening of Mongolia to democracy, many talented artists had a chance to travel abroad, exploring a completely new world previously closed to them. And they gained inspiration and new ideas for their

Mongolia’s capital city, Ulaanbaatar, has experienced sweeping changes in attitudes towards its arts and culture

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Art/Exhibitions

Numbers of Mongolian artists have successfully participated in international exhibitions and won prizes in notable international competitions artworks. Because of these opportunities, by the beginning of the 21st century, a new movement of contemporary art had appeared.

The strongest representatives of this movement are artists aged in their 30s. The themes of their artworks are very diverse, but differ from older generations. While older artists often reflect landscape, people, tradition and ancient history, the younger generation often reflect personal matters, and social, economic and political issues.

That is perhaps because they grew up during the harsh transition period, witnessing poverty, inequality and corruption on a daily basis.

The works of these young artists are compelling. Besides paintings and sculptures, they started using completely different mediums, such as photography, multimedia, sound, land art, performance, street art, graphic art, cal-

54

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By author

ligraphy, public art and others, many of which are already popular in the West. Their artworks are well perceived internationally, rather than in Mongolia. Numerous artists have successfully participated in international exhibitions and won prizes in notable international competitions. Because of their experimental, new look, most of their artworks are not well understood by most, and are therefore not supported well.

Many of these artists have no permanent studio.

It could be said that in 1989-1990, Mongolian contemporary art was set up by a number of open-minded young artists with their own artistic insights, apart from the social processes happening at that time. A joint exhibition of nine artists included historically significant works by the first contemporary artists, including G.Erdenebileg, Yo.DalkhOchir, B.Gansukh, S.Mashbat, S.Bayanmunkh, B.Vandan, Z.Usukhbayar and M.Khuyag-Ochir.

In June 2018 an exhibition dedicated to the 25th anniversary of the formation of curators in Mongolia was opened. Art researcher Ts.Uranchimeg is the first curator of Mongolia, who has been working to introduce curator’s work to Mongolia since 1993. She exhibited works of 15 Mongolian artists in U.S., Germany and Japan between 1993-1997 and launched an exhibition entitled ‘Curator and Artist’ in 2001, to promote curatorial activities with support from the Soros Foundation.

The Mongolia Contemporary Art Support Association (MCASA) is a non-governmental organisation established in 2012 with the aim of supporting and promoting contemporary art in Mongolia. The MCASA implements

strategically important projects to improve the competitive capacity of Mongolian artists in domestic and international platforms, through their involvement in various exhibitions and artistic collaborative projects and works to raise public awareness of social, environmental and political issues through art.

Started with very few funds and few numbers of staff, the association has been working ambitiously to fulfil its aim, utilising limited sources and bringing together people and organisations who shared their enthusiasm for the support of contemporary art in Mongolia.

Over the last five years, MCASA has been able to collaborate with the Ministry of Culture, Sports and Tourism, Ministry of Foreign Affairs, Ulaanbaatar City Government and the Culture Development Fund.

In 2015 and 2017, MCASA organised Mongolia’s participation in the Venice Art Beinnale and collaborated with Documenta 14 and Asia Pacific Triennial 8 to involve Mongolian artists in these well-known exhibitions for the first time.

A Mongolian delegation attended the opening of the Venice Art Biennale 2015. In collaboration with 976 Art Gallery, MCASA organised over 90 exhibitions, performances and public discussions, becoming an “art incubator”, as a space for both artists and the audience; offered different artistic expressions to the public, making fundamental contributions to city life.

The art for public awareness series have become signature projects of the MCASA and 976 Art Gallery, each time attracting over 3,000 visitors and reaching over 300,000 people through various media channels.

It could be said that In 1989-1990, Mongolian contemporary art was set up by number of open minded young artists with their own artistic insights apart from the social processes happening at that times

STREET ART

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&FACES PLACES 4/9/2018

Amcham And Minister Siniša Mali: Progress In Public Finance

In the focus of talks with Minister of Finance Siniša Mali, were topics of importance for the further improvement of the business environment, such as the direction of fiscal and financial reforms.

Speaking about stimulating sustainable economic growth and preserving budget stability, Minister of Finance Siniša Mali emphasised that the priorities of the ministry in the coming period will be transformation and modernisation of Tax Administration, as well as the adoption of stimulating measures packages that will further accelerate the growth of the economy.

Jelena Pavlović, President of AmCham, pointed out that the process of reforming parafiscal levies has not been completed and she hopes that this systemic reform, which the previous three Ministers of Finance have started or continued, will finally be completed.

In addition to parafiscal levies and systemic reform of public procurement, according to AmCham’s research on business climate and investor’s confidence, the predictability of changes in tax regulations is a key challenge for AmCham members, but also for micro, small and start-up companies.

VLADIMIR NOVAKOVIĆ

6/9/2018

The Annual Gathering Of NALED Members

JELENA PAVLOVIĆ AND SINIŠA MALI

SINIŠA MALI

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October

At the traditional September meeting of the members and partners of the National Alliance for Local Economic Development (NALED), the alliance announced that it would continue to achieve even better results in the struggle to improve the business environment in the coming years with its 300 dedicated members and the same number of partners.

The new chairman of NALED Managing Board and general manager of Apatin Brewery Vladimir Novaković said at a formal reception in the Royal Court that NALED, since it was established 12 years ago with the support of USAID, had initiated and directly participated in the organisation of many key reforms to improve the business environment.

USAID Mission Director Michael La Rosa congratulated Novaković on his election as the new president of the NALED Managing Board, arguing that this alliance has greatly contributed to the improvement of the business environment in Serbia.

Among other guests, the event was attended by a large number of officials from business, local government, civil society, state institutions and the diplomatic corps.

SEE MORE: WWW.CORDMAGAZINE.COM

AMBASSADOR ISABEL CRISTINA DE AZEVEDO HEYVAERT

AMBASSADOR AZEVEDO HEYVAERT WITH A SPOUSE AND AMBASSADOR OANA CRISTINA POPA

7/9/2018

Independence Day Of Brazil Marked

The Ambassador of the Federative Republic of Brazil to Serbia, H.E. Isabel Cristina de Azevedo Heyvaert, hosted an official reception at the City Hall in honour of the celebration of the 196th Anniversary of the Declaration of the Independence of Brazil.

More than 300 guests attended the reception, marked by the presence of Serbian government members, representatives of the diplomatic corps, business and civil society, the Brazilian community in Serbia et al.

The Brazilian Ambassador gave a welcome speech in which she highlighted the traditionally good relations between Brazil and Serbia, reinforced by fruitful cooperation in both the main multilateral and bilateral fields.

AMBASSADOR MONDOLONI

SIMONA MICULESCU AND ANDREA ORIZIO

13/9/2018

Reception At The French Embassy In Honour Of The October Salon

AMBASSADOR HENK VAN DEN DOOL, AMBASSADOR PHILIPPE GUEX WITH A SPOUSE

French ambassador to Serbia H.E. Frédéric Mondoloni organised a reception in honour of the forthcoming October Salon, and on that occasion, he pointed out that this manifestation contributes to the significant role of Serbia in the international art scene, and added France is particularly pleased to contribute to this year.

“I am honoured to have the opportunity to host artists from all over the world and to contribute to the October Salon,” Ambassador Mondoloni said in his address to the officials.

Pointing out that this year’s edition of this event celebrates diversity as “the wonder of cacophony” and the openness of the world to a different one, Mondoloni said that France with its “genetic code” and culture helps artists to realise their identity and sensibility.

“This is a testimony to the scholarship awarded each year to young Serbian artists who play an important role in the dynamics of relations between Serbia and France,” he said, adding that the French Embassy has good cooperation with many art galleries in Serbia.

Many guests from the world of art, especially fine arts, diplomacy and the cultural scene of the city attended the reception.

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SEE MORE: WWW.CORDMAGAZINE.COM

&FACES PLACES 19/9/2018

Talks On France-Serbia Relations With Ambassador

Members of the French-Serbian Chamber of Commerce (CCFS) had the opportunity to exchanges views on the French-Serbian relations with the French Ambassador to Serbia H.E. Frédéric Mondoloni during the working breakfast. At the event held at ambassadorial Residence, ambassador Mondoloni addressed the attendees and said that this year was successful, as confirmed by the France-Balkans Business Forum held in Belgrade in May, and Movement of the Enterprises of France (MEDEF) delegation visit at the end of June. The ambassador announced that it is certain that French President Emmanuel Macron will visit Serbia by the end of the year.

The President of the French-Serbian Chamber of Commerce Dragoljub Damjanović thanked Ambassador Mondoloni for his support, which allows the Chamber to gain more visibility and credibility. He also said that more French companies would enter the Serbian market in the following months.

DRAGOLJUB DAMJANOVIĆ, AMBASSADOR MONDOLONI, SANJA IVANIĆ

26/9/2018

Signing Ceremony At The Embassy Of Japan

PRINCE ALEXANDER, PRINCESS KATHERINE WITH MEMBERS OF DIPLOMATIC COMMUNITY

19/9/2018

International Cuisine Dinner At The White Palace

HRH Crown Prince Alexander and Crown Princess Katherine held a dinner of international cuisine for representatives of the diplomatic corps in the White Palace on Dedinje.

Traditionally, members of diplomatic missions presented their national dishes and drinks as well as culinary customs specific to the regions from which they come.

Many distinguished guests attended the event, including Ambassador of Austria H.E. Nikolaus Lutterotti, Ambassador of Brazil H.E. Isabel Cristina de Azevedo Heyvaert, Ambassador of Canada H.E. Kati Csaba, Ambassador of the European Commission to Serbia H.E. Sam Fabrizi, Ambassador of the Czech Republic H.E. Tomas Kuhta, Ambassador of Sweden H.E. Jan Lundin, Ambassador of Bosnia and Herzegovina H.E. Lazar Mirkić, Ambassador of Bulgaria H.E. Radko Vlaykov, Ambassador of Morocco H.E. Muhammad Amin Belhaj, Ambassador Cuba H.E. Gustavo Trista del Todo, Ambassador of Egypt H.E. Amr Aljowaily, Ambassador of India H.E. Subrata Batachardzhi.

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Tecuja Cubota, the adviser at the embassy of Japan, and director of JKP “Osečina”, Nikola Tomić signed the agreement on the provision of funds at the Embassy of Japan in Serbia. Serbian Minister of Environmental Protection Goran Trivan and Mayor of Osečina, Dragan Aleksić, attended the signing ceremony.

The Government of Japan will provide 72,700 euros for JKP “Osečina” for proTECUJA CUBOTA AND NIKOLA TOMIĆ curement of waste trucks and 30 containers.

It was noted that since 1999, Japan has directly assisted local government projects, NGOs, hospitals and schools in Serbia, and participated in the implementation of 220 projects. Tecuja Cubota said that the total amount of Japanese assistance through projects for basic needs of the population in Serbia since 1999 amounted to more than 13.4 million euros, including the total amount of Japanese aid to Serbia during the same period exceeding 507 million euros.

New research

Identifying Extremists Online New research has found a way to identify extremists, such as those associated with the terrorist group ISIS, by monitoring their social media accounts, and can identify them even before they post threatening content

T

he research, “Finding Extremists in Online Social Networks,” which was recently published in the INFORMS journal Operations Research, was conducted by Tauhid Zaman of the Massachusetts Institute of Technology; Lieutenant Colonel Christopher E. Marks, U.S. Army; and Jytte Klausen of Brandeis University The number and size of online extremist groups using social networks to harass users, recruit new members, and incite violence is rapidly increasing. While social media platforms are working to combat this (in 2016, Twitter reported it had shut down 360,000 ISIS accounts) they traditionally rely heavily on users’ reports to identify these accounts.

In addition, once an account has been suspended, there is little that can be done to prevent a user from opening up a new account, or multiple accounts.

“Social media has become a powerful platform for extremist groups, ranging from ISIS to white nationalist “alt-right” groups,” said Zaman. “These groups use social networks to spread hateful propaganda and incite violence and terror attacks, making them a threat to the general public.”

The researchers collected Twitter data from approximately 5,000 “seed” users who were either known ISIS members or who were connected to many known ISIS members as friends or followers.

They obtained their names through news stories,

blogs, and reports released by law enforcement agencies and think tanks.

In addition to reviewing the content of 4.8 million tweets from these users’ timelines (including text, links, hash tags, and mentions), they also tracked account suspensions, as well as any suspensions of their friends and followers accounts.

For the purpose of this study, the researchers focused on the account networks forged by known

Social media has become a powerful platform for extremist groups, ranging from ISIS to white nationalist “alt-right” groups

ISIS and Al Qaeda sympathisers and known foreign fighters and content that had been flagged

by Twitter as terrorist in nature.

Using statistical modeling of extremist behavior with optimised search policies and actual ISIS user data, the researchers developed a method to predict new extremist users, identify if more than one account belongs to the same user, as

well as predict network connections of suspended extremist users who start a new account.

In addition, by tracking and comparing data on screen names, user name, profile images and banner images, the researchers were also able to identify 70 per cent of additional Twitter profiles held by extremist users, with only a two per cent incidence of misclassifying profiles.

“We created a new set of operational capabilities to deal with the threat posed by online extremists in social networks,” said Marks. “We are able to predict who is an extremist before they post any content, and then able to predict where they will re-enter the network after they are suspended. In short, we can automatically figure out who is an extremist and keep them of the social network.”

While the study was conducted using data from accounts belonging to ISIS extremists on Twitter, their methodology can be applied to any extremist group and any social network.

“Users that engage in some form of online extremism or harassment will have very similar behavioral characteristics in social networks,” said Klausen. “They will connect to a specific set of users which form their extremist group. They will create new accounts which will resemble their old accounts after being suspended, and when the return to the social network following a suspension, there is a high probability they will reconnect with certain former friends.”

October

59

My life

Stevo Todorčević, Mathematician

LIVE FOR THE SPARK OF DISCOVERY Stevo Todorčević (born Mrkonjić Grad, 1955) is reputed to be one of the world’s greatest authorities in some areas of mathematics.

He graduated in mathematics at the University of Belgrade back in 1977, earning his master’s degree in 1978 and his doctorate in 1979. He became a member of the Serbian Academy of Science and the Arts in 1991, and a member of the Royal Society of Canada in 2016. He has led themed mathematics programmes at the Mittag-Leffler Institute in Stockholm (2000), Toronto’s Fields Institute (2002 and 2012) and the Centre de Recerca Matematica in Barcelona (2003-2004), as well as leading scientific projects in the United States, Canada and France 60

October

By Miroslava Nešić Bikić

T

odorčević has had, or still has, installations at prestigious world institutions, such as, for example, the University of California in Berkeley, the Princeton Institute for Advanced Study, CNRS in Paris and University of Toronto.

When he was inducted into the Serbian house of immortals at the age of 36, the explanation wrote: “He solved several key mathematics problems that had waited several decades for a solution and provided procedures for work in several fields of mathematics, which bear his name. We can conclude with certainty that Stevo Todorčević is our mathematician who has been appreciated and valued the most by world mathematics.”

Paul Erdős, one of the most highly-rated mathematicians of the 20th century, wrote about one result of Todorčević’s work (published in journal Acta Mathematica in 1987): “This is certainly one of the unexpected and sensational results”.

On the basis of the citation for an award received by Todorčević in 2012, we see that his contributions include solutions to a number of longstanding open problems in various fields of mathematics, such as the problem of S-spaces and Katetov’s problem in topology, the von Neumann and Maharam Problems regarding measure algebra, the Davis-Johnson’s problem from functional analysis etc. He has also been attributed with research work methods in mathematics, such as the Method of Minimal Walks or the side condition method in forcing design. He is also responsible for the correspondence (KPT correspondence) between topological dynamics and the structural Ramsey theory.

Todorčević and his associate Dilip Raghavan have just solved another problem in mathematics that had remained open for more than 50 years and will be published very soon. “And it was solved here in Serbia, while walking with my son Marko around Kalemegdan” - says Todorčević with a smile and unconcealed delight, turning his look towards his wife, Vesna, who is also a mathematician and professor. Thanks to this turnaround at the beginning of our conversation, it became quite clear that Stevo Todorčević is a happy man. Our story of a great scientist – a story of love, passion, enormous sacrifice, and unselfish giving - could begin...

Responding to comparisons with Mihajlo Pupin, Milutin Milanković and Mihailo Petrović Alas, he said briefly, “please don’t”. And we left it at that.

We didn’t talk about recognition, awards or titles either, because Todorčević is “just a mathematician”.

There’s no fascination with money or some other rewards that can be compared to that experience of joy, that spark

TODORČEVIĆ COUPLE “I think that of crucial importance to my scientific career was actually my open approach to mathematics. Given that back in the then Yugoslavia of 1979 I was unable to find an appropriate mentor, at the recommendation of English mathematician Keith Devlin (who was a member of my doctoral commission, at the suggestion of Professor Đuro Kurepa) I decided to go to Jerusalem and attend the lectures of Professor Saharon Shelah on proper forcing.

“I didn’t collaborate personally with Shelah, but I sat through his lectures. However, he knew that I was among the listeners, so I presume that it was because of me that he lectured in English, instead of in Hebrew. And, what is most important, he wrote everything on the board. That was very rare at that time, and is even more so today. And that was of great help to me, because I didn’t know English well enough. It was then that I learned a method that would later prove useful to me.

“Another important mathematician in my life was James Baumgartner, who worked at Dartmouth College in New England. He noticed that I had some talent, whatever that meant at the time, so he invited me to spend six very productive months there, where I solved two major open problems. That progress was initiated with a letter from Frederick William Galvin, sent from Budapest on 2nd November 1980, in which the most important problems of one area of mathematics were described on 22 pages. However, it took me

four years to solve the most important problem on that list, with a solution about which Paul Erdős himself even expressed great jubilation.

“Richard Laver is another mathematician who was very important for me. It was from him that I learned something which is incalculably important – persistence. How not to give up and to extend further when there is no success after a year or two or three, when you are passing through a tormenting crisis.”

How does one find inspiration in mathematics; what’s the feeling like when you realise you’ve solved an enduring problem, that you’ve discovered something for which science will be grateful?

“That’s something that almost nobody knows.

If mathematicians knew how and what to do to gain inspiration, then there wouldn’t even be any mathematicians. It seems to me that it’s about a great desire to know something, to learn, to search for the unknown.

“That’s a psychological thing and is set largely in the vocation of mentoring. A mentor (or oneself ) must recognise when a student (or oneself ) should stop, to cease with attempts, and where to direct themselves. During a certain period, our chances of solving a problem grow, but the moment comes when those chances fall away and it is then that a risky phase emerges.

“I also had such moments, when a problem started to torment me, when nothing went my way. And then, in one instant, I would grasp where my mistake was, but I couldn’t formulate it in the right way. That’s because in order to reach the solution to a problem you need to create a system (a trap when it comes to hunting) – why something should coincide.

“I believe that the majority of mathematicians deal in maths precisely because of that - because of the spark that they experience when they reach the desired result. There’s no fascination with money or some other rewards that can be compared to that experience of joy, that spark.

“Joy is also experienced when you are

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61

My life

Stevo Todorčević, Mathematician

introduced to an open problem and the connections that solving it could bring. That rapture is one of the most important factors of success, because without it our chances are small. It gives us strength in the process of solving that open problem. Children have that. I saw and realised that while watching my son Marko. He would play and become interested in something, and when noticing something more interesting he would suddenly leap, going to a completely different place and involving himself in some new thing with absolute attention as if he hadn’t previously been in some other game!

The satisfaction shown by Todorčević through observations of his son returns our interlocutor to his own childhood, his youth and student days...

That part of my life, from primary school in Ubovića Brdo and Banatsko Novo Selo, to high school in Pančevo, was very important for my upbringing, because it was there that I met people from whom I learned.

Those were my teachers of physics, music and fine art in Banatsko Novo Selo, and professors of physics and art in Pančevo. They taught me that schooling is not just for the sake of learning known facts, but also because of revealing that something new exists, something that needs to be discovered.

It’s important to have someone like that during your schooling, especially at the beginning; someone who conveys their knowledge with such selflessness and joy or, if you want, love for some field.

One such professor at the university was Professor Kurepa, an excellent pedagogue who delighted in the successes of his students. During my studies I engaged less in exams, because I mainly read mathematical literature that I could access and scientific works that had nothing to do with exams. The college couldn’t satisfy all my interests.

Studies and exams aren’t tailored to those seeking deeper knowledge. I would say that one of major shortcomings of our education also lies in that.

Our colleges aren’t sufficiently adapted to those who want to deal with science.”

Todorčević headed out into the world at a time when that it wasn’t a trend. He went in search of knowledge and was very courageous in doing so. He today attributes that to youth that has no hesitation towards confronting the fears of the unknown.

“I went to Jerusalem at the suggestion of Keith Devlin, at my own expense. My master’s thesis that solved Blumberg’s problem (Andrew Blumberg) interested Canadians from the the University of Toronto. I had great difficulty obtaining a visa for

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Studies and exams aren’t tailored to those seeking deeper knowledge. And that’s one of the major shortcomings of our education Canada. It seems to me that this was the crucial period of my life. If I hadn’t succeeded in going to Canada, I would have had to return. However, by some miracle, good fortunate, I don’t know myself how, I happened to cross several European borders and even the American border without visas or tickets for return flights. That sounds unbelievable, and it really was unbelievable. I only had a Canadian visa and nothing else.

“That workshop in Toronto gave me the opportunity and enough time to solve a new problem, to get into the problems of some other areas.

According to his wife, Vesna, “Stevo was a scientist-nomad. He always had to prove himself throughout his life, in order for others to realise how much they actually needed him. He received calls from one university to another and that’s why he had to be quick and successful, because he otherwise would have had to return…”

“That was the very beginning,” adds Stevo,

quite brave and typical for young people... “and I transfer that experience of mine to my students – to be ambitious and persistent, without calculations. That represents a breakthrough in life.”

Asked what is implied by contemporary mathematics, whether mathematics consists of different fields or is a unified science, whether its areas are strictly divided or overlapping, Todorčević says: “Both one and the other must exist – fields must be developed but must also be connected. In order to solve some problem, a mathematician must find ideas somewhere, so that repository of ideas must exist in order for mathematics to advance.

This also applies when it comes to the application of mathematics. For instance, today we have a lot of mathematical applications in informatics (Computer Science), and we know that the theoretical part of computer science separated from mathematics about 50, 60 years ago. So there is no surprise today when some mathematician returns to the roots of mathematics in an attempt to solve some open problem from Computer Science. This actually happens often.

“There are times when you’re in the mode of solving open problems and times when you’re in the mode of overviewing mathematics from a broader perspective. It seems to me that that’s also an issue of energy. For each solution to a difficult problem you invest huge energy that gives you a new picture of mathematics, which you are the only one who is able to see at that moment, so little else interests you then, not even publishing your work on that

By Miroslava Nešić Bikić

solution. That’s usually how it happens.

“That’s precisely what happened to me when I was working at Berkeley and Princeton. I solved some major problem that everyone expected me to publish immediately. But I wasn’t interested in that at all. And that was possible at that time, while today the system has changed and universities force us to publish our works. If you want a job at a prestigious university today and accept such a job, you are also obliged to help improve the reputation of that university by publishing important results. From 1980 to 1986 all my works were in handwritten manuscript form and were only later published.”

The intensive expansion of mathematics; its unceasing growth through the circle of users – from natural and social sciences, via the arts, medicine, economics and finance, to social networks – precisely through mathematics unites the so-called “economics of thinking” and numerous syntheses. Where is mathematics in this common thinking process and is mathematics an essential tool in many scientific fields?

“Exactly that. And it shouldn’t only be a tool of mathematicians, but rather some kind of literacy. Mathematical literacy is needed so that a person can properly approach not only mathematical problems. The mathematical way of thinking, mathematics, isn’t just a natural science, rather it naturally imposes itself in many areas of creativity.”

The last century was the golden age of modern mathematics. Many open problems that had existed for 100, 200 and 300 years received solutions.

In the 20th century mathematics reached maturity and depth. Solutions to many of these problems were reached through the development of areas which seemingly, at first glance, share nothing with the topics to which these problems relate. This maturity is also based on the finding that there are limits to certain mathematical ideas and that new ones are needed.

The field of Set Theory launched Stevo into the world of mathematics and, as he says, enriched his way of thinking enormously.

“That’s a kind of language that’s always been useful for me... In mathematics you initially don’t even know the area in which you will specialise.

You start in one area and end up in a completely different one. In most cases today it is the mentor that determines the area that you will be interested in initially.”

And so we arrive at another of Todorčević’s great passions that he also favours and which ranks him at the very top of world science: mentoring.

In order to solve some problem, a mathematician must grab ideas, they must nurture that repository of mathematical ideas in order for mathematics to advance and be applied

“Mentoring is a highly demanding job, because it requires the exertion of enormous energy. Just one student is too much, not to mention two or more. If you take mentoring seriously, it occupies you completely and can be terribly exhausting. That’s because you have a student coming to you who has been attempting, sometimes for years, to discover something, confronting enormous difficulties, and who is unable to explain those difficulties to you. On the basis of that contact with the student alone, the mentor has to recognise these obstacles, to evaluate them correctly and suggest the next step.”

Todorčević is considered one of the most beloved mentors at the universities where he lectures. As much as the students love him, he returns no less love to them. Vesna notes that although Stevo is currently in Belgrade, he actually spends all his time with his students. How is this connection so highly valued and most often crucial in the success of a scientist?

- Students probably feel like they couldn’t succeed if there was no mentor. On the other hand, the mentor is very pleased to see a new researcher arrive on the scene. From a mentor’s perspective, it’s also very important to teach a student to think in a certain way. When I see that a student has accepted a certain way of thinking, I’m then sure that he or she will be a successful researcher. The mentor must have a correct vision of the mathematical field in question, a vision that he should transfer selflessly and enthusiastically to students.”

The best professors are, as a rule, those who are surpassed by their students.

“That’s correct! That’s also how it should be, because otherwise there’s no progress. One such student, for example, was Justin Tatch Moore, who accepted one of my ways of thinking and made something much better of it.”

Speaking about the place of theoretical mathematics in the IT industry, artificial intelligence and how our future will look, Todorčević says: “Whether or not artificial intelligence will become dominant in relation to the human brain is a philosophical question. I think that most mathematicians will tell you that that’s not possible.

It’s not clear to me how artificial intelligence will succeed in nurturing a repository of ideas, ordering them into a series and how a machine will, at a certain juncture, select the precise idea that will work. That seems impossible to me, but artificial intelligence will undoubtedly play an important role in the future development of mathematics.”

As an educator with vast experience, we asked what his message would be for the many talented young mathematicians that Serbia has.

- First and foremost, to be ambitious and unrestricted, and to familiarise themselves with as many different areas of mathematics as possible, in order to be able to recognise what suits them the most. It is also absolutely essential to communicate with mathematicians who are experts in different fields. Of course, this precedes the acquisition of knowledge, but also the willingness to communicate liberated from vanity. I’m always delighted by mathematicians who are able to return to childhood and go back to school benches in other fields of mathematics; when top mathematicians who are very successful in one area listen to lectures from other fields like schoolchildren, with enormous enthusiasm and joy. Those types always managed to also become successful in these new fields!

October

63

CHILL OUT

INDIA

Ganesh Chaturthi Festival 2018

JAPAN

For Death-Wish Thrill Seekers: Fuji-Q Highland Visitors readying to flock to Tokyo for the 2020 Olympics can expect a dizzying array of services in Japan where quirky, futuristic gadgets and everyday conveniences ease people’s passage through the stresses of daily life. Sitting in the shadow of Mount Fuji, Fuji-Q Highland is a gift from the roller-coaster gods.

It is a place of pure thrills, with stomach-churning rides set against stunning mountain views. It’s got a roller coaster with a 121-degree angle drop (the steepest in the world), a “4th Dimension” one with seats that spin riders independent of the track (it also holds the joint world record for most times it turns riders upside down), and another with the highest acceleration at launch (32.1 metres per second squared).

This spectacular festival honors the birth of the beloved Hindu elephant-headed god, Lord Ganesha, popularly worshiped for his ability to remove obstacles and bring good fortune.

The spectacular 11 day Ganesh Chaturthi festival (13 – 23 September) honors the birth of the beloved Hindu elephant-headed god, Lord Ganesha. The start of the festival sees huge, elaborately crafted statutes of Ganesha installed in homes and podiums, which have been especially constructed and beautifully decorated. At the end of the festival, the statutes are paraded through the streets, accompanied by much singing and dancing, and then submerged in the ocean.

One of the best places to experience the festival is in the city of Mumbai. Celebrations take place in a special way at the towering Siddhivinayak temple, located in the central suburb of Prabhadevi, which is dedicated to Lord Ganesha. Around 10,000 statues of Lord Ganesh are displayed at various locations in the city.

RUSSIA

Grand Opening Of The Garbage Cans

The head of the administration of the Teresovskoye rural settlement, Vyshnevolotsky district, Tver region, Russia, Yuri Simanov not only has a complicated job title, but he also attends very important events. For example, recently he solemnly opened a garbage container site. The ceremony had a celebratory atmosphere, and even the festive ribbon was cut.

UNITED ARAB EMIRATES

CONGO

World’s largest jigsaw puzzle created

The Democratic Republic of the Congo’s misfortunes have often eclipsed its good news, with ongoing armed conflicts and most recently an Ebola outbreak. Much of the world knows little of the country’s vibrant arts scene, and last weekend in the capital, Kinshasa, models showed off daring new looks dreamed up by local designers on the catwalk The main organiser of Congo fashion week, Nancy Kondo, said: ‘We’re using fashion to change people’s mindsets. Congolese people are the frontrunners of African fashion. We have so much talent here. The event allows us to get people talking about something else, instead of focusing on the negative’

The United Arab Emirates announced it obtained a Guinness World Records title by creating a 12,000-piece jigsaw puzzle.

The Dubai Multi Commodities Center, the government’s authority on commodities trade and enterprise, announced it broke a Guinness record by creating the 1.5acre jigsaw puzzle in the image of UAE founding father Sheikh Zayed bin Sultan Al Nayhan. In celebration of the Year Of Zayed, a wooden jigsaw of over 12,000 pieces has been created featuring the official logo of the initiative.

The previous record for the world’s largest jigsaw puzzle according to the Guinness World Records is measured at 5,428.8 square metres.

Congo fashion week

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October

NETHERLANDS

Village of Marken

The little village of Marken is known for being one of the prettiest spots in the Netherlands, particularly thanks to its strategic location on the Ijsselmeer Lake.

Crowds of visitors flock to the town every year to take in its picturepostcard worthy attractions such as traditional painted wooden houses as well as fishing boats.

In the summer months there are festivals held here where the residents dress in period garb and you can see traditional crafts like clog making taking place.

UITED KINGDOM

The Largest Knitting Needles Wiltshire-based artist Elizabeth Bond (31), otherwise known as Betsy, is an art student from Wiltshire (UK), 31, decided to attract attention to her exhibitions by creating the world’s longest knitting needles. They measure 4.4 metres in length and have a diameter of 9.01cm. She holds the Guinness World Records 2019 for largest knitting needles Elizabeth says she is proud to show exactly what art students can accomplish. “Everybody has potential if you just keep striving and pushing forward,” she says. Betsy’s love of creating things started at a young age, and was sparked by her mum’s DIY home art projects.

“I always had a drive to be creative, and design and make. That was from mum constantly encouraging us with left-over loo roll tubes and empty washing up bottles to create and build!”

SPAIN

The bullfighting class of 2018

Dozens of boys want to be matadors nowadays and are pouring into specialized academies to learn how to survive in the arena.

Las Ventas has been home to Spain’s most revered matadors. Now, for €20 a month coupled with unequivocal commitment, a youngster of either sex can be schooled in the technique of simulated bullfighting until ready to take on young steers. Once they have graduated to the real thing, other costs come into play, such as €300 for capes and over €1,000 for swords, not to mention the cost of a small-scale bullfight, known as novillada. One might think that in this era of screens and devices, there would be few takers. But, as early 20th century bullfighter El Gallo, otherwise known as Rafael Gómez Ortega, might say, there are people for everything.

RUSSIA

Exporting Live Frogs To China Russia plans to export live frogs to China for eating purposes, the Russian agriculture safety watchdog (Rosselkhoznadzor) said. In line with China’s demands, the Russian agency has drafted a veterinary certificate for edible live frogs exported from Russia. “Live frogs are recognized as safe for human consumption,” the document says. The demands say that the frogs should be supplied from verified enterprises and should be examined before their transportation to ensure that they neither show signs of weakening nor have any injuries. Moreover, live frogs should be kept in the regions and farms, which are not contaminated with infectious animal diseases. They should meet safety requirements and do not contain any residual substances, pollutants or medicines.

Containers and packaging should be compliant with sanitary requirements, while a vehicle should be disinfected properly prior to transportation in line with the requirements adopted in Russia.

October

65

Something

IN BETWEEN

The autumnal fashion of October is always “something in between”. Sometimes just in a sweater or jacket, sometimes in an overcoat, and often with a hat or cap on the head. Be prepared for beautiful autumn days, but don't let a little wind or rain spoil one of the most beautiful seasons for you.

Reiss Giselle Ink Print Top

This piece offers a striking feminine feel. It features cuffed sleeves, and is cut to fall just below the hips. €150

Hobbs Robyn Contrast Stripe Blazer, Black/Ivory

Gina Bacconi Skylar Wavy Print Dress

With a contrast stripe for a unique update on the usual blazer, this number is dainty and professional. €189

An ideal outfit for a special occasion. €167

Phase Eight Luna Tie Jumpsuit

This piece is perfect for special occasions and evenings out. €110

Boden Rosmnd Stiletto Kitten Court Shoes, Navy/Ivory Dogtooth

This design is all three in one, with refined brogue detailing, a vintageinspired heel and a sophisticated pointed toe. €123

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Hobbs Leather Crocodile Oxford Tote Bag, Red

Roomy and elegant in equal measure. €255

PAUL SMITH Mayfair wool fedora hat

Instantly grabs the eye; it is wrapped with a grosgrain band, and fashioned from pure wool. €87

CANALI Shell-twill trench coat

Tailored to perfection so it’ll sit seamlessly over a neat two-piece suit. €901

ETON Geometric print silk scarf

This lightweight scarf boasts a streamlined rectangular silhouette fitted with rolled edges and adorned in a tonal geometric pattern for a unique finish. €102

John Lewis British Wool Multi Check Tailored Blazer

Crafted from British wool in a handsome check weave, this blazer will add some traditional distinction to your look. €195

Ted Baker Doverrw Sterling Check Tailored, Charcoal Waistcoat

Inspired by traditional tailoring with a touch of English eccentricity, this waistcoat is crafted from pure wool in a subtle yet distinguished check weave. €144

PRADA Mesh-detail leather Oxford brogues

Expertly crafted from calf leather with classic perforations, the two-toned design is injected with athleisure-cool by way of its mesh insert and moulded rubber sole. €682

Polo Ralph Lauren Half Zip Textured Jumper A failsafe fashion staple for the wardrobe of any active gentleman. €151

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67

Culture

5th Belgrade SAXperience

calendar

2-12

Moscow Monastery Choir

Jason Derulo 20 – Sava Center – 20.00 The rise of the Sretensky Choir, which revives the ancient Byzantine-Russian choral tradition, is called holy awe and genuine prayerful feeling.

The choir of the Sretensky Monastery has performed in the Kremlin many times in front of foreign delegations and guests of the President of the Russian Federation. Since 2005, the choir has become the main choir that follows the services of His Holiness the Patriarch and his pastoral visit to the Russian Orthodox Church Diocese of Russia and abroad. After the stagnation of choral activities outside the monastery, especially during the reign of Stalin, the choir was rebuilt in 1994, following the blessing of the igumen monastery, Tikhon Shevkunov.

28 – Štark Arena – 20.00 Jason Derulo is a multiplatinum powerhouse whose current hit “Swalla” has over 300 million views on YouTube.

With 102 million-plus single equivalent sales worldwide both his introductory breakout “Watcha Say” and “Talk Dirty” [feat. 2 Chainz] reached quadruple-platinum status, while “Want To Want Me” and “Ridin’ Solo” went triple-platinum, and “Trumpets,” “Wiggle” [feat. Snoop Dogg], and “In My Head” earned double-platinum certifications.

Platinum singles include “Marry Me,” “The Other Side,” and “It Girl,” while “Get Ugly” and “Don’t Wanna Go Home” went gold. Cumulative streams continue to soar, exceeding 6.3 billion and YouTube views surpass 4 billion.

34th Belgrade Jazz Festival 25-29 - Belgrade Youth Center

This year Belgrade Jazz Festival bar is set even higher than previous years higher because jazz itself went much further up – in the 21st century, it goes beyond genre or territory boundaries: we present to you no limits jazz!

The global jazz scene today is more daring, entertaining and diverse than ever! You can find diligent new jazz names virtually all across the planet wherever there is music and the artists feel more than ever the liberty to combine existing, create new genres, push the boundaries.

This is why the latest edition of the Belgrade Jazz Festival offers the most intriguing artists of the international and local jazz scene. This year’s Festival will also be a five-day event with traditional double bill program every night.

More than 20 ensembles from all over the world will perform, and we will present the first three names that best embody the 21st-century jazz, one from America, one from Europe and one from Serbia.

For more than twenty years Kurt Elling has been one of the most notable jazz vocalists in the world. His memorable 2009 concert at the closing of

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Belgrade SAXperience is a unique international saxophone festival, featuring the most prominent international and local saxophonists. It is special because it follows the contemporary trends and tries to reach to the broadest audience, so in addition to classical and jazz music concerts in the most important halls of Belgrade, the audience also has the opportunity to attend day-light outdoor performances, and evening club appearances. An integral part of the Festival is an educational program for youth, who master their instrument skills through master courses.

Programme belgradesaxperience.com

57th October Salon

until 28th Oct. The concept of the 57th October Salon is based on the fact that the western perception of contemporary art has become universal and that “cacophony” has been a denominator of different artistic directions since the beginning of the 21st century.

Programme: oktobarskisalon.org

the 25th Belgrade Jazz festival in the great hall of the Ilija Kolarac Endowment is one of the event’s best in recent years.

Elling is not only a brilliant singer, but he also is a modern jazz global star and one of the most dedicated promoters of this music genre. He will arrive to Belgrade after a series of top performances in London promoting his new album The Questions. Following the winning formula, this new set-list will present a mix of jazz, Broadway music and surprising renditions of rock’n’roll anthems – by Bob Dylan, Paul Simon and Peter Gabriel.

The true sensation of Europe jazz scene this year is a supergroup of two undisputed jazz legends: Enrico Rava Quintet with special guest Joe Lovano. In Italy, Rava established modern jazz aesthetics and through various projects he boosted the careers of many exceptional talents we’ve seen on our Festival during the past years (Gianluca Petrella, Giovanni Guidi, Stefano Bollani), while Lovano managed to set three generations of American jazz musicians on their way to stardom. The collaboration between these two great names of jazz is a true example of a “match made in heaven” between visionaries, a trademark of great festivals and Belgrade Jazz Festival is in that range.

50th BEMUS 10-20

SEA PRAYER

Gothic symbols of Barcelona

11 – Instituto Cervantes – 19.00 During the 14th and 15th centuries, Barcelona had a privileged position in the Mediterranean concerning fostering creativity that is now seen in the fields of architecture, sculpture and painting. Barcelona was also a critical cultural crossroads where Italy and Flanders met and exchanged new artistic expressions. The Catalan Gothic and, specifically, the gothic city of Barcelona itself, is unrivalled in wealth and originality.

Victoria Cirlot Valenzuela will take us through the gothic symbols of Barcelona. She is a professor of Rome philology at the Faculty of Humanities at the University of Pompeu Fabra in Barcelona and director of the University Cultural Center at the same university.

RECOMMENDS

Khaled Hosseini 1750rsd

The oldest and the most prominent music festival in Serbia and one of the most distinguished classical music festivals in South-Eastern Europe, enjoying the position of a cultural event of special importance for the City of Belgrade, the Belgrade Music Festival – BEMUS is celebrating its 50th anniversary.

10 October Nigel Kennedy The legendary British violinist Nigel Kennedy will hold a spectacular concert called “Bach Meets Kennedy Meets Gershwin” at the opening of the 50th BEMUS. Kennedy will perform with a chamber ensemble.

13 October Vladimir Rudenko Eminent Russian pianist Vadim Rudenko, laureate of the world’s biggest music competitions (including one silver and one bronze medal of the Tchaikovsky competition), is more than fifteen years old again presented to our audience.

14 October Soloists of the Berlin Philharmonic Orchestra For the first time, the famous Scharoun Ensemble will perform in Belgrade. The ensemble consists of soloists of the Berlin Philharmonic Orchestra.

Full programme: bemus.rs

2nd Sustainable Architecture Congress 5-7 – Yugoslav Cinematheque

For the second year in a row, Belgrade will gather the world’s most significant experts in the field of sustainable and energy efficient architecture, at the 2nd International Congress Sustainable Architecture Congress – Energy Efficiency to be held at the Yugoslav Cinematheque from October 5th to October 7th.

Guided with the idea that in the future every architectural and urban work must be sustainable in all segments of the design, planning and construction process, the organizers have gathered experts to present sustainable and ecological approaches to creative processes and new methods in the architectural design, with the use of renewable energy sources, clean and energy efficient, green technologies, non-incinerating and recycled materials, which is the primary requirement of sustainability, which is the preservation of natural resources - land, water and air. The speakers at the Congress are Benjamin Krick (Germany), Alexandros Vaitsos (Greece), Karen McEvoy (Ireland), Sinus Lynge (Denmark) - Robert Konieczny (Poland), Adital Ela (Israel), Marco Casagrande (Finland), Milan Tomac Slovenia), Davor Mateković (Croatia), Jovan Mitrović (Serbia). The Congress is organised with the support of the Embassy of Denmark, the Embassy Poland, the Embassy of Israel and the French Institute.

Programme: saee-congress.com

SEE MORE: WWW.CORDMAGAZINE.COM

A deeply moving, gorgeously illustrated short story for people of all ages from the internationally bestselling author of The Kite Runner, brought to life by Dan Williams’s beautiful illustrations ‘The book may be brief, but it is beautiful, poetic - a distillation of his strengths’ Sunday Times On a moonlit beach, a father cradles his sleeping son as they wait for dawn to break and a boat to arrive. He speaks to his boy of the long summers of his childhood, recalling his grandfather’s house in Syria, the stirring of olive trees in the breeze, the bleating of his grandmother’s goat, the clanking of her cooking pots. And he remembers, too, the bustling city of Homs with its crowded lanes, its mosque and grand souk, in the days before the sky spat bombs and they had to flee.

When the sun rises, they and those around them will gather their possessions and embark on a perilous sea journey in search of a new home.

LONELY PLANET BEST OF SCANDINAVIA Lonely Planet 2803rsd

Lonely Planet Best of Scandinavia is your passport to the most relevant, up-to-date advice on what to see and skip, and what hidden discoveries await you. Gaze in wonder at the aurora borealis in Finland, sail Norway’s majestic fjords and shop the best of Scandinavian design in Stockholm – all with your trusted travel companion. Discover the best of Scandinavia and begin your journey now!

Inside Lonely Planet’s Best of Scandinavia: Full-colour images throughout, Highlights and itineraries help you tailor your trip to your personal needs and interests, Insider tips to save time and money and get around like a local, avoiding crowds and trouble spots, Essential info at your fingertips - hours of operation, phone numbers, websites, transit tips, prices, Honest reviews for all budgets - eating, sleeping, sight-seeing, going out, shopping, hidden gems that most guidebooks miss, Cultural insights provide a richer, more rewarding travel experience - covering history, art, literature, music, architecture, landscapes, wildlife, design, Free, convenient pull-out Copenhagen map (included in print version), plus easy-to-use colour maps to help you explore.

The book covers Reykjavik, Southeastern Iceland, the Blue Lagoon and the Golden Circle, Oslo, Norway’s Fjords.

THE BOURBON BIBLE Eric Zandona 2475rsd

Bourbon is booming, and this guide will teach you all you need to know.

Eric Zandona - spirits specialist at the American Distilling Institute - explores 140 of the finest bourbons in the world, from the big-name classics to tiny craft distilleries, with flavour profiles and recommendations for the best way to drink each one.

Also featuring recipes for 20 classic bourbon cocktails, as well as chapters on the history of bourbon, how the drink is made and the key things you need to understand when buying a bottle, The Bourbon Bible is the ultimate guide October 69 to the ultimate drink.

AFTER WORK 03 THE WORLD OF RIVERA SEP AND KHALO IN BELGRADE The exhibition of photographs “Diego and Frida: A Half-Way Smile” was opened by the Ambassador of Mexico H.E. Marco Antonio Garcia Blanco at the National Parliament.

The ambassador said that the exhibition was organised to mark 72 years of diplomatic relations between Mexico and Serbia.

The exhibition consists of 96 black-and-white photographs and artefacts depicting the world of Diego Rivera and Frida Khalo. The photographs were recorded by the outstanding photographers Guillermo Khalo, Manuel Alvares Bravo and Edward Weston. The opening ceremony was attended by Speaker of the Serbian Parliament Maja Gojković and Minister of Culture and Information Vladan Vukosavljević, numerous members of the diplomatic corps and figures from public life in Serbia.

AMBASSADOR FISHER-KAMM AND MINISTER POPOVIĆ

YANA MIKHAILOVA, FIC PRESIDENT (LEFT)

AMBASSADOR GARCIA BLANCO AND MINISTER VUKOSAVLJEVIĆ

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05 SEP ISRAELI BUSINESS COMMUNITY MEETING Ambassador of Israel H.E. Alona Fisher-Kamm hosted the 3rd Israeli business community networking reception at her residence on the occasion of the Jewish New Year.

Ambassador Alon Fisher-Kamm and Serbian Minister of Innovation and Technological Development Nenad Popović agreed that Serbia and Israel have excellent relations, as shown by the recent visit of President Ruven Rivlin to Belgrade.

Minister Popovic said: “You may be sure that your investments in Serbia are safe and that we will do everything to protect them”. He added that the visit of the Israeli president was very important and that this is an indicator of relations that were “never better”, for which he also thanked ambassador Alona Fisher-Kamm.

The Ambassador thanked the Government of Serbia, the local community, the non-governmental sector for cooperation with the Israeli Embassy and said that there would be more investment from Israel as well as joint projects. “We have new companies that have recognised Serbia as an attractive place to invest,” said Ambassador Fisher-Kamm.

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07 IWC GATHERING SEP AT THE BRITISH

14 ITALIAN EMBASSY SEP AND UNDP SIGN

RESIDENCE

The members of the IWC Belgrade had their annual Autumn Coffee Morning held at the British Embassy. Their host was Mrs Kate Keefe, the wife of the British Ambassador Denis Keefe.

Their lovely residency was opened for the IWC’s General Assembly and their first coffee morning after the summer break.

This is the first coffee morning organised by the new board. Mrs Milica Lundin, the new IWC president, announce the new exciting activities planned for the year and the future preparations for the traditional Winter Bazaar.

The board will be confirmed by Chirstine Srutkowska, Lea Kummer, Hanne Carlsson, and Sonia Punin. Ms Carlsson is the newly elected treasurer of the Club. The International Women’s Club invites all members of the International community in Belgrade to become members and share new experiences while enjoying Serbia.

MS MILICA LUNDIN

MS KEEFE(RIGHT)

PROJECT IMPLEMENTATION AGREEMENT

DANIJELA ČABARKAPA, ATSUKO SHIOTANI, FIRST JBAS EXECUTIVE DIRECTOR SECRETARY, EMBASSY OF JAPAN

10 SEMINAR ON JAPANESE SEP BUSINESS CULTURE HELD Japanese Business Alliance in Serbia (JBAS), in cooperation with the Chamber of Commerce and Industry of Serbia (CCIS), JBAS member Kaizen Institute Serbia and JBAS Honorary member Japan External Trade Organization (JETRO) organised a seminar How to do business with Japan - introduction to the KAIZENTM approach.

Atsuko Shiotani, First Secretary, Embassy of Japan, Marko Kovačević, Head of EU integration Center, CCIS and Danijela Čabarkapa, Executive Director of JBAS have greeted and welcomed the participants.

The participants had the opportunity to learn more about the foundations of KAIZENTM approach, examples and benefits of implementing KAIZENTM principles and directly identify potential areas for KAIZENTM implementation, through the presentations and lectures held by Bojan Šćepanović, director, Kaizen Institute Serbia, Ivana Varničić, HR business partner, Dr. Oetker and Slobodan Anić, country manager, Ametek.

The seminar was also an excellent opportunity to bring the Japanese business culture closer, which was presented by Takuro Nozawa, director, Japan External Trade Organization (JETRO) Vienna Office.

Japanese food also had its place at the seminar and was introduced

by JBAS member Go Sushi.

The seminar has gathered more than 100 participants, JBAS members, Serbian companies and institutional representatives.

Italian Ambassador to Serbia H.E. Carlo Lo Cascio and UNDP Resident Representative and UN Resident Coordinator in Serbia Karla Robin Hershey signed two agreements on co-financing and implementation of two projects in Serbia.

The first co-financed project is dedicated to “training of civil servants for the 21st century in the Republic of Serbia”; the other refers to “the promotion of regional cooperation in the prosecution of war crimes and the search for missing persons.” The ambassador and the Resident Representative expressed their satisfaction with the two initiatives, which enable to intensify assistance to Serbia in the implementation of internal reforms, especially in the area of public administration, as well as to improve the cooperation of partners in the region and stimulate regional reconciliation.

AMBASSADOR LO CASCIO AND KARLA HERSHEY

14 DOING BUSINESS WITH MOROCCO SEP The Embassy of the Kingdom of Morocco in Serbia organised, in cooperation with the Serbian Chamber of Commerce & Industry and the General Confederation of Morocco (CGEM), an economic seminar titled “Doing Business with Morocco” at the premises of the Chamber of Commerce in Belgrade.

This event aimed to present business environment in Morocco as well as trade and investment opportunities with Serbia. Participants in the seminar were Representatives of Moroccan institutions such as the Moroccan Investment and Export Development Agency (AMDIE), the Moroccan Energy Sustainable Agency (MASEN), the Agricultural Development Agency (ADA) and representatives of the Moroccan private sector through the General Confederation of the Moroccan Enterprise (CGEM).

From the Serbian side, the event was attended by Development Agency of Serbia (RAS), Serbian Chamber of Commerce, Tourist Organization of Belgrade, as well as the business community of Serbia. During the meeting, a Memorandum of Understanding was signed to create a Joint Affairs Committee between the CGEM and the Serbian homologue, which will enable research and development of all types of cooperation and exchange between the business communities of both parties.

AMBASSADOR MOHAMMED AMINE BELHAJ

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AFTER WORK 15 AMBASSADOR SCHIEB SEP HOSTS LGBT PRIDE RECEPTION The Embassy of Germany in Belgrade celebrated LGBT Belgrade Pride parade with a reception hosted by the Ambassador H.E. Thomas Schieb at his residence.

The LGBT parade reception, in recognition and appreciation of the Serbian LGBT community, was attended by German Minister of State Michael Roth and numerous guests, many of whom represented human rights organisations or are advocates for gay rights in Serbia.

MARIYA GABRIEL AND MIHAILO JOVANOVIĆ

17 EU COMMISSIONER MARIYA SEP GABRIEL VISITS ITE OFFICE

AMBASSADOR SCHIEB (RIGHT), MINISTER MICHAEL ROTH

European Commissioner for Digital Economy and Society Mariya Gabriel visited today the Office for IT and eGovernment, recognising the results of Serbia on the path of digital transformation.

Ms Gabriel also visite State Data Center which keeps the key information and communication infrastructure of the Republic of Serbia. Dr Mihailo Jovanović, Director of IT and eGovernment Office and host of the visit, presented plans for the construction of a secondary State Data Center, which will be built in Kragujevac, which the Government of the Republic of Serbia proclaimed a project of strategic importance. The European Commissioner praised the results achieved

by Serbia in the short term in the field of digitisation and public administration transformation, as well as the efficient adoption and implementation of a set of laws in these areas.

16 BUSINESS FORUM SERBIA-INDIA HELD SEP

ZORAN RADOJIČIĆ, SLAVICA ĐUKIĆ DEKANOVIĆ, AMBASSADOR THOMAS SCHIEB

17 EXHIBITION “SUSTAINABLE DEVELOPMENT SEP OBJECTIVES - AGENDA 2030” OPENED VICE PRESIDENT OF INDIA VENKAIAH NAIDU AND PRESIDENT VUČIĆ

Business Forum Serbia - India which was attended by 54 companies from Serbia and 14 large Indian companies, was held in the presence of President Vučić and Vice President of India Venkaiah Naidu at the Palace of Serbia. At the Business Forum, Marko Čadež announced the establishment of the Business Council of Serbia and India.

The forum was organised as part of the visit of the Indian state-economic delegation to Serbia, led by Vice President of India Venkaiah Naidu.

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Exhibition illustration “Objectives of sustainable development - Agenda 2030” was opened in Aleja Heroja at the Kalemegdan fortress. The drawings of the renowned illustrator Dobrosav Bob Živković in a humorous way represent 17 goals of sustainable development, which together make the Agenda on sustainable development by 2030, a document adopted at the United Nations Summit in New York in September 2015.The exhibition aims at accentuating and clarifying the significance of the Agenda 2030 and is organised by the Government of Serbia and the German Development Cooperation implemented by the GIZ, within the project “Public Finance Reform - Financing the Agenda 2030”.

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18 SEP CONFINDUSTRIA’S ‘WELCOME BACK’ COCKTAIL The traditional cocktail of Confindustria Serbia titled “Welcome back cocktail party” was held at the Crystal Hotel in Belgrade.

The gathering was an opportunity for members, friends and associates of the association to meet after a summer break in a pleasant atmosphere.

Many guests, including representatives of international and domestic institutions, were greeted by Erich Cossutta, the president of Confindustria Srbija, after whom ambassador Lo Cascio addressed guests and reminded that Italian and Serbian businesspeople gathered around Confindustria represent an essential segment of the Italian-Serbian partnership. He stressed that all indicators show that the trade exchange between the two countries will exceed 4 billion euros by the end of the year.

AMBASSADOR FISHER KAMM

20 AMBASSADOR FISHER-KAMM SEP OPENS THE DAYS OF ISRAELI FILMS In the year that celebrates 70 years of the existence of the State of Israel and the cinema of that country, the Embassy of Israel headed by ambassador H.E. Alona Fisher-Kamm opened traditional Days of Israeli Films at the Belgrade’s Cultural Center.

This year, from 20 to 23 September, Days of Israeli Films offered seven awardwinning and genre-different film achievements that showcase the multiculturalism of Israeli society.

ERICH COSSUTTA, AMBASSADOR LO CASCIO, IRENA BRAJOVIĆ

21 AMBASSADOR HOUGÅRD ANNOUNCES SEP SUSTAINABLE ARCHITECTURE CONGRESS Ambassador of Denmark H.E. Anders Hougård and the Co-ordinator for Public Diplomacy of the Embassy of the Republic of Poland Joanna Budišin joined the organisers of the International Sustainable Architecture Congress - Energy Efficiency at the conference announcing the second edition of the Congress.

Sustainable Architecture Congress will be held 5-7 October 2018 at the Yugoslav Cinematheque in Belgrade.

DANIELA ČABARKAPA, GORAN PEKEZ

24 THE ROAD TO SEP GROWTH LEADS

THROUGH JAPANESE COMPANIES

At the second Kaizen™ congress in Belgrade, a panel was held on the topic of Japanese investment in Serbia and an even more intriguing question: is Serbia becoming a new economic tiger?

By signing a memorandum of cooperation, the Development Agency of Serbia and JBAS gave themselves the task of continuing to bring the business delegations to Serbia to learn about investment opportunities. Our state is here to educate the workforce in agreement with the companies, to provide qualification and retraining services, and to design new programmes for attracting workers because it seems that the only possible problem may be a shortage of skilled labour.

The conclusion is that with a predictable economic and tax policy and provision of sufficiently motivated and appropriately educated workers, Serbia may not become an economic lion overnight, but Japanese managers are noticing very optimistically that our “Serbian kitten” is already waking up and stretching.

The organisers of the second Kaizen™ Congress are the Kaizen™ Institute and the Japan Business Alliance in Serbia.

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AFTER WORK

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25 SEP OPEN DAY AT THE EMBASSY OF AUSTRIA On the occasion of the Austrian Presidency of the Council of the European Union and the Days of the European Heritage 2018, Embassy of Austria held the Open Day at its premises, welcoming citizens with coffee, cakes and a friendly conversation with the embassy staff.

Ambassador H.E. Nikolaus Lutterotti, Director of Austrian Cultural Forum Johannes Irschik, Sabine Kroissenbrunner, Deputy Head of Mission at the Austrian Embassy and rest of the staff members welcomed guests and answered many questions about Austria as well as its EU presidency.

MIHAILO JOVANOVIĆ

25 SERBIA SECOND COUNTRY IN EUROPE SEP WITH A STATE ORACLE CLOUD

AMBASSADOR LUTTEROTTI (RIGHT)

25 SEP COLOURS OF MALAYSIA

CHARGÉ D’AFFAIRES NIK ADY ARMAN

The Colours of Malaysia 2018, a five-day event organised by the Embassy of Malaysia in Belgrade to showcase Malaysian culture through its art and cuisine as well as to promote inter-cultural exchange between Malaysia and Serbia, took off with the Batik Painting Workshop and Naïve Art Presentation at Belgrade’s Radisson Collection Hotel.

The workshop featured the presentation and practical demonstration of the traditional art of Malaysian Batik (hand painting on silk), conducted by the spouse of the Head of the Malaysian Embassy in Belgrade Nur Azlina Adinan and Serbian textile painter Srna Šubanović. The introduction to the naïve art was conducted in collaboration with the Gallery of Naïve Art from Kovačica, whose Director and Chief Curator Ana Zolnaj Barca opened the painting exhibition by the Malaysian naïve painter Datin Eliza Tajuddin.

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The Office for Information Technology and e-Government of the Government of the Republic of Serbia and Oracle have signed through their certified partners a state contract on the purchase of hardware and licenses that will enable the state administration to integrate, centralize and consolidate databases and software products on which some of the most important records in Serbia are based: register of citizens, ID cards, addresses, system for integration and exchange of data among state bodies and many others. Centralization of the most important state IT systems is enabled thanks to a state-of-the-art IT system - the State Oracle Cloud system, a modern and secure platform for the development of public administration as an efficient service for citizens and businesses alike.

26 CONFERENCE ‘THE WESTERN BALKANS SEP IN 2030 – VISIONS. WISHES. REALITIES’ „Western Balkans has their place in the European Union’s enlargement agenda,“ said German Ambassador to Serbia H.E. Thomas Schieb opening the conference ‘The Western Balkans in 2030 – Visions. Wishes. Realities’. „The unique economic area in the region must be the goal of both the Western Balkans and the business community, and we have to work together on this goal,“ said Marko Čadež, President of the Serbian Chamber of Commerce at the conference organised by the German-Serbian Chamber of Commerce (AHK Serbia).

Besides the need to create a clear vision, panellists said that all countries need a clear strategy of reaching the goal. Joining the European Union will depend, they say, exclusively on merit.

Wine & Rakija

PLUS

KADARKA IS UNIQUE! How a native domestic variety was rescued from oblivion thanks to the Tonković Winery.

Elegance and softness, complexity and a refined taste, blending the character of red fruits with hints of spice, delicate tannins and a playful freshness. Sounds like the description of an excellent red wine. That is precisely what Kadarka from the Tonković Winery is! The Tonković Winery, with its vineyards and wines, is completely unique in Serbia and the region, primarily due to the fact that they are dedicated to a single variety of grape.

Renewing their family tradition, members of the Tonković family have raised vineyards on a fertile sandy terrain ideal for grapes, planting the kadarka variety. Their entire wine portfolio consists of kadarka, including the multiple award-winning Fantazija, the premium kadarka Rapsodija, and the fresh, playful and fruity rosé, a favourite summer wine. Firmly believing that top results can only be achieved when a vintner is fully dedicated and focused on their land and vineyard, the Tonković Winery has achieved excellent results, bringing an almost forgotten native variety of wine back on the scene. Their work, in addition to an increasing number of faithful consumers, has received continuous recognition from top wine authorities worldwide, winning gold and silver in London, Budapest, Vienna and Sofia.

The kadarka of the Tonković Winery is carefully left to rest for several years in barrels made of the highest quality oak, to be placed on the market only when the vintners assess that the wines are fully mature. This is why the kadarka of the Tonković Winery shows special layering where, in addition to the aroma of cherries, sour-cherries, cranberries and plum, you can detect notes of cedar, black chocolate and vanilla. The Tonković Kadarka is a wine for conversations, pleasure and contemplation. It is a wine for moments dedicated to yourself and those dear to you.

The vineyards of the Tonković Winery are located in the wine growing area of the Subotica-Horgoš sands, right next to the village called, not by chance, Bački vinogradi (Vineyards of Bačka). The centuries-old tradition of wineries in this place has developed its modern version through new plantations of native varieties of the grape which is the closes genetic relative to prokupac, although their wines differ in character. Thanks to the Tonković family, the ancient variety has been rescued from oblivion, and now once again decorates the wine lists and shelves of wine shops across Serbia, the countries of the region, and even France. For the third year in a row, a trading company from Bordeaoux has been importing wine from the Tonković Winery and selling it to exclusive restaurants in their area.

CORPORATE BOŽIDAR ALEKSANDROVIĆ, OWNER OF THE ALEKSANDROVIĆ WINERY

Wine Is (Always) An Excellent

Representative Of A Country In recent years, the quality of Serbian wines has been excellent and we can easily stand side by side with the wine countries of the region

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he Aleksandrović Winery has based its production on family tradition. Božidar Aleksandrović, who is the fourth generation of grape and wine producers, points out to CorD: “Our vision is for the wines of the Aleksandrović winery first of all to be a symbol of the region in which they are born, to be a child of this region. On the other hand, our goal is for these wines to become recognizable in many other destinations, to be exported and to become Serbian ambassadors.”

Over the last decade, Serbia has significantly developed winery as a new branch of agriculture. What do you think of the current trends in the Serbian market?

- In the last ten years, Serbia has experienced a renaissance in the area of viticulture and wine production. Consequently, consumers and wine lovers began to drink Serbian wines, which is normal because Serbia has been a wine country for ages. On the other hand, it can be said that the quality and number of top quality wines 4

has increased. This is especially noticeable in the last five years, so we can say with certainty that Serbia has become an equal of the Balkan countries that produce top quality wines, if not at the very top . The level of knowledge of wine lovers has also risen, and we can say that the Serbian wine industry definitely has a future. Serbia is also opening to the world, more and more foreigners visit our country, and they want to try Serbian food, Serbian wines and get to know Serbian culture. The result of all this, we hope, will be development and expansion of wine tourism, which is of great importance for further development of wine production in Serbia.

occasionally, sometimes more, sometimes less. It seems to me that things are moving in the right direction, there is more talk and thought about the subject, and there is some progress. However, there is a lack of a clear strategy for the development of viticulture, wine production and wine tourism. Lack of greater involvement of state institutions, experts who can contribute to wine marketing and positioning Serbia as a wine region in the world. The state should also be more involved in promotional activities, to support wine events. Serbian diplomats should be involved in the positioning and presentation of Serbian products. I believe that with a clear strategy, we will have excellent results.

How would you rate the quality of the Serbian wine industry against other countries in the region?

- Until a decade ago, Serbia had very questionable quality. There was a little bit of everything, there were good wines, but there seemed to be a lot more of those mass productionwines. When investment in small, family wineries began, wine making became interesting for investors from other sectors. At that moment, quality became important, winemakers began to plant their own vineyards, raise wineries and

In your opinion, does the state recognize the long-term importance of this and how much does it support further development Our wines are on wine lists of prestigious of the wine sector? restaurants around the world, some with - Like every other Michelin's star state, ours does it

WINE & RAKIJA

invest in modern equipment, bring experts and educate themselves. All this resulted in better Serbian wines, and today we can say with certainty that we have dozens of extraordinary wines. These wines already have a certain weight and belong to the category of premium wines. In recent years, the quality of Serbian wines has been excellent and we can easily stand side by side with the wine countries of the region.

The Aleksandrović winery has a long and rich tradition and a specific wine-making philosophy and approach. What are your long-term strategic goals?

- The Aleksandrović winery bases its wine production on family tradition, and I am the fourth generaOur 75 hectares of vineyards in the vicinity tion of grape and wine producers. of Oplenac enable us to produce wines Our vision is for exclusively from grapes from our own the Aleksandrović vineyards, so they represent the seal wines first of all to of terroir be a symbol of the restaurants around the world, some with region in which they are born, to be a child Michelin's star, our goal is to better position of this region. On the other hand, our goal is ourselves in the future, because we see it for these wines to become recognizable in as much more important than actual sales many other destinations, to be exported and and exports. Our wines represent Šumadija to become Serbian ambassadors. Although and Serbia. our wines are on the wine lists of prestigious

Traditionally, you have received the highest recognition at major world events. How much does this fact help you to develop new markets?

- Certainly, prestigious awards from the world's greatest events mean a lot, and are a confirmation that what we do, we do well.

Also, they are an incentive to always strive for new successes and continuous quality. It is true that our wines come from an unknown country in terms of wine, but it is also true that they become noticed after numerous awards.

Slowly, but surely, importers as well as wine lovers are paying attention to our wines, and to Šumadija and Serbia. Aleksandrović wines have their own characteristics, they have a mark of the area and a certain exotic sense.

We hope that these characteristics will be recognised more and that we will therefore conquer new markets.

Which are the highest quality, most exclusive products of the Aleksandrović brand?

- The Aleksandrović winery has positioned itself on the market with a clear vision in the production of wine, and top quality is our imperative. Our 75 hectares of vineyards in the vicinity of Oplenac enable us to produce wines exclusively from grapes from our own vineyards, so they represent the seal of terroir.

Each of our wines is a result of peoples’ hard work to produce quality. Each of our wines has its own special characteristics, and which one is best and most exclusive should be left to connoisseurs and wine lovers to decide.

WINE & RAKIJA

5

HOW TO CHOOSE THE WINE THAT SUITS YOU BEST

In Vino Veritas

Often, many of us are caught in a situation where we are looking at a wine list, wanting to order a particular kind of wine, but without knowing what to look for. But to learn the basic knowledge necessary to order wine, it is enough to be familiar with just nine wine styles

6

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raditionally, there are two ways to understand wine: by variety and by region. This approach is very precise, but a simplified method is also possible by classifying various grape varieties through nine wine styles. Because most wine falls under these main nine styles that include red and white, rosĂŠ, sparkling and dessert wines.

FULL BODIED RED WINES WITH RICH FLAVOUR As a rule, full bodied red wines contain more tannin, a higher percentage of alcohol and aromas of dark fruits, such as blackcurrant, blackberry, blueberry. Because they are characterized by a large amount of pigment, they have a higher level of anthocyanins that positively affect cardiovascular health.

They are distinguished by a wide range of aromas, and are well-matched with strong WINE & RAKIJA

Rosé is wine made of red grapes using white wine technology and as such a turning point between white and red wine with a tendency to behave as white and spicy food. Usually they are served in large, wide-rimmed glasses.

Rosé is wine made of red grapes using white wine technology and as such a turning point between white and red wine with a tendency to behave like white. That is why, as a rule, rosé is served cooled.

Those of better quality have a light pink colour, the colour of onion or salmon, and are mostly very dry. This style is most commonly produced in the Mediterranean, southern France, the eastern coasts of Spain and Italy, while in our region for a long time semidry and semi-sweet Rosé was popular, with a strong aroma of red berries or rose, commonly produced from pinot noir, game, prokupac varieties...

MEDIUM-BODIED RED WINES WITH STRONG TEXTURES In the middle of the scale from light to fullbodied wines, red wines of medium body are especially suitable for matching with food. Typical examples of this style are sangiovese and merlot.

Wines made from these varieties can be of different styles, due to regional differences in growing and production.

FULL AND STRONG WHITE WINE Rich white wines generally go through a similar treatment to red at the winemakers, to obtain strong flavours and aromas, which may make them look red. It is common for such white wines to be stored in oak barrels to infuse a classic note of vanilla or coconut, and to go through a process called malolactic, whereby sharp lactic acids become milder, alleviating the overall acidity of the wine. Many white wines of full body can be kept up to ten years.

LIGHT AND FRESH RED WINE Delicate with very subtle aromas, light red wines are perfect for those who want to avoid alcohol going to their head. Due to its affordable nature, it is appreciated among experienced collectors, but also by beginners. Light red wines stand for a smaller amount of tannin, fine acids, slightly less alcohol and red fruits. They are usually served in round glasses.

LIGHT AND DRY WHITE WINES Like a strike of lightning on the palate, white wines of this style are wine equivalent to light beer - they are appreciated for their refreshing properties. Expressions such as dry, sharp, fresh, sparkling, spicy, can often be heard in describing wines of this style. It is best to drink them while they are young, a year or two after harvest, to take advantage of fresh, fruity aromas and pleasant

WINE & RAKIJA

7

acids. Of all the wine styles, light and dry white wines usually have the best price/quality ratio.

AROMATIC AND SWEET WHITE WINES The flavours of fruity and floral aromas are simply flowing from the glass of these wines. Often they are made in a style that involves the use of residual sugar from grapes. However, as with good lemonade, this sweetness is essentially used to balance aggressive acidity or bitterness in the wine.

Sugar is there for balance, not just for sweetness. If they did not keep a certain amount of natural, unprocessed sugar, these wines would be too bitter or acidic for drinking.

Usually they are followed by the description "harmoniously sweet".

What is important to consider is that sweetness is not an inherent feature of grape, since the presence or absence of sugar in wine is a decision that is taken during its making. Dry wine can be made from each variety of grape, even those that are usually connected with sweet styles. Riesling is a typical example of this. It is not possible to smell sweetness, but only aromas associated with sweet tastes, but until a sip is taken, there is no way to know if the wine is sweet or dry. The grape varieties mentioned below are excellent for exercising the palate to 8

is done, wine with a lower level of alcohol is usually obtained, but since for dessert wines it is permissible to add other alcohols or wine distillates (grape brandy of neutral taste), these wines eventually contain about 17-20 percent alcohol. Due to the high amount of alcohol and sugar, dessert wines are appreciated and designed to drink in small quantities from smallish glasses. Of course, there are other options in the category of dessert wines besides those with added alcohol (such as sherry, madeira and porto). Tokajac, Chenin Blanc from The secret behind the bubbles in champagne the Loire Valley and lies in adding a special mixture of sugar many other wines are called "naturaland yeast called liqueur de tirage to a ly sweet" dessert dry white wine. Liqueur de tirage causes wines. Sugar is ususecondary fermentation inside the ally concentrated in bottle, which creates bubbles them due to some type of dehydration, recognize the difference between sweetness or under the influence of mould, not by add(flavour) and fruitiness (aroma). ing alcohol.

DESSERT WINES To preserve the natural sweetness of dessert wines, fermentation is stopped before the yeast eats all the sugar. When this

CHAMPAGNE AND SPARKLING WINES The secret behind the bubbles in champagne lies in adding a special mixture of sugar and yeast called liqueur de tirage to a dry white wine. Liqueur de tirage causes secondary fermentation inside the bottle, which creates bubbles. However, not all sparkling wines are made in this way. Wines such as prosecco and lambrusco are produced by boiling in a tank under pressure, and then filling into bottles. Low quality sparkling wines get their gas by carbonization. Sparkling wines are distinguished by bubbles and high acids, and in colour they stretch from white through pink to red. Sparkling wines have been associated with celebrations for centuries, giving them the role of a welcome drink, but they are actually well-matched to a wide assortment of food.

WINE & RAKIJA

CORPORATE

MITAR DEURIĆ, OWNER OF DEURIĆ WINERY

Probus

– Prince Of Fruška Gora

Two years ago, the Deurić winery, which had launched its first wines on the market only a year before, won the most gold medals in Sofia in the Balkan competition BIWC – four to be exact

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he following year, all the wines sent to Vienna to AWC evaluation won prizes, one gold and five silver medals, while at Decanter that same year they won one silver and five bronze medals. Finally, this year, an almost experimental sparkling wine 'The' and a brand new wine 'Probus 276', won silver and bronze medals at Decanter.

vintage and as such it showed great potential.

We will work a lot on this wine and therefore we expect even better results. Bearing in mind that this is an indigenous variety, which we did not work on much in the past, we have a long way to go, but we have already made the first step - we have produced excellent quality wine and announced a bright future for probus as a variety. We are convinced that it has the potential to be a great wine and soon become the Prince of Fruška Gora.

How much do the medals mean for the further successful development of the winery?

- We are aware of the fact that we are proBesides Serbia, do you export to other gressing year by year. We have a team ready markets? for great work and we are slowly climbing - We export to Montenegro, Bosnia and the ladder of success. We are also aware Herzegovina, and Croatia. The wine market in that success and great results do not come overnight, they require hard work, We are preparing to export wine to sacrifice and time.

Scandinavia and Russia this year We are focused on Serbia is growing and the first step in sales achieving our goal, that the Deurić winery is good positioning on the domestic market. should be perceived by consumers as a Export is the next step in sales, which means modern Fruška Gora winery that produces a certain quality verification, especially if top quality wines with a prominent recogthe wine is exported to traditionally strong nizability of the terroire and the vineyards wine markets. I think that export is very they come from. important to Serbian wine producers and that in future they will work much more on it.

The Deurić Winery is one of the rare wineries We are preparing to export wine to two new that has the Probus variety in the vineyard. markets this year, Scandinavia and Russia, What are the reactions to the Probus wine? which is very interesting for us.

- As for our wine "Probus 276", this was a zero WINE & RAKIJA

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CORPORATE

DESTILLERY BB KLEKOVAČA

Heart Of The Drina,

Soul Of Tara

BB Klekovača (klekovacha) of Bajina Bašta is the oldest Serbian distillery.

It was founded in 1953, continuing the tradition of the Bajina Bašta agricultural cooperative of 1905

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the craft method, double distillation in firstt is famous for its klekovača, plum rakija (rakia class copper cauldrons which are wood-fired.

– authentic Serbian brandy) with the addition In the distillery cellar, about 200,000 litres of juniper berries - the traditional rakija of of high-quality brandy lie at any time, half of Bajina Bašta and the mountain Tara, which has which in oak barrels and vats of 500-13,000 l. been produced in this region for centuries.

BB Klekovača is a legendary Serbian All BB brandies are produced with the craft brand and a symbol method, double distillation in first-class of the tradition and copper cauldrons which are wood-fired quality of this auRAKIJA WITH HISTORICAL thentic rakija of Western Serbia.

Rare skill, scientific knowledge and one AND GEOGRAPHICAL ORIGIN of the oldest traditions in the world of rakija BB distillery produces twenty different in the BB distillery are transferred from types of rakija: klekovača, travarica (herb generation to generation of our distillery brandy), plum brandy and brandy from quince, masters. All BB brandies are produced with pear, apple, raspberry, blackberry and sour WINE & RAKIJA

try our famous klekovača (BB Klekovača and BB Klekovača Special), purchase any of our rakija at special prices, including rakija from the Limited Edition series, which is possible to buy exclusively in the distillery.

During the visit, you can also opt for one of the special tastings, (3/4/6 premium brandy of your choice). For pre-announced groups, we organize different types of programmes on the weekends as well, all according to your interests.

For all types of private and corporate eve n t s a n d c e l We are convinced that in every sip of ebrations we have two tasting rooms BB rakija you will always recognize the with a capacity aromas and flavours of our unique region, of 20-50 people, and feel the living heart of the Drina and equipped with the the endless soul of Tara most modern audiovisual equipment. In this warm, homely into every bottle of any BB rakija. And we are ambiance, we are sure that every event will convinced that in every sip of BB rakija you remain as a long and beautiful memory with will always recognize the aromas and flavours all participants. of our unique region, and feel the living heart In addition, the BB Distillery also has acof the Drina and the endless soul of Tara. commodation for 16 people, with one room WELCOME TO BB DESTILLERY! for four, five modern double rooms and one We are awaiting you in the BB distillery four-bed apartment. every working day between 10.00 and 15.00.

Welcome!

You will be welcomed by a distillery host, Carice Milice 5, Bajina Bašta, Serbia from whom you will be able to find out everyTel: +381 (0)65 868 0003 thing about our method of making brandy and, Website: www.bbklekovaca.rs in the authentic space of the cellar, between E- mail: marketing@bbklekovaca.rs, oak barrels and copper distillation cauldrons, prodaja@klekovaca.rs cherry. With unshakable faith in the power of our region and respecting its invaluable tradition of brandy production, we align our every step in a special way with our historical and geographical origin, always with a clear vision and mission - to produce top quality authentic brandy of the best fruits and indigenous varieties of Western Serbia plums.

Our special skills and knowledge, our climate, our air and water, our land and the best local fruits, our wood and fire from our top copper cauldrons, all of this is poured

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WINES OF SERBIA

History

Of Wine-Making In Serbia – Over 1000 Years Long

There are nearly 70,000 hectares of vineyards in Serbia, producing about 425,000 tons of grapes annually. The majority of Serbian wines are produced in local wineries. Major varieties include the Belgrade Seedless, Prokupac, Sauvignon, ‘Italian Riesling’, Cabernet, Chardonnay, White and Red Burgundy, Hamburg, Muscat, Vranac, Tamjanika, Krstac, Smederevka, and Dinka. Some rare varieties survive in Serbia, too, such as the Muscat Crocant

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oday, Serbian wine industry is showing signs of significant growth, as evidenced by In Vino, an annual international wine festival that is held in Belgrade since 2004 on an annual basis. Also, since 2010, an annual international wine fair is held at the Belgrade Fair, named ‘Beo Wine Fair’.

HISTORY The history of wine-making in Serbia is more than 1000 years long. Ever since the Serbian state was first established, wine has been a part of Serbian culture and many of Serbia's rulers, especially the Nemanjic WINE & RAKIJA

JINA NT IN NEGOTINSKA KRA EGROWERS’ SETTLEME WIN C NTI THE AU AN IS E RAJACKE PIVNICE AR

dynasty from 11th till the end of 14th century, have encouraged and promoted viticulture.

Former Yugoslavia was among the topten world wine producing countries. At its peak in 1970s, it produced over 6 million hectoliters annually. However, largely due to the constraints of the socialist state, emphasis was put on quantity rather than quality. Many wines were mass-produced in large agricultural combines such as Navip and Rubin, with generally low quality standards in all stages of the wine-making process.

The 1980s saw a sharp decline in production and exports, a development that continued WINE & RAKIJA

in the 1990s with the Breakup of Yugoslavia and the subsequent breakdown of the Serbian economy.

But in the 2000s, Serbian winemaking started not only to recover, but to take a sharp and decisive turn towards quality and distinction. Numerous small and medium privately-owned wineries entered the market, often run as family businesses, and with very high regard for standards of quality and taste. Some near-forgotten traditions, such as Bermet of Sremski Karlovci, were revived. The country's economic recovery also contributed to increase of domestic 13

consumption. Wine production in 2004 was 1,550,000 liters. Wine consumption per capita is 16 liters (2006). Still, only 5% of domestic production is exported (2004-2007 data), most of it into neighboring countries, and chiefly in bulk. High-quality and quality wines constitute about 35% of production.

VARIETIES The eldest authentic grape sorts are considered to be Prokupac and Tamjanika.

Prokupac is the sort of red wines and was known even in early Middle Ages, while Tamjanika is a Muscat sort originated from Southern France, known in Serbia for more than 500 years. Beside these sorts, today in Serbia are mostly raised Chardonnay, Sauvignon Blanc, Rhine or ‘Italian’ Riesling, Merlot and Cabernet Sauvignon.

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White wines constitute about 64% of production, and red about 36%.

REGIONS The most important Serbian vineyard areas are situated in Negotinska krajina (250 km in the east from Belgrade), in the area of Vršac (100 km on the north-east from Belgrade), on the slopes of Fruška Gora (80km on the north-west from Belgrade), in the Subotica area (200 km on the north from Belgrade), Šumadija (100 km on the south-west from Belgrade) and Župa (230 km on the south-east from Belgrade).

Long lasting tradition of Serbian wine growing in the last 10 years was renewed by numerous private producers that built contemporary cellars and already became well known out of the borders of Serbia.

According to a classification from 1970s, Serbia has nine winemaking regions, each with several sub-regions: • Timok region, in eastern Central Serbia, around Timok river valley • Krajina subregion, centered in Negotin • Knjaževac subregion • Nišava-South Morava region in southern Serbia, in valleys of eponymous rivers • Aleksinac subregion • Toplica subregion • Niš subregion • Nišava subregion • Leskovac subregion • Vranje subregion • West Morava region in central Serbia, along the lower flow of the river • Cacak subregion • Kruševac subregion • Šumadija-Great Morava region in central Serbia, the largest one by are • Mlava subregion • Jagodina subregion • Belgrade subregion • Oplenac subregion • Pocerina region, in western Serbia, around the mountain of Cer • Srem region, around Fruška Gora mountain in the province of Vojvodina • Banat region, around Vršac Mountains in eastern Vojvodina • South Banat subregion • North Banat subregion • Subotica-Horgoš region in northern Vojvodina • Kosovo region, in central Kosovo In light of revival of winemaking industry of Serbia, Serbian Ministry of Agriculture in 2008 launched an initiative for reform of Serbian laws on winemaking, and re-classification of wine regions.

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CORPORATE

Harmony

GORDA Brandy

Of Love And Devotion Guided by the rebirth and the growing popularity of Serbian plum brandy, we found ourselves in the beautiful village of Velereč, on the slopes of the mountain Rudnik. Far enough from Belgrade, but again close enough (115 km), this beautiful village is the birthplace of Gorda, a brandy of special taste and intriguing name. The essence of the mission of this growing brand will be presented to us in a short interview by Mrs Svetlana Škorić, a woman who in every sense stands at the gate of Gorda. As we lightly entered the plum orchard, Svetlana began the story ...

"T

he life story of our brandy is a how you talk about a child, and then you say: When people say Gorda, first of all they mean real family one. Different families From its very birth it was a little bit different the plum brandy. What are the chances of function differently. However, only from the rest of the children, the favourite having some new products under your brand? those who have a common motive to leave one, cuddled by everyone, with clear vision of - "Our Gorda plum has opened many doors. to the next generations something precious further development ... Gorda, from its very When you meet someone, and you like this are a real guide. On these foundations, the creation, has become a brandy that stands out person, you normally want to get to know their Gorda brand has been built. You mentioned because of its delicious and special flavour family. Therefore, anyone who loves Gorda plum the intriguing name. I would not agree. The and its complex, seductive aromas. In contact will be especially delighted with its "younger name of our brand is complex and sisters": Gorda apricot and Gorda represents respect and memory of quince. In the family, we are thinkAnyone who loves Gorda plum will be ing and making moves that seem our ancestors. You see, Gorda is the especially delighted with its "younger right and logical. Gorda apricot, name of a woman, our ancestor, who sisters": Gorda apricot and Gorda quince which has been on the market many years ago moved to Velereč since last year, is rapidly acquiring a growing with her husband Aron and planted the first with the outside world, it has become loved number of fans, while Gorda quince will soon plums here. It is therefore a proper name and and enjoyed by a great number of devotees. " be presented to a wider audience. The basic an inseparable bond with tradition. At the same recipe is exactly the same: they are made with time, we have tried to follow global trends, How did you handle temptations? In a business a lot of love and in an atmosphere of complete that is why it is so special and noble both in like this, which relies on agriculture, there creative harmony. None of us have doubts that flavour and in name. " must have been plenty of them?

Gorda quince and Gorda apricot will achieve - "The biggest crossroads which our family faced the success of their older sister plum. " The nature and the orchard really look impresthrough Gorda was the death of my husband sive and inspiring. How did you transfer your Veljko. It was 2009, the year of resolution. We inspiration to Gorda? How did it all begin?

What does the future hold for Gorda? gathered to see what we would do and how to - "Nothing in life can be taken for granted.

- "As long as you believe in what you do and love move on. We had large quantities of top brandy In 1994, my husband and I realized that the it ... As long as the whole family is very close bein the cellar, which had to move forward. To look hind Gorda, it will last. At least forever, I hope! " road to our cellar one day could be a map ahead is also to show love and due respect to for a treasure hunt. This treasure, our plum all those who are no longer with us, and were Destilerija Veljko i sinovi brandy, we kept for ourselves and our friends part of that road. Through every drop of Gorda Velereč bb, Gornji Milanovac until then long enough. It was time for it to it feels how much we love everyone who raised tel: +381 63 277727 continue its life outside of our cellar. This is it and brought it up where it is today. " www.gorda.rs.

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