CorD Magazine, May 2021 issue no.199

ROMANIAN AMBASSADOR TO SERBIA

BRANKA KATIĆ

ACTRESS

Love Counterbalances Evil

MINISTER OF AGRICULTURE

Fruits Of Considered Policies

www.cordmagazine.com

Connecting Balkan Infrastructure And Energy

BRANISLAV NEDIMOVIĆ

MAY 2021/ ISSUE NO. 199

H.E. SILVIA DAVIDOIU

interviews opinions news comments events COMMENT

German Imagination FOCUS

What is Serbia’s foreign policy position like today?

Exclusive

783002 771451

Recognition Of Kosovo Is A Mistake

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PRESIDENT OF THE CZECH REPUBLIC

ISSN1451-7833

MILOŠ ZEMAN

CONTENTS

06 GERMAN IMAGINATION

BY ZORAN PANOVIĆ Comment

26 THE DANGERS OF DATABASED CERTAINTY

BY DIANE COYLE / Feature

48 KRASNOV’S BELGRADE LEGACY Architecture

08 RECOGNITION OF KOSOVO IS A MISTAKE MILOŠ ZEMAN President of the Czech Republic

27 BUSINESS DIALOGUE 40 INDIA’S ‘ACCIDENTAL ENTREPRENEUR’ 12 CONNECTING BALKAN INFRASTRUCTURE AND ENERGY

KIRAN MAZUMDAR-SHAW Enterpreneur

51 LOVE COUNTERBALANCES EVIL BRANKA KATIĆ, ACTRESS My life

H.E. SILVIA DAVIDOIU Romanian Ambassador to Serbia

43 NO COMPROMISING ON PERSONAL HONOUR DR MIRJANA RAJILIĆ-STOJANOVIĆ Profile

56 CHILL OUT 58 OFFICE GADGETS

16 GLOBAR DIARY 18 SYRINGE AND CAPRICE Focus

@CORD_MAGAZINE

@CORDMAGAZINE

24 FOOTBALL TAKES CAPITALISM OUT OF BOUNDS YANIS VAROUFAKIS Opinion

44 DESIGNS THAT STAND THE TEST OF TIME Art

60 CULTURE CALENDAR 62 FACES & PLACES

CORD MAGAZINE

CORDMAGAZINE

EDITOR IN CHIEF: Ana Novčić a.novcic@aim.rs ART DIRECTOR: Branislav Ninković b.ninkovic@aim.rs CONTRIBUTORS: Rob Dugdale, Maja Vukadinović,

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“CorD does not criticise or critique. We are a place where people can inspire and be inspired by others” Mirjana Jovanović, Miša Brkić, Ljubica Gojgić Radmila Stanković, Steve MacKenzie, Zorica Todorović Mirković, Sonja Ćirić, Miloš Belčević EDITORIAL MANAGER: Neda Lukić n.lukic@aim.rs PHOTOS: Zoran Petrović COPY EDITOR: Mark Pullen

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OFFICE MANAGER: Svetlana Petrović s.petrovic@aim.rs FINANCE: Dragana Skrobonja finance@aim.rs GENERAL MANAGER: Maja Vidaković m.vidakovic@aim.rs PUBLISHER: Ivan Novčić i.novcic@aim.rs

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Comment

German

Imagination

BY ZORAN PANOVIĆ

V

učić has gradually accustomed the citizens of Serbia not only to there not being any EU membership if they don’t make substantial strides on the topic of Kosovo, but he also suggests to them that there will be no EU membership even if those essential strides are taken. No one even mentions anymore the famous “Juncker’s date” (EU membership for Serbia by 2025). But just because there’s no membership that doesn’t mean there’s no investment and financial support. This is Vučić’s ideal model of relations with the EU: the strongest possible economic and financial ties without raising standards to the required level in the fields of media, judiciary and the fight against corruption.

Can Germany find at least a slightly ‘avant-garde’ solution for Kosovo? To date it has generally always been rigid: back in 2007 (before Kosovo’s declaration of independence), then German Ambassador to Serbia, Andreas Zobel, angered Serbian officials and the public with his statement that Kosovo’s problem should be resolved as soon as possible ‘in terms of supervised independence’ (otherwise problems could be created in Sandžak and Vojvodina), only for current German ambassador to Serbia, Thomas Schieb, to state recently that

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If Serbia does not recognise the independence of Kosovo (even discreetly, through a “legally binding paper”) by the end of Angela Merkel’s term as German chancellor, that will still represent victory for Vučić over the stereotype nurtured by the Serbian opposition that he was ‘brought’ by the West to recognise Kosovo. And when it comes to Serbia’s relations with the post-Trump West, Vučić’s victory can easily be merely Pyrrhic. the NATO bombing of Serbia was essential to prevent a humanitarian catastrophe and genocide in Kosovo. Perhaps the statements of German officials are somewhat cynical, but at least they are principled cynicism.

German Foreign Minister Heiko Maas was not cynical this April, but rather attempted to leave the impression of a constructive realist.

He visited both Priština and Belgrade with the stance that the dialogue should conclude with ‘mutual recognition’, but also assessed that ‘there must be compromises’. When placed together in the context of Kosovo, ‘mutual recognition’ and ‘compromise’ form an oxymoron - a logical collapse. Vučić isn’t seeking any apologies from Germany for its cynicism or pragmatism - that is done by his subordinates because of the domestic public.

Vučić reminds the same public about the fact that tens of thousands of people are employed

by German companies in Serbia. By so doing he seems to be appealing to Germany to show a little ‘imagination’ regarding Kosovo.

Although Slovenian Prime Minister Janez Janša denied the existence of Slovenian “nonpaper” on changing borders on the territory of the former SFRY (with the creation of Greater Albania, Serbia and Croatia, and a small B-H), that “non-paper” nonetheless

has a media impact. It is hard to believe that this test balloon or exhibitionism would be that ‘German imagination’. That is to say, that Germany would indulge in adventurism and solve complex Serbian de-compensation by dismantling B-H. Did Yugoslavia really fall apart fully?

There is a creeping that after the peace of “Versailles” and “Tito’s”, the third period of peace in this area - that of “Dayton” - could come to an end.

Is the solution in that which is scandalous for the non-Serb part of the region: Could a ‘new Republika Srpska’ be created in Kosovo, instead of Republika Srpska being annexed to Serbia, which would represent the ‘optimisation’ of the unimplemented Community of Serb Municipalities, which was signed precisely eight years ago in Brussels ?

Croatian former communist politician and close associate of Tito, Vladimir Bakarić, created the phrase “federalising the federation” in the ‘70s, as a euphemism for the confederalisation of Yugoslavia. Could a new “federalising of federation” be made today, instead of that “non-paper”, and can the ‘German imagination’ move in that direction?

It would be overly ambitious to experience that as the region’s Scandinavianisation.

Interview Exclusive MILOŠ ZEMAN PRESIDENT OF THE CZECH REPUBLIC

Recognition Of Kosovo

Is A Mistake

For my many years in politics, I am known as a person who is consistent in his opinions. I still consider the recognition of an independent Kosovo to be a mistake, and as I mentioned in Belgrade in September 2019, I discussed this issue with the highest constitutional officials in my country. However, they do not share my opinion and, since we live in a democracy, I have to respect their majority opinion - Miloš Zeman 8

May

By Ljubica Gojgić

VISIT

Among the main topics of our discussion will be the excellent long-term bilateral relations with an emphasis on economic ties and support for mutual investments

ENLARGEMENT

The Czech Republic has always supported further enlargement of the Union, because we believe that membership consequently leads to peace, stability and prosperity

M

any years of excellent bilateral relations and strengthening cooperation, particularly in the domain of the economy, are the main topics of the latest meeting between the presidents of the Czech Republic and the Republic of Serbia. President Miloš Zeman was in Belgrade two years ago, while this year he is hosting President Aleksandar Vučić in Prague. In this interview for CorD Magazine, the President of the Czech Republic says that the uniqueness of relations between the two countries can be illustrated by the fact that the visit of the President of Serbia will be “the first official presidential visit since the outbreak of the COVID-19 pandemic”. Zeman says that he still believes EU enlargement is essential, including Serbia’s accession, because “membership consequently leads to peace, stability and prosperity”. The Czech president says that, in conversation with his guest from Belgrade, he will also inquire about the vaccination process in Serbia. In response to CorD’s question about the criteria that forms the basis for the Czech Republic to choose where it will source vaccines, President Zeman says that the fight against the pandemic is a question of health and not geopolitics. President Zeman, on the basis of your invitation, the visit of Serbian President Aleksandar Vučić to Czechia has been announced. What will the main topics of conversation be during the visit?

I am very glad that my friend, Serbian President Aleksandar Vučić, has accepted my invitation to Prague. It is a great honour for me to be able to repay his hospitality from my visit to Belgrade in September 2019. Among the main topics of our discussion will be the excellent long-term bilateral relations with an emphasis on economic ties and support for mutual investments. Of course, we will touch on the issue of the global

CZECH-RUSSIAN ISSUES

I don’t understand why intelligence officers should be crowded at the Russian Embassy, when we certainly need more experts on economic, cultural and other cooperation

How would you assess current bilateral relations between our two countries?

We have long-term excellent bilateral relations with Serbia, which have their historical roots.

The frequency of our meetings with President Vučić, together with the fact that his visit to Prague is the first official presidential visit since the outbreak of the pandemic, demonstrate the uniqueness of our relations. I am also very pleased with the intensity of mutual economic relations and the growing interest of Czech companies in investing in your country. The Czech Republic is committed to accelerating the pace of the EU enlargement process. However, given your experience, do you consider further enlargement as even being on the EU agenda, if we take into consideration all the challenges that the Union is facing?

Further enlargement of the EU must not fall victim to these challenges, but should continue. I am sure that the Czech Republic will play an active role in this and we are ready to continue to assist Serbia in its transformation process coronavirus pandemic. In this context, I would like to hear the Serbian experience with its successful vaccination programme. The next item on the agenda will be the issue of further EU enlargement and the related situation in the Western Balkan region.

The Czech Republic is carefully preparing for the second half of 2022, when it will again take over the presidency of the EU Council.

EU enlargement will be high on the agenda of our Presidency. The Czech Republic has always supported further enlargement of the Union, because we believe that membership consequently leads to peace, stability and prosperity.

You are right that the EU is currently busy with many challenges, especially the effects of the pandemic. However, further enlargement of the EU must not fall victim to these challenges, but should continue. I am sure that the Czech Republic will play an active role in this and we are ready to continue to assist Serbia in its transformation process What do you think of the initiative to strengthen cooperation with non-EU member states like Serbia through the V4+ platform?

I have long been a supporter of strengthening the V4+ format. V4 has an important regional

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Interview Exclusive East within the EU in the response to the crisis, especially in terms of the distribution of vaccines. Do you think there are grounds for such an opinion?

I do not consider the mentioned opinion justified. On the contrary, I welcome the centralisation of vaccine purchases by the European Commission, which represents a very large market and thus has better negotiating conditions than individual countries. Thanks to this, the European Commission was able to negotiate very favourable prices for vaccines.

Individual countries had a choice of how many vaccines and from which manufacturer they would like to order. However, the subsequent complications with distribution are more due to the huge demand and insufficient production capacity of individual companies. This is gradually improving and thus I believe that the pandemic will soon be over. When it comes to vaccine procurement, there is an issue over whether this is a healthcare matter or a geopolitical one?

dimension and I am very pleased that it is active through the International Visegrad Fund in Serbia, among others. Through V4, we can share our experience with the transformative process of joining the EU. The participation of President Vučić in the V4 summit in the Czech Republic in October 2019 was also confirmation of the excellent cooperation between the V4 and Serbia. During that meeting, the V4 as a whole supported the integration of Serbia into the EU. How would you comment on the EU’s response to the COVID-19 crisis from the perspective of your country?

No one in the world, including the EU, was ready for a pandemic of this magnitude. A pandemic knows no borders. I think everyone was initially surprised by its speed and intensity.

In this context, the rate at which vaccines were prepared should be appreciated. The vaccines are the lights at the end of the tunnel. However, it should be noted that the EU could be faster in authorising vaccines for its own market. Serbia

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V4 has an important regional dimension and I am very pleased that it is active through the International Visegrad Fund in Serbia, among others. Through V4, we can share our experience with the transformative process of joining the EU is one of the leaders in vaccination in Europe, also due to the fact that it is able to vaccinate with, for example, Russian or Chinese vaccines. There is an impression that a division was created between West and

The issue of vaccines is purely a matter of saving lives and should not be linked in any way to geopolitics. If you ask a person if he wants to risk the fight for life in an intensive care unit connected to a ventilator or if he wants to be spared from this experience with the help of a Russian or Chinese vaccine, then his or her answer will be clear. I find it very unfortunate when this issue is linked to geopolitics. As I mentioned earlier, a pandemic knows no borders and we should unite to fight it. How would you explain your government’s reluctance to procure Russian vaccines?

Let me reiterate that the issue of vaccines is primarily a matter of saving lives, and that is how it should be approached. The Russian Sputnik V vaccine is currently being evaluated as part of the approval process at the European Medicines Agency. If it is approved, I believe that our government will allow the use of the vaccine in the Czech Republic. According to the available information, it is a very high-quality vaccine and there are quite a few countries in the EU that would like to use it and produce it.

April saw Greece open its borders to Serbian citizens who’ve been vaccinated, regardless of which vaccine they’ve received. Would you support an initiative for Czechia to do the same?

Of course I would support this initiative in the Czech Republic. I know that some form of vaccination passport is currently being discussed at the EU level, so let us wait for their results.

I hope it will include all the available vaccines. You are known on the European and Czech political scene as an opponent of Kosovo independence. You announced on the occasion of your 2019 visit to Belgrade that you would ask the constitutional authorities of the Czech Republic about the possibility of withdrawing recognition. What is your stance on this issue today?

For my many years in politics, I am known as a person who is consistent in his opinions. I still

consider the recognition of an independent Kosovo to be a mistake, and as I mentioned in Belgrade in September 2019, I discussed this issue with the highest constitutional officials

in my country. However, they do not share my opinion and, since we live in a democracy, I have to respect their majority opinion.

I was informed by the Minister of the Interior about the activities of 18 Russian intelligence officers with diplomatic cover at the Russian Embassy in Prague. To be honest, I don’t like intelligence officers in general, they do more harm than good

Following the ongoing investigation into the explosion at the ammunition depot in Vrbětice in 2014 and the possible involvement of Russian military intelligence (GRU), I was informed by the Minister of the Interior about the activities of 18 Russian intelligence officers with diplomatic cover at the Russian Embassy in Prague. To be honest, I don’t like intelligence officers in general, they do more harm than good. I also don’t understand why intelligence officers should be crowded at the Russian Embassy, when we certainly need more experts on economic, cultural and other cooperation.

What was behind the expelling of Russian diplomats from Prague last April, which the Government also received your support to do?

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Interview

H.E. SILVIA DAVIDOIU ROMANIAN AMBASSADOR TO SERBIA

Connecting Balkan

Infrastructure And Energy We are looking forward to the construction of the Trans-Balkan Power Corridor that will connect the electricity transmission systems of the entire region and put Serbia on the map and the main corridor for energy transmission in this part of our continent - Silvia Davidoiu 12

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T

he new Romanian ambassador arrived in Serbia during the time of the struggle against COVID-19, but the pandemic seem not to have influenced her ambitious plans. In her first interview for CorD, Ambassador Silvia Davidoiu reiterates that Romania will not change its position on non-recognition of Kosovo’s unilaterally declared independence. She says that the main purpose of her endeavours in Serbia will be to increase interaction between economic actors in the two countries, specifically by strengthening bilateral contacts and increasing the number of economic events presenting business opportunities in all regions of Romania and all sectors of the economy. Your Excellency, your ambassadorship in Serbia began in February, during this time when the world is still struggling against the COVID-19 pandemic. How does diplomacy function under the conditions of lockdowns and restrictive measures?

Indeed, I took over my position as Romanian Ambassador to Serbia at a time when we are still

By Ljubica Gojgić

INFRASRUCTURE

The project to construct the PančevoTimisoara highway has the political support of both Romania and Serbia, and is a bilateral project of common interest

confronted by the COVID-19 pandemic and many restrictive measures – intended to limit the spread of the virus – are still in place in many countries.

It is particularly difficult to begin an ambassadorial mandate at a time like this, especially considering that our job is based on social interaction, an active presence in society and also presupposes travelling and meeting many people in Belgrade and around the country.

My colleagues and I have learned over past months to adjust and adapt to this reality and, apart from the virtual meetings that are now a “substitute” for the real gatherings, I was privileged to meet many Serbian officials in person and to participate in some events in the Serbian National Assembly and the Ministry of Foreign Affairs.

Life during this pandemic is not easy, but I’ve somehow managed to find a way to fulfil my duties, albeit not at the pace that I would have liked! You’ve stated that you arrived in Belgrade with a clearly defined agenda for infrastructure projects. How is implementation progressing on the planned highway from Belgrade to Timisoara, as the key infrastructure project?

Romania and Serbia have good cooperation in the fields of energy and transport, and I hope that our collaboration will continue and develop even further to the benefit of our countries’ mutual interests at the bilateral, regional and EU levels.

The project to construct the PančevoTimisoara highway has the political support of both Romania and Serbia, and is a bilateral project of common interest.

I am expecting the proposed changes to the energy and mining sector in Serbia to encourage new investments and I’ve noticed declarations and engagements of Serbia’s high-level politicians related to gas interconnection projects. We are hopeful that, among the many such projects that Serbia has on its agenda, we will also have the one with Romania: the Arad-Mokrin pipeline.

We are also looking forward to the construction of the Trans-Balkan Power Corridor, which will

COOPERATION

EU INTEGRATION

connect the electricity transmission systems of the entire region and put Serbia both on the map and on the main corridor for energy transmission in this part of our continent. The 400 kV ResitaPančevo overhead line - part of the Trans-Balkan Power Corridor - is a project of common interest and one of its main roles is to strengthen the Southeast European (SEE) electricity market and system.The implementation of this overhead line will increase the transfer capacity between the two countries and throughout Southeast Europe.

The relevant ministries in Romania and Serbia recently renewed their engagements to cooperate in the areas of energy and infrastructure, in order to bring these specific projects to fruition.

Our economies are complementary, and being neighbouring countries should be an advantage in terms of the transport of goods and services over the borders

I am expecting the proposed changes to the energy and mining sector in Serbia to encourage new investments and I’ve noticed declarations and engagements of Serbia’s high-level politicians related to gas interconnection projects We are also benefiting from the Joint Commission on the Iron Gates (the 100th session of which will take place in Romania in May 2021), which gives us the opportunity to work together on this longstanding flagship project of hydropower energy between two countries in this part of Europe.

The potential is quite high when it comes to increasing transports of goods on waterways by using the Danube, with the end point being the Port of Constanta, as proven by the increased capacity of goods transported in 2020, and that was in a year that was marked by the consequences of the pandemic crisis!

Goods transiting between the two countries in 2019 had a total weight of 8,9 billion tons, while total goods traffic registered as transiting Romanian maritime ports in 2020 reached a new record of 9.8 billion tons.

We do indeed firmly believe Serbia’s place is in the European family. This is a very clearcut position that Romania had advocated consistently even before our own accession

Will your idea of establishing a RomanianSerbian chamber of commerce be realised; and what do you see as its main tasks?

The establishment a Romanian-Serbian Chamber of Commerce isn’t actually a purpose in itself, but rather the result of increasing interaction between economic stakeholders in the two countries. That is going to be the main purpose of my endeavours and those of my colleagues in the Embassy, namely to strengthen bilateral contacts and increase the number of economic events presenting business opportunities in all regions of Romania and all sectors of the economy.

A bilateral Chamber of Commerce – when the times comes – would be best positioned to promote its members’ business priorities, best practices, increase trade and investment ties between Romania and Serbia, facilitate an open dialogue between the business communities and the central authorities, and promote transparent solutions and priorities.

Our economies are complementary, and being neighbouring countries should be an advantage in terms of the transport of goods and services over the borders. We also share similar cultural and social traditions, so almost all the ingredients are there for even more successful cooperation! How do you view the potential of regional cooperation within the Quadrilateral comprising Romania, Bulgaria, Serbia and Greece?

Romania is willing to continue the development of cross-border and wider regional cooperation in this format, with the objective of strengthening the territorial cohesion of crossborder regions, their competitiveness and their sustainability through projects of mutual benefit.

Romania reaffirms its support for regional projects of common interest, especially in the fields

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Interview 2020. Despite the restrictions imposed and the lockdowns of our economies, trade has kept flowing between Romania and its southwest neighbour.

I am therefore convinced that we can overcome the current difficulties and hopefully set a new bilateral trade record in 2021.

Along with the trade exchange, mutual investments should also be stimulated. We hope that Serbian companies will seize the opportunities created in Romania through the recent legislative measures and programmes intended to improve the business climate, support investments and stimulate the entrepreneurial spirit. Romania is progressing with the vaccination process. Is your country relying exclusively on the procurement of vaccines within the EU or are you considering vaccines from other manufacturers? To what extent is this also a political issue?

of transport, energy and ITC, as well as sports and youth, in order to promote the development and overall connectivity of the region.

All four countries emphasise the importance of a macro-regional approach to stimulating economic growth and job creation, including in the framework of the EU Strategy for the Danube Region, the Three Seas Initiative and the EU Strategy for the Adriatic and Ionian Region. How hard has the Romanian economy and bilateral trade with Serbia been hit by the COVID-19 pandemic?

The Romanian economy contracted by 3.9% of GDP (estimated NSI data) in 2020. The COVID-19 crisis had a serious impact on activities in the Romanian business environment, both for companies and their employees. Many companies have reduced, suspended or shutdown their activities, laying off employees or sending them into technical redundancy. The state has pledged to support the economy and pay technical unemployment benefits, and has devised and implemented special fiscal and financial support schemes, among others, with priority given to European funds.

Starting from 15th May 2020, economic activity gradually resumed in several sectors, at the initiative of private decision makers, but in compliance with the public authorities’ recommendations for the protection of employees and customers.

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According to the European Commission’s 2021 winter forecast, the Romanian economy will increase in GDP by 3.8% in 2021 and 4.0% in 2022, respectively, while inflation will remain at relatively low levels (2.6% and 2.4%, respectively).

In the 2021-2027 period, Romania will benefit from European funds totalling almost 80 billion euros, 33 billion euros of which come from the EU Recovery Plan, while over 46 billion euros relates to the EU’s Multiannual Financial Framework.

With regard to bilateral trade, the Republic of Serbia is the 7th extra-Community trade partner of Romania (after Turkey, China, the Russian Federation, the U.S., the Republic of Moldova and Ukraine) and occupies 5th place as a market for Romanian export products (after Turkey, the U.S., the Russian Federation and the Republic of Moldova) and is ranked as the 9th largest import partner (after China, Turkey,the Russian Federation, Kazakhstan, Ukraine, the U.S. and the Republic of Moldova).

Our bilateral trade had an exceptional year in 2019, amounting to a total of 1.7 billion euros. After a promising start to 2020, it turned out to be a year of uncertainty, especially with respect to the business environment. Although the COVID-19 pandemic hit the economies of both our countries, as the latest official data reveal, our bilateral trade fell by only 13% in

As of 13th April 2021, 3,762,214 doses of vaccine had been administered in Romania (2,771,056 were produced by Pfizer-BioNTech, 253,187 by Moderna and 389,712 by AstraZeneca). The Prime Minister of Romania recently declared that we will have 8.3 million doses of vaccine that will arrive in Romania in April and this time is critical for us to aim to have almost five million people vaccinated by the end of May 2021, in the most pessimistic scenario. This is an important figure for us, because it represents almost 35% of the adult population that needs to be vaccinated.

We have already started the third phase of the vaccination, in terms of categories of people that were prioritised to receive immunisation: first medical personnel and other personnel from the social system, then, in the second phase, those with severe health risks and people from the essential sectors of the country, with the rest of the citizens in the third phase.

Romania benefits in many aspects from being part of the European Union and to date we’ve managed a quite successful vaccination campaign by relying only on vaccines procured through the European mechanisms and authorised by the European authorities. There has been no discussion and no need to look to procurement from other sources.

Nevertheless, Romania has tried its best to show solidarity and assisting the Republic of Moldova, our closest neighbours and friend, with a donation of vaccine doses for medical staff in this

country that has been hit heavily by the pandemic.

As you are well aware, through Romanian efforts, necessary medical equipment from the RescEU is continuing to be distributed to Serbia and other Western Balkan countries, with the latest such shipment to Belgrade arriving on 9th April 2021, when I was present at the handover of a donation of surgical masks that arrived from EU stockpiles located in Romania and Belgium: 310,000 FFP2 masks, 730,000 surgical masks and 730,000 pairs of gloves. This shipment has a value of 857,000 euros. Are you experiencing problems convincing citizens about the importance and safety of vaccination?

The pandemic has generated complex consequences, accentuating pre-existing trends and creating new ones. Disinformation regarding vaccines through fake news on the internet and, sometimes, the media also adds to these difficulties.

Nevertheless, the number of people in Romania that have already registered on open platforms to receive vaccination is quite high and that is a sign that many citizens have realised the importance of being safe for their own sake and that of their families. Moreover, the government has pursued an active campaign of disseminating information on the benefits of vaccination, underlining the fact that the return to normality and the ease of the restriction depends on the immunising of a large number of people and reaching what is generally called ”group immunity”. The authorities are promoting the right messages about vaccination, through the voices of renowned personalities from the medical field and also public figures. They have done a good job so far, given that Romania currently ranks 19th worldwide in terms of the prevalence of immunisation to SARS-CoV-2 per capita, with almost four million doses already administered, equating to double the global average. Calls for EU member states that have not recognised Kosovo to do so can occasionally be heard within the EU. What is the position of the government in Bucharest on this issue?

The position of Bucharest is well known and nothing has changed. Our government is closely following the Belgrade-Pristina Dialogue, mediated by Brussels.

This dialogue is a process that’s relevant to the stability of the region and its European prospects.

Romania’s continued support for Serbia’s integration?

The potential is quite high when it comes to increasing transports of goods on waterways by using the Danube, with the end point being the Port of Constanta, as proven by the increased capacity of goods transported in 2020, and that was in a year that was marked by the consequences of the pandemic crisis!

It has to continue in order to reach a meaningful conclusion and the main actors have to show political will, wisdom and maturity in implementing the agreements reached at all stages of negotiations. Romania is among the countries that support Serbia’s path to EU accession.

Could the so-called “Vlach issue”, related to resolving the status of these citizens of Eastern Serbia, be a precondition of

Firstly, allow me to clarify the question, as you put it. Our position is firmly rooted in the provisions of international law and refers to the ensuring of protection of the rights of persons belonging to the Romanian minority, in accordance with international standards, in particular with respect to preserving the linguistic identity of these persons, regardless of how they name themselves (Romanians or Vlachs) and irrespective of where in Serbia they reside (Vojvodina or the Timok Valley).These are rights enjoyed by Serbs in Romania and, as such, it is only natural to expect Romanians to receive the same treatment in Serbia.

As regards the EU integration process, we do indeed firmly believe Serbia’s place is in the European family. This is a very clear-cut position that Romania had advocated consistently even before our own accession.

Developments on Serbia’s European path are very much in the hands of Belgrade, in the overall commitment to the strategic goal of accession and in the pace and quality of efforts to harmonise with EU standards. Accession also remains a meritbased process under the revised methodology for Enlargement, which offers a positive and wider framework for advancement, with fundamental areas (such as chapters 23 and 24) as shining sine qua non priorities.

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GLOBAL DIARY

“Among advanced economies, the United States is expected to surpass its pre-Covid GDP level this year, while many others in the group will return to their pre-COVID levels only in 2022.” – GITA GOPINATH, IMF CHIEF ECONOMIST

INDIA SHAKEN BY CORONAVIRUS ‘STORM’ India set a new global record of the most number of COVID-19 infections in a day, as Prime Minister Narendra Modi urged all citizens to be vaccinated and exercise caution, saying the “storm” of infections had shaken the country.

India’s number of cases surged by 349,691 in a day 24, the fourth straight day of record peaks, and hospitals in Delhi and across the country are turning away patients after running out of medical oxygen and beds.

“We were confident, our spirits were up after successfully tackling the first wave, but this storm has shaken the nation,” Modi said in a radio address.

PRINCE PHILIP DIES AGED 99 Prince Philip, Queen Elizabeth II’s husband, has died aged 99. The palace said in a statement: “It is with deep sorrow that Her Majesty The Queen has announced the death of her beloved husband, His Royal Highness The Prince Philip, Duke of Edinburgh. “His Royal Highness passed away

peacefully at Windsor Castle.”

Boris Johnson said he “inspired the lives of countless young people”. Speaking at Downing Street, he added: “He helped to steer the Royal Family and the monarchy so that it remains an institution indisputably vital to the balance and happiness of our national life. Prince Philip earned the affection of generations here in the United Kingdom, across the Commonwealth, and around the world,” he said.

RENEWABLES COULD DISPLACE FOSSIL FUELS TO POWER THE WORLD BY 2050 Solar and wind energy could replace fossil fuels entirely to become the world’s power source by 2050, a new report has claimed.

Published Friday, the report from thinktank Carbon Tracker also predicted that if wind and solar power continued on their current growth trajectory, they would push fossil fuels out of the electricity sector by the mid-2030s. Current technology gave the world the power to capture 6,700 Petawatt hours (PWh) of power from solar and wind energy, researchers claimed – more than 100 times the amount of energy consumed globally in 2019.

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May

“In this age of economic globalisation, openness and integration is an unstoppable historical trend.” – XI JINPING, CHINESE PRESIDENT

BIDEN RECOGNISES GENOCIDE AGAINST ARMENIANS In a historic though largely symbolic move that will likely strain already fraught relations with Turkey, U.S. President Joe Biden recognized the killing of 1.5 million Armenians by Ottoman Empire forces in the early 20th century as a genocide.

Biden’s declaration is a major break from past U.S. administrations, which avoided calling the atrocities genocide due to concerns over alienating Turkey, an important NATO ally and influential power in the Middle East. Turkey has contested that the killings constitute a genocide.

TURKISH COURT ORDERS ERDOGAN TO STOP DENYING JOURNALISTS CREDENTIALS One of Turkey’s highest courts has ruled the president cannot refuse to issue press accreditation for arbitrary reasons. A government spokesman reacted with defiance, calling journalists propaganda-spewing terrorists.

Turkey’s Council of State, the country’s high-

est administrative court, ruled recently that the Directorate of Communications, which is under the

control of President Recep Tayyip Erdogan, can no longer refuse to issue press accreditation to journalists citing vague or arbitrary reasons for the decision. The case was brought to the court by the country’s second-largest journalists’ association, the CGD (Cagdas Gazeteciler Dernegi). Judges found that the CGD’s suit had legal merit and ruled that the government could no longer use vague or arbitrary grounds, such as “violations of national security and public order,” to justify refusing press accreditation.

EDI RAMA WINS THIRD MANDATE IN ALBANIAN ELECTIONS Albania’s ruling Socialist Party (SP), led by Prime Minister Edi Rama, has won the election with 48% of the vote, handing the party 74 seats in the 140-seat parliament, the same number of seats the party won in the previous election.

It was the “most difficult but sweetest election victory. We have broken the record,” PM Rama told thousands of his flag-waving supporters in Skenderbeg Square in Tirana. “Thank you for the trust you have given me in my third term,” he added.

May

17

Focus

What is Serbia’s foreign policy position like today?

Syringe

And Caprice On a daily basis, Serbia constructs its image as a skilled player able to easily use its three-pronged or (even) “four-pillared architecture” of foreign policy to maintain more or less desirable relations with all major powers and to monetise those relations through vaccines, infrastructure and attracting investment from all sources. Is this a compelled insurance policy and the result of short-sighted arrogance?

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hould Serbia’s current foreign policy position be judged according to the number and diversification of sources for the procurement of vaccines, according to the report of European Parliament rapporteur Vladimir Bilčik, or on the basis of current data on the procurement of weapons? Has the current Serbian

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president, as some commentators suggest, exhausted all credit from Brussels, or has Serbia exhausted the EU’s patience when it comes to European integration? Here CorD’s interlocutors provide nuanced answers to these questions, gauging them against the cult of personal power, dialogue in society and the rule of human rights.

DRAGAN PAVLIĆEVIĆ

ASSOCIATE PROFESSOR OF THE DEPARTMENT OF CHINESE STUDIES AT THE INTERNATIONAL XI’AN JIAOTONG-LIVERPOOL UNIVERSITY

THE POWER OF OTHER FRIENDS THE KEYS TO SERBIA’S FOREIGN POLICY ARE IN THE HANDS OF BRUSSELS TO A LARGE EXTENT, THROUGH ITS POLICY TOWARDS SERBIA AND THE WESTERN BALKANS. THE MORE THE EU IS IN A POSITION TO ARTICULATE A CLEAR ENLARGEMENT POLICY, THE FEWER INCENTIVES THERE WILL BE FOR BELGRADE TO PURSUE ITS INTERESTS THROUGH OTHERS.

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s a country which has a main strategic aim that remains joining the European Union, which has an economy that’s predominantly orientated towards Europe and where Brussels plays a key role in mediating between Belgrade and Priština, as well as in defining relations within the Western Balkans, Serbia must primarily weigh up its policy in relations to Brussels.

However, although in 2018 the country adopted the so-called “credible perspective for enlargement” - a policy that opens the prospects of the Western Balkan countries acceding to the EU by 2025 - the EU continues to send, in the best cases, mixed signals about whether it is really ready to turn this vision into reality. This uncertainty is the result of internal dynamics in the EU, and to a lesser extent due to the uncertain steps with which Serbia synchronises its regulations and practises with those of Europe. Brussels has also proven to be an ineffective mediator in the dialogue between Belgrade and Priština, in which some of the aspects of the Brussels Agreement signed in 2013 that are most important for Serbia remain a dead letter on paper.

Thus, Brussels is opening the door wide to the government IF THE TRAJECTORY OF EU-CHINA AND U.S.in Belgrade to secure its credibility and legitimacy, as well as its CHINA RELATIONS CONTINUES TO WORSEN, THAT interests on the Kosovo issue and in the wider foreign policy field, WILL HAMPER SERBIA’S EFFORTS TO BUILD ON through relations with other important external players, instead of with the support of the EU and the major European countries.

THE POSITIVE MOMENTUM ACHIEVED THROUGH It is in the light of this key that we should also view relations ECONOMIC COOPERATION TO DATE AND THE with China and Russia. As long as the EU doesn’t show that it’s IMPORTANT ROLE CHINA IS PLAYING IN EFFORTS ready and able to secure Serbia’s interests in Kosovo - which have been significantly softened and modified through openness TO OVERCOME THE COVID-19 EPIDEMIC IN SERBIA to a “compromise in which both sides would lose something” the support that these two countries give Serbia is essential to preserving Serbia’s position on this issue that is central to the country. Likewise, this also explains Belgrade’s readiness to use the importance and influence of the United States through the Washington Agreement, despite the clearly limited duration of the Trump administration at that time.

Apart from strengthening its position with regard to Kosovo, maintaining relations with Moscow, Beijing and Washington gives credibility to the current government by validating the image it wants to project for domestic needs - as a reputed partner of the great powers. Moreover, the economic dimension of relations with China, and in particular the commissioning of lapsed and important economic factors, such as the Smederevo Steelworks and the former RTB Bor mining complex, along with the improvement of transport and other infrastructure, represents great support for the efforts of the current authorities to position themselves as the bearers of economic progress. These are significant resources that are being made available during years when there are no similar resources available from the EU itself. In that sense, the so-called “return” of the United States to the region, including the announcement of infrastructure investments in Serbia - despite being the product of the global game against China that this country is playing - can only be in the interest of Belgrade if the Biden administration continues on Trump’s path and if it doesn’t give support to Priština’s desire to further formalise independence without and beyond dialogue with Serbia.

An important factor will also be represented by the trajectory of EU-China relations. If those relations continue to worsen despite the recently signed agreement on economic cooperation, which is seen as a possible turning point, it should be expected that Brussels will ramp up the pressure it exerts on Serbia to reduce its relations with China, and the same can also possibly be expected from Washington. This will hinder Serbia’s efforts to build on the positive momentum achieved through economic cooperation to date and the important role that China is playing in efforts to overcome the COVID-19 epidemic in Serbia.

May

19

Focus

What is Serbia’s foreign policy position like today?

DR MARKO DAŠIĆ

ASSISTANT PROFESSOR, UNIVERSITY OF BELGRADE - FACULTY OF POLITICAL SCIENCE

POLICY DIVERSIFICATION GAINS OR CREDIBILITY LOSSES? SERBIA’S FOREIGN POLICY HAS BECOME A SET OF DISPARATE, SEEMINGLY IRRECONCILABLE OPTIONS THAT ENABLE THE SWIFT IMPLEMENTATION OF ALTERNATIVES, WITHOUT PREVIOUSLY PREJUDICING THE FINAL OUTCOMES. IT SEEMS THAT THIS CAN ALL BE ABSORBED IN THE SHORT TERM. IN THE LONG TERM, IT WILL PUT TO THE TEST SERBIA’S CREDIBILITY IN THE EYES OF FOREIGN PARTNERS AND IN THE COURT OF DOMESTIC SUPPORT.

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here are many well-founded reasons to highly rate the current foreign policy position of the Republic of Serbia. The launched (European) integration process has not been abandoned, although it has ground to a halt. The “historical rapprochement” with the U.S. is on hold, but not due to any desire or mistake of Serbia. Relations with the People’s Republic of China are on the rise, seemingly in proportion to the duration of the COVID-19 pandemic. The Russian Federation remains a key shield to Serbia’s territorial integrity at sessions of the UN Security Council that are dedicated to the UNMIK activities. It is sometimes an extraordinary success just to maintain the status quo of an international political position, especially when it comes to a small country like Serbia.

The troubled times in which Serbia also found its aspiration to endure on the waiting list in order to vaccinate the interested population, and not only its own, has propelled this small Balkan country onto the front pages of reputable world media companies. But also subjected to the mercilessness of (unnamed) EU officials, at least according to the testimonies of politicians from our region.

Foreign policy has become a set of disparate, seemingly FOREIGN POLICY HAS BECOME A SET OF irreconcilable options that enable the swift implementation of DISPARATE, SEEMINGLY IRRECONCILABLE alternatives, without previously prejudicing the final outcomes.

Serbia’s criticised “cock-eyed” foreign policy, which is fundamenOPTIONS THAT ENABLE THE SWIFT tally based on the “four-pillar architecture”, is again in the public IMPLEMENTATION OF ALTERNATIVES, WITHOUT spotlight. It is bearing fruit on all sides, at least when it comes to PREVIOUSLY PREJUDICING THE FINAL OUTCOMES preserving the health of the nation.

An additional step forward has been enabled with this, via the reviving of the narrative of Serbia as the “leader of the region”. It is difficult to object to the solidarity that we’ve witnessed during the previous crisis months. It also overshadowed the criticism contained in the European Parliament report or the environmental ramifications of Chinese investments, which are increasingly the topic of civic democratic participation. It seems that this can all be absorbed in the short term. In the long term, it will put to the test Serbia’s credibility in the eyes of foreign partners and in the court of domestic support.

Notwithstanding the fact that they are not nominally the largest, Chinese investments in Serbia are attracting the most attention, both from the domestic public and external competitors. According to Chinese officials, they are not of a geopolitical character. In the EU and the U.S. they wouldn’t agree with this claim. The EU has perhaps failed with vaccines, but donations have intensified. With the change of administration and the focus on domestic problems, the U.S. has lost the momentum towards the Balkans that it inherited from its predecessors, but that is far from suggesting that the arrival of America’s DFC development agency will remain a dead letter on paper. It seems that they will do everything to prevent the further growth of Chinese influence, whether that’s through investments, humanitarian diplomacy or the growing soft power that is waning.

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May

DR SREĆKO ĐUKIĆ

AMBASSADOR, FORUM FOR INTERNATIONAL RELATIONS OF THE EUROPEAN MOVEMENT IN SERBIA

CHINA IS BECOMING WHAT THE EU SHOULD BE BELGRADE AND BRUSSELS HAVE BEEN PARTNERS FOR DECADES, BUT THE CREDIT OF THOSE RELATIONS HAS BEEN SPENT. THE U.S. REMAINS ON THE WESTERN SIDE OF SERBIAN FOREIGN POLICY, WHICH CONTINUES TO CONTROL ITS LEVERS, BRINGING TO AN END THE REMAINING “HOTSPOTS” IN A WAY THAT TELLS SERBIA THAT WASHINGTON DOESN’T WANT BELGRADE TO REMAIN AN ENEMY IN THE BALKAN MILIEU.

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he pandemic and Serbia’s foreign policy have been shown to have a strong mutual connection. Specifically, Serbia’s foreign policy hasn’t been directed one-way for a long time, nor is it linked to the European ship and European values.

That policy has for many years been three-pronged, and those prongs are not of equal length. China’s arrival in Serbia changes its foreign policy vector. China is becoming what the EU was supposed to be - ubiquitous, present in every economic, financial and defence segment of the country. On the foreign policy scale, it has been pushing against the European Union, which has officially been Serbia’s “first foreign policy priority” since 2000. It is also leaving in its wake our “fraternal” Russia, demonstrating just what Chinese money can do! It is like Serbia is again overlooking the Berlin Wall.

The Chinese economic boom in Serbia has not been able to bring to the country European democratic and political standards, as the required value system. It found itself in a CHINESE SOFT DIPLOMACY IN SERBIA, OR fierce conflict with them, with the EU, in regressing away from RUSSIAN, IS THE FRUIT OF THE DAILY WORK OF EU membership. This cannot help but be strikingly reflected THE SERBIAN SIDE AND THE CREATION OF THE in the reports of the European Parliament, and other reputable POSITIVE MOOD OF PUBLIC OPINION IN FAVOUR institutions around the world, regarding the catastrophic state of democracy and freedoms in Serbian society.

OF CHINA AND RUSSIA Stumbling on the European path, Serbia has not had the opportunity to expend its patience. It doesn’t show the least bit of enthusiasm, commitment and urgency with the aim of gaining membership in the Union as soon as possible. Serbian polices are de facto leading to fruitless disputes and discussions with Brussels on key issues related to membership, seeking a kind of privileged status on that path. Belgrade and Brussels have been partners for decades; they are not at the beginning of mutual relations, and the credit has been spent.

On the western side of Serbian foreign policy, the U.S. is decisively regulating the post-Yugoslav space, continuing to exert control with its levers, bringing to an end the remaining “hotspots”. The U.S.’s reasonable and gradual treatment of Serbia demonstrates that Washington doesn’t want Belgrade to remain an enemy in the Balkan milieu. That’s how we should read the political, economic and other messages coming to Belgrade from across the ocean. On the other hand, American “soft diplomacy” has not received adequate support and promotion. However, that’s a matter of Serbian presentation and not just an American issue.

May

21

Focus

What is Serbia’s foreign policy position like today?

DR VLADIMIR GLIGOROV

PROFESSOR AT THE VIENNA INSTITUTE FOR INTERNATIONAL ECONOMIC STUDIES

FROZEN INTERREGNUM FROZEN CONFLICTS, WHICH ARE POTENTIAL SOURCES OF INSTABILITY BY THEIR VERY NATURE, FAVOUR AUTHORITARIAN RULE. SO IT SEEMS AT THIS MOMENT THAT THE FROZEN INTERREGNUM, THE STATE OF STABILITY ALONGSIDE EXISTING UNRESOLVED PROBLEMS WITH NEIGHBOURS, IS SUSTAINABLE AND ALIGNED WITH SERBIAN INTERESTS. THE BASIC PROBLEM, HOWEVER, REMAINS. THE OTHER PARTIES WILL SEEK SOLUTIONS.

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erbia’s policy over the last two decades has aimed at sustaining the current situation. The changes that have occurred in the meantime have all been a consequence of the decisions made by others. They were, again, dependent on international relations and, primarily, on the U.S. and the EU. The influence of China and Russia has grown in the last few years, primarily for two reasons. One was Trump’s disinterest in Euro-Atlanticism, while the other is a mistaken plan for solving the Kosovo problem, based on the exchange of territories in which the EU placed certain hopes. The consequence of America’s withdrawal and the unachievable European policy is the increased influence of China and Russia. And for the first time since 2000 this made sustainable the policy of not resolving problems and an enduring interregnum.

This is also in line with the growing authoritarianism of Serbian politics. Frozen conflicts, which are potential sources of instability by their very nature, favour authoritarian rule. So it seems at this moment that the frozen interregnum, the state of stability alongside existing unresolved problems with neighbours, THE EROSION OF THE RULE OF LAW AND is sustainable and aligned with Serbian interests.

ADDITIONAL ARMING CANNOT HAVE A However, the basic problem remains. The other parties will seek solutions. And America’s return to Atlanticism is underway. Of FAVOURABLE IMPACT ON SERBIA’S FOREIGN course, much will depend on the European Union and its Balkan POLICY POSITION UNDER THE CONDITIONS OF strategy. Regardless of how all that changes, the basic problem of LIVING WITH FROZEN CONFLICTS Serbian politics remains: an unwillingness to solve problems, which will again result in decisions being made by others.

If we set aside the problems of stability and security, maintaining the status quo does not favour economic progress. European interests are to connect the economic space to the greatest possible extent, otherwise larger investments are unprofitable. This is at the core of all regional cooperation programmes that the EU has supported since 1999. Investments that aim at supplying the Serbian market or third markets will be limited due to the nature of things. That’s because the Serbian market is small, and there are more favourable locations when it comes to the world market. On the whole, American, Russian and Chinese investments don’t go towards the development of industry, so they cannot be a valid alternative.

Finally, successes in terms of vaccination are certainly useful regardless of how they are observed, but we shouldn’t lose sight of the fact that the damage to the public health of Serbia caused by the epidemic is very great. In terms of the number of infected and the number of deaths during the epidemic on the basis of population size, Serbia has done very poorly. Nor can it be said that this is justified by special economic successes, although that was what they strived towards. Indeed, many neighbouring countries have fared much worse, and they are unable to boast of either economic or vaccination success. This will certainly increase Serbia’s influence in the surrounding area. That is good for political stability in and of itself, and it also increases security. In contrast to that, however, the erosion of the rule of law and additional arming cannot have a favourable impact on Serbia’s foreign policy position under the conditions of living with frozen conflicts.

Overall, Serbia’s policy of a frozen interregnum is risky, which is clear from the experience of the last thirty years. It would be necessary to have a policy of problem solving, however that is not visible on the horizon.

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ZORAN GAVRILOVIĆ

SOCIOLOGIST, EXECUTIVE DIRECTOR OF THE BUREAU FOR SOCIAL RESEARCH (BIRODI)

PLEDGE OF PERSONAL POWER SERBIA IS BECOMING A KIND OF SOCIAL DUMP THAT’S INHABITED BY THE OLD AND THE SICK, WHERE FEAR AND CORRUPTION ARE MANAGED WITH THE HELP OF A SYSTEM OF PERSONAL AUTHORITY THAT GUARANTEES PEACE IN SERBIA, B-H AND MONTENEGRO WITHOUT LINKING SERBIA TO RUSSIA AND CHINA. VUČIĆ’S DEADLINE HAS NOT EXPIRED ON THAT SIDE, AND THE NEED FOR SUCH A SYSTEM OF AUTHORITY WILL BECOME ETERNAL IF SERBIA DOES NOT COME TO ITS SENSES.

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ny statistic is just a number, which is subject to manipulation if not put into context. The fact that Serbia has more Chinese vaccines (as a diabetic myself, I rushed to receive it, because there were no others available where I received it) can be given many mutually exclusive meanings.

This can mean that Serbia was more organised, more nimble and has more money to buy vaccines during the pandemic than the most developed countries. Admittedly, Serbia bought Chinese vaccines that are not in demand on the markets of those most developed countries. That vaccine has not yet been approved for purchase by the World Health Organization. The Agency for Medicines and Medical Devices here helped by providing an import permit, in contrast to Pfizer, which was a step higher after receiving a temporary permit.

This case simultaneously raises the question of the advantages of political systems that are based on personal power and the extent to which that is more effective during times of crisis than systems led by the rule of law and procedures.

Vladimir Bilčik had no such dilemma, nor did the members of the European Parliament who showered his report with amendments like never before, although there have been previous opportunities to note that personal power exists in Serbia as a type of government that JOVANJICA, KRIŠIK, TELEKOM AND SAVAMALA, negates the rule of law, institutional integrity and freedom of the media AS TANGIBLE EXAMPLES OF THE ABSENCE OF and speech. In short, which negates the state, and only states can CHANGE IN THE STATE OF OPEN CHAPTERS 23 enter the EU, but as territories, entities with the aforementioned rule of law and, as the greatest living philosopher Jürgen Habermas said, with AND 24, CAN FOR THIS GOVERNMENT BE WHAT a developed public, without which there can be no state.

24 CASES OF PRIVATISATION WERE FOR THE In essence, Bilčik’s report is a kind of stamp of approval on all PREVIOUS GOVERNMENT reports and analyses produced by domestic organisations on the state of affairs, and which first began receiving confirmation from international NGOs, then the ODIHR in its report on last year’s elections, which was transcribed by the European Commission in its Progress report. And, ultimately, the United States put its stamp on everything.

Jovanjica, Krišik, Telekom and Savamala, as tangible examples of the absence of change in the state of open chapters 23 and 24 can for this government be what 24 cases of privatisation were for the previous government.

The result of this is the departure of those who can and want to join the European Union, which Serbia seems to be fleeing from, or at least hesitating to join, becoming a kind of social dump that’s inhabited by the old and the sick, where fear and corruption are managed with the help of a system of personal authority that guarantees peace in Serbia, B-H and Montenegro without linking Serbia to Russia and China.

Vučić’s deadline has not expired on that side, and the need for such a system of authority will become eternal if Serbia does not come to its senses. With the rule of law, the integrity of institutions and media freedom, the name of the administrator will become irrelevant.

What has changed in the meantime, if anything, in America’s attitude towards Serbia, and are some messages being sent through political conversation and others through investment lending, where European, Chinese and (suggested) American state money lead to infrastructural interconnections with Europe?

Media outlets that are controlled by the authorities have tried to paint a picture of the Trump administration’s fondness for Serbia.

However, the Washington Agreement, as the culmination of that “change”, contributed to a state that hadn’t recognised Kosovo before that “vision” suddenly recognising Kosovo. As we are taught by Immanuel Wallerstein, the metropolis never changes its structural interests at the periphery, to which the modern Serbia belongs.

May

23

Opinion

YANIS VAROUFAKIS/ PROJECT SYNDICATE

Football Takes Capitalism Out Of Bounds Last week, Europeans showed the red card to the moguls – and their financiers – who tried to form a Super League of the continent’s top 15 football clubs.

Now that Europeans discovered their moral Rubicon, the time may have come for a broader rethink of who owns what

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urope has discovered its moral Rubicon, the frontier beyond which commodification becomes intolerable. The line in the sand that Europeans refuse to cross, come what may, has just been drawn.

We bowed to bankers who almost blew up capitalism, bailing them out at the expense of our weakest citizens. We turned a blind eye to wholesale corporate tax evasion and fire sales of public assets.

We accepted as natural the impoverishment of public health and education systems, the despair of workers on zero-hour contracts, soup kitchens, home evictions, and mind-numbing levels of inequality.

We stood by as our democracies were hijacked and Big Tech stripped us of our privacy. All of this we could stomach.

But a plan that would end football as we know it? Never.

Last week, Europeans showed the red card to the moguls – and their financiers – who tried to steal the beautiful game.

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A potent coalition of conservatives, leftists, and nationalists, uniting Europe’s north and south, rose up in opposition to a secret deal by the owners of many of the continent’s richest football clubs to form a so-called Super League. To the owners – including a Russian oligarch, an Arab royal, a Chinese retail magnate, and three American sports potentates – the move made obvious financial sense.

But from the perspective of the European public, it was the last straw.

Last season, 32 clubs qualified to play in Europe’s Champions League, sharing €2 billion ($2.4 billion) in revenues from television rights. But half of the clubs, teams like Real Madrid and Liverpool, attracted the bulk of the European television audiences. Their owners could see that the pie would increase substantially by scheduling more derbies between the likes of Liverpool and Real Madrid, rather than matches featuring lowly sides from Greece, Switzerland, and Slovakia.

And so it was that the Super League proposal was hatched. Instead of sharing €2 billion between 32 clubs, the top 15 clubs calculated they could divide €4 billion among themselves. Moreover, by creating a closed shop, with the same clubs every year, regardless of how well they perform in their national championships, the Super League would remove the colossal financial risk that all clubs face today: failing to qualify for next year’s Champions League.

From a financier’s perspective, kicking out the laggards and forming a closed cartel was the logical next step in a process of commodification that began long ago.

Here was a deal that would quadruple future income streams and remove risk by turning those streams into a securitized asset. Is it any wonder that JPMorgan Chase rushed in to finance the deal with a golden-handshake offer of €300 million to each of the 15 clubs that agreed to leave the Champions League behind?

Whereas the Brexit saga lasted years, this particular breakaway attempt collapsed within two days. Whatever the financial logic behind the Super League, its plotters had failed to consider an intangible yet irresistible force: the widespread conviction among fans, players, coaches, communities, and entire societies that they, not the tycoons, were the true owners of Liverpool, Juventus, Barcelona, and the rest.

And who could blame the owners for not seeing it coming? No one protested when they floated their clubs’ shares on stock exchanges alongside McDonald’s and Barclays. For years, fans watched passively as oligarchs poured billions into a few leading clubs, killing off all real competition by packing their rosters with the world’s great players.

But while the European public could tolerate that the probability of a laggard ever winning anything had fallen close to zero, the Super League would officially

Instead of sharing €2 billion between 32 clubs, the top 15 clubs calculated they could divide €4 billion among themselves. Moreover, by creating a closed shop, with the same clubs every year, regardless of how well they perform in their national championships, the Super League would remove the colossal financial risk that all clubs face today: failing to qualify for next year’s Champions League take that chance the rest of the way.

Maximizing profits would now mean the

formal extinction of the possibility even to dream that a lowly team like Stoke City or Athens’ Panionios could one day win the Champions League. The complete elimination of hope, however distant capitalism had rendered it, provided the spark that stopped football’s oligarchy in its tracks.

Meanwhile, in the United States, even cynical sports moguls understand that free-market capitalism chokes competition. The U.S. National Football League is a paragon of aggressive competitiveness, and not only because super-fit players sacrifice their health for wealth, acclaim, and a shot at Super Bowl glory. The NFL is competitive because it imposes on its teams a strict salary cap, while the weakest are guaranteed their pick of the best rookie players. American capitalism sacrificed the free market to save competition, minimize predictability, and maximize excitement.

Central planning lives in sin with unbridled competition – directly under the spotlight of American show business.

May

25

Feature

The Dangers of Data-Based Certainty

BY DIANE COYLE, PROFESSOR OF PUBLIC POLICY AT THE UNIVERSITY OF CAMBRIDGE / PROJECT SYNDICATE

Economists are rushing to embrace the use of big data in their research, while many policymakers think artificial intelligence offers scope for greater cost-effectiveness and better policy outcomes. But before we entrust more decisions to databased machine-learning and AI systems, we must be clear about the limitations of the data

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ocial media are full of claims and counterclaims about all manner of other data. Is global poverty declining or increasing? What is the real level of US unemployment? The scrutiny, sometimes leading to tetchy arguments, results from people’s desire to cite – or challenge – the authority of data to support their position or worldview.

Economists are rushing to embrace the use of big data in their research, while many policymakers think artificial intelligence offers scope for greater cost-effectiveness and better policy outcomes. But before we entrust more decisions to data-based machine-learning and AI systems, we must be clear about the limitations of the data.

Already, too little attention is paid to the uncertainties inherent in economic data.

Although policymakers generally appreciate that even something as basic as GDP growth is subject to large uncertainties and revisions, it seems impossible to stop people from building narratives on weak foundations.

For example, cross-country comparisons of the pandemic’s impact on national GDP are fraught with difficulty, owing to differ-

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ences in economic structure and statistical methodology. But that does not stop claims about which economies are weathering the crisis better or worse.

Or consider the “true” rate of inflation.

Seemingly technical disputes about how best to construct a price index mask profound distributional conflicts, such as those between borrowers and bond holders, or workers and employers.

The data we use shape our view of a complex, changing world. But data represent reality from a particular perspective. Data of the kind deployed in policy debates are rarely completely unanchored from the world they describe, but the lens they provide can be sharp or blurry – and there is no escaping the perspective they offer.

One possible reason for the current distrust of economic “expertise” is the growing gap between top-down, technical economic assessments based on familiar data series, and an alternative world of more granular data presenting the bottom-up picture. Standard economic statistics capture average experience, which ceases to be typical when people’s fortunes diverge.

In general, advocates of evidence-based policy are aware of the inherent uncertainty of available data. Researchers take great care regarding sampling, the scope for error, and the limitations of the data-collection method used. But the degree of false certainty tends to increase with proximity to policy and political decision-making. Former US President Harry S. Truman is far from the only politician to have expressed impatience with economists who say, “‘On the one hand...,’ then, ‘but on the other.’”

But the current hunger for data-based certainty is becoming dangerous as we increasingly rely on technocratic decision procedures – including machine-learning systems – for policymaking in areas such as criminal justice, policing, and welfare.

Democracies often rely on constructive ambiguity to reconcile conflicting interests, such as those regarding the distribution of returns to an asset, or to address the question of whether law-enforcement authorities should err on the side of imprisoning innocent people or letting criminals walk free. Claims to data-based authority minimize or eliminate the scope of ambiguity, with potentially significant consequences.

Leaders’

ALEKSANDAR MILOVIĆ, Director of Eko Unije SN

Through Development To A Circular Economy PAGE /28

MEETING POINT NORBERT BECKMANN-DIERKES, Head of the Office of the Konrad Adenauer Foundation in Serbia and Montenegro

ZORAN DOŠLIĆ, Executive Director, Coming-Computer Engineering

DIMITRIOS ANTONIOU, Hertz Serbia General Manager

Green Deal Is Europe’s Top Priority

Hertz: Global Cloud Services Brand, Local Expanding Approach

PAGE /32

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ALEKSANDAR MILOVIĆ, DIRECTOR OF EKO UNIJA SN

Through Development To A Circular Economy In the age we live in we’ve become aware of the vital importance of the sustainable development of business operations and the establishing of all postulates of the circular economy, with the aim of finding an enduring solution to the environmental challenges that currently confront us. It is with this idea in mind that Eko Unija SN directs the further development of its current operations and the launching of development projects in the near future

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s a material, metal is by its very constitution infinitely recyclable and represents the ideal material for establishing circular economy principles. The collection and processing of all kinds of scrap metal is the primary element of our business. This fact has led to our company establishing business standards that will ensure the greater efficiency of work, the further development of transparent operations and the absolute traceability of all materials collected and processed

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in the recycling process. Our development process is followed by the securing of adequate collection capacities in the form of vehicles that adhere to the latest environmental standards in terms of emissions and have high transport capacities, which ensures we are able to reduce the required number of tours significantly, always taking care to ensure the optimal vehicle load. We have adequate processing capacities in terms of the quantities that can be processed and, most importantly, in terms of required standards of quality for material processing that enables an efficient and economical method of further recycling, and is thereby absolutely in accord with circular economy principles.

Our development goals represent the monitoring of all trends in the domain of collecting and transporting secondary raw materials of all types and processing capacities, alongside close cooperation with recycling facilities in order for us to jointly raise existing standards, introduce new technologies and develop continuously.

Given the negative trends of the secondary raw materials market generally over the last few years, especially in the area of collecting and recycling plastics, we believe that demand for metal as a raw material will increase in the future.

Such a trend also leads to a significant increase in demand for all types of metals

as secondary raw materials, particularly copper, which is used in electronic devices, and aluminium, as the packaging material of the future. Following the in-

Following the increased relevance of electrification in the automotive industry and the development of 5G networks, copper recycling gains great significance, and Eko Unija SN is establishing a system for collecting and processing electronic-electrical waste as one of its development projects

creased relevance of electrification in the automotive industry and the development of 5G networks, copper recycling gains great significance, and Eko Unija SN is establishing a system for collecting and processing electronic-electrical waste as one of its development projects. With the implementation and completion of this project, Eko Unija SN will expand its range of activities, and will do so entirely in the spirit of the circular economy. Moreover, like other development projects, our

company is also establishing capacities to recycle waste vehicles, which will be guided by the highest environmental protection standards and will enable the maximum utilisation of all parts of waste vehicles, regardless of the type of material. With this expansion of its activities, Eko Unija SN will encompass processes of collecting and treating types of waste that will appear in large volumes in the near future and deploy its capacities to provide an efficient collection and treatment system, which will ensure the adequate disposal of these types of waste.

As a third aspect of the development of its operations, Eko Unija SN is working to develop a system for the primary and secondary collection of packaging waste via the realising of cooperation with local governments and public utilities enterprises. With the aim of establishing an adequate and sustainable system for managing municipal packaging waste, Eko Unija SN has engaged in development projects for establishing a system for the separating of recyclable packaging waste in an efficient and economically acceptable way. The introduction of such a system will ensure, alongside quantities of waste that will end up in the recycling process, a satisfactory standard of quality for separated secondary raw materials, which will ensure further efficient recycling and provide adequately prepared quantities for the purposes of generating energy. This will secure significant quantities of alternative fuels and ensure that non-recyclable types of packaging waste do not end up in landfill sites, but rather are used purposefully and in accordance with the meeting of national objectives for packaging waste management. Quantities of primary and secondary separated packaging waste will be used in an appropriate way, either in the recycling process or in the energy generating process, with which they will strive to reach the end goal of eliminating the system of landfill sites and implementing a waste management system that implies recycling, energy

Eko Unija SN will encompass processes of collecting and treating types of waste that will appear in large volumes in the near future and deploy its capacities to provide an efficient collection and treatment system, which will ensure the adequate disposal of these types of waste generating and composting, and that is completely in line with the postulates of the circular economy.

And as the last aspect in the development of its operations, Eko Unija SN has initiated a project for the construction of a metal smelting plants that will enable the encircling of the entire circular economy process within the company, in terms of managing metal, EE and car waste, which starts from collection, via processing to culminate in final recycling.

With the ideas of the circular economy as a guide, Eko Unija SN monitors the natural and logical flow of each operation and thus establishes not only sustainable environmental protection, as the main goal, but also leads to the sustainable development of the company’s operations in all aspects, and particularly the economic and socially useful aspect.

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“It is imperative that businesses acknowledge their role in helping the planet thrive.” – MARK BARNETT, PRESIDENT OF MASTERCARD EUROPE

LOCAL NEWS

EPS FOCUSES ON ECOLOGY AND RENEWABLE SOURCES Responsible and sustainable projects: The plan is for total environmental investments to reach 1.2 billion euros in the coming years.

Environmental protection and increasing the share of renewable energy sources in electricity production are an important part of the strategy of Electric Power Industry of Serbia. Every investment project includes environmental measures as part of responsible and sustainable business. So far, about 540 million euros have been invested in projects improving the quality of air, water and soil, and thus EPS has taken a leading position among investors in environmental protection in Serbia.

The largest Serbian energy company will continue on the Green Road in the coming years, and additional environmental investments are planned in a number of projects protecting and improving environmental quality. The plan is for total environmental investments to reach 1.2 billion euros in the coming years.

JAPAN’S NIDEC ANNOUNCES €1.5 BLN SERBIA ELECTRIC MOTOR HUB PLAN Nidec Corporation officially announced its decision to open a new European production hub in the city of Novi Sad in the Republic of Serbia. It is a 1.5 billion euro ($1.8 billion) worth investment in the construction of the factory of motors for electric vehicles (EV) and household appliances.

Nidec, which is known for making precision motors used in computer hard drives and smartphones, will build the manufacturing center in Novi Sad, northern Serbia, with completion of the first two factories employing 1,200 people expected in 2022, Jun Seki, Nidec’s chief operating officer told at a news conference.

SHOPPING MALL DELTA PLANET OPENED IN NIŠ Shopping mall Delta Planet in Niš ceremonially opened its doors to the visitors.

The first Delta Planet shopping mall in Serbia extends for 40.000 square meters, has two floors and 850 parking spots for visitors and was built in only 14 months. Visitors will have shops of leading fashion brands, many restaurants and cafés, bookshops, home décor shops and a special attraction in the form of the most modern cinema with 5 auditoriums at their disposal.

Delta Planet investment is worth 70 million euros and is a part of Delta Holding’s big investment plan, which includes building the business headquarters Delta House (opening this summer), renovating Sava Center (starting in autumn 2021) and other big real estate projects.

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50 MILLION EUROS INVESTED IN SERBIA THROUGH AN ICE-CREAM FACTORY IN STARA PAZOVA Some of the famous ice-cream brands beloved by consumers in Serbia and abroad are produced in the modern Froneri Adriatic factory in Stara Pazova and exported to three continents. With steady investments reaching 50 million euros over the five years, what used to be a small, local plant is now a modern 21 st century factory on its way to become the leading ice-cream producer in South Eastern Europe.

More than 200 different products come from 13 new and upgraded production lines. Among them are world-famous confectionery brands in the ice-cream version – MILKA, OREO, NESQUIK, CADBURY, DAIM – in addition to Froneri products that have been known on the Serbian market for years under the Nestlé Ice-Cream brand, such as Best, Nirvana, Topgun, Pirulo, Hit, Aloma and Familia.

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appointments@aim.rs

H.E. PETKO DOYKOV, BULGARIAN AMBASSADOR TO SERBIA

Born 31st January 1964 in Bulgaria, Petko Doykov studied at the Moscow State Institute of International Relations from 1985 to ‘91, earning a master’s degree in international relations with a major in the Arabic language. He joined the Bulgarian Ministry of Foreign Affairs and served, from September 1992, as an expert of the Arab Countries Directorate and, subsequently, from August 1993 to July 1997, as third secretary of the Embassy of Bulgaria to Egypt. His numerous postings include serving as deputy political advisor to the Bulgarian Delegation to NATO, based in Brussels (1999-2003), and as Director for the Middle East and Africa at the Ministry in Sofia. His ambassadorships include serving as ambassador to Tunisia (2008-’12), non-resident ambassador to Mauritania (2010-’12) and as ambassador to India, concurrently accredited to Nepal, Bangladesh, Sri Lanka and the Maldives (2014-’18). Apart from his native Bulgarian, this married father of three speaks English, French, Arabic and Russian.

H.E. JOOST REINTJES, DUTCH AMBASSADOR TO SERBIA

Born 17th June 1961, Joost Reintjes studied Mining Engineering at the Delft University of Technology, Arabic at the University of Nijmegen and Management/Arabic at the University of Leiden, before joining the Ministry of Foreign Affairs in 1989. Following postings at the Dutch embassies in Cairo and Caracas, he served in the Asia Department of the MFA in The Hague, then held the post of Middle East Coordinator at the MFA’s Migration and Consular Affairs Department (1998-2002). After serving as Counsellor in Amman (2002-’03) and Chargé d’Affaires/Ambassador in Baghdad (2002-’05), he was appointed Deputy Head of Mission at the Dutch Embassy in Rome (2005-’09). Reintjes served as ambassador in Islamabad (2009-’11) and Nairobi (2011’15) before becoming director of the Western Hemisphere Department at the MFA in The Hague. Prior to arriving in Belgrade, Ambassador Reintjes, who is married to Louise Corinne Maria Snijders, served as Ambassador in Riyadh (2016-’20) and Chargé d’Affaires in Moscow (2020-’21).

H.E. HAMI AKSOY, NEW AMBASSADOR OF TURKEY TO SERBIA

Ambassador Hami Aksoy earned a Bachelor’s Degree in International Relations from Ankara University’s Faculty of Political Science and a Master’s Degree in International Relations and European Studies from the Canterbury Campus of the University of Kent. He also attended the Oxford University Foreign Service Programme (2008-2009). Prior to his arrival in Belgrade, Ambassador Aksoy served as Spokesperson of the Ministry of Foreign Affairs of the Republic of Turkey (2018-2021); Consul General at the Turkish Consulate General in Milan, Italy (2015-2018); Head of Department at the Deputy Directorate General of Treaties (2012-2014) and Senior Foreign Policy Advisory to the President (2014-2015); Counsellor at the Turkish Embassy in London (2008-2012); First Secretary in the Office of the Deputy Undersecretary for Administrative-Fiscal Affairs (2007-2008); Second Secretary at the Turkish Embassy in Stockholm (2003-2006); Vice Consul at the Turkish Consulate General in Komotini, Greece (2001-2003); Attaché at the Deputy Directorate General for EU Economic Affairs (1998-2000). He is fluent in English.

H.E. CARLOS I. FELIX CORONA, NEW AMBASSADOR OF MEXICO TO SERBIA, CONCURRENT TO THE REPUBLICS OF BOSNIA-HERZEGOVINA, MONTENEGRO AND NORTH MACEDONIA

Carlos Isauro Felix Corona is a career diplomat who graduated in International Relations from the National Autonomous University of Mexico, with specialised studies in Diplomatic Affairs in the Matias Romero Institute, Mexican Diplomatic Academy of the Ministry of Foreign Affairs of Mexico. he joined the Foreign Service in 1982 and was promoted to the rank of Ambassador in May 2009. Having served as Consul General of Mexico in San Francisco (2007 to 2013), prior arriving to Serbia he was the Ambassador to Malasia, concurrent to Nauru and Kiribati (2014 to 2021). He has previously served as Minister for Political Affairs in the Embassy of Mexico to the U.S. (2001-2007); Deputy Consul General of Mexico in San Diego (1995-1999); Deputy Consul General of Mexico in Los Angeles (1994-1995); Charge d’ Affaires a.i. Embassy of Mexico in the Socialist Federal Republic of Yugoslavia (1992-1994) and Deputy Head of Mission in the Embassy of Mexico tothe Republic of Korea (1987-1991). Ambassador Felix Corona is a married father of two children.

MATTEO COLANGELI, NEW EBRD DIRECTOR FOR THE WESTERN BALKANS AND HEAD FOR SERBIA

Matteo Colangeli has been appointed director for the Western Balkan region at the European Bank for Reconstruction and Development, tasked with overseeing the EBRD’s operations in Albania, Bosnia-Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia, where he will be based.

The EBRD, which invested €1.3 billion in the Western Balkans last year alone, is focusing on strengthening the region’s private sector, promoting a green transition and boosting connectivity within the region and with its European neighbours.

An Italian national, Colangeli joined the EBRD in 2005, as a London-based banker. He went on to hold regional roles in Ukraine and Bulgaria, engaged particularly in the field of energy, before being appointed EBRD Head for Albania in 2016, where he was based prior to his arrival in Serbia. Colangeli, who holds a master’s degree from the London School of Economics and Political Science, succeeds Zsuzsanna Hargitai, who has been appointed EBRD Managing Director for Central Asia.

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How Do The Germans Do It? GERMAN SUSTAINABILITY STRATEGY 2021*

G

ermany’s Konrad Adenauer Foundation addresses current political and social issues and aims to contribute to the public debate.

Climate change and environmental issues are currently at the top of the European agenda.

These issues impinge on everyone inside and outside Europe, but also worldwide.

In the first issue of the “Sustainability Monitor” (March 2021), Sabine Wölkner, Head of the Agenda 2030 Department, and Gisela Elsner, from the Analysis and Consulting Department of the Konrad Adenauer Foundation, described the content and current developments, but also policy approaches to the sustainability debate in Germany, which we are pleased (in the abridged form) to make available for discussion.

It was on 10th March that the German government published an update of the German Sustainable Development Strategy.

All efforts to implement sustainability are to be aligned with six transformation areas when the new Sustainable Development Strategy comes into force.

The transformation areas and the Sustainable Development Goals (The UN’s SDGs), which are referred to in each case, are as follows: 1. Human well-being and capabilities, social justice 2. Energy transition and climate protection 3. Circular economy 4. Sustainable construction and mobility transition 5. Sustainable agricultural and food systems 6. Pollution-free environment Stakeholders from civil society, science and politics who are involved in the update welcomed the comprehensive revision of the Sustainable Development Strategy and identified the need for improvement

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in these areas in particular.

The pandemic is acting as an accelerant in many areas of activity and is increasing the pressure for change. In this context, the diverse commitment of civil society actors, i.e. citizens, trade unions, churches and civil society associations, is to be even more involved in the development and implementation of the DNS: their commitment is to be strengthened and made visible, and they are to be networked mutually and with other actors.

The German Sustainable Development Strategy sets out Germany’s measures to achieve the SDGs. In addition to measures with an impact in Germany, there are measures introduced by Germany with global impacts. There is also additional support for other countries in the form of bilateral cooperation.

Ultimately, a lot has happened at the EU level with the introduction of the European Green Deal. A new political framework was

created with the presentation of the Green Deal guidelines in December 2019, which “breaks down” the UN Agenda 2030 SDGs to the EU and establishes an environmentally and resource-efficient growth strategy with targets and action plans for Europe.

The content of the six transformation areas identified in the German Sustainable Development Strategy roughly coincides with the key topics of the European Green Deal: climate protection, energy transition and the circular economy, a sustainable transformation of the construction and mobility sectors, a pollution-free environment and sustainable agricultural and food systems, all of which are areas in which progress is considered particularly important, both in Germany and at the level of the European Union. *Abridged Edition of the “How the Germans do it: German Sustainability Strategy 20202021” by idem authors

NORBERT BECKMANN-DIERKES, HEAD OF THE OFFICE OF THE KONRAD ADENAUER FOUNDATION IN SERBIA AND MONTENEGRO

Green Deal Is Europe’s Top Priority The Konrad Adenauer Foundation has been present in Belgrade with an office since 2001 and realises arrangements in Serbia and Montenegro. The foundation’s aim is to contribute to strengthening irreversible democratic processes and lasting political stability ties in Europe (and will hopefully become worldwide priorities very quickly).

I

t is crucial for each individual to realise that they are personally responsible for the world of tomorrow. The world we pass on to our children and grandchildren depends on our behaviour and the example that we set for them today

Why are the European Green Deal and the Green Agenda currently the number one topics in Europe?

Following the 2019 European Parliament elections, European Commission President Ursula von der Leyen declared the European Green Deal and the European Sustainability Agenda as essential elements of the European political, economic and social agenda. The responsible and careful use of water, air and mineral resources, and the earth’s productive capacity as a whole, secures the foundations of life and the future for the generations yet to come. The preservation of creation, i.e. the responsible use of the earth, is an essential concern of future-orientated politics, which in Europe is also based on the Christian responsibility. Science and research today provide us with the tools and knowledge to ensure a viable future. This is the social challenge that politics and society must face together at all levels. That’s why the Green Deal and the sustainability agenda are top priori-

You recently reached an agreement on cooperation with the Serbian Environmental Protection Minister and offered to provide assistance on the implementation of some very important works that Serbia must implement.

What is included in everything agreed upon?

Together with the Serbian Ministry of Environmental Protection and other partners, we want to initiate a broad social and political dialogue on sustainable management and action. After all, environmental awareness, generational responsibility and resource conservation are not empty or theoretical concepts, rather they rely on very concrete reasons and have concrete consequences. Clean water, sewage treatment plants, air pollution control, landscape conservation, reuse of raw materials - i.e. sustainable waste management - and many other things encompass areas in which every individual can be active and for which a political implementation process is needed at all levels, from European to local levels. Social and legal framework conditions must be discussed and created here, while opportunities for initiatives and the economy must be developed. That is a huge opportunity for further development into a modern society in Serbia and the region, together with the EU. The level of awareness and information regarding the importance of environmental protection remains very low in Serbia. How

can that best be changed; through education or penalties?

Education and discussion, exchange and experiences are the keys to the successful implementation of the Green Deal and the sustainability agenda. If people are convinced that it makes sense and that it

We are awaited by great challenges

The Konrad Adenauer Foundation is a German political organisation that functions independently in the fields of political counselling and education. It is also present in Serbia, which is awaited by great challenges that need to be overcome in the economic and social domains. Through its seminars, workshops and conferences, the Foundation seeks to contribute to improve the understanding of EU principles, the responsibilities of parties and parliaments, and the comprehending of the rule of law and free media. would be good for the quality of their life, they will get involved. Environmental sins need to be punished, but that punishment will come as an exception if the basic social attitude changes, because it will then be clear to everyone that you can turn off your car engine when waiting in front of a shop.

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ZORAN DOŠLIĆ, EXECUTIVE DIRECTOR, COMING-COMPUTER ENGINEERING

Cloud Services Expanding Company COMING - Computer Engineering is a leading ICT company in Serbia and the region. It builds upon its position through its business successes and the trust of clients, through the strength of its experience and the desire to be leaders in the technologies that drive the business world

T

hanks to cloud technology, last year we helped numerous companies implement the accelerated introduction and adaptation of ERP solutions to their processes. Our cloud data centres have platforms for the two most commonly used systems - SAP and Microsoft Business Central - explains Coming Executive Director Zoran Došlić.

Will working from home become more commonplace?

After more than a year, I think it is clear that the different way of life and altered business habits will not return to the old ways. Necessity forced us to learn to work from our homes and to introduce new management methods. After the pandemic abates, our company will work in a combined regime, which I consider as being a winning model for the future.

I also believe that the digitalisation trend will continue in areas that didn’t have an urgent need for that. And thus work from home will also become more commonplace in the majority of organisations.

What is the financial benefit of working from home and is it cheaper to rent physical space or invest in reliable cloud services?

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Space is more expensive than investing in an IT system that enables reliable work from home and, after last year’s experience, it’s no longer necessary for us to explain the cost effectiveness of cloud services to potential users - they’ve realised that experientially.

Cloud services are now used and paid for monthly, like electricity or the internet.

The speed of implementing solutions in this form and their availability without investment have a decisive impact on potential users never contacting us again.

ERP is essential for all mediumsized and large companies, but also more advanced small ones, to manage and control resources And I’m particularly delighted about the change of attitude among the managers with whom we converse, which leads to general progress.

What tools will be essential for work from home?

The most important thing for working from home is primarily reliable IT infrastructure.

Apart from protection against hacker attacks, it is essential to implement solutions for the control of IT administrators who access our systems remotely - whether that relates to internal or outsourced

resources. Basic applications for remote access should definitely be enabled, then a platform for collaboration should be chosen that is reliable, secure and easy for everyone to use.

ERP is essential for all medium-sized and large companies, but also more advanced small ones, in order for them to manage and control resources. It seems that many companies that delayed the implementation of ERP last year, after switching to the “COVID regime”, decided to urgently address its introduction.

How will we manage documentation and how will we sign contracts remotely?

The director of one international financial institution told me in mid-2020 that the first problem he faced at the beginning of the pandemic was the postman. He realised that the jobs worth millions that he’s leading are also dependent on receiving part of the documentation that postmen bring every day.

He organised the duty himself, scanning documents and sending them to the competent services by email. It soon became clear that it would be impossible to track and control the huge number of documents circulating between the competent services.

We helped them with the introducing of a DMS (Document Management System) solution that brings order to an archive or office and is adapted to specific processes. It is evident that electronic documents are being used more, and I’ve noticed that the state has also accelerated procedures for the further regulating and standardising of this area.

DIMITRIOS ANTONIOU, HERTZ SERBIA GENERAL MANAGER

Hertz: Global Brand, Local Approach Hertz, the largest car rental company in Serbia, has commemorated the first 10 years of operations on this market as the Autohellas Group. Its car rental vehicles on the Serbian market total approximately 2,000 vehicles all told

D

espite the high standards with which we launched our operations in Serbia, as a HERTZ franchise, we nonetheless continually strive to raise the quality of services we offer and to expand our portfolio from year to year - says Hertz Serbia GM Dimitrios Antoniou.

How many vehicles do you have at your disposal today? How long did it take you to become No. 1?

Our fleet on the Serbian market numbers approximately 2,000 vehicles. Throughout a season we usually have around 300 to 400 short-term rental vehicles, depending on the season of the year. The reason I’m not very specific on numbers is because these figures are all relative because of the COVID-19 situation. We have been in Serbia for 10 years, as Autohellas Group. Our progress happened very quickly: we had already become number one within the first three to four years.

What are included in all the services that you offer today?

We have very wide range of services right now, starting with short-term rentals - so, pure car rentals that depend on either leisure or business rentals. In addition to that, our portfolio also includes long-term rentals. Another product that we offer is called Flex Drive by Hertz, a product

that combines both long- and short-term rentals without commitment, giving the customer the flexibility to arrange whatever they need. Also, we provide Chauffeur Service to our clients who are then able to enjoy their Hertz experience.

The challenge, and if I may say the recipe for Hertz, as a global brand and probably the world’s No.1 brand in this industry, is the mentality of Autohellas to treat and present ourselves as though we are locals. Like a small local company, with a personal touch and, above all, special respect for clients.

Even though you have more vehicles and employees than your competitors, you are still known for your flexibility and your ability to satisfy specific requirements. Apart from your fleet of vehicles, is this the secret to your success?

This is the heritage that we have from Autohellas. We need to help and take care of the car first and foremost; to look after it during its whole life circle in the company. And of course, the absolute value is respect for the client. Clients trust the very person they directly interact with. That is exactly where we offer our services by taking care of the costumer needs in a “tailor made” way. Clients trust the person in front of them. You cannot do this kind of business if you consider yourself, or act like, a bureau-

crat or a large corporation. All these are things that secure the whole business.

However, we need to act and provide services as though we are a small shop around the corner.

Does the Serbian market differ from other markets where Autohellas S.A. operates? What is encompassed by everything that’s sought today?

The Serbian market differs from other Autohellas markets and is mainly a

We have been in Serbia for 10 years, as Autohellas Group.

Our progress happened very quickly: we had already become number one within the first three to four years corporate business market. There is no significant tourist market in Serbia.

Other markets, like Greece, Cyprus and, more recently, Croatia, with coastlines and islands, have leisure tourists and renting cars for leisure is huge there.

What we mainly have here is corporate/ business. Anyhow, what we are delighted to do in Hertz is to offer rental services for vehicles from a few hours up to several years.

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“Every crisis is also an opportunity. I am convinced that the resilience and adaptability of economic systems has come to the fore, above all, in the field of business transformation.” – CHRISTOPH SCHÖN, PRESIDENT OF THE MONTENEGRIN FOREIGN INVESTORS COUNCIL

REGIONAL NEWS

SLOVENIA TALKS ON POTENTIAL CZECH INVESTMENT IN 2TDK Slovania will start talks with the Czech Republic on the a potential investment in Slovenian state-run project company 2TDK. The company is in charge of building a second track of the Divaca-Koper railway line.

Slovenia is currently in talks with Hungary on a potential investment in 2TDK, Vrtovec said.

According to Slovenian media reports, Hungary is interested in injecting 200 million euro ($241 million) into the capital of 2TDK, in order to increase it to 522 million euro.

Currently, the Slovenian government owns the entire 322 million euro capital of 2TDK. In return, the Hungarian government hopes to receive a concession on part of Koper port, RTV reported.

OVER 16% INCREASE IN EXPORTS FROM BOSNIA AND HERZEGOVINA Exports from Bosnia and Herzegovina in the first three months of this year amounted to three billion and 64 million BAM, which is 16.6 percent more than in the same period last year, while imports amounted to four billion and 402 million BAM, which is 2.7 percent more. The imports-exports ratio, according to the BiH Statistics Agency, amounted to 69.6 percent, while the foreign trade deficit amounted to one billion and 338 million BAM. Exports to CEFTA countries amounted to 473 million BAM, which is 18.9 percent more than in the same period last year, while imports amounted to 530 million BAM, which is 5.8 percent more.

BUSINESS OWNERS, EMPLOYEES FROM WESTERN BALKANS GET VACCINATED IN SERBIA Almost 8,000 business owners and their employees from Albania, Bosnia-Herzegovina, Montenegro, and North Macedonia traveled to Belgrade and Nis in Serbia on 27 March to receive vaccinations against COVID-19. Some 10,000 doses of the AstraZeneca vaccine were secured by the Western Balkans Regional Investment Forum in cooperation with the Serbian government. Although Kosovo is also part of the forum, its Chamber of Commerce refused to participate.

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“I managed to develop 100% Romanian software solutions, which digitise, automate, simplify and streamline the business processes of companies.” – VICENTIU CORBU, FOUNDER OF ROMANIAN COMPANY KIM

ROMANIA’S OMV PETROM TO JOIN NEPTUN DEEP OFFSHORE IF EXXON, ROMGAZ CLOSE DEAL Romanian oil and gas group OMV Petrom stated that if Exxon Mobil accepts the offer submitted by natural gas producer Romgaz for Black Sea offshore project Neptun Deep, it will join in the project as operator.

OMV Petrom and Romgaz are cooperating to unlock the natural gas resources in the Black Sea which are essential for Romania’s energy security, for the success of the energy transition and for generating economic growth, the two companies said in a joint press release.

In March, Romgaz announced that it has submitted a binding offer to acquire the 50% stake that ExxonMobil holds in Neptun Deep. Romgaz plans to buy 100% of ExxonMobil Exploration and Production Romania Limited (EMEPRL), the company that holds half of the rights and obligations under the concession agreement for petroleum exploration, development and production in XIX Neptun Deep Block.

GREECE REMOVES QUARANTINE FOR TRAVELLERS FROM EU AND OTHER COUNTRIES Greece has lifted its quarantine requirement for travellers from the European Union provided they have been vaccinated or tested negative for COVID-19 over the previous 72 hours.

The new rule, announced today, also applies to travellers from Australia, Israel, New Zealand, Rwanda, Serbia, Singapore, South Korea, Thailand, the United Arab Emirates, the UK, and the US, the Greek Civil Aviation Authority (YPA) said. All other international arrivals will still need to show a negative test and self-isolate for seven days.

Vaccinated travellers will have to present a certificate, in English, showing that they have been fully immunised, The second dose must have been received at least 14 days before the date of travel.

MONTENEGRO CALLS FOR EU HELP OVER $1BN CHINESE HIGHWAY LOAN Montenegro has asked the EU for assistance with paying off a $1bn Chinese loan for an incomplete highway project that has imperilled the finances of the small western Balkan nation. The saga of the incomplete road project, which is being built by the China Road and Bridge Corporation, is part of a larger geopolitical battle for influence on the EU’s periphery. How Brussels responds to Podgorica’s request — and whether it will bail the country out of a project long deemed unviable — will help to shape the bloc’s relationship with the region.

The EU has indicated a willingness to help but a commission official said it would be hard to find the proper financial instruments, a task made harder because the project was almost complete.

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“We’re at the beginning of possibly a multi-decade, secular investment opportunity in the energy transition.” – PHINEAS GLOVER, CREDIT SUISSE

WORLD NEWS

ASIA’S WORST STOCK MARKET LAST YEAR IS NOW ONE OF THE REGION’S TOP PERFORMERS Singapore’s stock market is staging a strong comeback. The benchmark Straits Times Index ended 2020 as the worst performer in Asia, losing 11.8% through the year. But the STI climbed around 12.2% so far this year, and has become one of the region’s top performers. The STI is a market capitalization weighted index that tracks the top 30 companies listed on the Singapore Exchange. As of 20 April, as many as 12 of its constituent stocks have made double-digit gains this year. Taiwan was Asia’s best-performing stock market.

The benchmark Taiwan Stock Exchange Capitalization Weighted Stock Index, or Taiex, slightly edged out the Singapore index with a 12.4% gain this year.

RENAULT SALES FALL FOR FIFTH STRAIGHT QUARTER Renault’s sales fell for a fifth straight quarter as the French carmaker struggled to shrug off the fallout from the pandemic without a major presence in booming Chinese markets and a global shortage of electronic chips hit production. Under Chief Executive Officer Luca de Meo, who took the reins last July, Renault is looking to produce fewer cars and focus on those with higher margins, a strategy that is starting to bear some fruit. The company got a boost from rising vehicle prices in January-March, for the third consecutive quarter. But this was not enough to offset the hit from shrinking inventories and other headwinds like unfavourable foreign exchange effects, and overall revenue fell 1.1% to 10 billion euros ($12 billion) from a year earlier.

ALIBABA FOUNDER JACK MA SHOWED UP AT A VIDEOCONFERENCE WITH PUTIN AFTER VANISHING FOR MONTHS Mark Schiefelbein/AP Photo

POTPISATI SLIKU: Mark Schiefelbein/AP Photo The Chinese billionaire Jack Ma has made his first public appearance since China cracked down on him and fined his companies. Mid April China fined the e-commerce company Alibaba, which Ma cofounded, $2.8 billion over antitrust cases.

Ma showed up at a videoconference meeting of the Russian Geographical Society with Russian President Vladimir Putin. He is on the group’s board of trustees, but he did not speak at the event. Ma is no longer the head of Alibaba but remains a major shareholder.

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“Think about what people love. They love long-duration equities right now.

That shows that people are kind of ill-prepared for this higher inflation.” – RICHARD BERNSTEIN, CEO AND CIO OF RICHARD BERNSTEIN ADVISORS

FACEBOOK-BACKED DIEM AIMS TO LAUNCH DIGITAL CURRENCY PILOT LATER THIS YEAR Facebook wanted to revolutionize finance with a global digital currency — then came the regulators. First proposed in June 2019 with the name libra, the token was initially intended to be a universal currency tied to a basket of sovereign currencies such as the U.S. dollar and the euro. But after facing strong opposition from regulators around the world, the organization overseeing the project lost major backers including Visa and Mastercard. The group eventually watered down its plans, opting for multiple “stablecoins” backed one-to-one by different government-backed currencies, as well as one multi-currency coin.

Now known as diem, the Facebook-backed digital coin is expected to launch later this year, albeit in a much more limited form. When it finally arrives, diem won’t come with the same fanfare and controversy of the original idea envisioned by the social media giant nearly two years ago.

TURKISH CRYPTO EXCHANGE BOSS GOES MISSING, REPORTEDLY TAKING $2 BILLION OF INVESTORS’ FUNDS WITH HIM A Turkish cryptocurrency exchange is offline and its CEO has reportedly gone missing, leaving thousands of investors worried that their funds have been stolen. Thodex, a crypto firm based in Turkey, said its platform has been “temporarily closed” to address an “abnormal fluctuation in the company accounts,” according to a translated statement on its website.

Local media reports say that Faruk Fatih Ozer, Thodex’s founder, has flown to Albania, taking $2 billion of investors’ funds with him. Demiroren News Agency published a photo of what it said was Ozer leaving Istanbul Airport. A lawyer who filed a criminal complaint against Ozer said Thodex had 400,000 users, of which 390,000 were active. However, Ozer has disputed the allegations, saying only 30,000 users have been affected by the situation and that reports about $2 billion of losses are “unfounded.”

REVOLUT, EUROPE’S $5.5 BILLION DIGITAL BANK, IS EXPANDING INTO INDIA Revolut, an online banking start-up based in the U.K., is planning an expansion into India. The London-based company announced Thursday that it had tapped Paroma Chatterjee, a former executive for Indian start-ups Flipkart, Via.com and Lendingkart, to lead its operations in the country. Revolut will invest about $25 million into the Indian market over the next five years and aims to launch its app there by 2022. The company, worth $5.5 billion in its most recent funding round, has raised more than $900 million from investors to date. “We’re looking forward to transforming the way people in India access and manage their money as we bring our products and services to more people around the world,” said Revolut CEO and co-founder Nik Storonsky.

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Enterpreneur

India’s ‘Accidental Entrepreneur’ KIRAN MAZUMDAR-SHAW

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ndian billionaire entrepreneur Kiran Mazumdar-Shaw is a pioneer of the biotech industry in India. She founded Biocon Limited, the country’s leading biotechnology enterprise, in 1978 and serves as its Chairperson and Managing Director. Starting at the age of 25 in a field not understood by many, Kiran calls herself an “accidental entrepreneur”.

Though she had plans of pursuing a career in brewing, she became the head of India’s leading biotechnology firm. She spearheaded Biocon’s growth from an enzyme-manufacturing company to a bio-pharmaceutical.

In 2004, she established a social responsibility wing at Biocon, the Biocon Foundation. It focuses on health, education, and infrastructure. Known for her philanthropic endeavours, she was awarded the Padma Shri and Padma Bhushan, India’s fourth and third highest civilian honours, in 1989 and 2005.

Her outstanding contribution to the fields of science and chemistry, along with her will to succeed, distinguishes her as one of the most successful female entrepreneurs of our times.

Kiran Mazumdar-Shaw cuts a formidable figure in India’s pharmaceutical industry. The chair of the country’s largest biopharmaceutical company, which registered more than 65 billion rupees ($930 million) in revenue in 2019, established Biocon in 1978 with an initial capital of just 10,000 rupees ($140). Mazumdar-Shaw has increased Biocon’s stable of products from

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A pioneer of the biotech industry in India, Biocon chief Kiran Mazumdar-Shaw is a recognised global thought leader a single papaya enzyme, used to arrest the clouding process in beer, to scores of diabetes, oncology, and immunology treatments reaching more than 120 countries. Its mission, says the company, is to make drugs and medicines affordable to all, with an innovation model seeking to “reduce disparities in access to safe, high-quality medicines, as well as address the gaps in scientific research to find solutions to impact a billion lives.” Biocon’s “Mission 10 cents,” for example, offers human insulin to diabetes patients in lower- and middle-income countries for less than ten cents a day.

COVID-19 has touched Biocon’s founder in an especially personal way. In August, Mazumdar-Shaw, who maintains a lively social media presence, tweeted, “I have added to the COVID count by testing positive. Mild symptoms n [sic] I hope it stays that way.”

Still, she continued to oversee Biocon from home as she recovered and even found time in September to participate in a videoconference interview with McKinsey’s Sathya Prathipati and Joydeep Sengupta.

Before we start, how are you recovering from COVID-19? What insights have you gained from experience?

My experience with COVID-19 was mild and uneventful. I did not experience a loss of smell or taste, nor did my oxygen saturation drop. I recommend to everyone with mild flulike symptoms to test and decide on hospitalisation or home quarantine based on the viral load.

I asked for the CT [cycle threshold] value to assess my viral load, and when I saw it was 23, I felt the load was safe enough to be homequarantined under telesupervision. Monitoring oxygen saturation several times a day is psychologically good for your virus-fighting morale.

I also recommend that you try and exercise or go for a short walk every day to keep fit. I did not experience any loss of appetite, and I suggest a diet of fruits, vegetables, lentils, and cereal. Soups and salads were a daily feature of my meals. My doctors put me on a course

A highly-respected business leader, Kiran has been named among Time magazine’s 100 most influential people in the world of favipiravir, azithromycin, and paracetamol.

Apart from this, I continued with my daily dose of vitamin C, vitamin D, zinc, baby aspirin, chyavanprash, and, twice a week, a 200-milligram dose of hydroxychloroquine.

My constant companions during the period were online video-streaming services. I also avoided TV and social media, as negative news is bad for fighting COVID-19!

What are some characteristics that differentiate Asian companies?

While Western companies focus on value capture, Asian companies have tended to be

really focused on scale, size, and market share.

The Indian pharmaceutical sector has a huge global market share of vaccines and generic drugs—50 per cent and 20 per cent, respectively—but when you look at the value capture, it’s only 3 per cent. We have not really focused on innovation to capture value, whereas the Western model is to capture a big piece of the value share with innovation and IP [intellectual property] and to outsource whatever you need in terms of vertical integration.

An example of the volume-versus-value play is Apple, of course. Apple may not have a large market share of Samsung or others.

Apple outsources its manufacturing globally, even as it closely guards the IP. On the other hand, Samsung wants to make almost everything itself and has built that scale to ensure vertical integration. That’s what’s happening in pharma as well.

Actually, I think it’s a good model for Asian companies. The question you have to ask is if everyone wants to pursue the Western model, who’s going to make the products? There’s merit in what Asian companies bring. But there is

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Enterpreneur Biocon started its digital journey before COVID when we realised that a lot of our regulatory processes were archaic and too dependent on manual entries. We started digitising everything six or seven months before COVID and were able to finish before the pandemic. It’s given us a lot of benefits and showed the huge transformative potential of digital technologies.

We have to look at digital ways to reach customers, patients, and prescribers. It is the way forward. The acceptance is not there yet.

Many people are still not comfortable with it.

We need to be realistic. It’s all very well to say that everyone is using digital payments, but at the vegetable market near my house, the stall owners are not taking digital payments. I still see people walking around with wads of money doing business.

In 2019, she was named the 65th most powerful woman in the world by Forbes also an opportunity for Asian companies to innovate and mimic some of what Western companies do. This way, they’ll get the best of both worlds. India has to do a value-twin track of the services model—the generics model, on the one hand, and the innovative, high-value model, on the other. We need to know how to move up the value chain.

Is Biocon moving toward that?

Yes. We have built a vertically integrated model and pursued lower-risk products with predictable market opportunities. But, in the bigger scheme of things, we’ve taken higher risks than most pharmaceutical companies because biosimilars are higher risk in terms of regulations and, at the same time, offer higher value.

Now, given our skills and capabilities, we’re saying, “Look, we’ve got this nice bread-andbutter business; we should take higher risks and innovate, like Western companies. Let’s focus on the IP and getting the value share that we ought to.” This won’t happen overnight, but we

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took this bet a long time ago, and today we find that it is panning out for us.

We’ve invested in an antibody called itolizumab. We developed it and launched it in India in 2013 as a treatment for psoriasis.

But I knew that India was not going to value this asset the way Western markets would, so I licensed it in 2017 to a US biotech start-up, which is developing it for niche orphan indications to address many unmet needs, like for graft-versus-host disease, which is a potentially life-threatening complication experienced by transplant recipients.

To get a deeper understanding of how innovation works in terms of the lab-to-market journey, we started a US company for some of our other assets, such as bi-specific antibodies1 for cancer. Instead of developing this in India and doing the trials here, doing it in the US would earn us credibility—and help us enjoy the value capture.

Has COVID-19 accelerated Biocon’s digital transformation, as it has at many other companies?

COVID-19 is a true inflection point. In India, e-pharmacies are becoming a reality, and we see a lot of opportunities to use technology in daily life. We need to leverage and build on that. There was so much resistance to e-pharmacies, but this is a new opportunity.

How then should we approach digitisation?

In a very thoughtful manner. Digitisation is not a panacea for everything. For instance, everything today is online, and the government is willing to allow you to do e-documentation, but the biggest problem is that they have basically done a cut-and-paste, in the electronic world, of what happens in the physical world—for example, documentation for a pharmaceutical license. In the physical world, you have to give the director’s name, their father’s name, mother’s name, bank card, this card, that card—the list goes on. Now, instead of being smarter and using an ID number with all of this data, they’re still asking for all this information individually. It shows that we haven’t learned what the digital world is about. Where’s the transformation?

Yes, the digital world has the potential to accelerate transformation, but you need to understand exactly what digital can do to get the benefits. In our business, data analytics can help us make decisions with lower risks. We just hired a CIO whose whole mandate is to look at our digital infrastructure and see how we can future-proof ourselves. We are thinking about this very carefully, not just a cut-and-paste.That’s why I would rather bring in people from the digital world—from the tech industry—instead of the pharmaceutical industry. We want them to transform old mindsets.

Source: Yourstory/ Mckinsey

PROFILE

No Compromising On Personal Honour DR MIRJANA RAJILIĆSTOJANOVIĆ, DEPARTMENT OF BIOCHEMICAL ENGINEERING AND BIOTECHNOLOGY, UNIVERSITY OF BELGRADE FACULTY OF TECHNOLOGY AND METALLURGY

W

itnessing the incredibly fast pace of technological progress, it is clear to us that it is knowledge that brings progress, and I certainly insist on my students acquiring knowledge.

However, knowledge alone is not enough.

It is very important that during our professional life we do not reject ethics, which are too often traded today, all with the goal of achieving some “success”. I will illustrate my vision through one horror story that I tell my master’s students.

Proteins are a very important component of food, because they contain the building blocks that we will use to make our bodies.

Considering the complexity of one’s own body, it is intuitively clear to every person that proteins must be complex chemical compounds. Due to their complexity, proteins are not easy to measure in food, so their content is determined indirectly, via nitrogen content...

And this opened the door to one of the saddest scams to hit the food industry in the 21st century. This scam is also known as the 2008 Chinese milk scandal. With the desire to create the illusion of high protein content in milk intended for babies, someone with

Today I lecture at the college. When I recall my schooling, I know that it was marked by people and not the content and subjects, and it is fascinating how much the impression of how interesting a subject was changed as I changed teachers. The teacher gives his own stamp that leads some of us to love nature, others to love numbers and still others to love history. Being a teacher is a privilege thanks to which we can (to some extent) shape future generations, those people who will determine what kind of society we will leave behind when departing this world. sufficient knowledge and a lack of ethics came up with the idea of adding a chemical containing a lot of nitrogen to milk during production. And thus a product of falsely high quality was created, while there was a lack of an adequate risk assessment of such an intervention. The epilogue was that this falsely high quality product intended for newborn children killed six and caused

The opportunities arise in life for a person to make a “compromise”, but it should be kept in mind that it is sometimes difficult to assess the ultimate impact of our actions. That’s why one doesn’t make compromises with one’s own honour

permanent harm to 300,000 of them. Given that the actors in this deed are citizens of China (which has the death penalty), the question of how the man continued to live with himself after such a fraud does not arise.

This story is disturbing, but also sobering. Sometimes in life opportunities arise for a person to make a “compromise” that

won’t have a similarly dramatic outcome as the previous story, but it should be kept in mind that it is sometimes difficult to assess the ultimate impact of our actions. That’s why one doesn’t make compromises with one’s own honour. Many of my students will one day sign declarations on the quality of food and pharmaceutical products, and it is difficult for me to assess whether it is the chemistry lessons I teach or the incidental ones I provide that are more important for ensuring the quality of those signed declarations.

People are creators. Let’s stop sometimes and ask ourselves what we are creating and how that will impact the world around us. Only a rare few get the opportunity to revise their lives. Alfred Nobel received such an opportunity after reading the headlines of an uninformed French journalist, who responded to the death of the older brother of this wealthy dynamite trader by publishing the headline “Le Marchand de la mort est mort” (The Merchant of Death is Dead).

With a desire to leave behind a different mark, Alfred Nobel bequeathed most of his wealth to reward the people “who brought the greatest benefit to humanity during the previous year”.

Let us try to ensure that our contribution, whether small or large, really benefits humanity, and not for the sake of some award, even such a resonant one as Nobel’s.

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Art

Icons of European 1970s design

Designs That Stand

The Test of Time

PIERRE PAULIN

The 1970s arguably represented the culmination one of the most inventive eras of French and Italian design. This was the decade that saw the liberation of design that ignored older rules. The unorthodox space age and new designs loosened the stiff conventions of mid-century modernism and gave birth to a new glamour.

And these iconic designers left a legacy of designs that are very much in demand today, and are highly collectable, with their stable value ensuring that they would be considered good investments 44

May

By Sara Brajović

the designers of the time. Crespi’s early objects were commissioned by fashion giant Dior for their gifts department, while her pieces have been appreciated and owned by public figures including Saudi King Faisal, Iranian Shah Reza Pahlavi, Grace Kelly,George Livanos, Thomas Hoving, Audrey Hepburn, Gunter Sachs et al.

They remain highly collectable to this day. In the period between 1972 and 1975, she designed the “Quick Change Sofa”, the “Z” line (“Z Bar,” “Z Desk” ) and the “Rising Sun” bamboo collection, one of the pioneering materials that was much loved by Crespi. Her famous “Fungo” lamps (1973) are also part of this collection.

ETTORE SOTTSASS

WILLY RIZZO was uniquely placed as a designer for the Dolce Vita, given that he was himself a part of the world for which he was designing. Salvador Dalí commissioned a number of his pieces, as did Brigitte Bardot for the interior of La Madrague villa in Saint-Tropez.

Willy’s work was in constant demand by 1968, which led to him setting up his own firm and establishing a factory in Tivoli, just outside Rome.

Rizzo designed and produced more than thirty items of furniture over the following ten years, including his famous steel-banded ‘travertine’ dining tables and bronze table lamps, all of which were handmade. He opened boutiques across France and Europe and had outlets in

PIERRE PAULIN, whose ’Mushroom’, ’Orange Slice’, ’Tongue’ and ’Ribbon’ chairs have become part of the contemporary furniture canon, are a prime example of this new trend.

The freshness and contemporary nature of Paulin’s designs likely encouraged his collaboration with the Mobilier National, the French government agency overseeing the country’s national furniture collection. This in turn prompted President Georges Pompidou and his wife to enlist Paulin’s services in remodelling their private apartment of the Élysée Palace. And these designs possibly resisted ageing because they are so comfortable – he created seating that makes you feel good.

There were mythical creatures who haunted the design imagination of the 1960s and ‘70s.

And it is partly due to her stature and beauty that GABRIELA CRESPI stands out among

WILLY RIZZO

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Art

Icons of European 1970s design

MARIA PERGAY

New York, Miami and Los Angeles. However, in 1978, Rizzo gave it all up to return to his first love, photography. His Elliptical marble table is today exhibited in New York’s MoMA. ETTORE SOTTSASS wan an architect and designer who was dubbed “the Godfather of Italian design”. With products fashioned from slick, vacuum-moulded plastic and cast fibreglass, part of the brand’s mission was to bring into the home novel industrial materials, which had already revolutionised nautical and automotive design. The radical range was produced in very limited editions, with one exception: the neon-lit pink mirror called Ultrafragola, or “the ultimate strawberry.” With its image widely circulated on social media today, this mirror remains highly collectable. It celebrated femininity – the curves of a woman’s body and waves of her hair – and women worldwide have embraced this mirror, which is still made using the original 1970 mould.

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PIERRE PAULIN

By author

GABRIELA CRESPI

WILLY RIZZO

MARIA PERGAY is best known for her unique use of stainless steel to produce tables, belt buckles, decorative artefacts, chairs and daybeds. Pergay’s pieces often feature organic shapes, such as waves, rings and shells. She has continued creating for her own pleasure over the years, exhibiting and selling to clients as she quietly gains impressive private commissions for names that have included the likes of Givenchy, the Shah of Iran, Pierre Cardin, Fendi, Christian Dior, Jacques Heim and Salvador Dalí. Her works can today be found in the permanent collection of New York’s Metropolitan Museum of Art, as well as in private collections around the world.

Pergay, who never belonged to a distinct design movement, is a mother of four who has no formal training in furniture design or any external financial support. Instead of following trends, she has consistently drawn inspiration from antiquity, Japanese art and the innate nature of the materials with which she works. While this individual approach may have led to many of her pieces not receiving recognition until years after they were created, it also ensured that her work has stood the test of time.

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Art

Architecture

Krasnov’s

Belgrade Legacy Nikolay Petrovich Krasnov was a Russian architect who left an indelible mark on Serbian culture as a whole, and his author’s stamp is deeply imprinted in the look of the Serbian capital

INTERIOR OF HOUSE OF THE NATIONAL ASSEMBLY OF THE REPUBLIC OF SERBIA

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ikolay Krasnov is considered the most important representative of academic historicism in Serbian architecture. His signature is carried by almost all of the most impressive, grandiose and monumental buildings in the centre of Belgrade that don’t belong to the category of modern architecture. These edifices are not only symbols of the city of Belgrade, but also of the state of Serbia.

Born in October 1864 in the suburbs of Moscow, Krasnov completed studies in painting, sculpture and architecture in Moscow. After completing his schooling, the state sent him to the Crimea, where he very quickly became the Chief City Architect of Yalta.

Having distinguished himself with his skills in constructing palaces, cutting canals, landscaping coasts and arranging streets, Krasnov attracted the attention of Tsar Nicholas II and received the task of building a summer house for him - Livadia Palace.

This building still represents a great tourist attraction, and it has historic significance because it hosted the Crimean Conference of 1945, at which Churchill, Roosevelt and Stalin determined the future destiny of the entire world. Following the construction of this magnificent building, Krasnov became the architect of the Russian imperial court, and two years later he received the title of academic of architecture of the Imperial Academy of Arts in St. Petersburg.

Krasnov was among those who left Russia after the October Revolution. He arrived in Malta, via Turkey and Greece, in 1919. He lived in a refugee camp with his family and supported himself by painting watercolours for private clients for a little money.

It isn’t known how Russian emigrants living Serbia, or in the Kingdom of Serbs, Croats and Slovenes, heard about him, but in 1922 the Association of Russian Engineers and Technicians invited him to Serbia and Krasnov arrived in Belgrade in April of that same year, where he immediately found work at the Ministry of Construction and received an opportunity to demonstrate all of his immeasurable talent. With his works he participated in the birth of the new Belgrade, where he remained resident until his death.

One of the first projects that Krasnov participated in was the reconstruction of Ružica Church on Kalemegdan Fortress. Interestingly, Krasnov is the author of the two statues of Serbian soldiers placed at the entrance to the church, for which this church is known far and wide. One represents a spearman of Emperor Dušan, while the other is an infantryman from the Balkan wars.

Next came work on the most important administrative buildings in Belgrade. One after another, the buildings of the Ministry of Finance (today’s building of the Government of Serbia) and the building of the Ministry of Forests and Mines, Agriculture and Water (today’s Ministry of Foreign Affairs) sprang up.

This architect is also responsible for today’s appearance of the building of the Ministry of Finance, which was then the State Council of the Kingdom.

It was according to Krasnov’s design project that

this building was upgraded in 1929, when it gained its present quadrangular shape.

Krasnov also designed the first building in the Balkans to be purposely built to house the national archive. This monumental one-storey building in Karnegijeva Street has retained its original purpose to this day.

Today’s Yugoslav Drama Theatre is located on a site that used to be occupied by the riding academy of the Royal Cavalry Squadron, which was converted into a theatre in 1929, according to

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Art

Architecture

My life

Love

ARCHIVES OF SERBIA

Krasnov’s project. Construction of the National Assembly began in 1907, according to the projects of Jovan and Pavle Ilkić, long before Krasnov’s arrival in Serbia. However, various circumstances had led to the construction lasting over 20 years, so projects for the complete interior decoration of the palace, but also the design of details on the facade, a decorative fence, heraldic flags and the pedestal of the mast, were entrusted to Krasnov.

Once a favourite of the Russian crown, Krasnov found fans in the Serbian crown and went on to designed the interior of the Old Palace in Dedinje, but also the decorative plaster on the facade and colonnade between the court and the chapel, while he was also entrusted with the landscaping of the park.

Alongside many other buildings that adorn the city in the area around the confluence of the Sava and the Danube, Krasnov also designed the supporting pillars for King Alexander Karađorđević I Bridge.

Unfortunately, this bridge, which many considered the most beautiful structure ever to adorn the Sava, was destroyed by the Yugoslav Army itself, in order to prevent Nazi forces penetrating Belgrade at the start of World Wwar II. It was in 1956 that Branko’s Bridge was built on the pylons of the previous bridge.

Apart from transforming the capital city, Krasnov also gave his personal stamp to many Serbian towns, but also to Serbian holy site beyond the homeland. He worked on the reconstruction of Njegoš Testament Church in Lovćen, on the interior design of the Church of St. George in Oplenac, the cemetery of Serbian soldiers in Thessaloniki’s Zeitenlik and many other projects.

Krasnov’s last work was the Memorial and ossuary on the Greek islet of Vido, Corfu, which is ranked

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among the most mature achievements of Serbian memorial architecture.

Krasnov also provided conceptual solutions for state medals, the Order of the Yugoslav Crown, the Order of the White Eagle, the Order of Andrej the First Called. He himself was decorated with many of them, including the Order of Saint Sava.

This Russian architect was a favourite among his associates in Belgrade. He collaborated with the most important names of Serbian architecture - Petar Popović, Dragutin Maslać, Momir Korunović and Milica Krstić.

Nikolay Petrovich Krasnov, this artist who had marked an entire epoch in the history of Serbia with his work, passed away in Belgrade in December 1939. He was buried on the Russian plot of the New Cemetery in Belgrade. And he also designed his own tombstone.

The international exhibition The Documents of Nikolay Krasnov - the Russian Mason of Serbia was realised in the Archives of Serbia on 4th December 2014, on the occasion marking the anniversary of Krasnov’s birth.Through archival material and original documents, Krasnov’s fruitful architectural work was presented to the professional and general public.

A monument to Nikolay Krasnov was unveiled on Little Tašmajdan on 9th December 2019, on the 80th anniversary of his death, erected in the immediate vicinity of the Archives of Serbia, a building that Krasnov designed. An exhibition about his life and the buildings he designed was prepared in advance of the monument’s unveiling in the ceremonial hall of the Old Palace. And one Belgrade street, in the Vračar neighbourhood near the temple of Saint Sava, is named after him.

She’s been in front of the camera since she was 14. She has had roles in around 80 films and television series in America and Europe, but she’s first and foremost a Yugoslav actress whose films are remembered and for which she’s received the top awards. She plays the female lead role in the Croatian series The Paper (Novine), which is being broadcast to a market of half a billion viewers.

S

he has complemented her Slavic beauty with wonderful talent and charm that attracts directors and excites the audience. She has the ease of film expression that’s inherent in big screen actors. Branka Katić (1970) was born and raised in Yugoslavia.

During shooting for the film Black Cat, White Cat, director Emir Kusturica accurately predicted that she would leave the country and head West, because he knew how much his films resonate. That film was the right ticket for the career that would follow. It was screened at the New York Film Festival with great pomp, and Branka was constantly pinching herself to make sure it was real, while shouting “Five minutes of

Branka Katić, actress

By Radmila Stanković

Photo: VMisa Obradović

Counterbalances Evil

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My life

Branka Katić, actress

glory, five minutes of glory!” She immediately gained agents in England and France. She was 29 years old and had amassed 15 years of experience in Yugoslav cinematography.

She has since gone on to forge a successful film and television career in Europe and America, where last year she shot the film The Roads Not Taken (2020), with Javier Barden, and this year The King’s Man, with Ralph Fiennes.

She was 14 when she shot her first role for the film Nije lako sa muškarcima [It’s Not Easy with Men], in which Milena Dravić played her first on-screen mother. It was many years later when Milena explained to me how good an actress Branka is: “First she was a wonder child, and then she grew into a wondrous actress. Whenever I watch Gorčin Stojanović’s film Ubistvo sa predumišljajem [Premeditated Murder], I cry every time I see Branka and Glogovac. A person can die from so much emotion.”

Today this wondrous actress has an enviable film and television career, having played close to 80 roles, many in foreign productions.

She studied acting in Novi Sad, in the class of Rade Šerbedžija, with whom she also recorded the video for his song Djevojka iz moga kraja [Girl from My Area], and in America she also starred with them in the TV series Red Widow. She acted alongside Catherine Deneuve in the French film The Big Picture, in Michael Mann’s hit Public Enemies, in which she portrayed immigrant Anna Sage alongside Johnny Depp. We also remember her for her numerous roles in the most popular domestic creations, such as Srđan Dragojević ‘s films The Wounds and We Are Not Angels, among others. She can also boast of her roles in popular foreign films and series, such as Captain America: The Winter Soldier, HBO’s Big Love, The Jury, Bored to Death and Waking the Dead.

Among her more recent roles are that of the last Romanov empress of Russia, Tsarina Alix, in The King’s Man, and the lead role in Dušan Kovačević’s latest film Nije loše biti čovek [It’s Not So Bad to Be Human], which is expected to premiere this year.

When she recalls her beginnings, she inevitably thinks of her mother Nada, who one day read an ad in the newspaper Politika that

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UNHCR REPRESENTATIVE IN SERBIA FRANCESCA BONELLI AND BRANKA KATIĆ SIGN A LETTER OF AGREEMENT MARKING THE OFFICIAL START OF BRANKA’S ENGAGEMENT AS A UNHCR HPS

That sense of security with which we grew up, as children of socialism and brotherhood and unity, was precious children were being sought for a role in a film, plucked her daughter out of bed and shouted: ‘Come on, actress, here is the ad, prepare your pictures, go and sign up, and don’t act around my house anymore!’ She applied and got the role in her first film, It’s Not Easy With Men: “It was then that I met the beautiful Milena Dravić, who played my mother. Later came the success of the cult film We Are Not Angels, which brought us both into the limelight meteorically. There was also Premeditated

Murder, my wonderful collaboration with the dear Glogovac, who had already played a phenomenal role in his first film. Our scene under the bridge still give me goose bumps.”

She grew up in the part of New Belgrade in the vicinity of “Fontana”. her parents had a good mutual relationship, but also got on well with their neighbours and relatives: “Everything was somehow idyllic, the greenery around the building, the good people around us. I grew up as one of Tito’s pioneers.

That sense of security with which we grew up, as children of socialism and brotherhood and unity, was precious. I believed that we were all equal and that Comrade Tito was good.

When he died it was the first time I saw my dad crying. I was ten years old. It was the saddest day of my childhood.”

She took her first steps in world cinematography with a role in the British TV drama Warriors, about English soldiers in the war in Bosnia. She went to the Czech Republic, where it was filmed,

BRANKA KATIĆ, STILL FROM THE SERIES THE NESPAPER

and while there the bombing of Serbia soon began in 1999, which threw her off balance: “I cried at night and filmed with my swollen face during the day. One day the director said that he could use my mood for some scene that needed to be shot. I replied to him: I would rather be bad in your film than go through what I’m going through. Of course, it couldn’t have been harder for me there than it was for the people in Serbia, but I never cried more than during those months. After filming I went to London, until I was able to return to Belgrade.

“As soon as I could, after the bombing, I came to Belgrade, but those few months of absence enabled me to understand that I could also live and work elsewhere. And thus I embarked on that adventure. A few months later I fell in love, then got married, gave birth to two sons… ” Branka and her husband, director and producer Julian Farino, have been living in

It would also be good for us not to forget what we were taught when we were little - not to throw rubbish on the street London for the last twenty years, though they also lived in Los Angeles for eight years. They have sons - Louis and Joe. Branka has been spending more time here in Serbia during the last year, because it is here that she’s filming, preparing for and performing in plays, despite the pandemic, and she yearned for the theatre.

When she last year returned to the stage after a 20-year absence, jumping into the role of Baroness Sophie in the play Twilight of the Gods, the audience members unanimously showed how much they’ve missed her. She soon became a permanent member of the

Belgrade Drama Theatre, where in April she had the premiere of Vladimir Tabašević’s NIN Award-winning play Tiho teče Misisipi [Quietly flows the Mississippi], directed by dear guest from Zagreb Ivica Buljan, who is otherwise director of drama at the Croatian National Theatre in Zagreb.

The play Twilight of the Gods, which testifies to a split within a German family during the time when the Nazis came to power and fascism was born, provides an opportunity to think about fascism, or about the fear of fascism today: “At the basis of fascism is the conviction that one life is more valuable than another.

And to give yourself that as a right, to take that dominance only because you are powerful when confronting the small and powerless, is real evil for me, at all levels. Unfortunately, that way of thinking still exists in various forms today. We can recognise it in the domination of one race over another, one nation over another, men over women, man over nature.”

Branka is slowly returning to her Belgrade.

She says that she loves it a lot, but a lot of things concern her. For example, the air quality is terrible and she wonders how and why so much pollution occurred and what the people in charge of environmental protection are doing about it. Do they love their children and do they think of their developing lungs and the long-term consequences that such huge pollution can produce? Is it known who sells lignite on our market? Why is it permitted to use this fatally unhealthy mixture for heating?

What is happenings with the dump in Vinča: “No divisions should exist with these problems, we should all be on the same side, which protects all of us, united around the ideas of betterment, a greener future, care for people, ideas that are more important than anyone’s material interest. It would also be good for us not to forget what we were taught when we were little - not to throw rubbish on the street. Let’s give a little more love to our capital, so that it will shine again one fine day.

“And I would like the next conceptual design of any square, fountain or new building to appeal to someone who is professional and gifted, and thus has more taste to make something beautiful, which will better suit the existing look of the city.

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My life

Branka Katić, actress worse than if they’d remained hidden in the basements of their devastated cities. Where is our humanity? Where is compassion for the suffering of others? Where has love gone?”

One of this actress’s biggest television successes in recent years is certainly the Croatian series The Paper, which ended after three seasons and was broadcast to a market of half a billion viewers! This is absolutely the most successful Balkan audiovisual project.

In the lead role of journalist Dijana Mitrović,

Photo: Vladimir Ilić

That fascist and nationalist war-mongering rhetoric that was shouted from all sides in the ‘90s is, unfortunately, still around today

“Likewise, that flood of shopping centres is completely incomprehensible to me. Is it possible that we really need them all? Consumerism is another of the truly destructive passions of modern society. At the moment I’m more interested in ‘degrowth’, which teaches us how to use that which already exists and reduce our needs to what we really need.

“There is enough of everything for everyone on our planet. And instead of finally moving, as a civilisation, towards a higher, nobler level

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of consciousness, and trying to help each other, to protect those for whom protection is essential, to understand one another and give our all to stop the destruction of our beautiful planet, we are trapped in the short-sighted world of neoliberal capitalism, in the jaws of banks and big companies; we’ve become slaves generating profits for the rich. Wars continue, innocent civilians are bombed, and refugees whose lands have been completely destroyed experience humiliation and ill-treatment

Branka evoked all the hardships and beauty of a job in which it is increasingly difficult to find true meaning: “The Paper is probably the most exciting project I’ve worked on in recent years. The role of Dijana is the complete opposite of the way people perceive me, and as such she was immediately very challenging for me. My cheerful energy fell into Dijana’s destructiveness. She is a great journalist, someone who always insists on the truth coming to light while living various lies in her private life, she is an alcoholic, in an emotional wasteland, completely incapable of loving herself and others. The excellent screenplay came from the pen of journalist and writer Ivica Đikić, whose many years of experience and true understanding of the material proved invaluable. I was afraid of what my Croatian pronunciation would be like, but our excellent director Dalibor Matanić told me that he wasn’t interested in my accent at all, rather in the state of my character. He couldn’t have told me anything simpler and stronger to relax me.

He is a brilliant director and a wonderful guy.

The thought that we’re being watched around the whole world is very exciting to me. It was while filming this series that I realised how increasingly difficult it is becoming to work in real investigative journalism. Newspapers

should give us the flow of information, and not be propaganda tools of the ruling party and sources of disinformation.”

After filming around the world and living in Los Angeles and London, Branka has in recent years come to more comprehensively and complexly understood the concept of political correctness. Today she explains it as follows: “I like the idea of insisting on political correctness, because too much and for too long we’ve given ourselves the right to think that we, as members of the ‘white race’, are better than others. And however much it might seem to you that this is a limiting extreme, it seems to me that it is essential to place that relationship on healthier foundations. Racism, which is still present in all societies, is unacceptable for me personally. Terrible crimes are still committed today as a consequence of all those prejudices, so the attitude of a large number of people must change and everyone must be given a chance to have equal rights and the chance for a normal life.”

She says that she would be filled with wholehearted joy if she saw that we’d learnt at least something from the bloody massacre that took place in the former Yugoslavia during the 1990s. She is aware that those wars were a huge step backwards, into darkness; destruction from which we have yet to recover: “That was a training ground for such horrific crimes that even to this day I’m incapable of understanding where so much evil that bubbled to the surface came from. Why did so many innocent civilians have to perish; who had an interest in starting a fratricidal war among nations who’ve lived together for centuries? That fascist and nationalist war-mongering rhetoric that was shouted from all sides is, unfortunately, still around today. And all that misery, all that suffering for what? Who won in the end? I would say only war profiteers. And people on all sides perished and suffered. Memories of the wars have stratified, but the victims carry the memory, the conflict endures in the minds of the people. No one from the circle of my family and friends supported that war.

“I have to add something else to this: none of my people were killed in the war, and perhaps that’s why it’s easier for me to be a pacifist than it is for people to whom terrible things happened. I will never understand why people

in the Balkans, who speak the same language, killed each other. What is that in people?

“I’m apolitical; I’m not passionately attached to any party, and I think it’s wrong to ‘love’ politicians or a party, it is more important to appreciate their programme and to know that you can trust them, that they are people of their word and trustworthy, and that they are honest in their work and intentions, and that personal profit isn’t more important to them than anything else. Again the word love comes to my mind. Where there is love, everything is better. Love is the counterbalance to all evil. ” Alongside the numerous awards she received for her roles as an actress, Branka recently received another prestigious acknowledgement - she became a UNHCR Goodwill Ambassador for Refugee Rights.

During the 70 years that the United Nations High Commissioner for Refugees has existed, several celebrities around the world have had

Newspapers should give us the flow of information, and not be propaganda tools of the ruling party and sources of disinformation an opportunity to receive this honorary title.

In addition to having achieved top results in their field - be that art, sport or something else - a UNHCR goodwill ambassador is someone who has shown compassion for people forced to leave their homes and is prepared to publicly advocate for their rights.

Cate Blanchett, Angelina Jolie and Ben Stiller are among the goodwill ambassadors who support the work of the UNHCR, and the last among them from this region was recently departed musician Đorđe Balašević.

Speaking to CorD, Francesca Bonelli, UNHCR Country Representative for Serbia, based in Belgrade, said: “When we heard and saw the way Branka Katić speaks about refugees in public, we were

touched by her solidarity and empathy with people who had to abandon their countries. Her sensitivity, spontaneity and the determination with which she advocates for the interests of refugees were more than enough elements for us to be sure that she would be an excellent UNHCR Goodwill Ambassador for refugee rights.

“When we contacted her and offered her this role, we were very happy that she accepted.

In just the few months that we’ve been collaborating, Branka has shown great commitment to helping refugees. She has opened many doors with numerous opportunities for the further activities of the UNHCR in work on the inclusion of refugees in Serbian society.

“We look forward to our joint projects that will encourage the creation of conditions for even greater inclusion and integration, where refugees will be able to fully realise their full potential.”

As happy as Branka is about this recognition, this celebrated actress also sees it as a great responsibility: “When I received the offer to work with the UNHCR to help integrate refugees in Serbia, I felt pride, responsibility and a true desire to invest my energy in helping people who are risking their lives in an attempt to find a new home for themselves, so that they can live in peace. Their homes have been destroyed, conflicts continue smouldering in their countries.

To traverse all those kilometres, to risk crossing the high sea in flimsy rubber dinghies, all that is done by someone who really doesn’t see any future in the homeland they’ve left behind.

Only great despair, but also courage, could compel them to embark on that dangerous and uncertain journey. When a person loses everything, their home, their city, their country, the only thing they are left with are hope and dreams. And if they manage to survive all those misfortunes, isn’t it humane for us to offer them an embrace of sincere support. We are all human and we have so much in common. And we all want security, love, the opportunity to contribute to our community, to do something meaningful and useful, for our children to grow up in peace. It is important to have compassion for suffering others, an understanding of their basic human needs and rights. All people of this world have the right to a new beginning in life and the right to happiness.”

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CHILL OUT 20 Years Of New Mini Few cars are more loved than the Mini, and it is now marking exactly 20 years since the first ‘new Mini’ — larger than the original and built under the stewardship of German car giant BMW — rolled off the production line at its Oxford factory on 26 April 2001.

The anniversary also coincides with the launch of refreshed versions of the current Mini range — and a move towards an electric-only future.

Swimmer Takes A Dip In World’s First Seethrough Sky Pool Swimmers have been pictured taking a dip in the world’s first transparent sky pool before it opens in London next month.

The stunning pool stands across two exclusive residential blocks standing next to the US Embassy in Nine Elms, South London and is the first of its kind in the world. Bathers will drift through water ten storeys up and can watch passers-by far below them and gaze across the London skyline as they float.

The opening, which has been delayed

by Covid, will set the seal on an ambitious engineering project which involved transporting the acrylic aquarium-style pool nearly 5,000 miles from the factory in Colorado where it was made.

Alexa Speaks Shakespearean Amazon’s digital assistant Alexa has learnt to speak recite lines from the works of William Shakespeare, to mark his official day of celebration today. Users can ask Alexa to ‘speak like Shakespeare’ for a variety of responses, as well as ask to recite a Shakespearean sonnet and soliloquy and even a famous insult.

When asked to recite a Shakespearean insult, Alexa may reply, ‘The rankest compound of villainous smell that ever offended nostril’ from The Merry Wives of Windsor.

The digital assistant may also reply, ‘You starveling, you eel-skin, you dried neat’s-tongue, you bull’s-pizzle, you stock-fish’ from Henry IV, Part 1.

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Four-month-old Kitten Put Down After Catching COVID From Its Owner A kitten had to be put down after catching Covid from its owner during the UK’s first wave, scientists have revealed. The cat was a four-month-old Ragdoll that got taken to the vet in April 2020 because it was struggling to breathe. Its condition got worse in the following days and the kitten had to be put down, with post-mortem tests revealing it had lung damage from viral pneumonia and signs of infection with coronavirus, which causes the condition. The owner suffered from Covid symptoms the month before but couldn’t get tested, and scientists concluded they had passed the virus to their pet.

‘Unicorn’ Spotted Just 1,500 Light-years From Earth A newly discovered black hole has been deemed the closest to Earth and smallest ever to be observed.

Dubbed ‘The Unicorn,’ this one-of-a-kind black hole sits just 1,500 light-years from Earth and is only three times the mass of our sun.

‘Because the system is so unique and so weird, you know, it definitely warranted the nickname of ‘The Unicorn,’ discovery team leader Tharindu Jayasinghe, an astronomy Ph.D. student at The Ohio State University said in a video. When the team noticed the red giant’s lift shifts periodically, as if something was tagging at the star, which led them to conclude the ‘tidal disruption is produced by the tidal force of an unseen companion – a black hole.’

Smart Glasses Help You ‘Teleport’ To Other People’s Homes To combat climate change, we could be ‘teleporting’ into other people’s homes and our workplaces by 2030 using special smart glasses, Mark Zuckerberg has predicted.

The Facebook CEO said he envisages face-to-face meetings replaced with virtual conferences made possible with some form of augmented reality (AR) headset.

The ultimate vision, he added, would involve a normal-looking pair of electronic glasses that can present content on its lenses alongside the real world beyond.

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Office

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Gadgets At the office, you might need a lot of tools to make your workday run smoothly. It would be best to consider investing in a few accessories that will make working easier and make your work environment more comfortable.

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1. Apple - AirPods Pro, Eur 235 / 2. Seville Classics - AirLift S3 Electric Height- Adjustable Desk, Eur410 / 3. Naipo - Neck Shoulder Shiatsu Massager, Eur 54 / 4. LaMetric - Time Wi-Fi Clock, Eur 165 / 5. Djuiino Star - Low Temperature Stirling Engine, Eur 32 / 6. ScienceGeek - Kinetic Art Asteroid, Eur 15 / 7. MYCreator - Decision Ball, Eur 13

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8. Zepter - Therapy Air ION, Eur 840 / 9. Vobaga - Coffee Mug Warmer, Eur 20 / 10 - Samsung Flip 2 - Display 2021, Eur 2,000 / 11. Wooden Labyrinth, Eur 15 / 12. Plant Floating Air Bonsai, Eur 95 / 13. LiZhi - 3 in 1 charging dock, Eur 120 / 14. Ampulla - Lamp with Bluetooth speaker and wireless charger, Eur 115 / 15. Amazon - Echo Dot (4th Gen) Smart speaker with clock and alexa, Eur 44 / 16. AAXA - P7 Led Mini Projector, Eur 340 / 17. The Dunk Collection, Eur 35 / 18. Herman Miller, Aeron Chair, Eur 950

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Culture

calendar

Exhibition “Fearless”

FEST 2021 7-16 May

The 49th International Film Festival - FEST, will be held from May 7 to 16. For the first time in Serbia, five winners of this year’s most prestigious award in the world of film - the Oscar - will be shown. FEST audiences will be able to see Chloé Zhao’s “Land of the Nomads”, which won an Oscar for Best Picture, Directing and Leading Actress (Frances McDormand), Florian Zeller’s “Father”, winner in the categories of leading male role (Anthony Hopkins) and adapted screenplay (Florian Zeller and Christopher Hampton), “Promising Woman” whose director and screenwriter Emerald Fennell won the Oscar for best original screenplay, “Sound of Metal” with awards for best editing and sound, as well as the film “Minari” by Lee Isaac Chung, who won an Oscar for

Until 7 May Belgrade Youth Center

The exhibition “Fearless” by the artist Stefan Knezevic aims to move the observer from everyday life into the field of “space for isolation” in which the personal narrative stands out and is established in relation to the reading of the whole from the wall. By presenting “fearlessness”,

Best Supporting Actress (Youn Yuh-jung). In the shortlist for the best film outside the Englishspeaking area was the film “The Man Who Sold His Skin”, directed by Tunisian author Kaouther Ben Hania, and will be shown in the Main Competition Program of the 49th FEST.

Hyper-modern Dante

Until 12 May / Italian Culture Institute In Belgrade On the occasion of the 700th anniversary of the death of Dante Alighieri, the father of the Italian language, the Italian Embassy in Belgrade and the Italian Institute of Culture present the exhibition Hypermodern Dante. Illustrations of Dante’s work around the world in the period from 1983 to 2021, which will be held from April 14 to May 12 in the premises of the Italian Institute of Culture in Belgrade. The exhibition was designed by the Dante Alighieri Society and the Association of Italianists, prepared by prof. Giorgio Bacci in collaboration with Marcel Chicut and Alberto Casadei, and realized by Art Media Studio from Florence thanks to the support of the Ministry of Foreign Affairs and International Cooperation of Italy. The exhibition Hypermodern Dante offers an authoritative overview of the latest trends in the long history of illustrated depictions

Knezevic insists on an independent view of the project concept, which becomes a mirror in which the visitor reexamines his own patterns, which in certain segments can be psychological or sociological, which further results in individual projection of experiential content within the gallery space.

Stefan Knezevic is a multidisciplinary artist and designer who explores the world of visual communications. So far, he has won several international and domestic design competitions, such as 2nd place at the International Young Creative Chevrolet Competition held in Los Angeles, USA, 1st place at the International Day Against Tobacco Smoke, the competition for the best poster held in Belgrade, Serbia, as well as others.

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of Dante’s works and represents a unique opportunity to show Serbian audiences iconographic works of high artistic range inspired by the Top Poet. Visitors will be able to enjoy the various experiences, techniques and methodologies brought into dialogue through eighty works by five contemporary artists - Tom Phillips, Monica Bajsner, Mima Paladin, Emiliano Pontius and Paolo Barbieri. It is a kind of journey into contemporary visual culture, diverse and layered, which abounds in formal suggestions, capable of pointing out new ways of interpretation.

SEE MORE: WWW.CORDMAGAZINE.COM

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An electrifying debut novel the story of the unbreakable bond between two girls driven apart, and their journeys across continents to find each other again. Poornima and Savitha, born in poverty, have known little kindness in their lives until they meet as teenagers.

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&FACES PLACES 5/04/2021

Trilateral Meeting Of Serbia, Greece And Cyprus Trilateral Meeting Of Serbia, Greece And Cyprus Serbia hosted the Ministers of Foreign Affairs of the Republic of Greece and the Republic of Cyprus, Nikos Dendias and Nikos Christodoulidis, at the trilateral meeting of Serbia, Cyprus and Greece.

The head of Serbian diplomacy Nikola Selaković conveyed gratitude to Greece and Cyprus for their principled support on the issue of preserving the sovereignty and integrity of Serbia, but also on the issue of European integration.

The trilateral meeting dealt with economic cooperation, infrastructure, energy and gas supply from various sources, stating that the ministers agreed that greater cooperation is needed in the field of tourism, agriculture, IT sector and other areas.

05/04/2021

Crown Prince Of Bahrain Visits Serbia Prime Minister Ana Brnabic welcomed at Nikola Tesla Airport Crown Prince and Chairman of the Office of Humanitarian Affairs and the Youth of the

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Kingdom of Bahrain Prince Salman bin Hamad bin Isa Al Khalifa.

The envoy of the King of Bahrain arrived on a two-day visit to Serbia, where he meet with President of the Republic Aleksandar Vucic. On the second day of the visit, President Vucic and the guest from Bahrain attended an exhibition of weapons, military equipment and capabilities of Serbian Army units at the “Colonel Milenko Pavlovic” Military Airport in Batajnica.

SEE MORE: WWW.CORDMAGAZINE.COM

14/04/2021

Italian Ambassador Opens “Hyper-modern Dante” Exhibition The international exhibition Hyper-modern Dante opened at the Italian Institute of Culture in Belgrade. This unique exhibition premiered in Belgrade, on the occasion of the 700th anniversary of the death of Dante Alighieri, and after Belgrade it will be exhibited in Athens, Prague, Moscow, Madrid and London.

At the opening, H.E. Carlo Lo Cascio, Ambassador of Italy to Serbia addressed guest.

Present were also Robert Cincotta, director of the Italian Institute of Culture in Belgrade; Danijela Vanušić, Assistant Minister of Culture and Information for the Protection of Cultural Heritage and Digitization; and the curator of the exhibition, prof. Giorgio Baci.

The exhibition will be open to visitors from until 12 May, from Monday to Friday, 10:00 to 19:00.

14/04/2021

The First Major Conference On Solar Energy In Serbia Held “The first major conference on solar energy in Serbia” was held in Belgrade on 14 April. The conference was organized by the Balkan Green Energy News portal.

Over 30 leading energy experts, representatives of investors, the economy and institutions from the country and abroad discussed one of the most current topics in Serbia - how a new set of energy laws can contribute to greater use of solar energy in Serbia and boost the development of a free electricity market.

Opening the conference on Solar Energy in Serbia, was the Minister of Mining and Energy, Zorana Mihajlović, who expressed her belief that the Draft Law on Renewable Energy Sources would be a big step forward.

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&FACES PLACES 19/04/2021

Swiss Business in Bulgaria, Romania, Serbia And North Macedonia Following SSCC’s initiative, the first regional online event ’’Swiss Business in Bulgaria, Romania, Serbia and North Macedonia’’ took place on Thursday, April 15, 2021 and gathered approx. 80 participants.

On this occasion, SSCC welcomed four Swiss Ambassadors from the region: H.E. Mr. Urs Schmid, the Swiss Ambassador to Serbia and Montenegro, H.E. Ms. Muriel Berset Kohen, the Swiss Ambassador in Bulgaria, H.E. Mr. Arthur Mattli, the Swiss Ambassador in Romania and H.E. Ms. Sybille Suter Tejada, the Swiss Ambassador to North Macedonia.

Also, Mr. Thomas Foerst, Head of Global Network, Switzerland Global Enterprise (S-GE) presented the Swiss perspective of the region as well as the established cooperation with the Swiss-Serbian Chamber of Commerce and other participating chambers from the region.

In his speech, Mr. Majo Mićović, SSCC President, welcomed the initiative by emphasizing that this event marked the beginning of regional cooperation and that more similar events would take place in the future.

21/04/2021

Japanese Park Opened As A Symbol Of Serbian-Japanese Friendship The Japanese Business Alliance in Serbia (JBAS) and the Olympic Committee of Serbia in the presence of His Excellency, the Ambassador of Japan to Serbia, H.E. Katsumata Takahiko and the Mayor of Belgrade Prof. Dr. Zoran Radojicic, opened a park with Japanese cherry trees planted in the shape of Olympic circles.

Now, the citizens of Serbia also have the opportunity to enjoy hanami, the famous Japanese custom of observing the flowering of this tree.

Japanese Ambassador Katsumata Takahiko thanked the Japanese Business Alliance of Serbia and the Serbian Olympic Committee for this project, which is celebrating the Olympic and Paralympic Games in Tokyo.

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SEE MORE: WWW.CORDMAGAZINE.COM

22/04/2021

Sweden Investing Another 600,000 Euros For Eco-projects In Serbia The Minister of Environmental Protection, Irena Vujović, signed an agreement with the Ambassador of the Kingdom of Sweden, H.E. Jan Lundin, on the extension of the Program of Support to Environmental Infrastructure Projects - EISP 2 for another two years.

Based on the agreement, Sweden will invest an additional 600,000 euros for environmental projects implemented through EISP 2, or a total of about 3.3 million euros.

“Serbia and Sweden are cooperating on EU environmental reforms.

Sweden supports Serbia in the application of high environmental standards, public participation in environmental reform and transparent planning of investments in the environment, “said Swedish Ambassador Jan Lundin.

23/04/2021

German Foreign Minister Heiko Maas Visits Belgrade After the visit to Pristina, German Foreign Minister Heiko Maas said while visiting Belgrade that Germany is aware that the normalization of relations with Pristina is not an easy process, but in his opinion, it would also produce economic advantages.

After the meeting with the President of Serbia, Aleksandar Vučić, Maas pointed out that Germany fully supports the process of normalization and supports Miroslav Lajčák, the special European envoy in the dialogue between Belgrade and Priština.

“Miroslav Lajcak enjoys my full trust,” Maas emphasized, adding that it is now important that the dialogue is not conducted for the sake of dialogue, but for the sake of results.

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&FACES PLACES 23/04/2021

Prevent Hate Speech Through The Media In Serbia The media have powerful impact on Serbian society and a corresponding responsibility in addressing hate speech.

Media representatives should not only refrain from using hate speech but also emphasize and promote positive and value-driven arguments about members of vulnerable groups, thus contributing to breaking predominant stereotypes and prejudices. The legal framework in place does not appear to be effective – it is necessary for the media community to establish a system of collective self-regulation based on agreed codes of conducts and mechanisms to deal with complaints of hate speech. This has been underlined in today’s presentation of the new “Report on the use of hate speech in Serbian media” prepared under the joint European Union/Council of Europe action “Promotion of diversity and equality in Serbia”.

25/04/2021

Concerts Held On The Occasion Of The Serbian Army Day On the occasion of the Serbian Army Day, the representative orchestra of the Guard and the Art Ensemble “Stanislav Binički” held two open-air concerts in Belgrade. The representative orchestra of the Guard held, now traditional, a promenade concert on Knez Mihajlova Street, and the repertoire included melodies of famous Serbian marches, as well as foreign compositions written for the brass band. In addition to “March on the Drina”, “March of King Alexander” and “March of King Milan”, Belgraders had the opportunity to enjoy the famous “Forgiveness of the Slovenian Woman” by Vasily Agapkin and “Superstition” by Steve Wonder.

The citizens of the capital, who followed the promenade concert along Knez Mihajlova Street in the direction of Kalemegdan, had also the opportunity to enjoy the concert held by the Art Ensemble of the Ministry of Defense “Stanislav Binicki” on the plateau in front of the Military Museum.

66

May

Contents RECOMMENDATIONS FOR BETTER WORKING 30.WE ACHIEVED THE IMPOSSIBLE! 06.100 CONDITIONS EDITORIAL aim team WITH SPECIAL THANKS TO Milica Stefanović, NALED Ivan Radak, NALED ART DIRECTOR Branislav Ninković b.ninkovic@aim.rs PHOTOS Zoran Petrović Nemanja Jovanović TRANSLATION Halifax Translation OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs EDITORIAL MANAGER Neda Lukić n.lukic@aim.rs SALES MANAGERS: Biljana Dević, b.devic@aim.rs Vesna Vukajlović, v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs FINANCIAL DIRECTOR Dragana Skrobonja finance@aim.rs GENERAL MANAGER Maja Vidaković m.vidakovic@aim.rs PUBLISHER Ivan Novčić i.novcic@aim.rs DIRECTOR Ana Novčić a.novcic@aim.rs PRINTING Rotografika d.o.o.

Segedinski put 72, Subotica, Serbia Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs www.aim.rs ISSN no: 1451-7833 All rights reserved alliance international media 2021

4 | CorD | NALED | AGENDA 2021

DEJAN ĐOKIĆ, PRESIDENT OF THE EXECUTIVE BOARD OF NALED AND DIRECTOR OF ASSECO SEE

IS THE BEST PATH TO SUCCESSFUL 08.DIALOGUE REFORM

VIOLETA JOVANOVIĆ, EXECUTIVE DIRECTOR OF NALED

ILIJA CEROVIĆ, ACTING DIRECTOR OF SERBIAN TELEVISION AND EDITOR-IN-CHIEF OF THE RTS EDUCATION AND SCIENCE PROGRAMME

31.OUR DUTY IS TO TELL IT THE WAY IT IS

ALEKSANDAR MILOŠEVIĆ, ECONOMICS EDITOR,

DANAS

GREY BOOK IS AN AUTHENTIC REFLECTION KEY GUIDELINES ARE CRUCIAL FOR A 34.THE OF OUR BUSINESS ENVIRONMENT 12.NALED’S SUCCESSFUL PARTNERSHIP 16.OVERVIEW OF REFORMS CARRIED OUT IN 2020 EXCESS BUREAUCRACY STIMULATES THE WE ARE FULLY COMMITTED TO THE WELL-BEING 36.

SHADOW ECONOMY 22.OF BOTH INDUSTRY AND THE PUBLIC DUŠAN VUJOVIĆ, PRESIDENT OF NALED SCIENTIFIC COUNCIL

SLAVICA SAVIČIĆ, STATE SECRETARY AT THE MINISTRY OF FINANCE

24.

SERBIA HAS POSITIONED ITSELF AS A COUNTRY OF INNOVATION

MIHAILO JOVANOVIĆ, DIRECTOR OF THE OFFICE FOR IT AND EGOVERNMENT

26.MAGIC IN THE HANDS OF TEACHERS

MILAN PAŠIĆ, ASSISTANT MINISTER OF EDUCATION, SCIENCE AND TECHNOLOGICAL DEVELOPMENT

WITH NALED, WE CAN DO MUCH 27.TOGETHER BETTER

DR GORAN STAMENKOVIĆ, ASSISTANT MINISTER OF HEALTH AND HEAD OF THE WORKING GROUP OF THE COORDINATION COMMISSION FOR THE SUPPRESSION OF COVID-19

28.WE WON WITH OUR HEARTS

DANIJEL NIKOLIĆ, ASSISTANT SECRETARY GENERAL OF GOVRNMENT OF SERBIA, DEPARTMENT FOR INTERNATIONAL AND DEVELOPMENT COOPERATION

29.DIALOGUE WITH INDUSTRY

STEFAN BADŽA, ADVISER IN THE PRIME MINISTER’S CABINET

IVAN MILETIĆ, PRESIDENT OF THE FAIR COMPETITION ALLIANCE

38.DIGITALISATION AGAINST BUREAUCRACY ŽELJKO TOMIĆ, PRESIDENT OF THE EGOVERNMENT ALLIANCE

KNOW THE ROAD TO THE TOP OF THE DOING 43.WEBUSINESS LIST JOVAN PURAR, PRESIDENT OF THE PROPERTY AND INVESTMENT ALLIANCE

OF AGRICULTURE BEGINS WITH 48.DIGITALIZATION EAGRICULTURE ANDREJ BESLAĆ, PRESIDENT OF THE FOOD AND AGRICULTURE ALLIANCE

ADMINISTRATIVE PROCEDURES IS 50.SIMPLIFYING THE LEAST EXPENSIVE TASK JELENA KIŠ, PRESIDENT OF THE ENVIRONMENTAL PROTECTION ALLIANCE

51.NO PAPER COPIES FOR DOCTOR’S APPOINTMENTS

UNA LJUBIČIĆ, PRESIDENT OF THE HEALTHCARE ALLIANCE

RECOMMENDATIONS FOR THE MORNING 65.TOP AFTER

JELENA BOJOVIĆ, NALED DIRECTOR OF REGULATORY REFORM

DEJAN ĐOKIĆ, PRESIDENT OF THE EXECUTIVE BOARD OF NALED AND DIRECTOR OF ASSECO SEE

100 Recommendations For Better Working Conditions

For the economy to keep turning despite the Covid-19 pandemic, institutions must try harder to find comprehensive rather than partial solutions to create better working conditions in 2021

F

or 13 years now, the Grey Book by NALED has been pushing the boundaries in the efforts to establish a predictable and favourable business environment in Serbia. Ensuring efficient procedures is one of the key steps toward the achievement of that aim. However, such victory cannot be achieved by an endless search for secret passages through the administrative system but by defining solutions everyone will be willing to implement.

Sometimes we refer to the Grey Book as the “regulatory Bible” the economy and public administration should always go back to. Truly, no such publication (and there are many that deal with issues related to the bureaucratic system) is that comprehensive. The success of the Grey Book lies in the fact that it does not aim to place all the responsibility on public administration expecting the decision-makers to take notice of and do something about the issues because that will never happen.

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All the descriptions of the procedures to be eliminated or simplified consist of thorough lists of articles of various laws and regulations that complicate bureaucratic procedures. Also, all the unnecessary steps that must be taken and the expenses of such procedures are included, when applicable. The descriptions of identified issues are always accompanied by possible solutions, with clarifications on how the work and regulations of the public administration can be modified.

The Grey Book is a list of guidelines for relevant institutions, telling them how to do their work efficiently and which steps to take in order to reach the desired aims to the satisfaction of everyone involved.

The choice of the issues that could be included in the Grey Book is always very wide. Therefore, in each edition, we strive to select 100 procedures that would be the most useful in helping improve the circumstances in most sectors of the

economy and enable significant savings in various business procedures.

In the previous 12 editions, there were 268 unique recommendations, out of which 72 have been completely solved, and 59 have been partially solved, which means that almost half of the recommendations have found their way to the legislators.

I would like to remind you that, in the previous years, the Grey Book has contributed to eliminating excessive administrative procedures, leading to the simplification of the process of obtaining construction permits and real estate rights registration, introduction of electronic taxation for flat rate entrepreneurs, simplified electronic procedures for the registration of seasonal workers, electronic tax certificates and electronic public procurement processes.

The list is long, but I would also like to remind you of the already improved procedures (some of which were improved as long as a decade ago). Nowadays, it’s even

The Grey Book is a list of guidelines for relevant institutions, telling them how to do their work efficiently and which steps to take in order to reach the desired aims to the satisfaction of everyone involved hard to remember how many issues we used to have. Some of the improvements are as follows: certificates can now be older than 6 months, and they no longer have to be submitted at counters; employment record booklets are no longer used; health cards are renewed automatically; procedures for the submission of financial reports have been simplified, as well as the procedures for mandatory daily takings deposit; simplified TIN obtainment, employee registration, payment of taxes and contributions, etc.

This year’s issue of the Grey Book (No 13) also contains 100 new recommendations. It differs from previous editions in that 15 of the recommendations have the Covid-19 badge. This is the result of NALED’s realisation that, in these trying times, the strategic priorities have, understandably, switched toward the most essential issues – the preservation of human lives and workplaces.

If we look back at the year behind us, we see that, despite pandemic circumstances, the reforms were not completely halted. In 2020, institutions managed to carry out 13 recommendations from the

previous edition, out of which 2 were fully implemented and 11 were partially implemented. Although this is the usual score when it comes to the implementation of Grey Book recommendations in the previous 12 years, we are not completely satisfied. In order for the economy to remain functional in the difficult circumstances imposed by the COVID-19 pandemic, institutions must make greater efforts in finding comprehensive rather than partial solutions aimed at establishing better working conditions in 2021.

Cooperation is the key to success. It comes as no surprise that, year by year, the majority of the recommendations (almost a third) are directed at the Ministry of Finance (in the previous years, that number rose to 40%, but the sector in charge of finance has made numerous improvements in the last few years). They are immediately followed by the recommendations related to multiple sectors at the same time. Their implementation requires an inter-sectoral approach. We are faced with ever more complex reforms, so coordination and equal efforts by all institutions are key to achieving the maximum, particularly if we include comprehensive public-private dialogue in the process of

coming up with solutions, in which public administrative bodies will consider the suggestions of those the procedures will be applied to, whether they come from the area of the economy or the civil sector.

The adoption of the majority of recommendations is the result of direct cooperation between the Government of Serbia, international institutions and NALED. We are very thankful to Prime Minister Ana Brnabić and the ministers for trusting us. We are confident that together we can work on the implementation of the Grey Book recommendations more efficiently to mitigate the consequences of the pandemic and boost the economy.

We are also very grateful to the European Union and the governments of Germany, Great Britain, Sweden and the USA, the European Bank for Reconstruction and Development and others whose donations proved them to be reliable partners in the development of Serbia year by year.

Finally, the Grey Book would not be the “regulatory Bible” if it was not backed by its true believers – the NALED members, who possess the energy and motivation to help us make Serbia a great place to live and work in.

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VIOLETA JOVANOVIĆ, EXECUTIVE DIRECTOR OF NALED

Dialogue Is The Best Path To Successful Reforms

What has enabled us to initiate major changes is the synergy we have created by bringing together companies, local governments and civil society, ready to dedicate their time and capacity to achieving the goals of our association, with the involvement of academia and the wider professional public

“I

n a society where many meddle in all trades, NALED is one of the rare organisations that does only what it knows best.“ In a sea of descriptions used for NALED, it is difficult to find one that sums us up better. Expertise, independence, innovation, integrity, courage, those are just some of the values we cherish.

We are unwaveringly persistent because we use analysis and data to offer solutions for every shortcoming we point out.

Owing to our approach, we have grown from 17 to over 310 members.

We started out with one staff member only to have 80 now, and we have implemented over 160 projects to improve working conditions in Serbia.

All that in just 15 years. Today, our

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organisation is a crucial partner of the Serbian government and institutions relevant to critical reforms of the business environment. We are members of over 50 working groups that draft regulations, and we have published over 550 research papers and similar publications that shed light on many areas that need change.

The project ‘Public-Private Dialogue for Development’ particularly stands out among other successful projects.

We understood the importance of this topic for future regulation and changes to the working atmosphere, and we set out to strengthen the ability of businesses, professional associations, other civil organisations and state institutions to cooperate and create solutions together. This is the kind of

reform we need most.

The advantage and strength of NALED is precisely that it has learned the importance of dialogue within its own framework. We are still the only organisation in Europe that brings together private, public and civil sectors to create better working conditions.

NALED members are crucial for our involvement in reform. They analyse data, comment on regulation or draft it, provide donor support, communicate with ministries and carry out activities.

This kind of dialogue allows us to reach solutions beneficial for all sectors. Such solutions acknowledge their needs and interests and focus on the common good, rejecting individual wishes and intentions. That makes NALED’s suggestions valuable and

Dialogue within our organisation allows us to reach solutions that satisfy the needs and interests of the public, private and civil sectors, focusing on the common good allows them to reach decision makers.

In addition to offering solutions, NALED has another important feature, as it helps institutions implement public policies, from drafting regulations and creating software to training officials to implement new regulation.

Finally, NALED monitors how new public policies are implemented, and reacts when necessary. We act based on specific data and figures.

Instead of focusing on many smaller projects, we have set up our resources in a way that allows us to develop the very foundations of the Serbian business environment. Our members work together under thematic alliances focused on systemic areas, e.g. combating the grey economy, developing e-Government, reforming agriculture and healthcare, improving property relations, planning and construction, and protecting the environment. What has enabled us to initiate major changes is the synergy we have created by bringing together companies, local governments and civil society, ready to dedicate their time and capacity to achieving the goals of our association, with the involvement of academia and the wider professional public.

Another important activity consists of drafting the first strategic document on combating the grey economy and establishing the first common body for the public administration, business and the civil sector. This body would define and implement measures to reduce business ventures in the grey zone. The National Programme for Suppression of the Grey Economy has encouraged an important breakthrough, particularly for inspection reforms, digitalisation of the fiscal system, flat tax reform and registration of seasonal workers, while encouraging entrepreneurship and strengthening tax culture.

Similar results were achieved by forming a joint government group to improve Serbia’s position on the World Bank’s Doing Business List, professionally supported by NALED. This move would allow change in 10 areas important for existing businesses and potential investors, as these issues had been only selectively touched upon by individual institutions, with no interde-

partmental cooperation.

Construction and issuing construction permits constitute another issue crucial for economic development.

An effort to revolutionize these processes has already begun, coupled with reformed cadastre registration, urban and spatial planning, and solving legalisation and land conversion issues.

We think that similar far-reaching results will soon be achieved in other strategic areas. e-Government has come a long way, followed by digitalising agriculture and healthcare and a growing number of activities in environmental protection.

This issue is all about the Grey Book.

Its contents are important and practical, but it is just one of the many ways to influence change, pinpoint obstacles to business and offer solutions. These changes were initiated by members of NALED, so don’t miss the opportunity to join NALED and write your name among the founders of the new business environment in Serbia.

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AGENDA FOR A NEW GOVERNMENT On its traditional annual conference, NALED has presented the new, 13th edition of the Grey Book, confirming the reforms priorities and measures to support the economy during pandemic times, together with Government and international community leaders.

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NALED’s Key Guidelines Are Crucial For A Successful Partnership At its 13th annual conference on economic reform, NALED with its members and partners presented its traditional 100 recommendations in the Grey Book, whose goal is to rapidly overcome the effects of the pandemic and improve conditions for doing business and investments.

T

he first panel ‘Together for Fair Competition’ was addressed by Deputy Prime Minister of the Serbian Government and Minister of Mining and Energy Zorana Mihajlović, German Ambassador H.E. Thomas Schieb, and Swedish Ambassador H.E. Jan Lundin. The conversation was moderated by Ivan Miletić, President of

NALED’s Fair Competition Alliance. Željko Tomić, President of the NALED e-Government Alliance, led the second panel entitled ‘United Towards Digital Economy’. He spoke with the Minister of Labour, Employment, Veteran and Social Affairs, Darija Kisić Tepavčević, the Ambassador of the United Kingdom H.E.

Sian McLeod, Head of the EU Delegation to the Republic of Serbia H.E. Sem Fabrizi, and director of the IT and e-Government Office, Mihailo Jovanović.

Prime Minister of Serbia Ana Brnabić then addressed the participants. She dedicated her speech to future prospects in 2021.

ANA BRNABIĆ, PRIME MINISTER OF SERBIA

The Government and NALED have a common goal – further digitalisation

“Last year was quite difficult not only for Serbia, but for the whole world, as we faced unexpected challenges. In the midst of the pandemic, Serbia managed to do two fascinating things: it had the lowest drop in GDP in Europe, only 1%. Furthermore, it had the second highest vaccination rate in Europe, but came second to none in the number of revaccinated people. We couldn’t have imagined such results a year ago.” This was how Prime Minister Ana Brnabić began her address, adding that these successes serve as an incentive for the government to continue reform, and a reminder that this wasn’t pure luck, but a result of dedicated reforms and recent financial consolidation of the country.

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She said that 2021 would also pose many challenges, and added that that the government was trying to strike a balance between the population’s health and the healthcare protection system, business activities, the economy and life. Support for people and businesses will be provided again this year: the third package of state aid is worth 250 billion dinars, and more than 6 billion euros have been allocated since the beginning of the crisis.

Speaking about the importance of simplifying administrative procedures, Brnabić emphasized digitalisation and its benefits for companies and the public, which became particularly evident during the pandemic, illustrating this with the fact that state administration and local governments had exchanged 22 million pieces of information since 1 June 2017, meaning that people didn’t need to visit a counter 22 million times.

“I’d like to thank NALED for their longterm support to reform, and their help to

identify crucial steps in reforms and to carry them out, so that Serbia can become a country where business will be easier and where our people will have better quality of life”, said the Prime Minister.

The Serbian Government and NALED share a focus on digitalisation, and many of the measures the government adopted in 2020 were the fruit of their cooperation: introducing electronic public procurement and electronic delivery of cadastral and tax decisions for sole traders on flat rates.

Otter fruits are common deliberations on removing administrative obstacles through modern digital solutions in both the state administration and in healthcare, agriculture, international business and other areas.

“When I look at the 10 priority recommendations of Grey Book 13, I see the common denominator for most of it is digitalization. I can promise that we will do our very best to resolve most of it”, she concluded.

H.E. THOMAS SCHIEB,

AMBASSADOR OF GERMANY TO SERBIA

ZORANA MIHAJLOVIĆ,

DEPUTY PRIME MINISTER AND MINISTER OF MINING AND ENERGY

We are fighting systemically for easier business in Serbia Deputy Prime Minister and Minister of Mining and Energy Zorana Mihajlović, who has closely cooperated with NALED on various reforms that have allowed Serbia to climb the World Bank’s Doing Business List, announced the continuation of reforms that would help Serbia reach the top ten countries for ease of doing business.

Mihajlović announced joint efforts for more efficient electrical grid connection procedures, which could also help Serbia rank better on the Doing Business List. “Serbia is currently 94th on the list for grid connections, but I believe we can make it to No 22 with more efficient procedures”, said Mihajlović adding: “If we could improve the issuing of building permits in such a way that we are now the 9th most efficient country on that criterion, then there is no reason we shouldn’t rank higher on other points”.

She said that businesses know very well what good procedures are, and how cooperation with NALED “has shown that we can improve business conditions every year”. Mihajlović mentioned that not one investor left Serbia in 2020, and pointed out that despite the circumstances the government managed to adopt an action plan for 2021-2023 to further improve business conditions. She also mentioned the importance of support from the German development cooperation and their programs being implemented with NALED, whose goal is to continue the systematic fight against the grey economy and corruption.

The Grey Book provides important guidelines for bilateral cooperation German Ambassador H.E. Thomas Schieb said that many German companies intended to reinvest in Serbia, and especially praised the electronic registration of seasonal workers. NALED and GIZ worked together on this procedure, which allowed 44,000 seasonal workers to be registered, while five million euros were paid in contributions and taxes. He also said that NALED’s Grey Book provided important guidelines for planning bilateral cooperation in the programmes of GIZ and KfW. He announced the continuation of support for measures aimed at improving the business climate in Serbia, but also the transparency of business – with a special focus on non-cash and online payments. He also paid tribute to NALED for its contribution to overcoming economic problems created by the pandemic.

“We still need to fight the grey economy, which is very pronounced in Serbia”, said Schieb, citing the negative aspects of the situation such as slower economic growth, irregularities in the labour market, weakening tax discipline and the development of corruption, which all together, "hampers Serbia's entry into the EU and is an obstacle to fair competition”.

In contrast, transparent business conditions appeal to investors from all over the world, including Germany, which increases the volume of investment. Such a policy creates new jobs, especially for youth.

Speaking of good practice and the German experience, Schieb said that the grey economy there amounts to some 10%, and that combating it still proves challenging for the government. He pointed to 2019 data showing around 16,000 criminal proceedings against those who did not follow the law and operated in the grey zone.

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H.E. SEM FABRIZI,

HEAD OF THE EU DELEGATION TO THE REPUBLIC OF SERBIA

H.E. JAN LUNDIN,

AMBASSADOR OF THE KINGDOM OF SWEDEN TO SERBIA

Public procurement requires greater competition Ambassador of the Kingdom of Sweden H.E. Jan Lundin said he was satisfied with cooperation with NALED and mentioned areas where they have begun to cooperate, especially improving electronic public procurement and wastewater treatment, where Swedish Development Agency SIDA is investing considerable funds.

Ambassador Lundin observed that the value of public procurement in Serbia constituted 8% of GDP, around four billion euros, a reasonably good result, but the EU average was 12%.

“In contrast, Sweden allocates 15% of GDP for procurement, and our experience could help Serbia improve competitiveness in that field so that businesses would trust the process more and be more willing to participate”, said Lundin. This is especially important for us, since in half of public procurements in Serbia there is only one bidder.

He also stressed the importance of improving the criteria for awarding public contracts so that contracting authorities take into consideration not just the price, but also the quality of products, services and works. The Swedish Ambassador specially mentioned how far Serbia had come since the beginning of his mandate, that improved infrastructure and business climate were visible. He underlined the importance of reforming cadastre registration, which allowed foreign investors to better understand investment opportunities in Serbia make easier decisions.

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Digitalisation helps EU accession Head of the EU Delegation to the Republic of Serbia H.E. Sem Fabrizi talked about digitalisation as an important aspect of reform.

“Digitalisation is what links reforms”, said Fabrizi, referring to the importance of this topic in the European Union. Digitalisation and the green agenda are EU priorities and the digitalisation process can help Serbia join the EU and improve working conditions.

Fabrizi noted the EU’s continued support towards European integration and mentioned strong economic ties: “About 60 to 70 percent of Serbian trade and investment come from the EU. The more Serbia invests in its green and digitalization policy, the more it fits into European plans for economic reform.”

He also pointed out the importance of the Economic Reform Programme, a detailed plan on how to improve the management of reform in Serbia, and noted that the EU provided a range of financial instruments for 2021-2027, for the Economic and Investment Plan for the Western Balkans, with the aim to help all countries including Serbia continue their growth with the EU. The plan is to mobilise between 25 and 28 billion euros for the region over the next seven years to invest in reforms and all major drivers of economic development.

There is also a focus on developing the regional market, and Fabrizi assessed that Serbia was doing a lot to help make the Western Balkans more appealing for investment. He pointed out that the goal was to prepare an agenda that will cover all areas of development in detail, from tax policy to environmental protection.

“A good business environment is something we support for Serbia to continue its road towards the EU, while NALED is one of our best partners on this road”, concluded Fabrizi.

“Many NALED recommendations are also our recommendations, and we find them very useful”, he added.

H.E. SIAN MCLEOD,

AMBASSADOR OF THE UNITED KINGDOM TO SERBIAI

Cadastre reform has improved business conditions and the rule of law The Ambassador of the United Kingdom, Sian McLeod, praised the digitalisation of the registration process as a way to help the construction sector and the real estate market, while contributing to improving business conditions and the rule of law. It is a reform supported by the UK’s Good Governance Fund in cooperation with NALED, and implemented together with the Ministry of Construction, the Ministry of Justice, the Republic Geodetic Authority and other ministerial institutions.

She observed that the Good Governance Fund especially supported projects focused on digitalization and development of e-Government services, as those two areas are crucial to a modern in the service of its people and companies. Since 2015 the fund had financed over 65 projects to a total of 20 million pounds.

McLeod said that the Good Governance Fund supported another important reform initiated by NALED – expanding the electronic registration of seasonal workers in agriculture to new areas of work. She added that this would be an important achievement, guaranteeing the rights of workers who have mostly been working illegally. In that context, the ambassador especially referred to the importance of regulating the status of ‘freelancers’, as she was familiar with their position from personal experience I her own youth.

The Ambassador expressed the hope that digitalisation in Serbia would reach the field of environmental protection to reduce the impact of climate change.

DARIJA KISIĆ TEPAVČEVIĆ,

MINISTER OF LABOUR, EMPLOYMENT, VETERAN AND SOCIAL AFFAIRS

Together we can regulate non-standard forms of employment Minister of Labour, Employment, Veteran and Social Affairs Darija Kisić Tepavčević, thanked NALED for systematically recognizing the need to regulate the status and rights of workers in seasonal and occasional jobs and for proposals to resolve the issue. She said that “due to good results with the registration system in agriculture, the Ministry has recognised the need to expand the registration of seasonal workers to construction, tourism and hospitality, and domestic work”.

She also pointed out that cooperation with NALED was important to regulate the rights of those engaged by foreign employers, through online platforms and all other non-standard forms of engagement.

She said that new forms of employment are present all over the world due to technological development: “Various types of non-standard employment have increased by 53% in our country as well. Part-time engagement has also increased significantly.

Although part-time work makes up about 10% of total employment, still only half the EU average, it reminds us that we must be ready for the future and need to adjust certain regulations and that a whole list of regulations are being prepared.

“We have recognized all the recommendations that NALED has systematic ally presented in the Grey Book. These are the guidelines we will work on in the coming period”, said Kisić Tepavčević.

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Overview Of Reforms Carried Out In 2020 In 2019, reforms were in full swing, but last year’s Covid-19 crisis gave little room for working on systemic reforms, the focus of institutions was on preserving public health and preventing a potentially dramatic decline in business.

In 2020, however, some of NALED’s long standing vital recommendations were implemented.

A

state of emergency was declared already in the first quarter, so the capacities of the public administration were focused on preventing the spread of the virus. Regulation was focused almost exclusively on adopting rules on the movement and gathering of the population and the work of businesses.

NALED responded to the social challenges by proposing measures to support businesses, joining the government’s efforts to preserve not only public health but also businesses and jobs.

Addressing the challenges of the pandemic, NALED formed the Covid-19 digital platform (www.naled.rs/ covid19) during the first days of the emergency to identify problems and solutions, provide legal assistance,

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inform businesses and the public and collect donations for the most affected local communities and health facilities.

On the declaration of the state of emergency, NALED was the first to introduce a set of 10 priority measures followed by many sector recommendations. Their adoption and the joint activities of the government and business associations successfully helped many to survive the crisis.

Serbia’s fall of only one percent of GDP was an exceptional result in Europe, where drops were calculated in double digits. APR business data and the positive net result of RSD 433.5 billion, better by a fifth than the year before, and 43.500 new jobs in companies submitting financial reports confirm this. When sole traders are

added, last year ended with 10,000 businesses more than 2019.

10 PRIORITIES TO SAVE BUSINESS 3 out of 10 of NALED’s priority measures for supporting businesses and preserving jobs were adopted in the first support package by the government: the possibility of deferred payment of taxes and contributions without interest and access to cheap or interest-free loans to provide liquidity and refinance liabilities; a recommendation for direct financial support to businesses; and a moratorium of at least three months on the repayment of loans to banks and all state duties. A recommendation

by NALED and other philanthropic organizations on the abolition of VAT

on donations during the state of emergency was also adopted.

EMERGENCY MEASURES IN HEALTHCARE The crisis committee accepted several of the 15 emergency measures recommended by NALED concerning operation of healthcare system under Covid-19. The first was to cancel the decision to ban the export of medicines, which enabled the uninterrupted supply of previously planned quantities to countries in the region and avoided shortages, especially of medicines not related to Covid-19. On our initiative, expired prescriptions were automatically extended for patients with chronic diseases (so-called electronic therapies) through the eRecept application. This measure was carried out despite

certain technical difficulties in practice.

Also adopted was our recommendation regarding electronic application for obtaining a license to operate vehicles for delivering medications and medical devices during curfew.

NALED responded to the social challenges brought by Covid-19 by proposing measures to support businesses, joining government efforts to preserve not only public health but also businesses and jobs

HELP FOR FARMERS The government accepted three of NALED's five emergency measures to help farmers and beekeepers. On our initiative financial assistance was provided for agricultural holdings - two regulations were passed securing assistance of RSD 2.6 billion for farms, and one of RSD 236 million that covered the purchase of surplus fattening cattle.

Although needed, this solution offered only a short-term respite, primarily for small farmers. NALED’s initiative also

allowed the farmers to apply electronically for a permit to work their fields during the state of emergency. Unfortunately, the paperwork for both the public administration and the farmers created a great problem because they had to obtain individual permits for each day of work. In addition, farmers over the age of 65 were not allowed to visit their fields. One of the positive measures was the launch of the ePijaca portal, which initially established CorD | NALED | AGENDA 2021 | 17

a register of agricultural producers.

However, nothing could be ordered or paid directly through the portal.

SUPPORT TO THE CONSTRUCTION INDUSTRY AND TRANSPORT NALED also submitted a proposal for 20 measures supporting the construction industry and the infrastructure and transport sectors. Thanks to the coordination of the Ministry of Construction and the Ministry of the Interior, some filling stations were opened all day throughout Serbia where trucks were allowed to move, preventing the formation of large convoys of trucks at the border. In addition, a green corridor was introduced in May to allow trucks to cross borders in the Western Balkans, which boosted foreign trade and enabled a regular supply of goods.

The Ministry of Labour accepted the recommendation to move the expiry date of 2019 annual leave to the end of 2020, helping employers organize work during the state of emergency.

Additionally, NALED’s recommendations to obtain permits electronically for the movement of goods transport were adopted. Help of around EUR 200 million was also provided for the roads to partially compensate for the loss of income.

Unfortunately, one of NALED’s important recommendations, to secure deferred payment of contractual obligations to the state, and the urgent settlement of obligations to transporters by the state was not realized. In fact, the opposite was done. The Ministry of Finance informed local governments to postpone the payment of agreed obligations.

SINGLE CONTACT CENTRE FOR INSPECTIONS To prevent market irregularities like illegal increases in the prices of food, medicine and protective equipment during the pandemic, five days after the declaration of the state of emergency a single contact centre for inspections was established. The Contact Centre was launched by the Government in cooperation with NALED and with the 18 | CorD | NALED | AGENDA 2021

support of the European Bank for Reconstruction and Development, and the Ministry of State Administration and Local Government, the Support Unit for the Coordination Commission for Inspection Supervision and the Office for IT and eGovernment played a key role. Individuals and businesses could report any observed irregularities or grey economy issues by phone or online via the website inspektor.gov. rs. Operators filtered the information received, directed it to the responsible inspections and further action within the legal deadlines. During the pandemic, about 1,600 reports were received per week, only to rise by the end of January 2020 to 16,000.

People could also report violations of anti-pandemic measures to the contact centre.

AN EFFECTIVE VACCINATION APPLICATION SYSTEM During 2020, the Government’s expert team and the IT and eGovernment Office worked on establishing a single vaccination management information system, which ranked our country at the very top in Europe in organizing immunization of the population. In January 2021, mass vaccination of Serbians began, with the electronic system enabling efficient management of available vaccines through monitoring each bottle from its entry into the country to its use.

The system also enables all interested residents to apply for vaccination through the eGovernment portal by filling out an online form, or through the contact centre, and then receive their vaccination appointment via SMS and e-mail.

REFORMS HAVE NOT BEEN STOPPED Despite the challenging situation and judging by the results of the recommendations of the Grey Book 12, reforms did not stop. During 2020, two recommendations were fully implemented, while 11 were partially implemented. Given the overall situation of the coronavirus pandemic, what has been achieved so-far can be conside-

red the result of extraordinary efforts.

Although this result is in line with the resolution average of the previous 12 years, we believe that because of everything we have gone through, the challenges of reform in 2021 should be addressed with more agile adoption of comprehensive solutions, to prepare Serbian businesses for post-pandemic conditions.

Last year, the Ministry of Finance fully or partially implemented most of NALED's recommendations, which is in line with the number and importance of Grey Book recommendations that are in the scope of work of this ministry.

Implementation of electronic public procurement began in 2020, and the long-awaited new Law on Fiscalization was adopted, which will modernize and digitize retail sales and processing of fiscal cash register data in real time.

Also, this regulation will enable the

Given the overall situation of the coronavirus pandemic, the reforms enacted can be considered the result of extraordinary efforts, but the challenges to reform in 2021 should be addressed with a more agile adoption of comprehensive solutions fiscalization of most business entities that had no obligation to issue fiscal invoices so far.

The first step towards the complete abolition of the obligation to submit proof of payment was made with fees for courts, since their central collection system has been established. Reduction in payroll deductions also went ahead although they are still insignificant, and new electronic tax services were introduced on the ePorezi portal.

The following ministries have partially adopted the recommendations of Grey Book 12: Ministry of Health – working on a plan to optimize a healthcare institutions network and solving the problem of state pharmacy debts;

Ministry of Trade, Tourism and Telecommunications and Ministry of State Administration and Local Self-Government – further developing eUprava in Serbia, from establishing the Central Population Register to eDelivery; Ministry of Labour, Employment, Veteran and Social Affairs – started expanding the system for simplified registration of seasonal workers; National Bank of Serbia – work on simplifying procedures for assigning claims.

The Ministry of Finance and the Ministry of Construction, Transport and Infrastructure, together with the Republic Geodetic Authority, are responsible for the complete resolution of two recommendations in 2020.

ELECTRONIC PUBLIC PROCUREMENT An important advance was made in establishing an electronic public procurement procedure based on the Law on Public Procurement adopted during 2019, from 1 July 2020 when the provisions of this law began to apply. All communication between contracting authorities and potential suppliers in public procurement processes from the moment of the invitation, through the submission of bids, till the conclusion of the contract, is done through the public procurement portal which is publicly available on jnportal.ujn.gov.rs.

During 6 months of use, about 10,000 advertisements and public calls were published, and little more than 11,000 procedures were conducted, which shows the system was rapidly accepted. eDELIVERY OF REGISTRATIONS IN THE CADASTRE The reform of the registration of rights in the real estate cadastre enables citizens to electronically submit requests for registration through a public notary, and in future to receive cadastral decisions on their requests electronically. Through the eŠalter system it is possible for the solutions issued by the Republic Geodetic Authority to be delivered as an electronic document to the mailbox of the citizen.

For those who have not opened an account on the eGovernment portal, a printed copy of an electronic document can be delivered by registered mail through a postal service.

Recipients have long been bothered by these registered deliveries being returned if the postal operator did not find them at the address at the time of delivery. More than 90% of decisions were not delivered.

Amendments to the Law allow the shipments to be left at the nearest post office after the first unsuccessful attempt, and only after a 15-day period be returned.

Additionally, in case the party does not pick up the shipment, it is published on the authority’s website, and considered delivered no later than 30 days from the day of its publishing on the site.

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CHAMPIONS OF REFORM This year, NALED awarded two special recognitions and one team award for prominent civil servants who confronted the year’s challenges to make exceptional contributions to improving the regulatory framework for business, reforming public services and overcoming the pandemic crisis.

Special awards were also presented to media figures for promoting reforms and ensuring high quality reporting on initiatives to alleviate the consequences of Covid-19.

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SLAVICA SAVIČIĆ, STATE SECRETARY AT THE MINISTRY OF FINANCE

We Are Fully Committed To The Well-Being Of Both Industry And The Public I think we have managed to alleviate the consequences of the pandemic and to save our economy and employment, but also the health and lives of our people. I am proud to have been part of the economic crisis headquarters of the Government of Serbia

S

lavica Savičić, State Secretary at the Ministry of Finance, is the winner of NALED's annual recognition for an outstanding contribution to improving the regulatory framework for business and economic measures to support the economy during Covid-19. She also played an important role in carrying out some of NALED’s key recommendations to combat the grey economy, including preparing a legal framework for digital fiscalization and electronic invoicing.

What was your role in preparing the aid package to preserve the economy and jobs?

Last year was very challenging for the Ministry of Finance, as we faced a serious health and economic crisis full

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of unknowns. I think that at that time, when we knew little about what awaited us, we did everything very quickly and efficiently to allay the consequences of the coronavirus pandemic. I can now see that as part of the economic crisis headquarters I had the opportunity to participate in a process of rapid and efficient decisions that preserved the vitality of the Serbian economy, the health of our people and employment.

My role was to formalize all the decisions, to prepare a legal framework with my colleagues on the basis of the measures to be implemented. A further challenge was designing procedures to implement the measures. I must point out that throughout the pandemic, we have had very good cooperation between

all ministries, so we worked together on all assistance measures, both generally and by sector. Furthermore, during the pandemic the government and all institutions were absolutely committed to a successful adoption of all the measures.

The biggest challenge was devising how to ensure that all the measures were carried out quickly and efficiently, so that the burden on companies and the public was as light as possible, but also so that aid beneficiaries were less exposed to epidemiological risks.

You have also made a great contribution to enforcing the measures of the National Program for the Suppression of the Grey Economy - what are the results?

I appreciate the commitment of my colleagues at NALED. I think NALED’s activities and the open approach of its professionals contribute to pushing the boundaries every year with an increasing number of resolved recommendations for better business conditions Besides crisis measures, the Ministry of Finance was committed to other aspects of improving the economic framework, so we also worked on important laws passed at the end of the year, the Law on Fiscalization and the Law on Digital Property. The Law on Electronic Invoicing is currently passing through the National Assembly. Also, the prize game ‘Take the Bill and Win’ had a full effect, because we received over 11 million envelopes. Everything the Ministry of Finance does is aimed at providing the best possible conditions for the functioning and competitiveness of our industry.

The fact that we have implemented more than 70% of measures from the National Programme for Suppression of the Grey Economy shows how committed the Ministry of Finance is to creating conditions for fair competition.

You worked with NALED on these activities and reforms. How would you rate your cooperation?

I think we had a completely open and constructive relationship over the three years we have worked together. I appreciate the commitment of my colleagues

at NALED. I think NALED’s activities and the open approach of its professionals contribute to everything that affects the efficiency of the system, allowing the boundaries to be moved every year with an increasing number of resolved recommendations for better business conditions.

Among the 100 recommendations of the Grey Book, most are always related to the Ministry of Finance.

Does that worry or inspire you?

For the Ministry and the Minister of Finance, any new proposal that can improve the business environment and help industry is a challenge to find the best solutions and be practical enough to make use of any good recommendation. I think the greatest challenge this year will be to implement the recommendation to establish a single system of electronic invoicing to bring greater transparency of transactions and predictability and security of payments.

Looking at the priorities of industry, the Grey Book highlights proposals for reducing payroll deductions, establishing a public electronic register of non-tax charges, introducing a unified tax certificate and enabling

non-cash payment of fees without submitting proof of payment. What progress can we expect on these recommendations?

The Ministry of Finance will be fully committed to all proposals. Due to the pandemic, this year will be difficult too, there will be a lot of challenges, both in preparing and implementing each recommendation. In that sense, analysis, work and preparation await us, to establish the conditions for their execution.

And finally - what new things are you preparing for us in the Ministry of Finance?

Adopting the Law on Electronic Invoicing is currently underway, beginning the roll out of one of the Grey Book’s recommendations. It remains for us to prepare the other elements necessary to implement this law, such as the necessary regulations and a functional platform to exchange and register electronic invoices.

We are also preparing the necessary technical elements to enable the full implementation of the Law on Fiscalization from 1 January 2022. The novelty that will make people happy is that this year we will organize two more rounds of the Take the Bill and Win game, now during May and in the autumn.

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MIHAILO JOVANOVIĆ, DIRECTOR OF THE OFFICE FOR IT AND EGOVERNMENT

Serbia Has Positioned Itself As A Country Of Innovation In the past three and a half years, we have established the necessary infrastructure and developed many electronic services, transforming the public administration into an efficient service for people and business. On this basis we have been able to defy pandemic conditions to create new platforms and electronic services at key moments practically overnight, to ensure the coordination of healthcare, education and other key systems

M

ihailo Jovanović, Director of the Office for IT and eGovernment, received the NALED annual special award for exceptional contribution to the modernization of the public administration in Serbia, which has greatly improved the efficiency of procedures between government, businesses and the public.

The digital vaccination system has been recognized as an example of best practice in immunizing the population and has ranked our country among world leaders in the use of digital tools to respond to the current crisis.

At the beginning of the pandemic, the Office for IT and eGovernment immediately established an electronic

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application service for PCR testing, and then for vaccination on the eGovernment Portal. How did you manage that?

For digitalization, it is important that over the past three and a half years we have established the necessary infrastructure and developed many electronic services, transforming the public administration into an efficient service for business and the public. Because of this, we have been able to create new platforms and electronic services at key moments practically overnight. These innovative solutions and electronic services have aimed to achieve optimal coordination of healthcare, education and other key systems under the pandemic, timely and accurate information for everyone and continuous provision

of services to companies and the public.

Serbia has in this way positioned itself as one of the five countries in the world with the largest number of innovations during the Covid-19 crisis.

We had to respond quickly and efficiently to the need to immunize the population, so from 11 January 2021, we enabled everyone to express interest in vaccination against Covid-19 by filling out a simple questionnaire on the eGovernment Portal.

You also hold NALED's annual recognition for establishing electronic delivery of cadastral decisions through eSanduče. How does this service work and how far are we from getting other

important documents in our digital mailboxes?

Delivery of cadastre decisions to electronic mailboxes means a big change for the approximately 500,000 people involved in real estate transactions every year who no longer have to go to a counter at the Geodetic Institute. The entire procedure, from submitting a registration request at the notary and electronic submission of a tax declaration, has now been completed with the electronic receipt of the cadastre decision, and with this success we can develop e-delivery of other services.

I see the special recognition as confirmation that these achievements have made a real impact on modernising the public administration in Serbia. With the programme for the development of eGovernment, the local tax administration portal, the delivery of decisions to eSanduče on the eGovernment portal, construction and commissioning of the state data centre in Kragujevac and enabling cashless payment at municipal counters, cities and institutions have enormously improved the efficiency of all the procedures that people and companies have with the state. The vaccination information system was especially emphasized, with the organization of the vaccination roll-out itself, which is recognized around the world as one of the best examples of good practice in response to the coronavirus crisis.

Electronic delivery is linked to another project on which your office cooperates with NALED and the EBRD, and that is the eCitizen project where you work on popularizing the use of electronic services on the eGovernment Portal throughout Serbia. Why is this important?

Together with NALED and with the support of the EBRD, we have trained more than 700 administrators to work on the portal through promoting the electronic delivery of documents to the mailbox on the eGovernment Portal. Our goal is to help our citizens, businesses and those who find it difficult to deal with the digital environment to overcome the first obstacle and join the group of over a million users of e-Government services who have already become eCitizens.

In the year of the pandemic, you managed to open the first state data centre in Kragujevac. What does this mean for our country and economy?

The government has designated the construction of the State Data Centre in Kragujevac as a project of special importance for Serbia. It is an infrastructure facility of regional importance, which holds data and equipment of the state and local government, and where there is also room for commercial users. Among the first are the American IBM and Chinese Huawei, but many Serbian companies and institutions have also signed commercial contracts.

The Kragujevac centre has a capacity of almost 1,100 rack cabinets and is five times larger than the State Data Centre in Belgrade. It has two buildings of about 14,000 square meters and meets the highest standards for this type of facility - a standard that prescribes general aspects of the facility and the infrastructure required to support the operation of telecommunications in data centres (SPRS EN 50600), one standard (TIER 4) that ensures availability and another (2N) that provides complete redundancy, a duplication of all processes.

application and obtaining the necessary permits for the part of the procedure for which digitalization is complete.

By the end of 2021, one hundred new administrative procedures for business will be digitalized, in addition to all those already available on the web sites of state bodies – the Tax Administration, Customs Administration, Ministry of Finance, Geodetic institute, Business Register, Social Insurance Registry – and on the eGovernment Portal in a life event Starting a Business. Until the complete digitalization of all 2,600 procedures, we have a rather ambitious plan that envisages the digitalization of the first step - submitting applications electronically. So by the end

What are the first recommendations of the NALED Grey Book that you see as candidates for a quick solution and what are your priorities on the way to further digitalization?

Many of the recommendations of the Grey Book contain solutions for the digitalization of administrative procedures, and we see them all as important. What will help us a lot in all of them is the ePaper project. Under this, a register of administrative procedures will be promoted on the eGovernment Portal by the middle of the year. The goal of the Portal is to establish a single point of information on the rights and obligations of businesses in relation to the state, easy navigation through procedures and improved legal security and certainty in the conduct of the public administration. The register envisages a list of all 2,600 procedures that businesses conduct with the state, with all information related to each procedure – from the responsible authority to the procedure, deadlines, application form, required documentation, all the way to electronic

of 2022 there will be no paper form of requests for permits, certificates, decisions or other documents for which there is an electronic version that can also be submitted electronically.

By the end of 2022 there will be no paper form of requests for permits, certificates, decisions or other documents for which there is an electronic version that can be submitted electronically

If you were to rank the importance of services launched in collaboration with your Office, NALED and donors, what would you highlight as the service that was most beneficial to business?

Cooperation with NALED has always been excellent. Their experience with local government and with companies helps us get a clearer picture of what we need to improve. They are a very important partner for us, they supported us right from the establishment of the Office for IT and eGovernment and have been a tireless driver of transformation and digitalization of the public administration, without which we would be far from any results. I expect even more intensive cooperation with NALED because we have large projects and successes ahead of us, the wheel of digitalization has started, now there is no stopping it.

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DR GORAN STAMENKOVIĆ, ASSISTANT MINISTER OF HEALTH AND HEAD OF THE WORKING GROUP OF THE COORDINATION COMMISSION FOR THE SUPPRESSION OF COVID-19

Together With NALED, We Can Do Much Better

We began Covid-19 with a large staff deficit, but we managed to maintain the quality of our work.

Digitalization is one of the most important drivers of better inspections, but we also need more modern and better equipment and training for our inspectors

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r Goran Stamenković, Assistant Minister of Health and Head of the Working Group of the Coordination Commission for the Suppression of Covid-19, won NALED’s special team recognition this year for his contribution to reducing the negative effects of the coronavirus pandemic.

What kind of challenges have you met in your work during the pandemic?

Last year, Covid-19 completely occupied the personnel capacities of the Sanitary Inspection. The Border Sanitary 26 | CorD | NALED | AGENDA 2021

Inspection was fully engaged in March, April and May, the Territorial Sanitary Inspection spent two months at the border and the fight against the coronavirus continued after May 2020. A special Working Group was formed on 23 October to coordinate the Republic inspections, and it later grew into the Working Group for the Coordination of the Work of Republic and Local Inspections. When amendments to the Law on the Protection of the Population from Infectious Diseases were adopted on 13 November 2020, it was given the task of supervision in special epidemic situations.

Local inspections, primarily the communal police and inspection, were given the same authorization as the sanitary inspection, and then our joint work gained momentum, effectiveness, efficiency, but also visibility in the field.

The Sanitary Inspection, for which you are directly responsible, was among the first to implement the e-Inspector system, and introduced an electronic system for timely communication with people entering the country. What are the results?

In 2020, we held 217,771 office and field inspections, almost three times more than usual. This is an exceptional effort because more than 150,000 decisions were issued in 2020 just for home quarantine.

We began Covid-19 with a large staff deficit. Last year, we had 96

With the help of NALED, we have made a huge advance in reforming the inspection services, in the way they work and in digitalization. A good atmosphere has been created and a high-quality foundation for further progress

territorial and 26 border inspectors at our disposal, but we mostly worked with about 70 inspectors from the Ministry of Health, 18 at the border and about 40 inspectors from the Provincial Sanitary Inspection, who are separate from the Ministry of Health.

Digitalization is one of the most important conditions for even better operational work, and for digitalization we need even better and more modern equipment for inspectors.

Reform of inspections began in 2017. How do you rate the current cooperation with NALED and the EBRD? Based on all the data, reports and experience of sanitary inspectors participating in the reform since 2017, I can say that our cooperation is extremely successful. NALED has really turned things around with the reform, created an atmosphere and high-quality foundation for further progress. We have also taken part in all this, made a great contribution, but I think we can do much better.

MILAN PAŠIĆ, ASSISTANT MINISTER OF EDUCATION, SCIENCE AND TECHNOLOGICAL DEVELOPMENT

Magic In The Hands Of Teachers

Thanks to the dedication of teachers, it has been possible to broadcast thousands of hours of teaching and supplements for children and students in our educational institutions. This would not have been possible without the engagement of all our colleagues

I

n the first wave of the pandemic, Serbia switched to online classes in a flash. One of the winners of NALED's team award for its contribution to overcoming the crisis caused by the pandemic is Milan Pašić – Assistant Minister of Education, Science and Technological Development, who made a major contribution to primary and secondary school students receiving quality remote learning.

What was the greatest success, and what was the toughest challenge in such a massive undertaking?

The innovation and sacrifice shown by our teachers deserves broad social recognition, and that is why the Ministry has supported NALED in organizing a competition for the best examples of remote learning in Serbia

The greatest success was organising classes during and after the state of emergency, when the immediate educational work was suspended. I don’t mean just the organisation of the process, but also the enormous effort of all our colleagues - educators, teachers, principals, support staff, who supported children, students and families. The Ministry of Education, Science and Technological Development decided immediately to record classes to be broadcast on RTS2, RTS3 and RTS Planet. At the same time, teachers were prepared to record educational materials at home.

unique online database was created with the best examples of remote learning and project teaching, and made available to all educators in Serbia through the website www.jpd.rs. We would like to continue cooperation on this competition in future.

The Ministry of Education supported the competition ‘Magic is in the Hands of Teachers’. Why is this competition important and what are your further plans?

In April last year, NALED and the organization for career development and youth entrepreneurship Connecting, supported

by USAID, launched the first national competition for the best examples of online and project teaching in primary and secondary schools. Since the innovation and sacrifice shown by our teachers during and after the state of emergency deserves broad social recognition, the competition was supported by the Ministry, the Institute for the Advancement of Education, the Republic Secretariat for Public Policy and RTS. The results were impressive – more than 700 applications from teachers from as many as 116 towns across Serbia. A

Through the Public-Private Dialogue for Development project, NALED advocates project teaching and preparing our education for the 4.0 revolution.

How do you see the future of project teaching in Serbia and the education system in general?

In the past few years, the Ministry has begun the digitalization and comprehensive reform of education, which I think is felt parents, students and educators.

Besides digitalization, the future lies in further capacity building of our educators, and in this we can do a lot in cooperation with the civil sector and organizations such as Connecting and NALED. With them we have prepared a manual for project teaching and distance learning, translated into five languages of national minorities and distributed to all primary and secondary schools in Serbia.

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DANIJEL NIKOLIĆ, ASSISTANT SECRETARY GENERAL OF GOVRNMENT OF SERBIA, DEPARTMENT FOR INTERNATIONAL AND DEVELOPMENT COOPERATION

We Won With Our Hearts

Profound understanding, expediency, compassion and humanity are definitely the right words to describe the relationship between the state and NALED, but also the entire Serbian business world in the past year, and I think we have shown that when we are together, there is no crisis that cannot be overcome

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t the beginning of the pandemic, socially responsible companies showed great solidarity and readiness to help the state in the fight against Covid-19. The General Secretariat and Danijel Nikolić, Assistant Secretary General at the Department for International and Development Cooperation, played a key role in coordinating donations.

That is why our interlocutor deserves to be one of this year's winners of the NALED team award for joint contribution to overcoming the crisis caused by the pandemic.

What did it look like in those first months of the struggle for medical

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devices and equipment, and how satisfied are you with the results?

It was a great honour and pleasure to receive this recognition, which actually belongs to the entire Air Coordination team, which did a tremendous job together with the staff of the General Secretariat of the Government, the national airline Air Serbia, Milšped, UNDP Serbia, the Security Information Agency and the Ministry of Foreign Affairs.

Our work involved constant, almost twenty-four-hour coordination with the Cabinet of the Prime Minister and the Cabinet of the President of the Republic.

We did everything in our power to realize the donations and procurement assured by the humanitarian efforts of the President, the Prime Minister and members of the government, with the help of our socially responsible companies and friendly countries, first and foremost to help our heroes – our health workers – to save our lives.

Which of the donations or assistance projects you have carried out have you been particularly proud of?

There were indeed challenging moments when we had five planes in the air at the same time. At a time when it was not working out for much larger and more developed countries than ours, we transported medical equipment from several towns in China – primarily respirators, protective equipment and materials, both those that were received as humanitarian aid and those procured y the Republic of Serbia. If I have to single

Although it has been challenging, knowing that we are doing such an important job has made it easy to work from the heart.

On behalf of all of us – a great thanks to NALED for recognizing our efforts and thanks for what for us is an extremely important award

out an individual situation, I think it would certainly be when we organized at the same time two freight trains of over 50 wagons that came directly to Belgrade from Wuhan.

At the same time we organized flights for goods that were urgently needed. The first train had a special symbolism for us because it started from Wuhan - the city where the fight against the coronavirus began, and the city that first defeated the virus.

Are donations still needed today, and how much does your cooperation with associations like NALED mean in identifying needs and potential donors?

Donations are always welcome. Now things are slowly returning to normal, and I would say that at least from the organizational viewpoint we have gone from crisis management to a well-organized system that works. The Health Fund and the Ministry of Health regularly review the needs of our health system and successfully coordinate the procurement of everything required, together with the Serbian Chamber of Commerce, which during the crisis was the biggest partner in finding socially responsible companies ready to help their country. NALED has made a major contribution by animating its members to unreservedly support us and by finding ways to ensure that no request for assistance remains unfulfilled.

STEFAN BADŽA, ADVISER IN THE PRIME MINISTER’S CABINET

Dialogue With Industry S One of the exceptional individuals in the public administration who received the NALED team award this year for a joint contribution to overcoming the challenging Covid-19 crisis is an adviser in the Serbian Prime Minister’s cabinet, Stefan Badža

oon after the outbreak of the pandemic, the Government of Serbia formed a crisis committee with the task of designing and coordinating activities to reduce the destructive impact of the pandemic.

Stefan Badža, an adviser in the Prime Minister’s cabinet, was a member of the economic section of the crisis committee, which maintained a constant dialogue with industry to find the best solutions.

This year's winner of the NALED award supported companies of all sizes in coping with the challenges imposed by Covid-19 through daily communication with business associations, and assisted them in overcoming administrative obstacles

during and after the state of emergency.

Understanding and respecting the situation in the field, he contributed to the efficient creation and implementation of measures to preserve economic activity and jobs during the crisis throughout the year.

NALED was among those who inspired and advocated the establishment of a public-private dialogue between economic policymakers, industry, the civil sector and the international community through the urgent formation of a joint expert group, to provide analytical and technical support to the crisis committee to eliminate possible harmful effects of infectious diseases on the economy.

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ILIJA CEROVIĆ, ACTING DIRECTOR OF SERBIAN TELEVISION AND EDITOR-IN-CHIEF OF THE RTS EDUCATION AND SCIENCE PROGRAMME

We Achieved The Impossible!

We learned on the go, overcame obstacles, improved distance learning and all with tremendous support from teams of the Ministry of Education, Science and Technological Development and a great sacrifice from the teachers

S

erbian Radio and Television provided its production capacities to the Serbian education system in an incredibly short time, so that under Covid-19, lessons would be available to all students in primary and secondary schools via the RTS platform.

Ilija Cerović, acting Director and editor-inchief of the RTS educational and scientific programme received this year's NALED Recognition for the promotion of reforms for his contribution to reforming the traditional approach to education.

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What was the role of RTS and what were the results in the organization of distance learning during the pandemic?

It was a great professional challenge for editors, journalists, production staff and technicians, the entire RTS community.

The educational and scientific programme suspended its regular production and directed all available resources towards the My School project. Classes for primary and secondary schools were broadcast on RTS2 and RTS3. Furthermore, a repository of educational video content for primary and secondary school students was established on the free mobile app RTS My School, on the RTS website and on the free multimedia internet platform RTS Planet.

From 16 March to 15 June 2020, the public media service recorded, processed and broadcast a total of about 2,280 hours for primary and secondary schools, with test analysis of two trial final exams for junior high school graduation. This success is highlighted by the fact that in regular circumstances the educational and scientific programme annually produces an average of about 700 half-hour show.

How did your close work with teachers influence your further approach in the development of the programme and your thoughts about the role of RTS in promoting distance learning?

The closure of educational institutions due to the coronavirus pandemic has shown the importance of digital media, the Internet and technology in education.

All this imposes the need for cooperation between RTS and the Ministry of Education

We are interested in continuing cooperation with NALED, the Republic Secretariat for Public Policies and other project partners, especially in promoting project teaching and distance learning to be further developed through the creation of new and connecting the already existing audio-video material with the teaching units on the RTS Planet platform. What RTS and the educational and scientific programme no other TV have, are series that in various ways support all participants in education, develop so-called soft skills like critical thinking, non-conflictual communication and teamwork, and provide models of good practice for educators to implement teaching innovations.d the city that first defeated the virus.

You cooperated with NALED on the national competition Magic is in the Hands of Teachers – are you planning any new joint initiatives?

RTS was the media sponsor of Magic is in the Hands of Teachers, which was carried out by NALED under the project Public-Private Dialogue for Development to affirm the role and competencies of teachers as supporting pillars in the development of society. The educational and scientific programme contributes the training of youth, but also all of us, for the coming age of artificial intelligence and machine learning. In this sense we are interested in continuing cooperation with NALED, the Republic Secretariat for Public Policies and other project partners, especially in promoting project teaching and distance learning.

ALEKSANDAR MILOŠEVIĆ, ECONOMICS EDITOR, DANAS

Our Duty Is To Tell It The Way It Is

Our focus is on topics that are essential for progress in Serbia, especially social and economic progress. So we concentrate on subjects like working conditions, abolishing bureaucracy, combating corruption and equal rules for all

A

leksandar Milošević, editor of the economics column in the Danas daily paper, has won this year’s NALED award for his contribution to high quality reporting on reforms and initiatives to improve working conditions in Serbia.

When you look back at the accomplishments of your editorial office at Danas, what are you most proud of?

Although it might sound like a cliché, I am most proud of our team writing for the economics column at Danas.

Those people work hard to expose the

real truth behind news, expose deceptions, half-information and political spins placed by government officials. That is the main reason we are so focused on topics related to working conditions, abolishing bureaucracy, combating corruption, equal rules for all, subsidies, protection of property rights, workers’ rights and spending public funds.

What are the key challenges facing independent journalism today?

I think that the term ‘independent journalism’ is actually a pleonasm.

You’re either a journalist or you’re a propagandist. There is no third option.

In that sense, the main issue Serbian journalism is facing today is the attempt (and a very successful one) to subsume journalism under two polar opposites, with no middle ground. Either you are for the government or you’re against them. Media outlets who still believe in journalism need to actively take care not to fall into the trap of their own radicalisation. It isn’t our role to tell people what is wrong with our society, we are here to show them the way things are. Those are two fundamentally different things.

Practically, media outlets that try to stay independent face a series of issues: from being completely ignored by institutions and government officials to being financially jeopardised, as they are banned from advertising public companies and institutions. Private

Media outlets who still believe in journalism need to actively take care not to fall into the trap of their own radicalisation companies are actively discouraged and even directly intimidated from advertising in independent media.

When you look at the recommendations in the NALED Grey Book, especially the list of 10 priorities, what would you highlight as most important and would you change anything on the list?

NALED’s first recommendation is to reduce payroll deductions, but I think that the second recommendation is more urgent, i.e. establishing a register of non-tax charges. Reducing payroll deductions is a complex issue that can’t be fixed easily, while non-tax charges are more numerous and often completely unjustified, they don’t serve the purpose they are intended for, and they are often a tax burden disguised as a fee for a service that either does not exist or its value is overestimated with the funds used for something completely different.

Another key issue that NALED acknowledges has to do with wastewater treatment. I’d also mention the reduction of harmful substances used in Serbian thermal power plants, and establishing strict control mechanisms in mining and processing to prevent further environmental destruction that will have longlasting consequences for our health and our capacity for economic development.

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WE SUPPORT ECONOMIC GROWTH OF SERBIA Most active members of NALED from the ranks of businesses, local governments, NGOs and academia, are gathered in six thematic alliances in order to work together on defining the regulatory agenda and building a better business environment with special focus on fair competition, e-government, food and agriculture, health, property and investments, and environment protection.

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DUŠAN VUJOVIĆ, PRESIDENT OF NALED SCIENTIFIC COUNCIL

The Grey Book Is An Authentic Reflection Of Our Business Environment

In 2020, only two out of 100 Grey Book recommendations were fully implemented, and only 11 were partially. Although institutions were working in extraordinary circumstances caused by the pandemic, the main challenges are essentially the administrative system’s lack of readiness and ability to implement the recommendations

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he Grey Book is a great contribution to shaping public policies to improve the business environment and reduce the cost of administrative procedures.

It transforms economic necessities into specific recommendations to the Government of Serbia, starting from the authentic viewpoint of various economic entities working under the existing legal and institutional environment at all levels of executive powers. Recommendations

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for changes come from a wide variety of economic entities differing both in size and scope of activity. They include small, medium-sized and large enterprises in almost all areas of production and services, in all parts of Serbia. This ensures the recommendations are reliable, objective and empirically obtained.

When suggesting complex solutions, we should pay attention to effects they may have on the economy and the whole

of society, and the objective limits within which the country functions. That is the role of NALED’s Scientific Council, which is dedicated to understanding the true nature of the issues and corresponding recommendations, as per its mandate.

The Council analyses the aims of economic initiatives from a suitable theoretical and analytical viewpoint and points to the systemic nature of certain changes, i.e. identifying deep and complex

NALED Scientific Council supports the expert team of the Executive Office in carrying out research and analysis and devising regulatory reforms to improve the business environment

relationships between recommendations and their effects in a wider social context.

This approach is vital for reaching agreement between all the interested parties, taking all kinds of economic, political and social interests into account.

The economic initiatives and recommendations can be grouped in four categories. The first contains those that are sufficiently precise and empirically and theoretically well-founded. The proposed solutions in this group are supported by all interested parties and can be achieved by amending existing laws, regulations or scientific analyses and enforcing the laws where fiscal (budgetary), administrative and organisational effects confirm the justifiability of the suggested measures.

The second group encompasses initiatives that are well-founded in legal regulations and empirically obtained data but have asymmetrical effects on certain economic entities (or sectors, or regions) and therefore require additional analysis and quantification of the effects, and compromise between interest groups (the so-called political economy of the

measures). It should also be estimated whether such initiatives should be carried out in two stages, where the first would encompass identifying the nature of the proposed solutions whose implementation is purposely postponed (for two or three years) while the necessary analysis is carried out and economic, political and social balance achieved.

The third group encompasses initiatives that must be preceded by a detailed analysis of the technical and procedural steps. They require a software solution, training on how to use it and the expansion of institutional capacities of the state and all the participants to enable finalisation and implementation. Here, NALED often works with international partners on providing support for implementation.

For instance, this is the case with e-construction permits, the e-system for hiring seasonal workers and the online calculator for flat-rate taxation.

Ultimately, the fourth and most complex group of explicitly or implicitly systemic recommendations requires additional empirical research and theoretical analysis to review all the relevant economic and other effects and propose appropriate modes of implementation.

NALED faces those challenges by conducting analysis and implementing methodological guidelines. Those efforts are aimed at facilitating the quality solutions

contained in the economic recommendations. Simultaneously, such efforts should enable a better look at some crucial issues and reduce the great cumulative load of the recommendations that have become obsolete during preparation or implementation.

In 2020, only two out of 100 Grey Book recommendations were fully implemented, and only 11 were partially.

Although institutions were working in extraordinary circumstances caused by the pandemic, the main challenges are essentially the administrative system’s lack of readiness and ability to implement the recommendations.

Among the 10 priorities in the 13th edition of the Grey Book, those aimed at modernising the state administration, increasing transparency and reducing costs for taxpayers particularly stand out (for example eAgrar – a register of agricultural holdings and incentives, electronic health records, cashless payment of charges, unified certificates of paid taxes and modernisation of foreign exchange operations). The recommendations include those related to reducing the workload, which would be welcome if properly executed, while this requires further analysis and consultation.

Improving the wastewater management system is a very important recommendation because it reflects both an urgent need of the public and European trends.

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IVAN MILETIĆ, PRESIDENT OF THE FAIR COMPETITION ALLIANCE

Excess Bureaucracy Stimulates The Shadow Economy

Reducing income tax obligations and establishing transparent and predictable fee collection policies through a public electronic register of non-fiscal charges are key priorities of the Grey Book and the entire economy

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ver since the black market for salt in ancient China, states have been trying to solve the problem of illegal trade. But it is clear that this economic anomaly, as old as the first taxes, can hardly be completely eradicated. There are however always ways to work together to drastically reduce the scale and damage that this illegal activity leaves on any market that strives for equal conditions for all.

Zato je godinama unazad jedan od ključnih prioriteta Saveza za fer konkurenciju saradnja sa Ministarstvom finansija, Poreskom upravom i drugim resornim institucijama na sprovođenju Nacionalnog programa za suzbijanje sive ekonomije.

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One of the key priorities of the Alliance for Fair Competition has for years been cooperation with the Ministry of Finance, the Tax Administration and other institutions to carry out the National Program for the Suppression of the Grey Economy.

It should be no surprise that half of the priority recommendations of the Grey Book 13 are directly linked to the measures of this strategic document. Every step towards simplifying procedures is a small victory against the shadow economy because excessive administrative procedures inevitably force citizens and companies to cut corners, encouraging illegal business practices.

Reducing income tax obligations and establishing transparent and predictable fee collection policies through a public electronic register of non-fiscal charges are key priorities of the Grey Book and the entire economy.

Besides offering financial relief for businesses to stimulate their operations, we have a big task ahead in combating undeclared work. The Grey Book recognises the need to focus on regulating flexible work forms, especially for online work for foreign employers as Serbia is among the world leaders in gig workers, and on expanding simplified employment procedures for workers in seasonal and temporary jobs, following the example of a successfully implemented reform in hiring seasonal agricultural workers.

The first recommendation of the new edition is to finish this year’s preparations for the 2022 start of digital fiscalization and the system of electronic

The Fair Competition Alliance is among the oldest alliances in NALED. It is the first example of institutionalised publicprivate dialogue through the Government’s expert group on the shadow economy.

The Alliance’s work has been crowned with some great developments in carrying out the National Programme, including flat tax reform, a simplified system for registering seasonal workers, a tax exemption system for new businesses, the eInspector system, the national fiscal lottery ‘Take the receipt and win!’, and several others. invoices, which we have been working on in cooperation with the Ministry of Finance. Furthermore, to continue improving transaction transparency, we must work towards cashless payments, primarily by card payment or instant payment of charges without proof of payment in paper form.

As this year's tax exemption for start-ups is focused exclusively on companies with innovative activities, the Grey Book suggests extending it to all sole traders and other types of businesses to help everyone start their own business legally. Besides, there are also anti-bureaucratic recommendations, such as a unified system for collecting payments from flat-rate traders and uniform tax solutions.

JELENA RISTIĆ, COUNTRY MANAGER, MASTERCARD SERBIA,

MONTENEGRO AND BOSNIA AND HERZEGOVINA

We Are Embracing Digital Technologies The MasterIndex study carried out by Mastercard showed that e commerce has boomed in Serbia with 81% of active online shoppers, of whom15% made web payments for the first time during the pandemic

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n the battle against the shadow economy it is important to develop the regulatory framework, reduce taxes to encourage businesses to operate transparently but also to enforce a predictable inspection regime Last year brought many changes, including in Serbians’ financial habits. What have we learnt, adopted, rejected or embraced?

- With changes happening all around, one thing is certain – we have embraced digital technologies wherever possible. The convenience and safety of e commerce are why this form of payment is surging across all categories, from settling utility bills to ordering food. Online card payments alone increased by 39%. In physical stores, contactless payments by card or mobile phone are booming, with around 75% of card transactions made by tapping. To accommodate a growing consumer preference, we increased the limit for contactless payments without PIN last year from 3,000 to 4,000 RSD. All these developments point to one thing – consumers are prioritizing practical, multi-functional and safe solutions that save them time and organically fit their lifestyle. Consumers recognize Mastercard solutions as giving them seamless consumer experience, and we will continue being there to support consumer and market shifts in times to come What are the best ways to counter the shadow economy, in addition to

reducing income tax, regulating new forms of work and reducing fiscal and para-fiscal charges?

- High taxes, corruption, high unemployment, and a poor tax culture among people and companies are the main causes of the shadow economy. This is a highly complex issue so there is no one-size-fits-all solution. The stick and carrot measures should be well balanced to support sustainable market development, but it is arguably more important to work on educating all members of society about the actual implications of the shadow economy. When you say that it equals 10 or 15% of lost GDP, it may not mean a lot to the average person, but when you put in context and tell them it’s enough to pay the salaries of all healthcare workers for the next six years or build dozens of kindergartens and schools, those are values that each of us understands and can relate to.

The next step is understanding that small everyday actions matter, like choosing to use cashless payments over cash, insisting on a fiscal receipt, refusing to shop with unreported merchants or reporting unregulated labour. We need to understand that the shadow economy is not an abstract concept – it is an issue that directly or indirectly lowers the quality of life and work for all of us, so we need to adopt the mind-set that paying taxes is not an expense, that operating transparently is not an option, and that all our actions and transactions are investments in the local community.

Seven years ago, NALED and socially responsible companies started the Fair Competition Alliance of which Mastercard is a member. Is it one of the best examples of formalizing the public-private dialogue?

- As a vice-president of the FCA, I would say that it’s a platform for dialogue and action for both public and private sectors, and a string of successful reforms and improvements of overall market conditions proves this. FCA members – major corporate investors and employers, technology companies with international expertise, local governments and NGOs, provide valuable, real-life inputs that help the government tailor policies so that together we reach our joint goal – a modern and competitive market.

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ŽELJKO TOMIĆ, PRESIDENT OF THE E-GOVERNMENT ALLIANCE

Digitalisation Against Bureaucracy

According to Grey Book recommendations, establishing full functionality of eGovernment entails completing all the necessary electronic registers, enabling ePayment of services and eDelivery of documents, and recruiting as many eCitizens as possible

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he eGovernment Alliance is the largest NALED working body with 70 members, including businesses, local government bodies, public agencies, universities and faculties. Browsing through the new edition of the Grey Book, it becomes clear why there is such a great interest in this topic among all sectors of society. Since digitalisation is so important in simplifying administrative procedures, no less than 40% of the recommendations in

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our ‘regulatory Bible’ envision switching to the digital realm.

The Grey Book recommendations can help ensure that the conditions for fully functional eGovernment are met. Above all, this entails forming all the necessary electronic registers and ensuring greater use by companies and the public. This can primarily be achieved through obligatory ID cards with a microchip and a qualified electronic certificate and by motivating people to rely on the eGovernment portal more and become fully-fledged eCitizens. We have been working on this in cooperation with the Office for IT and eGovernment, with the support of the EBRD. Two years ago, the eGovernment Alliance began by advocating the abolition of seals, and now we focus on cancelling other relics of the past such as payment slips, and enabling electronic payment options for all government services (ePayment) whether online or at counters. Furthermore, we argue for eDelivery for all government services and all proceedings before judicial authorities, switching to eInvoices and establishing an integrated system for issuing invoices, both for the public and private sectors.

Many companies and individuals who have had the opportunity to experience all the benefits of the eGovernment system, particularly during the COVID-19 crisis, are aware that our Alliance has

No less than 40% of the recommendations in the new edition of the Grey Book envision moving our administrative procedures into the digital realm inspired a great number of positive changes. Among other things, the Law on Archival Material and Archival Activity enabling permanent storage of business documentation in electronic form was adopted last year thanks to great efforts by the Alliance.

The Alliance is particularly proud of the eGovernment Programme for the period 2020–2022, adopted last year to create new electronic services. It introduces an eOffice and eArchive to enable users to check the status of their submissions online, review the data on them collected by the public sector and request any modifications if needed, with many other services to ensure transparency and efficiency in the public administration.

Local governments are the first point of contact between the public and companies on one hand and the public administration on the other, and we are proud we can help them stay up-to-date with the world of electronic services.

We would particularly like to emphasise our contribution to the continuous training of clerks in city and municipal administrations in cyber security and data storage, together with the Republic Agency for Electronic Communications and Postal Services RATEL, with the support of the Ministry of Trade, Tourism and Telecommunications.

VUKAŠIN RADULOVIĆ, CO-FOUNDER OF HELIANT D.O.O.

Dedicated To Healthcare Heliant first contributed to the Serbian healthcare system two decades ago, when the company created the healthcare information system. In the past year, Heliant was available 24/7 to be able to fulfil all the requests coming from Covid hospitals and centres.

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ven though I’d like to believe that our engineers are the ones who make Heliant great, the true power of the company lies in the fact that many smart people use our system. Their useful feedback helps us improve it. All we need to do is listen and acknowledge the user requirements - said Mr Radulović modestly.

Although more than 200 healthcare institutions in Serbia use your software daily, it was not until the pandemic broke out that it became obvious how valuable it truly is.

- Nowadays, information systems do not only serve as data storages but are also used to retrieve useful information. Our system is expandable and adjustable to different areas of medicine and, as we have seen in the past year, different working conditions too. Last year, at the very beginning of the pandemic, it took us only a day to connect the Laboratory of virusology and the Clinic for Infectious Diseases of the Clinical Centre of Serbia. That way, we made over 300 documents available in digital form to avoid having to rely on the potentially infectious physical copies.

We are currently developing registries for different types of disciplines in specialized medicine, mobile apps for patients and our own data visualisation systems. We have also expanded our department of science upon realising we could benefit from having an extra link between us and the medical professionals. Heliant now employs three doctors and two experts in biochemistry and pharmacy, and we regret not having hired them five years ago.

Two months ago, Heliant became a member of the National Alliance for Local Economic Development (NALED).

Do you see this as another way to potentially contribute to the improvement of the Serbian healthcare system?

Data is a valuable resource, which further gains importance if we can share, exchange and cross-reference it - When it comes to our NALED membership, we also regret not having joined in much sooner. Anyone dedicated to bypassing excessive paperwork and unnecessary administrative and bureaucratic procedures is our natural ally, and healthcare is the right place to focus on achieving this. Heliant supported the e-prescription project, thus helping to reduce the number of used paper copies by five million. Even though we should always strive to improve all kinds of citizens’ rights, from passport issuance to obtaining construction permits, there is nothing more important than providing healthcare to the ones in need. If we manage to replace excessive administrative procedures in healthcare with technology and facilitate access to healthcare services for millions of people, in cooperation with NALED and any other interested party, we will have done a great thing.

How will medicine develop in the forthcoming period?

- We aim to further improve our department of science to make Heliant an asset for various experts and the entire scientific community. For this purpose, we are already working on creating specialised registries of medical conditions on the level of individual hospitals, as well as the entire country. Collecting raw information and data is not enough because they have to be well-structured, which means the information system is becoming the expert information system.

We are witnessing a great transformation in the area of medicine, which is switching from traditional clinical studies to the socalled data-driven medicine. The aim is to make relevant research data, previously available only to a limited audience, accessible worldwide so that different pieces of information could be cross-referenced, processed and compared. The time has come to acknowledge the fact that data is a valuable resource, which further gains importance if we can share, exchange and cross-reference it.

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CHEN CHEN, CEO OF HUAWEI TECHNOLOGIES, SERBIA

5G Will Change The World Huawei has been operating in Serbia for 15 years, and we see a huge potential in the local market. Last year, we opened our Innovation Centre in Belgrade, with the goal of taking a key role in the digital transformation of the entire region.

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uawei is working together with operators and partners to expand 5G to various industries, achieving new business growth for all participating parties and building an open and diverse ecosystem that thrives on shared success Is our market ready for all the benefits of digital transformation, among other things for the application of 5G? Is Serbia more or less ready for 5G? I am positive that 5G will undoubtedly change the world we know and make it better. Huawei's 5G products are the world’s best. We have the highest level of maturity in terms of commercialization and we are continuously and steadily developing our technology. We have invested over $4 billion in the development of 5G technology over the past ten years.

To build a positive business cycle, we must work on four elements: technology, the ecosystem, standards, and the business model. The Serbian market is not much different from the rest of the world and more than ready for new technology.

Are you satisfied with the speed with which the business environment

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For the past year we have kept innovating to create value for our customers, to help fight the pandemic, and to support both economic recovery and social progress in Serbia is improving? How could Huawei help further the digitalization of Serbia?

I believe that Serbia has recently been creating an open business environment for the development of ICT infrastructure, and that in this digital era we could together make this market the leader of eastern Europe.

We are also fully committed to CSR projects and providing social value in Serbia.

We organize the Seeds for the Future project every year, where we choose the best IT students from Serbian universities. Traditionally, successful applicants fly to China for two weeks. They are first immersed in Chinese culture and after that they fly to Shenzhen, home to Huawei's headquarters, for hands-on practice including classes and experiments.

We also launched the Thousand Dreams project to help the youngest with our

consumer goods. This project has made it easier for kids to transfer to online education during the epidemic.

Furthermore, we are opening ICT academies at the best local universities. This is a cooperative undertaking where we train people in areas like wireless networks and artificial intelligence.

How did Huawei cope with Covid19 over the last year? Did it affect your daily work with customers?

For the past year at Huawei, we've held strong in the face of adversity. We have kept innovating to create value for our customers, to help fight the pandemic, and to support both economic recovery and social progress. We also took this opportunity to further enhance our operations. As a result, our business performance was largely in line with our forecast.

As a member of the ICT community, we have been doing everything we can to support the ongoing fight against the pandemic. We are working closely with local governments, community organizations, international organizations and our customers and partners to protect the health and safety of the people we serve.

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PREDRAG MIHAJLOVIĆ, PRESIDENT OF THE EXECUTIVE BOARD AT OTP BANKA SRBIJA AND EXECUTIVE SPONSOR OF THE INTEGRATION PROJECT OF VOJVODJANSKA BANKA AND OTP BANKA SRBIJA, AND PRESIDENT OF THE BOARD OF DIRECTORS OF THE ASSOCIATION OF SERBIAN BANKS

Leaders In Serbia And In The Region As of May this year OTP banka and Vojvodjanska banka will continue operations as one large OTP banka, completing the most complex integration conducted in the domestic and regional financial market.

This will confirm OTP Group’s strategic move to form the leading banking institution in Serbia

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orking on integration in the conditions of a global pandemic is a great challenge which we have taken up primarily thanks to teamwork, the commitment of all our colleagues and our continuous investment in digital transformation, Mr Mihajlović proudly points out The OTP Group in Serbia is operating through OTP Banka and Vojvodjanska Banka, which are being integrated. How difficult is it to achieve such remarkable results in a pandemic?

We have increased our market share in all segments; at the end of 2020, total net loans of both banks stood at EUR 3.7 billion with an annual loan growth of around 15% which is a EUR 500 million increase over last year. We now have a market share exceeding 17%, and our new integrated bank will be the first in Serbia in corporate and retail lending. The retail operations segment realised an annual growth exceeding 17%, with a 40% growth in housing loans on an annual basis and a market share in housing loans over 21%, while the market share of cash loans is over 20%. Operations in the corporate segment also achieved an annual growth of 13%, while the market share in this segment is over 16%. What is important is that we listened to the needs and strove to provide all necessary support to our clients,

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The 48-day state of emergency led to an 80% growth in the use of our digital services compared to the previous period which is supported by the fact that we have approved more than EUR 259 million through the guarantee scheme to date.

OTP Group is recognized as a pioneer in innovation and digitalization, which is one of the priorities of the Serbian Government. To what extent did this facilitate operations during the pandemic and how much did this mean to your clients?

It has absolutely facilitated and confirmed as accurate our decisions to invest significant resources into digital transformation and encourage innovation. Within two weeks we managed to transfer more than 80% of our staff to work from home, without decreasing efficiency at any point.

The 48-day state of emergency led to an 80% growth in the use of our digital services compared to the previous period. The number of our digital clients increased by over 60% and the growth of online credit sales by more than 40%. By using the m-bank and e-bank applications, our clients can do much more than transaction banking, have the opportunity to obtain cash loans,

overdrafts, mCard, insurance… We have also introduced an important novelty for our users of the IOS operating system in the form of payment via APPLE PAY. Eliminating excessive red tape in foreign exchange operations is one of the ten priority recommendations of NALED’s Grey Book. Why is it important that the National Bank of Serbia implements this recommendation as soon as possible?

NBS is in fact a generator of innovation in the banking sector, so without their important role no bank would be able to introduce instant payments or IPS code payments. So I think this recommendation, which is important for our sector, will also be implemented in the near future. And this is important because an additional reduction of red tape in executing orders would enable the automation and shortening of the process, and the application of modern channels for receiving and sending orders, i.e. digitalization in this domain of operations. The foreign exchange segment would thus be adjusted to bank clients with significantly greater opportunities to apply the latest trading methods and instruments, easier access to other countries’ markets and faster collection, which is the essential goal of these recommendations.

JOVAN PURAR, PRESIDENT OF THE PROPERTY AND INVESTMENT ALLIANCE

We Know The Road To The Top Of The Doing Business List

Our Alliance is focused on solving property issues, such as conversion and legalisation, developing the eSpace platform and improving procedures that boost Serbia’s rating on the World Bank’s Doing Business index

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btaining building permits and registering rights in the cadastre used to be the most complex administrative procedures in Serbia. They were expensive and timeconsuming. Such obstacles to investment and legal security demanded a speedy and final solution. So on NALED’s initiative, comprehensive reform began. Digitalising the required steps has revolutionised this area, so construction permits can nowadays be obtained 2.5 times as quickly as before, while the costs are 18 times lower. Registering rights in the cadastre is now three times faster. Everything can be finished in one place, and the cost is reduced by half.

More than 600,000 resolved construction permit requests since 2016 and almost 950,000 requests obtained for registration of rights in the cadastre since mid-2018 via the single-counter electronic system

(eCounter) are the best indicators that we should continue solving other problematic areas and legal property-related issues and obstacles.

The Property and Investment Alliance was formed to serve as an expert body that takes part in creating policies aimed at improving the business environment, solving problems of property relations and suggesting reforms to improve investment conditions for a better position on the World Bank’s Doing Business index. The Alliance is rapidly expanding, it already has 50 members from business, local government, associations and academic institutions.

We have placed cancellation of the charge for the conversion of land use rights among the 10 priority recommendations of the new Grey Book. The existing regulations have mostly failed to fulfil their purpose, and have virtually ‘locked’ 5,000 hectares of construction land whose market value is reduced because it cannot be built on, so production capacities are not being developed and new jobs are not being created. Property rights conversion with the obligation to pay a charge that was already paid on purchase has proven to be an unsustainable practice.

The Alliance has launched an initiative to reach a reliable interpretation of Article 95 of the Law on Cooperatives to ensure equal and consistent solutions for all property-related legal disputes, which for decades have been preventing owners from enjoying their land.

The cooperatives want legitimately obtained private property to be confiscated, which has a negative impact on local economic development in many municipalities in Serbia. As a rule, the requests are for the highest-quality agricultural land, whose market value lies between 5 and 15 thousand euros per hectare depending on the location, but the requests also encompass all other cooperative assets, such as business and

We have placed cancellation of the conversion charge for land use rights, which has ‘locked’ 5,000 hectares of construction land, among the 10 priority recommendation of the new Grey Book agricultural buildings, which deters potential investors in agriculture.

The recommendation to speed up the legalisation of illegally-built buildings by extending the determined deadlines and simplifying procedures is equally important. Besides, we are working on further improvement of the registration of property in the cadastre and keeping the cadastre up-to-date. One of the useful measures in that area would be free registration. Finally, our Alliance also proposes a digital solution – the development of eSpace, a new system that would enable electronic development of urban and spatial plans, which would make the procedure simpler, faster and more transparent.

Among the Grey Book recommendations the Alliance will be working on are recommendations to improve the judicial system by automating the court administration, particularly by speeding up cases, decreasing the costs and facilitating communication between the court, case parties and lawyers. In this way, the parties will be able to access things like case law, decisions and model agreements.

For investment, we cannot skip the Grey Book recommendations for the Ministry of Economy. In this area we would like to further improve bankruptcy procedures and the process of establishing economic entities, including important administrative steps for founding a business, such as obtaining an electricity connection, obtaining a loan, registering a pledge, etc. These steps are tracked by the World Bank.

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JELENA GALIĆ, PRESIDENT OF THE EXECUTIVE BOARD OF AIK BANK

Economic Support, A State Partner

Further positioning of AIK Bank as a financially stable and credible bank group in this part of Europe is a strategic commitment. AIK Bank was the first Serbian bank to enter the EU market, and its presence there is proof of its stable foundation and sustainable development, which forms the basis of its business operations.

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e have implemented numerous projects intending to further our digital transformation strategy, strengthen our digital brand and expand the base of satisfied clients - Ms Jelena Galić proudly stated for the Cord Magazine.

Banks were ready to face the crisis thanks to a high level of liquidity

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and a low level of bad assets. What is the situation like nowadays?

- The challenges we all faced last year forced us to modify our everyday activities and lifestyle in general. It’s important to point out that the prepandemic macroeconomic stability, as well as the measures the state introduced and continues to implement to this day, have contributed to reducing

the negative effects of the pandemic on the economy. The banks took part in all

For the third year in a row, domestic credit activity in Serbia has achieved two-figure growth, which places it among the highest in the region

the support programmes responsibly to help maintain the financial stability and mitigate the negative consequences.

Considering the strong capital and liquidity position of the entire banking sector, there is no doubt that banks will continue to be the mainstay of the economy and state partners in the task of maintaining the achieved stability and overcoming further challenges that may arise. In that regard, I can say that prudent actions of the banks are helping minimise future potential risks, and the achieved results in the area of microeconomic and financial stability represent a stable foundation upon which further growth and development can continue.

The global crisis caused by the pandemic has been going on for a year now. How is it reflecting on the banking sector and your bank specifically?

- Even before the pandemic broke out, banks had been working on developing mechanisms to tackle potential crises.

Those mechanisms, which helped banks overcome challenges in this specific situation, include significant liquidity reserves, adequate risk management and responsible credit policies. In addition, banks were able to adapt to the specific characteristics of this particular crisis quickly by encouraging clients to rely on online and digital services. Since the state introduced adequate support measures, including the provision of direct aid to businesses and incentives of the National Bank of Serbia, the banks were able to respond to all the business challenges brought about by the pandemic very well. According to the data of the National Bank of Serbia, in the previous year, the total placement of the available bank deposit potential increased by 10.7% thanks to the investment of banks into RSD corporate bonds, in addition to a growth in credit activity.

It should also be pointed out that the share of non-performing loans in the last (pandemic) year was 0.4 per cent lower compared to 2019. All of this speaks in favour of the stability and strength of

the banking sector in Serbia.

Our banking group, with AIK Bank as the lead member, is stable, with total assets exceeding 4 billion euros. The stability of our bank has been further proven by the activities carried out successfully in the specific circumstances we were faced with in 2020 – the year which has strengthened our teamwork and business operations in general, as

Our products and processes are fully end-to-end automated, which means that requests can be approved very quickly we have managed to ensure troublefree implementation of all the activities and services offered to the clients. The achieved business indicators, i.e. a high level of the balance sheet total, strengthening of the deposit base and maintaining high profitability, testify to this.

When the three-month moratorium on all types of loans was introduced, you welcomed it as a good move. Do you still think so a year later?

- Having in mind the complexity of the circumstances arising from the COVID-19 pandemic, the undertaken set of measures to facilitate the settlement of obligations of the economy, as well as the citizens, and responsible credit risk management by financial institutions have directly contributed to mitigating the negative consequences of the pandemic to the economy.

In that regard, the announced new set of measures taken by the Government of the Republic of Serbia, the total value of which is RSD 249.4 billion, entailing the provision of direct support to sensitive and vulnerable sectors and citizens and the extension of the Guarantee Scheme for the purpose of maintaining the liquidity of the economy, will undoubtedly not only enable us to further mitigate the negative consequences but also to continue providing support to the entire economy and the citizens’ regular activities.

How would you rate the economic measures the state has introduced and continues to enforce to aid the economy?

- Mitigation of the monetary policy, approval of loans from the Guarantee Scheme on favourable terms, primarily RSD loans due to to the preferential policy of the National Bank of Serbia reserve obligation, along with good cooperation with the banking sector, have ensured good financing conditions on the domestic credit market. For the third year in a row, the domestic credit activity in Serbia has achieved a twoCorD | NALED | AGENDA 2021 | 45

ous experience is another confirmation of the said strategy. In that regard, we are following the market trends related to potential further acquisitions, and we have a clear vision of our banking group and the direction of its further expansion in Serbia and the region.

figure growth, which places it among the highest in the region.

Since the sector of small and medium enterprises was hit the hardest by the pandemic crisis, I believe that focusing on direct measures to this area of the economy was crucial for overcoming the difficulties caused by the pandemic and maintaining the business operations of this sector. As one of the banks who took part in all the measures, we have remained a strong supporter of small and medium enterprises in Serbia by offering a complete set of products necessary for such businesses, including online services for all kinds of financial transactions and all kinds of loans for current assets, investments, agriculture, as well as loans within government programs to support the economy and agriculture.

AIK Bank is the first domestic bank to enter the EU market. What are the benefits of the expanded cooperation through the regional approach?

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Our clients can also sign digital documents electronically via a smartphone, tablet or computer with a twostage authentication, which is a step toward quicker and paperless business operations - The acquisition of Gorenjska Bank in Slovenia, completed in 2019, made AIK Bank the first domestic bank to expand its business operations to the EU market. By strengthening our regional position along with the Gorenjska Bank, we have ensured quality services for our clients within the EU. The expansion to the EU market is a confirmation of the bank's stable foundation and sustainable development, which is the basis of its business operations. Our strategy entails further positioning as a financially strong and credible banking group in this part of Europe, and the previ-

You frequently introduce innovative services and offers to meet the increasing expectations of the clients. Do you intend to keep the focus on creating new products and services in the forthcoming period?

- This year, we are continuing with our projects as per the adopted digital transformation strategy. This includes a high range of products available to the clients 24/7 through our network of branch offices as well as online – at digital communication channels. We are dedicated to creating new and improving existing products and services to boost the client experience.

Our clients who use the mobile app can use QR codes and digital Mastercard payment cards available on their smartphones for payments at sales points that enable this option. Also, the clients can access their accounts instantaneously via the web or mobile app, where they can transfer their funds, make fixed-term deposits or apply for a loan, overdraft or credit card. These products and processes are fully end-toend automatized, which means that the requests are approved very quickly. For instance, approved cash loans are available within 10 minutes upon request.

The mobile banking app enables the users to access mobile banking using biometric authentication. Besides, they can also sign digital documents electronically via a smartphone, tablet or computer with a two-stage authentication, which is a step toward quicker and paperless business operations.

Those are only some examples of the projects implemented so far, and we will continue working hard on further implementation of our digital transformation strategy, digital brand empowerment and expansion of our base of satisfied clients.

MAJA ŽIVKOVIĆ, GENERAL MANAGER, STEEL IMPEX LTD

Time Is Our Most Valuable Resource Steel Impex is a regional leader in the waste management sector and a member of the NALED Fair Competition Alliance, which is composed of some of the largest domestic employers and taxpayers

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ur suppliers know we can offer a complete solution for their waste, whether it is steel scrap, non-ferrous, plastic, paper, tires, etc. When you have the capacity to handle 100,000 tonnes per year and no steady local buyer, there is no other option but to export, says Maja Živković.

Steel Impex is a regional leader in the waste management sector, despite unfair competition and the informal economy. How do you handle all the frustrating circumstances and are they the reason you're orientated towards export?

We always strive to operate under the rules of fair competition. It pushes us towards innovation, creativity and new ideas. Even though it’s hard in our line of business we are able to accomplish it by digitalisation of our daily operations, increasing awareness through our social media and always new and better conditions for our suppliers. By expanding the range of waste we handle we are increasing our presence on the market, but also decreasing our fixed costs. Our suppliers know that we can offer them a complete solution for their waste, whether steel scrap, non-ferrous, plastic, paper, tyres, etc. When you have the capacity to handle 100,000 tonnes per year and no steady local buyer, there is no other option but to export. Unfortunately there are limited users of recyclables in our country, while for some there are none at all. Those

there are either have small capacities or purchase through their suppliers.

As a free market, there should be more operators and transparency that will bring improvement and quality on all services, but when it gets hard to

By expanding the range of waste we handle we are increasing our presence on the market, but also decreasing our fixed costs export and payments are not secured with guarantees we are not developing as a market.

Steel Impex is a member of the NALED Fair Competition Alliance, which is composed of some of the largest domestic employers and taxpayers. Are you satisfied with the progress that has been achieved by your work and engagement? Could even better progress be achieved?

As a member of NALED we are actively involved on the subject of Fair Competition, sharing our experience, the problems we face in our sector and the misinterpretation of rules. This cooperation is very important, where straight from the field we are able to address the pros and cons of the recycling industry.

NALED’s efforts and their dedication to fair competition is helping improve the situation, to establish a fair and equal approach for all, with no grey zone.

You are a strong advocate of reducing the administrative burden on companies that operate legally. How and how much does bureaucracy hamper your company's operations and slow your growth and expansion?

The world has changed, especially after the Covid-19 pandemic. We need to be able to take decisions and execute them immediately. To do this, we need a digital infrastructure that we can apply to everything in our offices, to make our meetings or attend our inspections.

This will also bring a certain transparency. Time is now our most valuable resource and we cannot afford to lose months obtaining a license, approval or any kind of report from state institutions. At the same time our laws and regulations must follow the times we live in, changes are necessary. Our inspectors from any institution still require documentation on paper and not in digital form.

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ANDREJ BESLAĆ, PRESIDENT OF THE FOOD AND AGRICULTURE ALLIANCE

Digitalization Of Agriculture Begins With eAgriculture

The introduction of an online platform to register agricultural holdings (e-Agrar) would be the cornerstone of a digitalisation process in agriculture, and we would like to work with the relevant ministry

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n Serbia, there are over 400,000 active agricultural holdings. To register them, change data or exercise their right to incentives, their managers have to go through four counters and submit 90 different pieces of information contained in over 10 documents. To obtain the required paperwork, they waste time and money. Furthermore, up to 60% of the paperwork is unnecessary or repetitive because the state already has the required data. At the same time, staff of the public administration waste a lot of time processing requests, checking

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the submitted data one document at a time and typing the information in their databases, which can sometimes lead to untimely payment of incentives. The impact of these procedures on the development of agriculture is the key reason why eAgriculture should be established among the 10 priority recommendations in edition 13 of the Grey Book. The eAgriculture system would be a central online platform for registering agricultural holdings and distributing incentives. In addition to reducing farmers’ expenses by 85%, it would also connect more than 20 public registers and facilitate planning and oversight of agricultural policy carried out by the Ministry of Agriculture.

The Ministry of Agriculture is responsible for implementing the 10 recommendations of the new Grey Book, and we would particularly like to emphasise the importance of better legal regulation of food donations. A rulebook for safe food donations after the ‘best before’ period has expired and fiscal relief for food donations would reduce food waste at a time when vulnerable groups are in dire need of food. Food donations are regular practice in the EU. The Grey Book contains two recommendations for improving conditions for developing organic production. Initiatives launched by NALED through the PublicPrivate Development Dialogue project supported by USAID contain recommendations to introduce incentives for small organic producers and livestock breeding, including simplifying procedures to ob-

Although considerable progress has recently been achieved, we must ensure faster updating of domestic regulations to keep up with rapid changes in EU food regulations tain them. Leasing state land to organic producers must also be assisted.

On the subject of food safety, there is for the first time in the Grey Book a recommendation to simplify the import of animals, and products and food of animal origin. Import permits issued by our country are unnecessary because such food already possesses an international veterinary certificate. This is a superfluous administrative practice, which only Bosnia and Herzegovina and Montenegro still have in our surroundings.

The Food and Agriculture Alliance, which currently has 47 members including companies, local governments and associations, has defined several priorities in establishing modern agriculture, with other initiatives in addition to improving administrative procedures. We believe we must systematize the process of continuous harmonization of Serbian regulations with EU law to facilitate trade with the EU, provide legal protection in the food and agriculture sector and create the necessary conditions for joining the European single market. At the same time, EU laboratory results should be recognised to facilitate the trade in food and agricultural products. Although considerable progress has recently been achieved, food import procedures are still too time-consuming.

COCA-COLA HBC SERBIA

Proven Trust Is A Solid Basis For A Long Lasting Partnership When we joined the market half a century ago, our aim was to bring the best taste to Serbia and provide supreme refreshment. All these years later, we have become an integral part of the local community and a generator of positive change in the local economy.

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his is also confirmed by the results of our study ‘The Socio-Economic Impact of the Coca-Cola system in Serbia’.

Our company has an enormous impact on the local economy, which has been increasing continuously over the years. The business operations of the Coca-Cola system, including Bambi, create 291 million euros of added value, while direct and indirect taxes paid by the system along its value chains stands at 159 million euros. The system also employs 1,700 people in Serbia and supports an additional 14,400 jobs in related businesses and sectors, as shown in the study that analyses 2019 business data.

"Coca-Cola is a valuable contributor to the local economy in the countries where it operates because it employs local people, generates income, supports market development and revenues for the tax system", says Svetoslav Atanasov, General Manager of Coca-Cola HBC Serbia, adding: "The entire value chain we create in Serbia is the result of exceptional cooperation with the state administration and institutions, cooperation with customers, suppliers and partners, but also our commitment to invest in the development of the community."

Predictable business conditions and government responsiveness are conditions for our company’s growth and development and for attracting foreign investors in general.

The predictability of the regulatory and business environment, for all areas of business from tax policy and legislation on environmental protection to fair

market conditions, the fight against the grey economy and streamlining of cross-border trade exchange are crucial for the business operations and sustainable growth of any system, be it large or small. In this context, NALED’s efforts focused on improving business conditions are essential, and the Grey

Book is an excellent example of a constructive approach: presenting not only issues and challenges, but also offering proposals and sustainable solutions that work for the benefit of all.

As the company has been present in Serbia for more than half a century, the Coca-Cola system actively contributes to environmental protection, lowering our carbon footprint by using energy from sustainable sources, implementing

responsible waste management and investing heavily in the latest technology in wastewater treatment facilities.

We are the leader in the FMCG industry and a responsible company that plans to stay in Serbia and record even higher growth. This is confirmed by the title of the most successful beverage producer in Europe in 2020, according to the Dow Jones Sustainability Indices.

The ambitious objectives set at the corporate level for 2025-2030 will be attained in Serbia if there is continued cooperation on implementing reforms between public and private sectors, the expert public and the entire community. While creating future plans and incentives, 2020 should therefore not be forgotten.

The year behind us has demonstrated the state’s willingness to help businesses and people, and the agility of the private sector in supporting the local community where it operates. In partnership with the Red Cross, the Coca-Cola Foundation provided aid for a total of 200,000 dollars for the most vulnerable and donated our products to healthcare workers across Serbia. During the crisis, we have focused on supporting smallscale entrepreneurship, especially in underdeveloped areas of Serbia, as well as in the HoReCa sector, which suffered serious consequences.

The global pandemic and the new reality demonstrated the incredible strength of the mutual partnership of the state and the private sector, showing that PROVEN TRUST IS A SOLID BASIS FOR A LONG LASTING PARTNERSHIP and joint growth in years to come.

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JELENA KIŠ, PRESIDENT OF THE ENVIRONMENTAL PROTECTION ALLIANCE

Simplifying Administrative Procedures Is The Least Expensive Task

NALED’s youngest alliance is ambitiously dedicated to creating better conditions for collecting and recycling different types of waste, improving wastewater management and reforming the tax and fee system in the area of environmental protection

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ormed towards the end of 2019, the Environmental Protection Alliance already has 46 members, including companies, local governments and associations interested in systematic solutions in a very complex area – ecology. Reform of the tax and fee system for environmental protection, waste management, wastewater management, food waste and special waste and promotion of the circular economy are among its priority aims. Almost all of these aims are listed in Grey Book recommendations, proving their importance, with wastewater management among the 10 priority aims.

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Our partner in these activities is the German Development Cooperation (GIZ), which supports us on three projects. The most recent is the project Increasing the Recycling Rate of Batteries and Bulbs in the Republic of Serbia. In this project we are encouraging institutions to introduce incentives for recycling batteries, and establishing a more efficient system for collecting such waste and increasing recycling by 20%.

In the project to improve food waste management, we are developing a food waste collection system. In the Grey Book, we have suggested changing the regulatory framework to make it obligatory for anyone preparing more than 50 meals a day to hand food waste to a food waste collector for safe disposal.

In the project Glass Packaging Management in the Western Balkans, we are aiming to increasing the glass recycling rate in Serbia, Bosnia and Herzegovina and North Macedonia by 20%. In Serbia, the project is implemented in Sombor, Niš, Kragujevac and Varvarin, where we have set up a total of 600 skips (bell-shaped recycling bins).

We have provided guidelines for improving electric and electronic waste management in the Grey Book, by advocating for a system of extended economic responsibility.

Finally, our Alliance is actively engaged in defining the best model for packaging waste management, and we are currently working on a study for which we hired a well-known consultancy from Great Britain.

The study should come up with the best combination for Serbia of a smart deposit return system and the existing extended

Almost all NALED activities in environmental protection are listed in the Grey Book recommendations, which proves their importance, and wastewater management is among the 10 priority aims

producer responsibility system, considering economic, social and environmental protection factors.

In the accession negotiations with the EU, environmental protection stands out as the area requiring the greatest investment.

One of the long-standing recommendations of the Grey Book is to establish a functional Green Fund that would help projects at both state and local level.

The wastewater management system will undoubtedly be the most expensive.

Through the Public-Private Development Dialogue project supported by USAID, we have pointed to great investment needs for the sewerage network and wastewater treatment plants, for which we shall have to reach out to international funds and work on cleaning up our own back yard by boosting the inspection of wastewater management and preparing companies and local governments for their future obligations.

Those who pollute most will face the greatest financial burden. Current tax and compensation policies do not stimulate any efforts to reduce pollution. For this reason, we have prepared a strategy to stimulate polluters to make great efforts to reduce harmful emissions, particularly for vehicles and poisonous gas emissions from industrial facilities.

UNA LJUBIČIĆ, PRESIDENT OF THE HEALTHCARE ALLIANCE

No Paper Copies For Doctor’s Appointments

The pandemic has emphasised the importance of electronic access to all health services. The condition to achieve this is the establishment of an eHealthRecord

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lthough at first glance you may not connect the healthcare sector with improving the business environment, the Grey Book has included more than a dozen recommendations related to healthcare in previous years. Since the breakout of the Covid-19 pandemic, the importance of improving healthcare procedures is no longer a mystery to anyone.

Now, three years after paper prescriptions have become a thing of the past thanks to ePrescriptions, there is no reason not to replace paper health records with electronic ones, so every doctor we visit, either in the state healthcare system or in private practice, will be a click away from all the data on your previous examinations, results and

therapies. From there, we will be only a step away from further development of electronic healthcare in Serbia, which would ensure cheaper and more efficient solutions to the challenges people and companies face both in regular and crisis conditions.

Establishing electronic health records has rightfully been placed among the 10 priority NALED recommendations in the 13th edition of the Grey Book.

It is one of many elements required for the strategic approach to the development of eHealthcare currently being prepared, since an initiative of the Healthcare Alliance prompted the government to form the Coordination Body for Healthcare Digitalisation, in which we will be working together on developing new electronic services.

It goes without saying that neither the eHealthRecord nor related services will be complete without integrating public and private healthcare sectors. Connecting the two systems is a longstanding Grey Book recommendation that now seems inevitable. Among other things it would enable more efficient use of taxpayers’ money. Private healthcare capacities available during the pandemic could have significantly reduced the strain on public hospitals and improved service quality.

To compete with the private sector, the public healthcare system must

Serbians spend 40% of their money in healthcare directly from their own pockets, among the highest percentages in Western Balkans, but that does not guarantee them the best service

be optimised through improving the network plan and using available resources better. To this end the Grey Book also contains a recommendation for more efficient use of available funds by improving the centralised public procurement system.

At the start of the pandemic, the Healthcare Alliance gave a great contribution and support to the government.

At the very beginning of the state of emergency in March, we suggested 15 urgent measures for healthcare, and in June we defined 10 additional measures to mitigate the negative effects of the pandemic.

We may have been somewhat prophetic, since having identified the need to modernise healthcare and prepare it for future challenges, we published the first special edition of the Grey Book of Healthcare in February last year. It contains 50 recommendations to reduce administrative obstacles faced by people and companies in the field of healthcare.

The pandemic that broke out a month later forced institutions to place this publication high on their agenda.

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ROBERTO ROCHA, PFIZER GENERAL MANAGER FOR THE ADRIATIC REGION

No Shortcuts Pfizer combined its state-of-the-art vaccine development, manufacturing might and distribution networks with BioNTech’s expertise in innovative mRNA technology to develop, manufacture and distribute large quantities of high-quality Covid-19 vaccine in record time

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iven the urgency of the pandemic, Pfizer risked more than 2 billion dollars to run clinical development and manufacturing in parallel and at scale.

“I am happy to say our collaboration between private and public sectors has been largely successful”, says Rocha Serbia was among the world's first five countries to sign a contract and receive Pfizer vaccines, and was one of the first to begin immunisation. Does this mean that the Serbian Government found a way to accelerate everything on the administrative side?

We knew early on that a safe and effective vaccine would be essential to ending the pandemic. Collaborating closely with regulatory and health authorities around the world, including the EMA in Europe and the government in Serbia, we compressed timelines that typically take years into months, and those that take months into weeks. Conversations between Pfizer and the Serbian government had started by mid-year 2020 and we’re glad to say that since the first interaction, the Serbian government showed full understanding of the gravity of the situation and the need for quick and straight decisions.

Most of industry has spent an entire year struggling with challenges, limita-

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tions and tribulations, while pharmaceutical companies including Pfizer have been in a somewhat better position, right?

Given the urgency of the pandemic, Pfizer risked more than 2 billion dollars to run clinical development and manufacturing in parallel and at scale.

Patients and science were at the forefront of our efforts, and we took no shortcuts but worked innovatively to conduct key steps of the process in parallel rather than the usual sequential approach. As a result, we were able to move at the speed of science and make the seemingly impossible happen: delivering in less than a year a breakthrough Covid-19 vaccine that was authorized and recommended in Europe and with authorities globally.

Making sure this breakthrough reached patients around the world demanded unprecedented collaboration between the private and public sectors – and I am happy to say this collaboration has been largely successful.

Pfizer is a member of the NALED Healthcare Alliance, which brings together stakeholders from industry and local government. What is the goal of this alliance?

With its engagement in NALED, Pfizer wants to offer its knowledge and expertise in the healthcare environment. We

believe that our staff’s broad overview of Serbian healthcare and the pharmaceutical system can make a very efficient and detailed contribution to the Grey book for healthcare.

Can the NALED Grey Book's recommendations for healthcare support the Serbian government in developing an online system of e-healthcare and optimise the network of healthcare

In less than a year we delivered a Covid-19 vaccine that was authorized and recommended in Europe and around the world facilities? Is the importance of such reforms best demonstrated under extraordinary circumstances like those of a pandemic?

NALED’s Grey Book holds several recommendations for optimizing healthcare and its administration in Serbia. So-called e-health with more intense digitalization will for sure create future healthcare systems. In Pfizer we are glad to be part of this innovation and to contribute our knowledge, skills and experience for better health outcomes for patients.

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DEJAN PEŠIĆ, CEO OF MEDIGROUP SYSTEM

Behind Every Success Of Our System Stands A Dedicated Team From the acquisition of the most reputable and the oldest private healthcare institutions in the country to the gradual expansion of its service range, in just eight years, MediGroup has earned the title of the single largest private healthcare system in the country. Today, it is an example of good medical practice, but it is also recognised as a system that has recently achieved significant growth and development

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or more about how it was formed, the challenges of corporate business, and its future goals, CORD Magazine talks to Dejan Pešić, CEO of MediGroup and Vice-President of NALED's Healthcare Alliance.

Did you model MediGroup on an existing healthcare system? What was the original idea in 2013 when you began acquiring the oldest and most reputed private healthcare institutions in the country?

In the first decade of the 21st century, the countries of Central and Eastern Europe gradually started consolidating widely scattered privately owned healthcare institutions. The markets were extremely fragmented and the only road to efficiency led through consolidation. We

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noticed these trends and came up with the idea of making MediGroup not just what it is today, but also what it will be in the coming years - at that time our goal was to become the largest private healthcare system and we have succeeded. The integration of institutions with the longest tradition in private healthcare in Serbia with numerous new ones proved to be a success. This strategic goal enabled us to fuse into a highly functional and efficient system comprising hospitals, healthcare centres, laboratories and pharmacies, all under a single brand - MediGroup.

MediGroup is the single largest healthcare system in Serbia and the region.

What makes it so big? The fact that it has more than 1,150 permanent staff, over 1,000 consultants, 16 medical centres

and state-of-the-art equipment? In your opinion, what sets it apart from others?

All of these figures make us who we are.

What sets us apart are the expert medical teams and the most modern equipment, thanks to which we will perform more than 1,000,000 procedures this year.

You recently doubled the number of healthcare institutions and the number of users, compromising neither the quality of services nor the satisfaction of both patients and staff. You have succeeded where many others failed.

What is the secret of your success?

Our team consists of carefully selected and highly professional medical and technical staff, with our professional management focused on achieving the strategic goals of MediGroup, which follow the principles

and high standards of best international practice. When you have such a team behind you - you can expect even greater success in the future. Our system has a structure composed of extremely high quality professionals. There is a shortage of staff in health management in Serbia, because our country in practice does not have a faculty that deals with this profession and that creates people who are professional enough to do that job. For that reason, it is important to choose the highest quality individuals who are polyvalent in terms of personal education, full of enthusiasm and as such ready to “jump in” to different contexts. Our team is made up of just such people - those who have the ability to quickly master a new context, to go deep into it and eventually pass it on to new people who also think in that way. All this allows us to develop a far-reaching view and strategy for our system where it is clear what our goals are and what exactly we need to do to achieve them.

As the vice-president of NALED's Healthcare Alliance, what are its reform priorities?

First of all, it is my great honour and pleasure to to have the opportunity to contribute to reforms by investing my knowledge and experience. In the coming period, the reform priorities of NALED's Healthcare Alliance are the development of e-Healthcare and the establishment of a permanent dialogue mechanism between the public and the private sector in this area and finally, the integration of the public and private healthcare sectors.

These priorities have been set to make healthcare services more readily available, but also to improve the quality of healthcare services through technology and the unification of the systems.

What is the current status of the planned digitalisation of healthcare services through improved electronic scheduling of appointments, introduction of electronic health records and electronic sick leave notices?

There is a great determination and readiness on the part of the Government of the Republic of Serbia, which has allocated resources for the digitalization of health services to really happen. We are actively

MediGroup continuously invests in system development, modern spaces and equipment, staff education, creating the highest level of patient service.

Our team consists of carefully selected and highly professional medical and technical staff, as well as professional management focused on achieving the MG strategic goals that follow the principles and high standards of best international practice. working on developing the action plan for digitalization in health care and establishing a single electronic health card.

In your opinion, is full integration of the private sector into the healthcare system possible in the next five or six years? What do you think, could it be the solution to many problems?

Gradual, planned, strategic integration is something that can certainly be the solution. Private healthcare capacities are underused, and putting them to use would ensure more patients receive the

medical treatments they need without having to wait. For example: MR, CT, implantation of knee and hip endoprosthesis, coronary angiography, are just some of the procedures in which the private health sector has the capacity to engage without delay.

MediGroup is one of only eight companies over the last 25 years to win the title Champion of Excellence in as much as five categories. What is your perspective on the accolades and prizes won for business excellence and quality services - have they become a norm for you?

The prizes are always a kind of a challenge - besides being a pleasure, they carry a certain responsibility, which is precisely how I see all the recognitions won so far. Naturally, Champion of Excellence is special and very valuable to us because of the fact that it is awarded by a respectable institution - the Serbian Chamber of Commerce. Preparation for participation in the prize competition demanded full commitment of the entire team in the MediGroup system all departments took part and with joint forces we succeeded in meeting all the requirements to be short-listed. Though I cherish and value every award, this one is special as we believe it to be a reward for each and every one of us.

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MILOŠ RISTIĆ, EXECUTIVE DIRECTOR OF SOPHARMA TRADING

We Are Creating A Modern Healthcare System

For Sopharma Trading, a member of the Sopharma AD Group, entering the Serbian market is the first phase of expansion in the Balkans and part of a strategy to expand international business. Serbia is a country with great potential and a deep long-term potential for company expansion

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ccording to director Miloš Ristić, the strength and distinction of Sopharma Trading lies in its culture of company values and people who are dedicated to building a strong and recognizable regional group

Was the arrival of Sopharma Trading in Serbia a good business move? Has the investment paid off?

Our results so far are excellent compared to plans. In 2020, we achieved record business growth as a result of investment and setting up the organizational structure of the company, and we are ready to multiply our revenue many times in the next few years.

Besides our shareholders and staff, our business partners and clients are also satisfied with a reliable and stable long-term partner.

As an innovator and pioneer in doing business in Bulgaria, has Sopharma introduced new technologies and practices to the Serbian market?

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After we acquired the Serbian company Lekovit, we introduced a successful business practice that we had been developing for years on the Bulgarian market. We set up an organizational company design and structure that has great potential for busi-

of the Šabac distribution centre; built a completely new distribution centre in Pukovac to provide maximum coverage of southern Serbia; increased the speed of deliveries and almost doubled their number compared to three years ago.

Our task is to ensure everyday availability of all products on the market, and in times of crisis, preserving the health of the population is the dominant interest

You once announced that your goal is to become market leader in Serbia and then use that development model as the basis for regional expansion.

How is that going?

We’re doing really well. By the end of this year, we will almost have tripled our operating revenue, compared to the time before the acquisition of Lekovit. Besides revenue growth and overall business, we have also worked on the development of our entire organization and distribution capacity. We regularly supply almost all pharmacies and hospitals in Serbia and we are improving cooperation and increasing business volume by the day.

ness and revenue growth, we implemented a new ERP system and selected SAP, with all the modules and adaptation tailored to a pharmaceutical company. As the first in Serbia, we installed the Hybris business platform, part of SAP’s B2B communication software; we expanded the capacity

You acquired Lekovit, you opened a distribution centre in the village of Pukovac near Doljevac, you became the first healthcare company in Serbia to invest heavily in digital services. What are your further plans?

Our further plans are connected to developing a new, fully automated distribution centre in Stara Pazova, developing marketing support to manufacturers to promote their products, registering new drugs and modern therapies that will be the future in the modern healthcare system, cooperating vertically in marketing, distribution, regulatory activities and product development with our production company in the Sopharma AD group and with our partner manufacturers. The technology we are using and will install at our new distribution centre is the last word in technology globally.

Accumulated debts in health institutions and pharmacies, bureaucracy, lack of medicines and health services are some of the biggest problems in Serbian healthcare. You are a member of NALED's Healthcare Alliance, what solutions does it propose?

The Healthcare Alliance has achieved a lot and we are proud of our membership of NALED. The results achieved in debt collection, regulation of the economic framework, regulatory solutions in the healthcare system, constant efforts to improve services in the overall healthcare system and product availability have been key goals of the Alliance. Business transparency, a sustainable healthcare system, support and partnership between private and public sectors are key conditions for the functioning of a country's healthcare system. Together we are building a modern healthcare system that will respond to all challenges. During the pandemic, members of the Healthcare Alliance showed unity and responsibility and assured the functioning and supply of the entire healthcare system in difficult conditions.

How can we make healthcare more competitive, effective and attractive?

How to improve the availability and efficiency of healthcare?

The crucial conditions for competitiveness and effectiveness are free trade, transparency, openness of the healthcare system, modern therapies in accordance with global trends and respect for the laws of free competition on the market. Liberalization of business and greater competition, especially from foreign companies, removes some of the existing barriers to fair and free market supply, as opposed to exclusive agreements between suppliers and one or a small number of distributers.

That process is still slow in Serbia, but it’s changing every day. We are continuing to invest in the Serbian market because we see the perspective of European business standards, with great future potential for the growth of the entire healthcare sector.

It seems that despite daunting administrative obstacles, we have coped well during the pandemic. How do you explain that?

The healthcare system in Serbia is quite well set up and the protection of people’s health during the pandemic was undoubtedly a high priority for the Government. The degree of adaptability and flexibility of the entire healthcare sector was confirmed

The Healthcare Association has achieved considerable results, so we are proud of our membership of NALED by the quick reaction of all participants.

Our task is to take care of the everyday availability of all products on the market.

In times of crisis, preserving the health of the population is the dominant interest, so it is our social obligation to place all our resources at the disposal of the healthcare system. In difficult conditions of limited movement, limited working hours of pharmacies, special work regimes for Covid dispensaries and hospitals, we have found ways to deliver all the necessary drugs, medical devices and other products in line with the needs of pharmacies and hospitals, and for the benefit of end users.

Night work, overtime work, daily disinfection of all warehouses and transport vehicles, protective equipment for all staff, prevention and full compliance with government measures to combat the spread of the pandemic have been the axioms of our company's sustainability, and at the same time a contribution to maintaining and preserving the smooth functioning of the healthcare system.

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BUSINESS FRIENDLY CITIES AND MUNICIPALITIES The Business Friendly Certification of municipalities and cities in SouthEast Europe (BFC SEE) gives local governments a plan for reform and clear guidelines on how to create a good business climate and introduce internationally recognized standards of efficient and transparent administration. For businesses and investors, BFC SEE provides a stable and predictable business environment and helps identify places that offer the best conditions for investment and development.

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ŠABAC

Our Priority Is Developing Business Infrastructure Metaloplastika, Šabac Fair, Tekeriški Towel, National Museum, the largest industrial zone in Serbia, the most modern wastewater treatment plant. The list of unique features of of Šabac is becoming ever longer, and the comprehensive development plans of the new management guarantee our city recognition as the most desirable business location in Serbia.

ALEKSANDAR PAJIĆ, MAYOR OF ŠABAC

ENVIRONMENTAL PROTECTION, HEALTH AND EDUCATION Environmental protection in Šabac is also a priority of the municipal administration and we have already taken the first steps by setting up a mobile automatic air quality control station on the main square, and sizeable funds are being allocated so that the Public Health Institute can measure pollution at several points. We are also looking at the possibility of using cleaner energy sources. As only 30% of possible users are connected to the gas network, we see a solution in reducing the connection fee.

An important part of improving local life is investing in health care, which is especially prominent in these difficult times, and we do this from day to day, both at the general hospital and the health centre. Furthermore, constant investment must be made in education to provide children with all the conditions for acquiring knowledge. We want an educated and professional workforce that will enable us to make Šabac a city of the future, in which young people want to live and work, and high-tech companies to invest.

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NEW MOTORWAY, BRIDGE AND PIER We want to secure the position of economic development leader by completing the most important infrastructure projects. First and foremost are capital investments, construction of the motorway Ruma–Šabac, a new bridge over the Sava and a fast road to Loznica to connect us with our most important motorways – Miloš the Great and Corridor 10. The drive to Belgrade will be shortened to 40 minutes. Besides this, the construction of a port is planned, which will make Šabac the second town on the Sava with international river passenger traffic.

Thanks to the vision of President Aleksandar Vučić and the willingness to make huge investments in road infrastructure, Šabac will open its doors to new investors in October 2023, when the works are expected to be completed, providing new jobs and a better standard of living through faster development.

CHINESE BUILDING NEW FACTORY That foreigners want to invest in Šabac is also shown by the announced opening of a new plant of the Chinese company Mint Automotive in the Northwest Industrial Zone, which will be the biggest investment for the city after the arrival of the Japanese Jazaki. Much attention is paid to shortening the time for obtaining permits and removing barriers to investment. The unique administrative position of the public administration enables efficient provision of services, as well as fast and simple communication between business and municipality.

Thanks to the support of the Republic, funds have been provided to expand the water and sewerage networks, for the construction of wastewater treatment plants in the town, suburbs and villages of Šabac.

The city of Čačak is the administrative, business, medical, educational and cultural centre of Moravica district and an excellent place for investment because it is surrounded by a growing market of 16 million consumers. We have a rich cultural and historical heritage, exceptional tourist potential and two faculties educating highly qualified experts.

TRAFFIC AND BUSINESS CENTRE OF SERBIA The main characteristic of industry in Čačak is well-developed private entrepreneurship, with the support of four business associations, the Science and Technology Park and the City Economic Council. The crucial advantages of this city with its century-old industrial tradition are its geographical position, good traffic connections, and the proximity of the Morava airport.

A crucially important investment for the development of the city was the recent construction of Corridor 11 (E-763) connecting Čačak and Belgrade. Due to the imminent completion of works on the Preljina-Požega section, the beginning of construction works on the Preljina-Pojate motorway and the construction of the rapid Mrčajevci-Kragujevac road, the position and importance of Čačak as a traffic and business centre of Serbia is undeniable. In this context, the business zones of Preljina, Konjevici and Cer will be increasingly important for attracting both foreign investment and domestic business.

Beside business development, the city is actively investing in projects for water supply, sewerage, wastewater treatment, healthcare, education, youth activities, culture, tourism and sport.

OVČAR BANJA AND NADEŽDA PETROVIĆ GALLERY Cultural heritage and natural beauty around the city make Čačak an exceptional tourist destination. Our most prominent landmark is close by - the famous Ovčar spa, Ovčarsko-Kablarska gorge, the lakes and meanders of the West Morava.

The thermo-mineral springs of the spa and its healing effect in the treatment of rheumatic diseases, 10 medieval monasteries that brought this area the flattering name of the Serbian Holy Mountain, are a must-see for all tourists.

The Tourism Development Programme of the City of Čačak for the period 20192024 pointed to our great opportunities in this sector, and it is important that the Interdepartmental Working Group of the Government of Serbia consider the development of the tourist potential of the Ovčarsko-Kablarska Gorge. Another of our recognizable landmarks is the gallery of our famous painter Nadežda Petrović, whose work will be included on the UNESCO list.

ČAČAK

Welcome To The City Of Entrepreneurs And A Great Industrial Tradition

MILUN TODOROVIĆ, MAYOR OF ČAČAK

WINNERS OF BFC SEE CERTIFICATION In April 2021, the City of Čačak met the criteria for the Certification Program for Cities and Municipalities with a Favourable Business Environment in Southeast Europe (BFC SEE) and proved that it provides services of the highest international standards to existing industry and potential investors. Also, the Local Economic Development Program and the Employment Action Plan adopted by Čačak will contribute to economic development, opening new companies and jobs. Our goal is to position Čačak as a strong business centre in Southeast Europe, to encourage the introduction of new technologies and innovation in production processes and to increase exports. When we achieve all that – and we will – our city will be an even better investment for business and life announces Mayor Todorović.

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UŽICE

Come To The Largest Centre In Western Serbia

DR JELENA RAKOVIĆ RADIVOJEVIĆ, MAYOR OF UŽICE

The approach of the Miloš the Great motorway to Užice will further strengthen the capacity of our city as a regional centre.

We have contributed to this by creating a good business climate with the business friendly certification (BFC SEE), which has shown our commitment to continuous work on development and qualified us for the support of national institutions and donors.

A CALL FOR TOURISTS Its natural beauty makes the Užice region one of the most appealing in the Balkans and carries a great potential for development based on tourism. We pay special attention to rural tourism, and our recognizable sights are of great interest to visitors: Tara National Park, Mokra Gora - Shargan, Zlatibor Nature Park, Potpeć Cave, Cetinje River Canyon, the Old Town, a hydroelectric power plant under the town – the first power plant in Europe built according to Tesla's principles – and the new legacy of the painter Mihailo Milovanović.

During the year, internationally renowned festivals are held in the municipality: Kustendorf Film Festival, Užice Summer, Native Days of Mokra Gora, Jumps from the Old Railway Bridge, Žestival, Yugoslav Theatre Festival, Licidersko Srce, Zlakusa Colony, Suva Igla Bienale.

STRONG BUSINESS SUPPORT The formation of a single administrative location has made our administration faster and more efficient for the public and for industry, and we have paid special attention to supporting entrepreneurship. A business incubator has been developed which in 1,600 m2 is home to 15 companies with 120 staff. The activities supported by the incubator are productive, innovative and intellectual.

To stimulate entrepreneurship, we have reduced by 20% the municipal fee for manufacturing and for promoting a company on its business premises, while for bread and pastry production it was reduced by 50%. Through subsidies, we are encouraging successful self-employment programmes in cooperation with the National Employment Service.

MANY PLACES FOR INVESTORS We offer investors plenty of space for business development. With the public-private partnership between Užice, the copper rolling mill AD Sevojno and Impol Seval AD, the Užice Free Zone was formed, one of 15 in Serbia, with eight companies. There are solid incentives such as duty-free import of equipment and raw materials for products intended for export, and exemption from VAT on energy.

The city of Užice also has the commercial zone Krčagovo with a large number of businesses and we are planning to build a new industrial zone with more than 30 hectares of available land at Bela Zemlja, whose greatest advantage is access to important roads on the border of Serbia, BiH and Montenegro. The construction of the Miloš the Great motorway opens new perspectives for the whole Zlatibor district.

Work will soon follow to make Ponikve Airport fully operational.

In our great work for the further development of Užice, we will use the tailwind of all the reforms, efforts and results undertaken at state level, but we are also ready to change and reform ourselves. The results will not be absent.

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When a city meets the highest international standards of good business environment with almost maximum results, which makes it one of the most successful local governments in the entire region, then you know that starting a business there is a secure investment.

LESKOVAC

Best In The Region For Investment

FOUR QUALITY AWARDS Since the establishment of the business friendly certification programme and its expansion to the region of Southeast Europe (BFC SEE), the City of Leskovac has confirmed that it has developed an administration that offers services to existing businesses and potential investors. This year, we obtained our fourth certificate, fulfilling over 96% of the criteria, and in six of the 10 criteria we had top marks.

Together with the municipality of Gradiška in BiH, this is the best result in the entire region.

ECONOMIC MEASURES SOFTEN LOCAL EFFECTS OF CRISIS

CITY OF THE AUTO INDUSTRY AND BEST BARBECUE In 2012, Leskovac began to address its development systematically. A Local Employment Action Plan was prepared and a functional office for local economic development was established, in charge of communication with existing companies and potential investors. In attracting investment, the city was guided by the recommendations of the BFC programme and we targeted investors from the industries in which we have the greatest potential. That is the reason why there is a number of investments in the automotive (South Korean Jura, British Aptiv and Greek Autostop), textile (Turkish Jeans, German Falke and domestic Bim tex) and construction industries (IGM Mladost and Terastil). When it comes to local investors, DCP Hemigal stands out. Another strong point of Leskovac is our unique touristic offer – gastronomic events such as the great annual barbecue festival Rostiljijada, and local specialties such as barbecue and ajvar, in addition to famous sights: the small hydroelectric power plant in Vučje (the second oldest in Serbia), Caričin Grad, the Textile Industry Museum and many others.

National economic policies have had a strong impact on mitigating the consequences of the pandemic, both throughout Serbia and locally. In that sense, it is important to point out the speed with which our economy adapts to new circumstances, and as a doctor, I would like to emphasize that Serbia takes the lead in vaccination. A measures that I think would be relevant in these circumstances is a greater incentive for domestic investors, primarily small and medium enterprises, because it would contribute to economic activity and employment.

GORAN CVETANOVIĆ PHD, MAYOR OF LESKOVAC

WELL-DEVELOPED INFRASTRUCTURE Large investments and a well-developed economy would certainly not have come about if the City of Leskovac had not created optimal infrastructure for business, with a special emphasis on the construction of a gas pipeline, the central wastewater treatment plant and city collector, the newly equipped industrial zone, the regional sanitary landfill at Željkovac and Barje water system. The strategic position of the city on Corridor 10 is also important, it is less than three-hour-drive away from Belgrade and Sofia by motorway, and four hours from the sea in Thessaloniki.

To provide investors with the best conditions, the city can offer urban construction land free of charge, exemption or reduction of fees for preparing construction land, exemption for certain large, medium, or small legal entities and sole traders from paying municipal charges to establish a company.

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BATOČINA

Strategic Position Is Our Main Asset 400,000 people live within a of 30 km radius of Batočina. We are located near Corridor 10, an hour from Belgrade and have two industrial zones. We know how to use such potential.

ZDRAVKO MLADENOVIĆ, MAYOR OF BATOČINA

STATE SUPPORT IS IMPORTANT Our task is to recognize the needs of our residents, and for the state to create an environment to provide them with good living conditions. The state has really made great efforts in recent years to make both small and underdeveloped municipalities attractive for investment.

By supporting the equipping of industrial zones and finding foreign investors, the state can significantly improve the overall environment in a small municipality such as Batočina. On the other hand, investment in infrastructure, roads and public facilities should not be neglected, and the state has developed a strong mechanism of assistance to local governments through the Office for Public Investment Management.

TWO INDUSTRIAL ZONES The key priorities of the municipal management are investment in infrastructure, especially in the construction of our own water supply system, sewerage network and wastewater regulation. Also, in order to provide good conditions for investment to businesses and potential investors, we must think about business infrastructure, or completing the equipment of our two industrial zones and creating an environment for attracting investment to reduce unemployment. Reducing unemployment is our top priority and my assessment of the scope and speed of the implementation of reforms is positive, because they really enable investors to realize their investments easily.

IDEAL POSITION FOR BUSINESS DEVELOPMENT The municipality of Batočina has an excellent geographical position and it is our main and so far underused asset. We are located on the largest road in our country, exactly halfway between Belgrade and Niš and are practically an unavoidable stop when entering the regional industrial centre of Kragujevac. We are working on using our potential to build production facilities or distribution centres in one of our two industrial zones. One of our main promoters is the company Brzan Plast, the only waste plastic processor in Serbia. This family company founded on the territory of our municipality is a real example of how quality businesses can successfully develop in our environment. There are also companies such as Grah automotive, Aluroll, Polipak and others. Agriculture is our main occupation and we invest a lot through subsidies, and we see an opportunity in investing in tourism, culture and folk crafts.

WHEN IN BATOČINA, MAKE SURE YOU VISIT We will always direct anyone wanting to know more about Batočina to the village of Brzan to see the Church Brvnara, built in 1822 by Prince Miloš Obrenović.

The church is a monument and was active for more than 100 years until the construction of a new one, and now it is a landmark for guests from Serbia and the inhabitants of Batočina. Also on the territory of our municipality you will find Jerina cave, formed in the Paleolithic era, around 25,000 BC. It is one of the oldest archaeological sites and one of the first places of ancient life in Serbia.

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NALED MEMBERS OUTLINE AN AGENDA FOR THE GOVERNMENT At the 13th Annual Conference on Economic Reform in Serbia, NALED members had the opportunity to outline the next year’s Government agenda to the Prime Minister and government. By choosing three crucial recommendations among 10 priorities, they showed the direction these reforms should take to improve business conditions.

GB#

RECOMMENDATION TITLE

RELEVANT MINISTRY

VOTES

1.3

Reduce payroll deductions

Ministry of Finance

56%

13.16

Improve the wastewater treatment and monitoring system

Ministry of Environmental Protection Ministry of Agriculture, Forestry and Water Management

49%

3.3

Establish electronic health records

Ministry of Health

38%

1.24

Introduce non-cash payment of charges without proof of payment

Ministry of Finance

27%

13.4

Enable the issue of a consolidated certificate on paid taxes

Ministry of Finance IT and e-Government Office

19%

7.1

An online register of agricultural holdings and subsidies (eAgrar)

Ministry of Agriculture, Forestry and Water Management

18%

14.1

Eliminate redundant bureaucracy in foreign exchange operations

National Bank of Serbia

18%

5.2

Abolish the conversion fee for land property rights

Ministry of Construction, Transport and Infrastructure

16%

1.23

Establish a public electronic register of non-tax charges

Ministry of Finance

14%

4.5

Extend the simplified registration of seasonal workers

Ministry of Labour, Employment, Veterans and Social Affairs

13%

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JELENA BOJOVIĆ, NALED DIRECTOR OF REGULATORY REFORM

Top Recommendations For The Day After Solving just the 10 priority recommendations of the Grey Book 13 would revolutionise business environment in Serbia, and this is not an unattainable goal. For some of them, we have already secured financial donations and provided software. Some require just the will to change outdated regulation or IT creativity and engineering. Just a couple of them need extensive funding or in-depth analysis and delicate decision making

A

t first glance, the choice didn’t seem that difficult, as our top ten recommendations directly affect both business and the public. They can reduce costs and facilitate administrative procedures, as they eliminate unnecessary bureaucracy and the need to submit documents in person.

FINANCIAL RELIEF Reducing payroll deductions is both the most important business recommendation and the longest-lasting one in the Grey Book. NALED research has found that two thirds of business leaders think payroll deductions are the greatest obstacle to business and believe this obligation is the one most often avoided. This recommendation has been one of the key measures of the National Programme for Suppression of the Grey Economy since 2015. Although burdens on net income have gradually changed, coming down from 63% to 61% between

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2018 and 2020, this has not been enough to eliminate the grey economy. Business leaders estimate that at least a quarter of all workers receive part of their payment in cash. Reducing payroll deductions is a particularly demanding reform, and we propose progressive taxation so that lower incomes are taxed less. We also propose abolishing contributions for obligatory healthcare and introducing the Beveridge model that would allow healthcare to be financed from general taxes. This would provide healthcare for all Serbians regardless of their employment status, increase our business competitiveness with lower labour costs, relieve the state administration, companies and the public as the validity of health insurance cards would no longer need to be extended, and make it easier to control funds for crucial healthcare investment. The data indicate that more than 98% of the population has some

form of health insurance, while just over half (55%) pay healthcare contributions.

This reform can be designed so as not place an additional burden on the budget (5% of new beneficiaries), and it would allow everyone to have health insurance, while businesses would get an incentive they can really feel, to forge ahead with economic development.

REGISTER OF NON-FISCAL CHARGES Establishing a register of non-fiscal charges is another long-standing Grey Book recommendation. Passing the Law on Fees for the use of Public Goods in 2018 was the first important step towards reforming them. But the scope of these fees remained insufficiently defined, which still affects the predictability and transparency of the fiscal system. A public, electronic register of non-fiscal charges is needed, including all state,

provincial and local charges, with obligatory effect. This would mean that a non-fiscal charge can be collected only if it is in the register. This would allow people and businesses to have secure knowledge of charges, and increase income control for all beneficiaries of public funds. Over the past year, with the help of KPMG and USAID, we listed almost 1,200 non-fiscal charges at the national level and scanned the system that collects administrative and utility fees at a local level. We are preparing this reform and the registry, as we want to present its appearance and advantages to the institutions and to the professional and general public.

Proposals to introduce non-cash payment of charges and unification of tax certificates is a good example of an antibureaucratic recommendation. It is evident that non-cash payments would save time and money for people and businesses. This would also allow us to abandon another relic of the past – payment slips – that forced us to run back and forth between bank and counter. The proposal to unify tax certificates issued by the central and local tax administrations would be a logical step to digitalising their issue. The next step could be to merge the two documents into one, and receive them electronically without payment, which would eliminate the hazard of one certificate expiring before you can get the other.

PUBLIC HEALTH Establishing an electronic health card is the most urgent priority. Again, this recommendation has implications for everyone. The benefits are evident, as data on health conditions, tests and therapy would always be available, no matter whether the patient is at a private or state medical institution. Having to repeat medical examinations, laboratory analyses, or return to health centres to get referral letters would become another relic of the past.

This crucial recommendation for public health and well-being could be coupled with the recommendation for improving wastewater treatment. Since there are currently only a dozen treatment plants in Serbia, and we need over 300, it is evident that we are far from our goal. But the first step would be to make it easier for

companies to fulfil their obligations, then to strengthen the supervision to enforce them. Finding the funds for investment would be the next step. The state has provided support to build 28 more plants, signalling an awareness of the issue.

We are actively trying to extend the simplified procedure for registration of seasonal workers to new sectors: construction, tourism and hospitality, and domestic work. With the help of ministries, we are trying to expand this system as we have seen the positive effect this GIZ-supported electronic procedure has had on agriculture, with 44,000 seasonal workers registered in two years and taxes and contributions paid amounting to 590 million dinars. Workers who have been doing these jobs illegally for years or even decades will have the right to pensionable employment and healthcare in case of an occupational accident, and they would not lose their right to social benefits. Employers would have a simple registration procedure, and the state would have less people working in the grey economy. The importance of this recommendation was also highlighted by the IMF. DIGITALIZATION OF AGRICULTURE Digitalising a traditional sector such as agriculture is another priority. Registering or changing data about agricultural holdings proves to be a highly bureaucratic process, as it involves collecting and submitting many documents, two thirds of which are already in the possession of state bodies. An electronic system, called eAgrar, would allow people to finalise these procedures and apply for subsidies from their homes. The scope of this reform is also important, involving almost 400,000 agricultural holdings that would receive incentives faster and more easily.

On the other hand, the importance of the recommendation to abolish fees for land conversion to full property rights is primarily reflected in its potential economic impact. From 2015 to 2019, the state collected only seven million euros for land conversion, but lost investment and jobs amounting to tens or even hundreds of millions (loss of fees, income and corporate tax, VAT, etc). This

conversion has blocked the use of a vast area of construction land, as businesses feel they are forced to pay for the land a second time. Even when they start the conversion process, the final decision can arrive years later or the fee to be paid could surpass the initial cost of the land.

It is obvious that conversion fees have not served their intended purpose, and now it is high time to abolish them and encourage investment.

And finally, if we are looking for the champion among overly complicated bureaucratic procedures, it would definitely be the Law on Foreign Exchange Operations. Just the fact that this regulation is followed by 33 bylaws should say enough. These acts impose very restrictive obligations and short deadlines, most of them out of sync with contemporary business operations. Every single Serbian company doing business abroad would support such a reform.

SUPPORT FOR THE IMPLEMENTATION Solving just the 10 priority recommendations of the Grey Book 13 would revolutionise working conditions in Serbia, and this is not an unattainable goal.

For example, we have already secured financial donations and provided software for some of them: establishing the register of non-fiscal charges and expanding the simplified procedure for registering seasonal workers. To abolish conversion fees or amend the Law on Foreign Exchange Operations what is most needed is just the will to change outdated regulation.

Establishing an electronic healthcare card, non-cash payment of charges, eAgrar and unifying tax certificates requires a lot of IT creativity and engineering, but apart from the time necessary to design and test the solutions, there is hardly any obstacle to these recommendations, not even amending laws and bylaws.

The construction of water treatment plants sets a clear goal, finding billions of dollars in donations, as this is the estimated price for the sewerage network and plants. Until then, establishing a functional model to reduce payroll deductions is the most delicate and long-lasting recommendation in the Grey Book.

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MINISTRY OF TRADE, TOURISM AND TELECOMMUNICATIONS

TRADE | TOURISM | TELECOMMUNICATIONS 2021

2

TRADE | TOURISM | TELECOMMUNICATIONS 2021

Leadership in telecommunications is also essential, since we are now in the age of e-commerce.

Michael Oxley 3

TRADE | TOURISM | TELECOMMUNICATIONS 2021

CONTENTS

WE WERE READY 06 FOR UNEXPECTED DISRUPTIONS TATJANA MATIĆ, Minister of Trade, Tourism and Telecommunications

FROM THE 10 LEARN SUCCESSFUL

DEJAN ĐUKIĆ, Director of the Serbian National Internet Domain Registry (RNIDS)

DIGITAL 16 TRANSFORMATION MUST BE INCLUSIVE

MILOŠ CVETANOVIĆ, Secretary of State in the Sector for Information Society and Information Security

AGE OF 17 GOLDEN E-COMMERCE

VLADIMIR SPASIĆ, Account Executive, Dell EMC

SOLIDARITY AND TRUST ACQUIRED 12 13 COOPERATION ARE KEY THROUGH QUALITY TO SUCCESS OLIVERA JOCIĆ, Assistant Minister in the Sector for Foreign Trade Policy, Multilateral and Regional Economic and Trade Cooperation

WE WANT TO THE LAW MUST 18 25 ELIMINATE THE DIGITAL FOLLOW LIFE’S DIVIDE IN SERBIA IMPOSED DEMANDS

ZORAN ĐORĐEVIĆ, Post of Serbia Director

MILAN DOBRIJEVIĆ, Assistant Minister, Sector for Electronic Communications and Postal Traffic

JOVAN STOJIĆ, Assistant Minister of Trade, Tourism and Telecommunications

mts IN THE GROUP 14 OF EUROPE’S BEST OPERATORS

OF 19 FOUNDATIONS AUTOMATION

26 WORLD-CLASS NAVIGATION SERVICES

ĐORĐE MAROVIĆ, Chief Technical Officer, Telekom Srbija

AIGO

CAN BOOST 22 5GECONOMIC GROWTH ANTONIO PASSARELLA, Country Manager, Ericsson Serbia

23

5G REMAINS AN ESSENTIAL DRIVER

BRANISLAV STAMATOVIĆ, Country Manager for Serbia and Montenegro, R&M

24

LOCAL TOURISTS REVEAL A DIFFERENT SERBIA

RENATA PINDŽO, Assistant Minister of Tourism

EDITOR IN CHIEF Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com ART DIRECTOR Branislav Ninković b.ninkovic@aim.rs

PROJECT MANAGERS Biljana Dević b.devic@aim.rs Vesna Vukajlović v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs

PHOTOS Zoran Petrović

OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs

COPY EDITOR Mark Pullen mrpeditorial@mail.com

EDITORIAL MANAGER Neda Lukić n.lukic@aim.rs

4

FINANCE Dragana Skrobonja finance@aim.rs GENERAL MANAGER Maja Vidaković m.vidakovic@aim.rs PUBLISHER Ivan Novčić i.novcic@aim.rs DIRECTOR Ana Novčić

a.novcic@aim.rs a.novcic@cordmagazine.com PRINTING Rotografika d.o.o.

Segedinski put 72, Subotica TRADE | TOURISM | TELECOMMUNICATIONS 2021 Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia

IVAN BILIĆ PRCIĆ, DIPL. ING., Inland Navigation Division Manager, Croatian Register of Shipping

THE PANDEMIC HAS 28 CHANGED CONSUMER HABITS VIŠNJA RAKIĆ, Assistant Minister in the Consumer Protection Sector

CONTINUING 29 GROWTH DESPITE CHALLENGES UROŠ KANDIĆ, Secretary of State at the Ministry of Trade, Tourism and Telecommunications

Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs; office@cordmagazine.com www.aim.rs; www.cordmagazine.com No 27 ISSN: 2560-4465 All rights reserved alliance international media 2021 The views expressed in this publication are those

of the presenter; they do not necessary reflect the view of publications published by alliance international media THIS PUBLICATION IS FREE OF CHARGE

TRADE | TOURISM | TELECOMMUNICATIONS 2021

COMMENT

E – LIFELINE The Coronavirus pandemic has highlighted the importance of digital transformation and connectivity for Serbia. It also showed that the diligent work of the Ministry of Trade, Tourism, and Telecommunications, as well as other partners in the public and private sector, has paid off.

T

here aren’t many policies (aside from fiscal discipline) that have been subjected to such fierce scrutiny as the long term work of the Ministry of Trade, Tourism, and Telecommunications in the areas of telecommunications and digitalisation.

It was a year ago, almost overnight, that everybody shifted their work and life online as much as possible – from the public administration and large public institutions, such as schools, hospitals and social services, to large sectors that were capable of transferring to remote work, small and medium-sized companies that suddenly found themselves ready to enter the waters of e commerce, and ordinary citizens.

This wouldn’t have been conceivable without the adequate infrastructure and long term planning and collaboration. It became evident that inter-sector policies that steered the way to e-government, e-banking and several other e-s, made the lives of businesses and citizens easier than we’d thought. In other words, thanks to a systemic approach to digitalisation in terms of regulatory devel-

opment, encouraging the development of telecommunications, information security, raising digital skills, developing e-commerce and enabling market liberalisation all paid off – for everything from e- learning to support for vaccination.

As a result of this, it turned out that most of Serbia had better internet connections

Many business procedures couldn’t be completed entirely online, as some legislation was missing or confusing. And some businesses in areas that had less 4G network coverage felt left behind.

With the current wisdom earned through the tough days of COVID-19, which is still with us, some of the policies envisaged as part of

The development of broadband is a great opportunity to accelerate economic progress in less developed areas of Serbia than many states with more advanced telecommunication sectors; that the Ministry, in collaboration with other partners, supported the massive shift of both large and small companies to E-commerce, providing a lifeline for many businesses that thought they wouldn’t be able to cope with so many health related restrictions.

Indeed, many loopholes also appeared. One of them is certainly digital illiteracy, both at the level of companies and the public administration, as well as in services and schools.

the Digital Agenda for the Western Balkans, as well as national polices related to digital transformation, seem to have become even more relevant. This relates to the 5G roadmap to digital transformation, the objective to cover all parts of Serbia with high-speed internet access, including those areas that private operators have no interest in developing, and to dramatically increase digital literacy across sectors and fields of work and life while further boosting ICT capacities and human capital.

5

TRADE | TOURISM | TELECOMMUNICATIONS 2021

INTERVIEW

TATJANA MATIĆ, MINISTER OF TRADE, TOURISM AND TELECOMMUNICATIONS

We Were Ready For

UNEXPECTED DISRUPTIONS Careful, systemically conceived and implemented digital transformation in Serbia has enabled the economy and citizens to be far more ready to confront the challenges they faced during the pandemic. Even in the tourism sector, which suffered the greatest consequences of the crisis, this sequence of events did not hinder the digital promotion of domestic potential.

T

he economic sectors that come under the scope of the work of the Ministry of Trade,Tourism andTelecommunications experienced tectonic disruptions during COVID-19, from the strong rise of E-commerce and the mass transition to working from home, to great pressures felt by the tourism sector.

We spoke with Minister Tatjana Matić about the digital transformation process in Serbia, the introduction of the 5G network and a new reconsidering of Serbian tourism’s position on the global map.

How would you summarise a year of life under the pandemic, from the perspective of your ministry?

The strategic commitment to digitalisation that was made five years ago has enabled Serbia not only to gain numerous development potentials, but also to fortify itself for the challenges of the modern era in terms of current social and economic changes. Although nobody could have predicted the terrible global crisis and the blow of the pandemic, it could be said that we were ready for unexpected disruptions thanks to our systemic approach to digitalisation in the areas of the development of regulations, stimulating the development of telecommunications, information security, raising the level of digital skills, developing E-commerce and enabling market liberalisation.

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BRANDING

DEVELOPMENT

NETWORKING

It is crucial for us to encourage investments in, and the promotion of, tourism in Serbia, given that we are awaited by the redefining and retaking of market positions around the entire world

Even at the current level of industry development, the development of the 5G network, as well as modern technologies, will undoubtedly provide a strong impetus to Serbia's overall development

The goal of the Government of Serbia is for there to be no household in the country without the possibility of fixed access to high-speed internet by 2025

All activities directed towards the development of the digital society and economy, including the adoption of laws, strategic documents and the implementation of numerous programmes and projects, have contributed to it being possible, under the circumstances of a pandemic, to do business and conduct activities related to education, communication and the overall functioning of society. The tourism sector alone suffered seriously, due to the impossibility of travel, but digital promotion was also carried out in that area, in parallel with the adoption and implementation of support measures and the planning of new strategic goals towards the conquering of market positions in the post-pandemic period.

In short, the results of our work from previous years significantly eased the tremendous stress that we’ve all been subjected to during this crisis.

When you look back, what are the strategic moves made in recent years that have enabled Serbia, according to the assessments of many, to succeed in ensuring good quality telecommunications during the mass transition of companies to working from home?

Intensive work on the development of broadband infrastructure has been carried out in Serbia over the last few years, thanks to the adopted strategic framework. Electronic communications operators are developing their own networks in line with the latest trends, which includes setting up optical communication infrastructure and increasing the coverage and capacity of mobile communication networks.

This enables uninterrupted work from home, as well as the use of broadband services even under the conditions of the COVID-19 pandemic. The timely release of parts of the radio frequency spectrum was provided, which enabled the intensive development of mobile networks.

Today we have secured 4G mobile network coverage for more than 95% of the population.

Likewise, considering the existence of the digital divide in Serbia, as well as in other European countries, the Ministry of Trade, Tourism

and Telecommunications has launched a project to develop broadband access in rural areas.

What further steps will you take in bringing high-speed internet connections to parts of Serbia that don’t yet have such services?

The goal of the Government of Serbia is for there to be no household in the country without the possibility of fixed access to high-speed internet by 2025. Within the framework of that initiative, a capital project was launched for the construction of broadband communication infrastructure in rural areas, and a loan agreement between the Republic of Serbia

2021/2022. This will also create a new platform for the development of digital services in these areas, i.e. new channels for the development of IT services - the IT industry, E-commerce and E-tourism, together with the economic strengthening of underdeveloped areas.

Many people consider that COVID-19 has led to the significant accelerating of the digital transformation process in Serbia. Who are its champions and what challenges were faced by those who didn’t cope as well?

There are a large number of examples of successfully transitioning to working online in

The results of our work on digital transformation from previous years significantly eased the tremendous stress that we’ve all been subjected to during this crisis and the European Bank for Reconstruction and Development, amounting to 18 million euros, is envisaged for the implementation of the first phase. With this we will secure ultra-fast broadband access in 500 settlements, or for about 80,000 households in rural areas, for which there was no commercial interest among operators to investment in the network.

The Ministry conducted analysis to review the current situation when it comes to broadband internet access, which showed that Serbia has “white zones”, territories that don’t have adequate access to broadband networks and where operators have no plans to build them in the next three years. It has also been recognised that around 2,800 settlements with over 320,000 households have a problem with broadband internet access and these are areas that are candidates for state incentives.

The implementation of the first phase of the project will actually enable inclusion in the digital society for nearly a third of those who’ve had problems to date with fixed internet access. The second phase, which is aimed at connecting through the network up to 900 schools/public institutions and up to 135,000 households, is planned as a separate project for

Serbia, as well as digital transformations. These are, for example, the education system, remote shopping, the banking system and doing business with citizens. I would also highlight the services that are available through the eGovernment portal, which ease the everyday lives of citizens and render business operations more efficient.

This kind of development of events required many to develop their digital skills and improve their digital literacy overnight. How do you intend to encourage the further development of these skills?

With the aim of raising digital literacy generally, the Strategy for the Development of Digital Skills for the period from 2020 to 2024 was adopted, which includes improving the digital knowledge and skills of all citizens, including members of vulnerable social groups, but also digital professionals, in order to enable the monitoring of the development of information and communication technologies in all areas.

We have developed particular programmes that are intended to empower and increase the inclusion of girls and women in digital technologies, training projects in the area of digital skills for women in rural areas, as well as the “Smart 7

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We are witnessing a major debate in Serbia about the introduction of the 5G network. How much does the domestic industry primarily need 5G solutions and, given the level of our development, where could it be applied?

The main advantages brought by 5G mobile networks encompass a significant increase in throughput with reduced delays, which is essential for efficient automation and other processes that are important for the development of industry. There are numerous examples of potential applications of 5G networks, and they cover areas such as agronomy, the automotive industry, telemedicine and applications for mining, transport and storage. Even at the current level of industry development, the development of the 5G network, as well as modern technologies, will undoubtedly provide a strong impetus to Serbia’s overall development.

The public tender for the issuance of individual permits for the use of radio frequencies in the bands intended for the development of new mobile systems, including 5G, is expected to be conducted by the end of 2021 at the earliest and Safe” platform for encouraging the use of new technologies in education, trade and business.

For the youngest users, alongside the annual school campaign ‘IT caravan for the creative and safe application of technologies in learning’, four years ago we established the National Contact Centre for the Safety of Children on the Internet, which functions as a service for citizens to report the endangering of children, but also as a centre for education and information.

Digital literacy is practically a new form of literacy that’s essential in all spheres of life, while digital skills are increasingly confirmed as a prerequisite to work and operate successfully, and in accordance with that we will certainly continue implementing and further developing existing strategic programmes which, together with the development of networks, should contribute to the complete elimination of the digital divide and the inclusion of all citizens in the contemporary digital society.

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When does the Ministry intend to conduct the auction? What will the practical sequence of steps be like?

The public tender for the issuance of individual permits for the use of radio frequencies in the bands intended for the development of new mobile systems, including 5G, is expected to be conducted by the end of 2021 at the earliest.

The practical sequence of steps is stipulated by the Law on Electronic Communications and encompasses the bringing of decisions regarding the fulfilment of conditions for the issuance of individual licenses under the public tender procedure conducted by the Regulatory Agency for Electronic Communications and Postal Services, the adoption of an act prescribing the minimum conditions for the issuance of individual licenses under the public tender procedure conducted by the Ministry of Trade, Tourism and Telecommunications, after which the Agency decides about the initiating of a public bidding procedure.

How much of a position was the government in to help the tourism sector and are you planning some additional measures to help the most vulnerable subgroups in this segment?

The Government of Serbia last year adopted several measures to help tourism due to the pandemic, with about nine billion dinars allocated for that. A Decree was adopted at the beginning of this year that envisages a minimum wage for tourist guides and escorts, then two Decrees for subsidies intended for the hospitality and tourism industry, and for the hotel industry, in

a total amount of three billion and 612 million dinars, and a call was made for supporting the work of hospitality and tourist businesses, for which 350 euros per individual bed and 150 euros per accommodation unit were secured. The first 100,000 vouchers in support of domestic tourism were also provided and distributed.

We hope that, thanks to the immunisation process, we will soon see the start of the period of normalisation, but we will certainly continue to introduce support measures as necessary. It is, however, crucial for us to encourage investments in, and the promotion of, tourism in Serbia, given that unutilised potentials still exist and that we are awaited by the redefining and retaking of market positions around the entire world, which can be a great opportunity for Serbian tourism.

What does the new digital agenda at the European level mean for the Western Balkans; what are your further strategic priorities?

Cooperation at the regional level is of great importance to Serbia and the Ministry of Trade, Tourism and Telecommunications. With the aim of achieving the best possible cooperation in the Western Balkan region, the Ministry participated actively in the development of the Action Plan for the development of the common regional market for the period from 2021 to 2024, and it also participates actively in its implementation.

That Action Plan recognises as a priority the development of a regional digital territory, within which the priority areas are the aforementioned digital infrastructure and connectivity, digital skills and competences, the digital economy in the era of new ICT technologies, and services of trust and security. These areas represent strategic fields for the development of electronic communications and information society, as well as the priorities of the Ministry.

Within the scope of the aforementioned priority areas, an Agreement was also signed on lowering the prices of mobile roaming services.

With the implementation of this agreement, as of 1st July 2021, the prices of calls, sending SMS messages and transferring data in roaming within the Western Balkan region will correspond to the prices that citizens pay within their home network.

This Agreement is also significant because it represents an important step in preparations for the region’s integration into the EU digital single market, as well as an important step in the process of reducing roaming costs between the EU and the Western Balkans.

TRADE | TOURISM | TELECOMMUNICATIONS 2021

The real voyage of discovery consists not in seeking new landscapes, but in having new eyes.

Marcel Proust

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BUSINESS

DEJAN ĐUKIĆ, DIRECTOR OF THE SERBIAN NATIONAL INTERNET DOMAIN REGISTRY (RNIDS)

Learn From

THE SUCCESSFUL The RNIDS Foundation has spent the last 15 years managing the registry of national internet domains and infrastructure of special importance. RNIDS is among the rare registries around the world that have recorded the highest level of availability for years and that offer the highest level of protection against cybercrime.

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NIDS has done a lot on the creation of ecosystems for the normal and stable functioning of the internet in Serbia. Our basic mission, which we have been performing successfully for years, is to ensure that our domains and the infrastructure we take care of function flawlessly, without interruptions - notes RNIDS Director Dejan Đukić with pride.

What are all the advantages of the national domain; how important is it for doing business on our market and for the positioning of websites in searches?

We’ve already spent a decade and a half managing the registry of national internet domains and infrastructure of special importance, which is extremely important and extremely responsible work. If our services or system were delayed at any instant, all services on the .rs / .срб domains would stop working - sites would be unavailable and there would be no email exchanges. This would lead to standstills in business processes, use of online services and the executing of online transactions. Considering that national domains have an almost two-thirds share on the Serbian market, such a standstill would be felt massively.

Businesspeople have recognised the importance of appearing on the local market with local domains. From international corporations operating in Serbia, to small and micro domestic companies. Similarly, customers expect businesses to address

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them from the national domain, especially if that business operates in the financial sector, so they are more credible. Users describe the national domain as stable and secure. It is important to them that they receive support in Serbia from their authorised registers, and ultimately from RNIDS. The national domain has another important advantage.

Google experts state that the geographical signal of the country from which searches are performed is important when ranking results in local searches, which ensures that sites on local domains are better positioned.

Is it true that RNIDS is one of just a few registries that record the highest level of availability? What else distinguishes you?

Yes, RNIDS is among the rare registries around the world that have been recording the highest level of availability for years.

In a world where cybercrime is one of the most common threats, and where attacks are often carried out through the misuse of DNS services, it is vital to protect domain names. Even the simplest level of protection provides some degree of protection against the hacking of domain names, and for several years there have been two types of protection available for the .rs / .срб domains that RNIDS does not charge for (Secure Mode and Client Side Lock), but also the most efficient form of domain lock in terms of Registry Lock.

As of a year ago, we’ve also had available DNSSEC [Domain Name System Security Extensions], as a form of protocol protection that confirms the authenticity of DNS responses and ensures that a user who’s headed to a certain location is not redirected to the wrong site due to a hacking intervention.

The pandemic has caused serious declines for a significant part of the economy, whilst also leading to great growth being recorded

by E-commerce, courier deliveries and the pharmaceutical industry. What would you advise both the winners and losers?

You should learn from the successful.

Under crisis conditions, large organisations with complex structures demonstrated that they are very agile and adaptable. That speed of adaptation comes from the ability to quickly make the necessary changes and

digitalise business processes. The growth of certain industries is conditioned by need during the pandemic - need for medicines, food supplements, home deliveries, online shopping due to shops being closed. However, the quality and speed of responding to increased demand has conditioned not only growth, but also market positioning in relation to competitors. Small and micro enterprises also have their chance in the speed of adaptation and digitalisation. Our research shows that 87% of small and micro enterprises that are present on the internet have their own website, which they consider as the most important digital channel for acquiring new business opportunities, which has impacted on increasing sales and expanding their networks of contacts. Other research shows that 43% of micro companies don’t operate online. Such companies are missing out on their market opportunity. RNIDS has launched the pitajte.rs project with the aim of helping current and potential participants

and the Ministry are implementing certain projects jointly, while there are prospects for some new ones. We also cooperate with other ministries, such as the Ministry of Defence and the Interior Ministry, but also with the National CERT etc. Cooperation is always welcome, because we can thereby respond more successfully to the needs of various digital market stakeholders.

You recently organised the Serbian Internet Domain Day (DIDS), which was held in an online format for the first time and included the regional TLD forum. What did all the discussions encompass? What were the conclusions?

The slogan “Servant. Master. Internet.” described, in just three words, the central topic of this year’s DIDS - the role the internet has played in our lives and businesses over the past year. A significant part of the economy has recorded a slowdown in operations since the appearance of the

RNIDS has launched the pitajte.rs project with the aim of helping current and potential participants in the online market in the online market to make informed decisions that will help them effectively use the internet to develop their business.

RNIDS has done a lot on the creating of an ecosystem for the normal and stable functioning of the internet in Serbia. Could you do more in the future if you had the help of the state and the Ministry of Trade, Tourism and Telecommunications?

RNIDS is based on a multi-stakeholder model of governance that all legal entities and entrepreneurs in Serbia can engage in.

Alongside this type of cooperation, RNIDS also has several special agreements with individual state bodies and other organisations. RNIDS has a special form of cooperation with the relevant ministry, which is improving constantly. It supported the delegation of the RNIDS .rs and .срб domains to ICANN [Internet Corporation for Assigned Names and Numbers], while the registry has been recognised by domestic legislation as an ICT system of special importance. RNIDS

first case of the novel coronavirus in Serbia, but there have also been those that have had surprisingly high growth, such as Ecommerce or delivery services. Panellists shared their experiences of doing business during the pandemic and spoke about the importance of the internet to maintaining the continuity of their business. We heard data about current and expected trends, as well as tangible advice, from tips on how to optimise sales sites and improve communication with clients, to tips on how to adapt communication between businesses and institutions to handle the situation caused by the pandemic. We recorded a really exceptional level of attendance, with more people following the conference live at the same time than is usually the case in the conference hall. The Regional TLD Forum, which traditionally follows DIDS, brings together colleagues from the region’s national registries. We discussed current events, but also plans for further regional cooperation.

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INTERVIEW

OLIVERA JOCIĆ, ASSISTANT MINISTER IN THE SECTOR FOR FOREIGN TRADE POLICY, MULTILATERAL AND REGIONAL ECONOMIC AND TRADE COOPERATION

Solidarity And Cooperation Are

KEY TO SUCCESS

All measures that have been initiated, at both the national and regional levels, have contributed to Serbia's trade exchange recording less of a decline than was forecast at the beginning of the crisis and the achieving of satisfactory results overall. flow of basic products that are essential for the population during the time of the pandemic, such as medicines, protective equipment and basic foodstuffs. In accordance with that, late March 2020 saw the establishing of green corridors/lanes in the CEFTA region, as a network of priority roads and border and administrative crossings through which the transport of goods could unfold unhindered. A list of basic products that have the right of priority passage

We expect to face the same challenges in foreign trade exchanges at the global and local levels this year as we did in 2020

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he pandemic caused by COVID-19, which impacted the entire world in 2020, had a strong influence on the volume of trade and flows of goods transported in the region and beyond. As a response to the outbreak of the pandemic, the Government of the Republic of Serbia had a proactive approach and reacted immediately, with the introduction of measures at the domestic level, as well as internationally, and primarily at the regional level. The government adopted a series of measures that were aimed at combating the pandemic and regularly supplying the population, while in parallel an initiative was launched towards the CEFTA region that aimed to ensure the unhindered 12

was defined, with 24-hour working days secured and the presence of competent state bodies and inspectors, while there was also the specific establishing of electronic exchanges of information and advanced announcements of the arrival of priority goods at border/administrative crossings.

It should be noted that the countries of the region showed exceptional solidarity and successful joint work. We would emphasise the fact that this initiative proved itself to be one of the most successful examples of regional cooperation, which has contributed to meeting the needs of the population during the pandemic and preserving trade flows with our neighbours.

On the basis of the successful implementation of this initiative within the CEFTA region, a proposal came to expand the modified mechanism of Green Corridors

to encompass border crossings with the EU, which would be extremely significant given that the EU is the most important trade and investment partner of the entire CEFTA region.

It is important to highlight that all the measures that were initiated, at both the national and regional levels, have certainly contributed to Serbia’s trade exchange recording less of a decline than was forecast at the beginning of the crisis. Thus, in 2020 Serbian exports to the world recorded a decline of 2.7%, while imports fell by 3.8%. Compared to global trends or those of the EU, where exports fell by as much as 9.4% and imports by 11.6% last year, it can be concluded that Serbia achieved satisfactory results that were even better than those of its most important partners.

Serbia’s total world trade (worth over 40 billion euros) fell by 3.4% in 2020, while trade with the EU fell by 1.9% compared to 2019. In the trade exchange with CEFTA, that decline totalled 4.1%, while with the Russian Federation it was 31.2%. On the other hand, during the observed period the total trade exchange with China was up by 26.3% compared to 2019. In contrast to that, data from the World Trade Organization show that the volume of global trade was 5.3% lower in 2020 than it was in 2019. All regions recorded sharp declines in both imports and exports, with the exception of Asian countries, where exports were up by 0.3% and imports fell by 1.3%, primarily thanks to China’s dominant role and exports of essential products for combating the pandemic.

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ZORAN ĐORĐEVIĆ, POST OF SERBIA DIRECTOR

BUSINESS

Trust Acquired

THROUGH QUALITY The leading position held by the Serbian postal service, Pošta Srbije [Post of Serbia], in the domain of postal traffic and logistics services is based on the carefully developed and constantly improved synergy of key resources - personnel, technology, equipment and infrastructure

Foto Pošta/ Igor Đukanović

imperatives, and those imperatives arise from the business and social responsibility that is brought by such an important role that Post of Serbia plays.

The greatest responsibility is in the hands of our 15,000 employees, who are trained professionals and, above all, motivated to perform their tasks to the maximum professional level.

The development of their competencies is part of the strategic programme that is based, among other things, on the development of technological processes, the advancement of equipment capacities, modernisation and the constant introduction of new technological and IT solutions.

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he numerous acknowledgements that Post of Serbia has received from service users, along with the official A certificate of the Universal Postal Union at the international level, which confirms that the quality of services is harmonised with the highest world standards, obliges Post of Serbia to accept every challenge as an opportunity, says director Đorđević.

Does the credit for your leadership position belong to people, knowhow and experience or equipment, monitoring new achievements etc.?

Due to the specificity of its activities, Post of Serbia, as a business system of strategic and national importance, is woven into every pore of the lives of people and the economy in every part of Serbia. That’s why the development and continuous improvement of operations are our

Although this is a huge system, with a large number of employees, facilities, vehicles and a large territory to cover, Post of Serbia successfully adapts to market trends and requirements. Are those major challenges?

One of our priorities is the introduction of “green technologies” and the transferring of the entire fleet to environmentally friendly vehicles with hybrid and electric drive systems The development of ITand digitalisation have set development challenges for all activities, and Post of Serbia is no exception to that. The pandemic has further confirmed the essential need to adapt more quickly to new and growing needs of users for affordable and fast postal and logistics services at affordable prices. And

this is why the priority for the management of Post of Serbia is to reorganise and restructure operations, with an emphasis on the digitalisation of processes and services and the constant innovating of solutions for end users that are in accordance with their needs. In essence, our goal isn’t to retain our current positions, rather to use an advanced development-innovative approach to take an increasing part of the market, not only in Serbia, but also around the region.

Apart from the conquering of new technologies and the application of innovations, what will mark the period ahead of us? What are your plans?

It is our obligation to respond to the trust placed in us by citizens and corporate users with an even better service based on new technologies and modern postal and logistics solutions, in which the digitalisation of services and processes is a key priority that we are implementing with the full support of the Government of Serbia and Prime Minister Ana Brnabić. The development process for Post of Serbia is also based on a deeply ingrained sense of social responsibility, or our obligation to society as a whole and to the generations that will succeed us.

One of the priorities is therefore the introduction of “green technologies” to all segments of business, the first of which will be the transferring of the entire fleet to environmentally friendly vehicles with hybrid and electric drive systems. Likewise, our employees are the face of Post of Serbia and our goal is for that “face” to represent us in the best possible way, which is why the development of employees will also be one of the future priorities.

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BUSINESS

ĐORĐE MAROVIĆ, CHIEF TECHNICAL OFFICER, TELEKOM SRBIJA

mts In The Group Of Europe's

BEST OPERATORS

Telekom Srbija is increasing its investments year-on-year in the development of fibre optics and the expansion of its mobile network. It has additionally acquired a large number of cable operators, while at the same time the company is very active in the multimedia domain, in the field of content production. user apps. On the other hand, some global brands make their own business decisions about when they will enable services on the territory of Serbia, so for instance Netflix only appeared in 2016 and Apple only enabled access to the App Store in 2020. However, it is noticeable that the habits and needs of users in Serbia, the region and the wider world don’t differ and boil down to users expecting to have an accessible, affordable and reliable telecommunications service always and everywhere, as well as the freedom to choose the content and apps that they will use.

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ATEL has declared us the best mobile network in Serbia for the second consecutive year, which confirms that results have been yielded by all our efforts to provide users with the best experience in using our mobile services. All of our users are equally precious to us, which is an important characteristic of our company’s operations - notes Telekom Srbija CTO Đorđe Marović proudly.

Telecommunications is experiencing constant expansion. In that context, what is the position of Serbia and the region like?

The field of telecommunications has been developing intensively in Serbia for more than two decades, since the introduction of mobile 14

The total internet flow through the Telekom Srbija network during the state of emergency exceeded 1Tb/s, which the mts network supported without a problem telephony and the later arrival of broadband internet. In that respect, Serbia and the region are not lagging behind the rest of the world, and technologies that are becoming the standard around the world are almost simultaneously being introduced to Serbia.

All Smartphone models are available to our users immediately after their world premieres, and this also applies to the largest number of

Over the course of the past year, due to the pandemic, the need for communication has increased dramatically, primarily in terms of high-speed internet and mobile signals.

Have you been able to meet the expectations of clients?

Telekom Srbija has recorded a significant increase in the use of many services during the pandemic. Users are working from home and using the internet en masse, which needs to be supported on the network. During the state of emergency we recorded a 52% jump in the total amount of data transmitted over the internet, while the average amount of data transmitted via the Viber application in the mobile network jumped by 150%, use of the Netflix platform doubled and use of the TikTok platform even tripled. The total duration of mobile calls increased by 80%, and landline calls by 40%.

Even today, long after the lifting of the state of emergency, trends in the use of services have remained such that constant growth is noticeable. Telekom Srbija responds suc-

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cessfully to all these demands, without any kind of negative consequences for network infrastructure and the quality of services, with which we fully satisfy our users’ expectations.

In fierce competition between both mobile operators and free communication services, how do you retain your existing users and acquire new ones? Is the secret in new contents and new ways of “consuming”?

All operators are experiencing great market pressure and battling in the competitiveness of offers, both among themselves and with global players, such asViber,WhatsApp, Google and various content providers. The market is saturated with offers of free communications services and affordable video platforms. This trend is also leading to a decline in the revenues of operators from traditional services, such as telephony and SMS messaging, so operators are trying to retain their users by offering them new innovative and more affordable services.

In accordance with that, Telekom Srbija offers users its Box service packages, which provide significant discounts.

Our company has also been engaging intensively in the production of multimedia content over the last few years. These activities have resulted, among other things, in the creation of many TV series that are very popular among the public. All this is fully in line with global ICT trends and represents a new source of revenue for telco operators.

How much have you progressed when it comes to developing your own infrastructure?

Significant funds were invested in the development of fibre optics and mobile infrastructure in the previous period, and the results are very evident. Connecting to fibre optic infrastructure is currently enabled for almost 800,000 households in Serbia. When it comes to the mobile network, with 2,800 mobile telephony stations, more than 98% of the population, and more than 84% of the territory, are covered by a quality LTE signal, which is the best result in Serbia. Another interesting fact is that, during the state of emergency, the total internet flow through the Telekom Srbija network exceeded 1Tb/s, which was supported by the mts network without any problems whatsoever.

The plan is for the number of households with access to the optical network to exceed a million soon What are your plans for the coming period?

Telekom Srbija is continuing its activities in the field of acquiring cable operators and producing multimedia content, as well as investing in fibre optics and mobile infrastructure, with the aim of maintaining a leading position in the region. The plan is for the number of households with access to the optical network to exceed a million soon.

Likewise, we also have very ambitious plans for the diaspora and our goal is to strengthen our presence on various markets, specifically those of Europe, the U.S. and Canada.

RATEL declared you the best mobile network in Serbia for the second consecutive year. How important is this acknowledgement? What does it actually show?

RATEL’s acknowledgement provides confirmation that all our efforts to provide users with the best experience in using mobile services have yielded results. The mts network achieved the best result thanks to the top quality of all services in all cat-

egories. An important characteristic of our company’s operations is that all of our customers are equally precious. Thus, we don’t only provide top quality voice service and mobile internet to the population in urban hubs, but also in rural areas. A call in the mts network is connected in less than a second, the sound quality is “crystal clear”, and users are available anywhere in Serbia.

The best experience has also been achieved in the segment of the speed and quality of “surfing” the internet and watching video content. The availability of YouTube, which is reflected in an uninterrupted service when watching content for a large number of cities, has been as high as 100%.

Are the quality of services provided by the mts mobile network in Serbia comparable to the quality of services available in the EU? The methodology for measuring the performance of mobile networks in Serbia and the analysis of the results was done according to international standards prescribed by ETSI [standards organisation]. We are proud of the fact that, according to the results of measurement, mts could be ranked among the best European operators in terms of mobile network quality. We are convinced that we will further improve the quality of service achieved in the future.

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INTERVIEW

MILOŠ CVETANOVIĆ, SECRETARY OF STATE IN THE SECTOR FOR INFORMATION SOCIETY AND INFORMATION SECURITY

Digital Transformation

MUST BE INCLUSIVE In order for a society to progress through the process of digitalising all of its segments, it is necessary to build trust, influence the raising of levels of knowhow and create safe surroundings that have a stimulating influence on citizens in particular, in order for them to recognise the benefits of digitalisation and services that are provided electronically. these processes, and those participants are primarily the public sector, the private sector and citizens.

Given that this relates to an all-encompassing area, it is also necessary to emphasise that the Government has already adopted strategies to govern specific individual areas that are an integral part

Use of the internet, computers, broadband internet connections, mobile phones and internetbased trade are increasing constantly in Serbia

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igitalisation implies the establishing of a system in which there must be a strong link between all stakeholders involved in that chain and which must be based on three key factors: trust, knowledge and security.

The digitalisation process has begun and is certainly unstoppable, although a need exists to consolidate all processes that take place, at least when it comes to the public sector, and the strategy defining the development of the information society and information security that’s been prepared by the Ministry of Trade, Tourism and Telecommunications therefore addresses this topic in a comprehensive way, by recognising the participants in 16

of digitalisation, and with which the directions of the development of digital skills are defined, then artificial intelligence and its potential to improve the quality of life of every individual and society as a whole, and finally smart specialisation that’s aimed at increasing the competitiveness of the economy, economic growth and society’s progress via the connecting of research, industrial and innovation forces and resources, as well as enabling the domestic economy to more effectively utilise its potential and better position itself on global markets.

When it comes to the current situation and the use of information and communication technologies in the Republic of Serbia, it can be concluded that all trends related to the use of the internet, computers, broadband internet connections,

mobile phones and internet-based trade are increasing constantly, while the most common categories of people that least use these technologies are older citizens and they are used the least in rural areas.

It can also be stated that the ICT sector is experiencing constant growth and recording advances every year when it comes to employment, earnings, foreign trade exchanges and exports of computer services.

One topic that permeates all these areas to a great extent is information security and the protection of information systems, which are important from the point of view of national security, but also for the economy and citizens. The main holders of activities in the field of information security are the Ministry of Trade, Tourism and Telecommunications and the National CERT, which implement activities aimed at preventing and protecting against security risks in ICT systems in the Republic of Serbia.

In order to further the information society to be developed further, it is necessary to continue improving the digital knowhow and skills of all citizens, building capacities to use new technologies among employees in both the public and private sectors, as well as improving digital infrastructure in educational institutions. Moreover, it is essential to continue and intensify activities on the digitalisation of services and operations in the public and private sectors, and it is very important to improve information security alongside all of that.

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VLADIMIR SPASIĆ, ACCOUNT EXECUTIVE, DELL EMC

BUSINESS

Golden Age Of

E-COMMERCE At Dell EMC they've known for a long time what we only recently discovered - that the contemporary global economy is rapidly becoming digital and that, accordingly, information technology is no longer a specific sector of the economy, but rather the foundation of a new and innovative economic system than clear that the golden age of E-commerce had arrived. This has benefitted entrepreneurs who do business in the online world, i.e. who own E-commerce sites, as well as those who are turning their operations towards the internet.

It is necessary to seriously raise the quality of services and the way e-commerce operates, in order to retain customers who are ready to buy online

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ven the most traditional consumers have finally realised that it is possible to buy “from an armchair”. Now we are already witnessing a large number of online shopping platforms. It is now necessary to seriously raise the quality of services and the way E-commerce operates, in order to retain customers who are ready to buy online.

Thanks to the pandemic, our country has had five years’ worth of accelerated development of E-commerce in just a year. Will this bring new platforms and will they compete for both E-consumers and traditional consumers?

Is the golden age of e-commerce starting?

No previous campaign to date has impacted on the development of E-commerce in Serbia like COVID-19. In April last year, at the very beginning of the pandemic, it was already more

A high percentage of traditional shoppers have switched to online purchasing. And just as entrepreneurs “on the ground” deployed various methods in the fight to attract customers, these same methods and new ones will be copied online. However, some entrepreneurs express fear that the growth of E-commerce is only temporary. They are scared that things will return to normal when the pandemic ends, but the problem with such thinking is that we don’t know what normal now looks like. “The genie is out of the bottle, and it doesn’t seem like it will go back anytime soon.”

Is the process of digitalising the economy and society one of the key challenges for our country? How does digitalisation impact on cooperation between companies and the state, the public sector and public enterprises?

If we look at the age structure of our society and the number of digitally literate people, we will realise that we’re confronted by a great challenge in advancing the literacy of society, which is also reflected in the economy. The state has digitalised and accelerated a large number of

processes during the previous period, thereby raising cooperation between private companies and the public sector to a higher level compared to the same period before. It is evident that the public sector and public enterprises are addressing this challenge intensively, and if that continues it can be expected that digitalisation will impact successfully on cooperation and provide the state and the economy with successful growth in every segment.

Many areas of our lives, such as education, the healthcare system and jobs that are conducted through E-government, have shifted to the online world. What kind of impact does this have on the ICT sector and citizens?

Prior to the pandemic, the government launched the digitalisation process and the trend really looks impressive. A large number of services that were once conducted over counters, where crowds were created, have now relocated to the online world, with which these processes have been accelerated significantly.

And the economy has greatly accelerated operations via E-government, which in turn speeds up the entire economy. The ICT sector is recording noticeable annual growth, while Serbia is also recording notable IT successes. Current events provide hope that the development of the ICT sector will move forward with great strides.

Some of the latest occurrences in the field of ICT application show that the successes achieved so far were not accidental, and that the ambitious development of IT activities is upcoming, and as an example of that we see the success of E-government in terms of services, where Serbia ranks 15th in Europe.

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INTERVIEW

MILAN DOBRIJEVIĆ, ASSISTANT MINISTER, SECTOR FOR ELECTRONIC COMMUNICATIONS AND POSTAL TRAFFIC

We Want To Eliminate The Digital

DIVIDE IN SERBIA

The Government's fundamental commitment has ensured that Serbia has become a leader of digitalisation in the region and, with the implementation of capital projects, we are continuing to climb the digital ladder that leads to us becoming a modern and humane society ety. When it comes to the legislative and strategic framework, Serbia can boast of having extremely advanced solutions in the domains of information society, information security and innovation, which are practically completely harmonised with, and in some cases even ahead of, the EU’s legislative framework. We were among the first in Europe to introduce a law on digital assets, while we’ve also adopted and implemented a raft of planning documents (strategies, programmes with accompanying action plans) that cover all

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he Digital Agenda for the Western Balkans was launched on the initiative of the European Commission at the Digital Assembly held in Sofia on 25th June. On that occasion, the EC, together with its Western Balkan partners, committed to investing in broadband connectivity, strengthening information security, advancing the digital economy and society, and encouraging research and innovation.

The Ministry of Trade, Tourism and Telecommunications, together with the government’s Office for IT and eGovernment, is a key institution in this process, tasked with creating the required legislative and infrastructural preconditions to successfully implement the digital transformation programme, which consists of a series of projects in all spheres of modern soci18

Serbia can boast of having extremely advanced solutions in the domains of information society, information security and innovation, which are practically completely harmonised with, and in some cases even ahead of, the EU’s legislative framework important areas, such as the development of digital skills, artificial intelligence, smart specialisations, E-commerce etc.

In terms of communications infrastructure, we can be extremely satisfied with the situation from the aspect of mobile network coverage, because - with more than 98% of households covered by the 4G signals of mobile operators – we are the absolute leader in the region and are simultaneously ahead of many EU member states. On the other hand, from the aspect of the availability of fixed broadband access, a significant divide exists between urban

areas, where the situation is completely satisfactory and over 70% of households have next generation internet access, and rural areas, where electronic communications operators have no commercial interest in building the essential infrastructure. The government has placed the solving of this problem among its highest priorities, and the Ministry is responsible for implementing an incentive programme aimed at reducing and, ultimately, completely eliminating the digital divide in Serbia. That programme will run until 2025. Implementation of the first phase is underway and, during 2022, will provide the possibility of high-speed internet access to approximately 600 rural settlements with about 90,000 households.

A second major project, “Connected Schools”, which began being implemented in 2018, aims to secure the communications prerequisites of modern digital teaching for every schoolchild in the Republic of Serbia. Over 1,600 main school facilities are currently connected to the Academic Network of the Republic of Serbia (AMRES), while other school facilities are planned to be connected by the end of this year. In parallel with this process, a wireless local computer network is being built in school facilities and has been completed in more than 900 facilities that are attended by 60% of school pupils in Serbia. Another 900 facilities will be covered by year’s end, equating to 90% of the pupil population.

The remaining 10% of pupils attend classes in smaller facilities and internet access will be provided for them through the procurement of communications devices that will use a mobile network to gain access.

TRADE | TOURISM | TELECOMMUNICATIONS 2021

BUSINESS

Leveling Up The Business By Leveraging

BENEFITS OF AUTOMATION Digital transformation is no longer a novel approach, it is not a step we are awaiting, nor are we equipped with just a bunch of assumptions about the kinds of benefits it can bring us. Rather on a daily basis, as business and private users, we are witnessing it being woven into the very way that a large number of innovative companies operate, but also the way they think about making their operations more efficient and their products and services more accessible to users

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t the foundation of the digital transformation process, and the paradigm of new productivity, are specialised solutions that automate processes and enable different sources and forms of electronic data to become purposeful.

With the development of mobile apps, social networks, websites and the Internet of Things (IoT), there have been manifold increases in the amount of structured and unstructured content available. It is precisely this great amount, coupled with the diverse types of data that we can collect, that have given rise to the need for more efficient management to ensure companies really benefit from them.

Only processed data that can be analysed qualitatively contribute to business processes in which numerous stakeholders make different decisions that are often very complex.

With the applying of the software solutions that stand behind digital transformation, the modelling of business processes according to a company’s procedures has been enabled. In this way, modelling contributes to formalisation, or the precise definition of the way in which processes are executed without the possibility of skipping a stakeholder or not performing some procedure.

Once processes are formalised, automation can be applied to individual activities, entire sequence of steps or scheduling tasks and association information according to predefined rules, so employees don’t need to think about what and when they need to complete a particular task.

Additionally, the possibility to control the flow of processes provided by these software solutions helps companies identify bottlenecks and open space for optimisation, and thus even more efficient operations.

The development of technology has led to the evolution of software into “Intelligent Business Process Management (iBPM)” platforms, which are synonymous with speed and ease of implementation.

AIGO Digital Business Automation, as an iBPM solution for the implementation of hyper-

automation, i.e. the next step in the evolution of automating business, enables the performing of a significant number of processes without the involvement of employees.

Capture, or Input Management, comprises a collection of tools for capturing content (scanned documentation, emails or other electronic channels), placement in the system and advanced processing (images, QR codes, image enhancement filters) in order to obtain information valuable to business.

The Content segment of the service is responsible for ensuring the safe and reliable manage-

ment of processing content: from regulating rights of access, via the managing of versions and transforming content to other formats, to rigorously recording every activity of each user.

The Workflow (Business Process Management) segment represents the core of the platform, which enables the modelling, designing, executing, monitoring and optimising of business processes.

Decision tools enable the simple and swift defining, without coding, of complex rules of processing different flows, actors and documentation, which form the basis for the automatic performing of confirmation, verification and approval processes.

The Task service and the applying of software robots automate the executing of manual tasks (mass data entry, email campaigns, data validation in multiple systems) and provide a higher level of automation.

The AIGO Digital Business Automation platform is a solution that makes hyperautomation possible, simple and purposeful. In addition to the fast development of applications without coding, cloud support, advanced capabilities of system integration and the application of artificial intelligence and machine learning, it shifts the focus from a classical IT solution to an all-encompassing business solution. Apart from enabling the sturdier and more efficient integration of IT with companies’ business functions, it shifts the role of the software engineer towards that of a business consultant and partner on the road to achieving higher levels of efficiency and productivity.

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We have technology, finally, that for the first time in human history allows people to really maintain rich connections with much larger numbers of people.

Pierre Omidyar 20

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BUSINESS

ANTONIO PASSARELLA, COUNTRY MANAGER, ERICSSON SERBIA

5G Can Boost

ECONOMIC GROWTH Ericsson is a world leader in 5G technology, with 136 commercial agreements and 83 live 5G networks in 41 countries. Ericsson is also a 5G technology leader in Serbia, as the first company to demonstrate the fastest internet connection via its pilot 5G network back in 2018

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he recent pandemic has highlighted the critical role of fast, reliable, ubiquitous connectivity for our economy and for our lives, hence the strategic importance of further accelerating the deployment of 5G in Serbia.

Why is 5G so important for Serbia?

5G is unfolding faster than any other mobile technology. In just two years, 153 operators in 64 countries have launched commercial 5G networks, and the number of commercially available 5G devices (smartphones, TV sets, laptops, robots, drones etc.) has exceeded 400!

With its unique capabilities (speed, latency, capacity, security etc.), 5G is a highly flexible, open innovation platform that can accelerate digital transformation and economic growth.

Most countries around the world consider 5G as being critical national infrastructure and they are racing for faster deployment across their territory. According to a 2021 22

report by Analysys Mason exploring the costs and benefits of 5G geographical coverage, Europe’s GDP can benefit by 250 billion euros with the full rollout of 5G.

Ericsson has the best performing 5G technology that can help Serbian operators make the smoothest transition to 5G 5G also has social and environmental benefits: it can accelerate rural connectivity, enhance Serbia’s public services (healthcare & hospitals, public safety, smart airports/ transport/public buildings/education etc.), and reduce environmental impacts.

What is Ericsson’s role in 5G? With 136 commercial agreements and 83 live 5G networks in 41 countries, over six million 5G-ready radios delivered, and over 57,000 granted patents to date, Ericsson is

a world leader in 5G technology. We’ve been working, since 2015, with different industries across the world (factories, mines, airports, utilities, the health sector, public safety etc.), mobile operators and academic institutions on the development and validation of numerous 5G use cases.

Ericsson is also a 5G technology leader in Serbia, as the first to demonstrate the fastest internet connection via our pilot 5G network back in 2018. 5G can boost Serbia’s economic growth by accelerating its digital transformation and the transition to an environmentally neutral, export-orientated economy. Ericsson has the best performing 5G technology that can help Serbian operators make the smoothest transition to 5G, and we are committed to leading this effort.

How secure is 5G? 5G is the most secure mobile network generation, with security built-in from the start, as an integral part of the standardisation process. This is crucial, as 5G is becoming the “nervous system” of our society and critical national infrastructure enabling digitalisation, automation and connectivity between people, machines, robots, cars etc. With billions of connected objects around us and new types of applications, 5G networks need to be highly resilient, secure and able to protect an individual’s right to privacy.

Ericsson is leading 5G network security through our Security Reliability Model (SRM).In order to fully safeguard end-user security over 5G networks, a holistic approach is needed that addresses all four pillars of network security: 1) Telecom standardisation; 2) Vendor product development; 3) Network configuration & deployment; and 4) Network operations.

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BRANISLAV STAMATOVIĆ, COUNTRY MANAGER FOR SERBIA AND MONTENEGRO, R&M

BUSINESS

5G Remains

AN ESSENTIAL DRIVER R&M is a reliable partner that can be trusted by investors and contractors in the telecommunications sector – they can find quality solutions for FTTx, Data Center and LAN all in one place. It is well-known Swiss quality that makes R&M recognisable on the Serbian market a 25-year system warranty directly to the investor. The investment in cabling represents only 7% of the budget, but 50% of all network problems. Cabling is like a road. If the road is bad, you cannot drive safely and fast, no matter what type of car you have.

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ew solutions and applications in the LAN sector are targeted towards new markets, which are scaling up enormously, explains R&M Country Manager for Serbia and Montenegro Branislav Stamatović, adding that growth in telecommunications will continue to be at a higherthan-average rate in 2021.

How do you ensure the success of your clients’ projects?

Our own production allows us to help customers with special requests and needs. In order to be as helpful to customers as possible, we are trying to get involved in projects from their first stage. We start with Qualified Partner Program (QPP) training, which informs designers and installation managers about our standards and solutions and helps them improve their knowledge. Following proper installation and test measuring, R&M gives

Fibre to the Home (FTTH) networks are expanding due to remote work. What are the challenges?

There’s still not enough bandwidth. Furthermore, the infrastructure needs to be suitable for the type of data transport that end users are demanding – or it will simply collapse. Even the most advanced end devices will be severely compromised if they run on an outdated network. Bandwidth and latency performance can only be realised by bringing FTTx networks closer to the wireless connection point. This requires a dense optical backhaul network with antennas, integrated into fibre networks and connected to edge facilities.

What are the latest technology trends in the telecom industry?

The data growth in data centers is boosting demand for efficiencies in energy management and operational efficiencies. Migrations to 100, 200 and 400 Gbit/s will continue. This requires more cabling, Ultra-High-Density solutions, and Data Center Infrastructure Management (DCIM) to optimise the usage of capacity and space. New solutions and applications in the LAN sector are targeted towards new markets, which are scaling up enormously, e.g. smart buildings, building automation and the Internet of Things (IoT). In addition, the All-IP trend, which allows construction technology and building manage-

ment devices to communicate over Ethernet and IP, is set to continue. The development of fusion data network technology and building automation, which require numerous separate field bus systems, is also boosting demand.

Power over Ethernet (PoE) will speed up the application of All-IP. In industrial automation,

Cabling is like a road. If the road is bad, you cannot drive safely and fast, no matter what type of car you have we predict the rapid implementation of Single Pair Ethernet (SPE), which provides high density for IP access, connection speed and ease of installation. Suppliers may therefore need to consider expanding their competencies in the area of industrial LAN applications.

Could you outline the drivers of growth in the telecommunications sector this year?

Growth in telecommunications will continue to be at a higher-than-average rate in 2021, while 5G remains an essential driver. Countless 5G antennas have to be connected with fibre optic networks, distributors and data centers - as the planned transmission performance can only be realised with Fibre to the Antenna (FTTA).

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INTERVIEW

RENATA PINDŽO, ASSISTANT MINISTER OF TOURISM

Local Tourists Reveal

A DIFFERENT SERBIA Serbia can and must become a globally recognisable tourist destination. We are awaited by the rebranding of Serbia as a tourist destination, and in doing so we will utilise the experience of the pandemic, which taught us that we have a lot that is attractive and authentic to offer both our own citizens and international tourists 2021, which encompassed additional payments of 100% of the minimum wage for employees in tourism and hospitality, subsidies to support the work of the hotel industry, subsidising part of costs by securing travel guarantees for tourist agencies organising travel. We also shouldn’t forget the favourable liquidity loans of the Development Fund of the Republic of Serbia that are intended specifically for the tourism, hospitality and transport sectors, vouchers for holidays in Serbia, but also the Decree on Offers of

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he year behind us was probably the most difficult ever for international tourism, with a 74% reduction in international arrivals compared to the same period of the previous year, while across Europe that decline amounted to 70%. Here in Serbia, despite data from January and February 2020 indicating that it could have been the best year for Serbian tourism, the COVID-19 pandemic caused a 50.7% decline in total tourist numbers.

The Government of the Republic of Serbia is exerting exceptional efforts to compensate for the losses of the tourism and hospitality industry, and first and foremost to preserve employment in these sectors. Alongside general packages of assistance measures intended for the economy as a whole, the Government has also adopted separate sector-specific measures during 2020 and 24

In cooperation with the private sector and HORES, we will continue promoting the “Clean & Safe” label in accordance with the recommendations of the World Tourism and Travel Council, in order to send the international market a clear signal that Serbia is a safe and secure destination Alternative Travel, which at the time of its adoption meant the possibility of many tourist agencies and travel organisers surviving.

With an awareness of the seriousness of the situation and the problems confronting the tourism and hospitality industry, the Ministry will continue striving, in cooperation with other departments, to undertake additional activities and measures aimed at overcoming what is, without a shadow of a doubt, a major crisis and huge losses in the tourism and hospitality sector. The 2020 tourist year was “carried” by domestic tourists.

Our tourism and hospitality workers have long been aware that they shouldn’t differentiate between domestic and foreign guests, because there can be no development of a tourist destination without the development of domestic tourism. This period saw the affirming of destinations that were previously researched insufficiently, from mountains, ethno villages, salaš farmsteads and lakes, especially in Eastern and Southern Serbia, but also in Šumadija and Vojvodina.

A successful immunisation process gives us the right to consider and expect better tourist results in 2021. Of course, the success of implementing immunisation in our most important source markets is also important, and this year those markets are primarily the countries of the region.

It will be crucial to establish predefined protocols and criteria for crossing borders.

This time should be utilised for us to work, in cooperation with the private sector and academic circles, on analysing the needs and required investments in personnel, in order for us to be ready for the expected changes to the international tourism market in the post-COVID period. We must make significant advances in the management of destinations, at the national, regional and local levels, but also improve our promotion in line with the latest trends. We are also awaited by the rebranding of Serbia as a tourist destination which – as the experience of this epidemic has just taught us – has a lot that is both attractive and authentic to offer, primarily to our citizens, but also to international tourists.

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JOVAN STOJIĆ, ASSISTANT MINISTER OF TRADE, TOURISM AND TELECOMMUNICATIONS

INTERVIEW

The Law Must Follow Life's

IMPOSED DEMANDS As part of the harmonising of domestic legislation with that of the EU, we are currently working on the Draft Umbrella Law on Services, which should provide the freedom for companies to establish businesses in other member states and the freedom to offer cross-border services in other member states without being obliged to establish a company, branch or affiliate there. aforementioned, the Ministry’s normative activities are numerous and varied.

Normative activity implies close collaboration between all sectors within the Ministry, both on ex-ante and ex-post analysis, and on the formulation and harmonisation of provisions, as well as continuous cooperation and communication with other bodies and holders of public authority. During the process of preparing and adopting regulations, in addition to the

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ormative activity is a demanding and complex procedure of preparing draft laws, other regulations and general acts, which is preceded by the process of monitoring the situation in the field of applying laws under the scope of the work of the Ministry and results in the proposing of appropriate solutions for amendments to regulations. The Ministry of Trade, Tourism and Telecommunications encompasses an extremely important and broad segment of the economic activity of the Republic of Serbia, and thus its participation in shaping the Government’s policy through normative activity is crucial to improving areas that fall within the scope of the Ministry’s work, from the perspectives of both the economy and citizens. Considering the

The circumstances imposed by the pandemic demand the swift identifying of a solution that will not come at the expense of quality and where the shaping of legislative solutions will take into account the interests of all groups prescribed procedure, the Ministry strives to further enable the participation of the public, the NGO sector and all stakeholders, considering numerous initiatives and proposals in order to identify an optimal solution, through normative activities, that will enable further development. The adoption of a certain general act isn’t an end in itself, but rather serves to establish a suitable base for the proper functioning and development of economic activity within the scope of the competences of this Ministry, and for the benefit of society as a whole. A comprehensive approach isn’t only essential when it comes to the preparing

of draft laws, but also when it comes to bylaws that more closely regulate certain narrower areas.

When it comes to normative activity, a special challenge is represented by the process of integrating the Republic of Serbia into the EU, which requires the harmonising and aligning of the domestic legislative framework with the EU acquis.

When it comes to harmonisation, one of many examples is the Draft Law on Services, which is currently in the process of being adopted and which represents an umbrella law that should enable the freedom of movement of services that implies the freedom to do business in other member states and freedom to provide services cross-border, i.e. occasional provisions of services in other member states, without being obliged to establish a company, branch or affiliate in that country.

If normative activity is observed in the light of the newly emerged situation brought about by the novel coronavirus, it is clear that the challenges are more numerous and that the circumstances demand the swift identifying of a solution that will not come at the expense of quality and will take into account the interests of all groups. The Ministry is managing, through numerous normative activities, to identify adequate solutions to current issues arising in the scope of its work. The plan is for normative activities to further intensify the future, both in terms of harmonisation with EU law and in terms of improving the domestic legislative framework.

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BUSINESS

IVAN BILIĆ-PRCIĆ., NAVAL ARCHITECT, INLAND NAVIGATION DIVISION MANAGER, CROATIAN REGISTER OF SHIPPING

World-Class Service for Inland

NAVIGATION VESSELS Ensuring the technical safety of inland navigation fleets is one of the foremost tasks of the CRS, which works through several offices. That enables them to provide their services to the entire Danube fleet and a part of the Rhine fleet

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wners, operators and shipyards choose the Croatian Register of Shipping (CRS) on the basis of its more than 70 years of experience, but also with a view to the fact that the CRS has been operating in Central and Southeast Europe for a long time, providing high quality services and supervising hundreds of inland navigation vessels 26

Even amidst the COVID-19 pandemic, we never stopped our activities and were accessible the entire time, readily working on clients’ requests

Your priority is to ensure technical safety in transport. Can you explain what this term encompasses to us laypeople, who know nothing about navigation and ships, and what else CRS deals with?

Everyone in inland navigation, including ship owners, insurers, management companies, and passengers, wants to feel safe with various types of vessels on lakes

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and rivers. Ensuring the technical safety of inland navigation fleets is one of our foremost tasks. We do that through so-called classification and certification processes, which are actually surveys and inspections carried out by experienced professionals who control such vessels and verify their compliance with the highest internationally adopted standards of safety of life and property. These procedures also include protection of the inland waterway environment. CRS works through several offices, which enables us to provide our services to the entire Danube fleet and a part of the Rhine fleet. And we are very proud of that.

You can boast of both being part of a long-standing tradition and possessing rich experience. How is that manifested in your work with clients?

The eastern Adriatic coast has a centuries-old tradition of navigation, and CRS

supervising hundreds of inland navigation vessels. We cooperate with major transportation companies in the Danube region.

CRS Danube, as a subsidiary of the Croatian Register of Shipping, was founded in 2018 in Belgrade and handles technical supervision activities in Serbia and throughout Southeast Europe. Why is that important for CRS? We are very happy to have an office in the heart of Middle Danube and to be present in Belgrade, because this enables us to provide our best support to vessel owners and management companies headquartered locally and operating throughout Europe. CRS began providing its services in the area in 2008, but having expanded our number of happy clients, we decided to open our Belgrade office – the CRS Danube – in 2018. The opening of the office has greatly strengthened our activities

The association IACS has only 12 member societies, and CRS is one of them. Together, we cover 90% of the world’s carrying tonnage draws its knowledge from this long local experience. Also, for nearly two centuries, there has been organised vessel classification on the eastern Adriatic coast: Austria established the third classification society in the world as early as in 1858, which was called Adriatic Veritas for a period of time.

CRS was established in 1949, and it operated under the name of Yugoslav Register of Shipping (JR) until 1992.

Today, CRS is one of 12 members of the International Association of Classification Societies (IACS), which is the largest such organisation of classification societies, covering 90% of the world’s carrying tonnage. CRS is also a classification society recognised by the European Union in terms of the rules and standards for ship inspection and survey organisations.

Owners, operators, and shipyards choose CRS based on more than 70 years of experience in the field of inland navigation, also having in mind that CRS has been operating in Central and Southeast Europe for a long time, providing high quality services, and

in this part of Europe, meaning that our clients recognised our quicker response and closer cooperation. Even amidst the COVID-19 pandemic, we never stopped our activities and were accessible the entire time, readily working on clients’ requests.

And clients know they can rely on us locally.

Is your best recommendation the fact that you have a large number of clients and that you’re the first choice for most of them?

One of our motivating slogans is ’continuous improvement’, and it is obvious that clients recognise such an aspiration. Among our key goals is also saving our clients’ time, by providing a quick response to any kind of request. Shipping companies and other clients are confident because they know they will get the highest level of service, and fast.

In addition, our experienced field surveyors are available 24/7 to provide professional, timely, and on-site responses for all technical questions arising during design, construction, or fleet in service. Following our procedures, our staff helps owners undergo inspections

with minimal disruption to commerce and vessel operations.

What does your membership in the International Association of Classification Societies (IACS) say about you and your work?

The association IACS has only 12 member societies, and CRS is one of them.

Together, we cover 90% of the world’s carrying tonnage.

To become a member, one has to meet a number of criteria, thus demonstrating its professional integrity and high professional standards, which is verified by independent accredited certification bodies.

IACS societies have a major role globally in providing classification, statutory certification, and services of maritime and inland waterway vessels. As a Recognised Organisation, we act on behalf of the socalled flag administration, which are the authorities of the country whose flag is carried by the vessel.

The Inland Navigation Division of the Croatian Register of Shipping (CRS Inland) acts as a competent authority and inspection body. What are its authorised powers? Which ships can it control?

CRS Inland works under the highest and most complex rules and standards that exist in the world, notably in Europe.

Europe’s standards are currently the most demanding standards to comply with, and we have authorisations to conduct all inspections and surveys, and issue all documents that are required under those rules and standards.

That means that CRS is authorised to carry out inspections and issue inland navigation certificates for all kinds of EU vessels and EU flags covered by the Directive 2016/1629 and the ES-TRIN standard.

In addition, we are a recommended classification society for the so-called ADN certification, meaning that we are authorised to carry out classification and inspections of all types of tankers, including the most complex, such as gas carriers and chemical tankers. inland.crs.hr 27

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INTERVIEW

VIŠNJA RAKIĆ, ASSISTANT MINISTER IN THE CONSUMER PROTECTION SECTOR

The Pandemic Has Changed

CONSUMER HABITS Prior to the pandemic, consumers were sceptical regarding online shopping, but they changed their attitudes during the crisis and adapted to technological progress. The Ministry is working on systemically educating consumers regarding E-commerce. goods or services online in the third quarter of 2020. Consciousness shifted in all segments of our lives during the pandemic, even when it comes to shopping. Prior to the pandemic, consumers were sceptical regarding online shopping, because goods “cannot be tried”, while questions were raised about online fraud. However, the crisis played its part in ensuring that older generations are also adopting technological

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he Law on Consumer Protection, adopted in 2014, prescribes rules modelled on the European law that regulates, among other things, consumer rights when shopping online, as one form of remote trade. A dynamic business environment motivates retailers to fight constantly to retain existing consumers and attract new ones. In which way do they do it? By increasing their level of satisfaction.

In that sense, shopping online is recognised as a very comfortable and safe way to shop.

Online shopping has been rising constantly, only to experience mass expansion during the COVID-19 pandemic. According to data from the Statistical Office of the Republic of Serbia, 3.2 million people in Serbia used a computer every day or almost every day in 2020, while 36.1% of internet users bought 28

The Draft Law on Consumer Protection, which should eliminate challenges identified in the implementation of the 2014 law, will soon find itself in front of MPs progress that is inescapable.

As priorities of the Consumer Protection Strategy for 2019-2024, consumer protection activities in online shopping have been cited. We believe that the systemic education of consumers is key to successful shopping through this form of trade, so plans include the initiating of consumer topics through the school system, in order to create a responsible attitude to shopping in the consumer society from an early age.

With the 2014 adoption of the Law on Consumer Protection, EU directives regulating policy in the field of consumer protection were implemented. Certain challenges were identified during the implementation of this law, which led to a need to amend regulations, and it was in that sense that the

law on consumer protection was drafted, which will enter the legislative procedure in the coming period. Alongside the amending of regulations, we are also awaited by the continuous process of strengthening the administrative capacities of the bodies responsible for consumer protection and market oversight.

Revised rules on eco-design and the energy efficiency of household appliances began being applied in the EU as of 1st March this year. Eco-design and energy efficiency are linked because they provide consumers with information that forms the basis to make rational decisions and gradually increase the market for more energy-efficient products. Regulations governing this matter stipulate deadlines within which manufacturers, importers or authorised retail representatives for these products must make certain spare parts available to authorised repair service providers in the period from, e.g., eight or ten years after the last unit of a given model is placed on the market. Conditions would thereby be created for products to be repaired and not discarded due to a lack of spare parts. Considering that our country has accepted the obligation to harmonise its regulations with those of the EU, changes to domestic regulations are expected in the coming period, which will have a dual benefit: in environmental terms, through energy savings and waste reduction, but also in terms of financial benefits for consumers.

TRADE | TOURISM | TELECOMMUNICATIONS 2021

UROŠ KANDIĆ, SECRETARY OF STATE AT THE MINISTRY OF TRADE, TOURISM AND TELECOMMUNICATIONS

INTERVIEW

Growth Continuing

DESPITE CHALLENGES Unlike many European countriesm where we saw images of empty shelves and shortages of products even at the start of the pandemic, the supply of the Serbian population has been continuous, orderly and timely, with price stability preserved. throughout the pandemic, alongside the preserving of price stability. Unlike many European countries, where we saw images of empty shelves and shortages of product even at the start of the pandemic, in Serbia there has been a wide range of goods on offer the whole time, especially consumer goods.

I must emphasise that state support measures for the entire economy, thanks to which production and employment were

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n contrast to numerous past economic crises during which the biggest challenge was to stimulate demand, the current pandemic has primarily brought problems on the supply side, because the burning issue is to maintain production under conditions of the limited movement of people.

In that sense, the greatest threat to the retail sector, especially since the outbreak of the pandemic, was reflected in the danger of whether, and at what prices, retailers would be able to procure goods, given the huge shocks to global supply chains, and sell to consumers with limited movements due to health reasons.

Despite all the challenges, Serbia’s retail sector has provided the population with continuous, orderly and timely supplies

Despite the great growth of online orders to retail chains, less than one per cent of total sales of consumer goods on the market are realised electronically. However, large retailers that sell clothing or appliances realise around 20 per cent of their sales revenue through online orders maintained, also contributed greatly to the stability of the retail market. Moreover, the turnover of retail trade increased by 4.3% in 2020, and a growth trend of three per cent compared to the same period of last year continued in the first two months of this year. Additionally, with 348,000 employees in the wholesale and retail trade sectors in 2020, levels of employment were preserved in this sector, which accounts for around 15 per cent of the total number of employees.

Trade is certainly among the sectors not to be hit as hard by the crisis, a large

contribution to which was provided by shifting the focus from traditional channels to E-commerce, as a response to the limited operations of physical retail outlets. New trends will certainly also change consumer habits in the long run, while online sales are expected to continue growing.

The number of e-transactions realised doubled last year, to 14 million, as did the value of e-transactions, which increased from 17 billion dinars in 2019 to 32 billion dinars last year.

There were individual problems with online deliveries at the start of the crisis, due to the increased volume of work, but the delivery process stabilised quickly. However, with the expansion of E-commerce we have seen that retailers’ competitiveness will depend to a great extent on the logistics of delivery, which is very demanding both financially and organisationally.

There will certainly be a lot of challenges in the period ahead that will impact on the speed of the recovery of the entire economy, and thus also on trends in the retail sector.

We should particularly keep in mind the present uncertainty regarding the shifting world oil price, which is on the rise, and the rising price of food globally, which is also caused by increased demand due to the pandemic. The Government of Serbia will monitor the situation on the market and, if the need arises, react in a timely manner, within the scope of its legal competencies, with the aim of ensuring the orderly supplying of the market and the maintaining of price stability.

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DIGITALISATION IS A PRIORITY

No development

WITHOUT DIGITALISATION The global pandemic caused by the novel coronavirus has changed the world in which we live, and it has also changed us. While it has proved disastrous for some areas of life, such as tourism and hospitality, it has had a positive effect on others. COVID- 19 has, among other things, led to an expansion of E-commerce, digitalisation and telecommunications, spheres that will continue developing rapidly even when we leave this disease behind us

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ALL SETTLEMENTS IN SERBIA WILL GET A NETWORK BY 2025 “Digitalisation and the development of new generation networks are just as crucial to economic and social development as the raising of the level of digital skills is essential to addressing the future challenges of the labour market and the economy in general. Digitalisation is a priority of the Government of Serbia, which is why we launched the project to construct broadband infrastructure in rural areas where operators have no commercial interest in doing so,” said Minister of Trade, Tourism and Telecommunications Tatjana Matić, before noting that the aim is for all settlements in Serbia to get a network by 2025.

Ambassador Jan Braathu, Head of the OSCE Mission to Serbia, confirmed that broadband infrastructure and 5G technology are the future, and that the OSCE Mission is working intensively in these fields, together with the implementing of projects to develop digital literacy and digital skills.

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EVER MORE GIRLS ENROLLING IN IT STUDIES IN SERBIA “The greater inclusion of girls and young ladies in technological domains is essential for combating the digital gender gap, but also for economic growth in the digital future,” said Serbian Trade, Tourism and Telecommunications Minister Tatjana Matić, speaking on the occasion of International Girls in ICT Day. Speaking during the formal opening ceremony for Hack#teen, a competition in developing technological solutions for girls of primary school age, Minister Matić stated that the percentage of girls enrolling in IT studies in our country increased from 25.7% in 2016 to 29.3% in 2020. Although Serbia is recording a higher participation of girls in ICT education than the European average, it is still necessary to continue working on overcoming prejudices that view this area as primarily a male field and to encourage girls to develop their interests and talents in the direction of professions that are not only the most sougth-after, but also the best paid.

INVESTING IN NETWORK DEVELOPMENT WILL REJUVENATE RURAL AREAS

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Serbian Trade, Tourism and Telecommunications Minister Tatjana Matić and A1 Telekom Austria Group COO Alejandro Plater have discussed the importance of developing networks in the Republic of Serbia and investing in ICT. During the talks, Minister Matić stressed the importance of the Project to Construct Broadband Infrastructure in Rural Areas, which will impact on the overall economic growth of underdeveloped parts of the country. The Minister also reiterated that the implementation of the first phase of the project will secure ultra-fast broadband access for about 500 settlements, or approximately 80,000 households in rural areas. Matić expressed her expectation that works on the networks will begin in September this year and be completed by September 2022.

COO Plater agreed that digitalisation and technological development are crucial, especially the development of infrastructure in rural areas, including investments in the network that his company is interested in making.

TRADE | TOURISM | TELECOMMUNICATIONS 2021

TOURISM AND E-BUSINESS PROJECTS CONSIDERED

The auction for operators for the introduction of the 5G network was postponed due to the pandemic and is expected to be conducted by the end of next year. Preparations are still continuing, because - according to the Ministry of Trade, Tourism and Telecommunications - it is necessary to adopt regulations on the use of the spectrum on a certain frequency and appropriate regulations. Interest in the auction among operators already exists, as there is interest from industry.

It is interesting to note that the 5G network is primarily intended for industry, unlike the 4G network, which is used by consumers of mobile content.

The 5G network will be used the most by the the automotive industry, agriculture and medicine, which already use 5G networks around the world. However, following the global economic crisis caused by the pandemic, the scale of which is not even perceptible, the industry withdrew from conducting assessments of whether investments in equipment for the 5G network are economically justified.

Serbian Trade, Tourism and Telecommunications Minister Tatjana Matić expressed hope that the circumstances will be different during the course of 2021 and that the market around the whole world will stabilise.

Serbian Trade, Tourism and Telecommunications Minister Tatjana Matić, NALED Executive Director Violeta Jovanović, and Post of Serbia Executive Director Nebojša Marković have held discussions on projects in the field of tourism and e-business.

Speaking on this occasion, Minister Matić announced the formation of the Council for the Development and Recovery of Tourism, while the meeting also included discussion of the importance of implementing the Law on Electronic Document, Electronic Identification and Trust Services in Electronic Business.

Consideration was also given to the solution for issuing qualified electronic certificates for the signatures of foreign citizens, but also for domestic citizens who are resident abroad and are unable to come to Serbia or use available electronic services.

SERBIA HASN'T ABANDONED 5G NETWORK INTRODUCTION

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OPINION

MARK ESPOSITO, A CO-FOUNDER OF NEXUS FRONTIERTECH, LANDRY SIGNÉ, PROFESSOR, NICHOLAS DAVIS, WEF/PROJECT SYNDICATE

The Digital Revolution

IS EATING ITS YOUNG We are facing an acute crisis of technological opportunity and access, owing to an invasive business model that has proven incapable of supporting equity and inclusion. The stakes are high, and the market won’t fix the problem.

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s massive online platforms have given rise to numerous virtual marketplaces, a gap has opened between the real and the digital economy. And by driving more people than ever online in search of goods, services, and employment, the coronavirus pandemic is widening it. The risk now is that a new digital industrial complex will hamper market efficiency by imposing rents on real-economy 34

players whose daily operations depend on technology.

Fourth Industrial Revolution (4IR) is that the tangible and intangible elements of today’s economy can coexist and create new productive synergies. The tangible side of the economy provides the infrastructure upon which automation, manufacturing, and complex trade networks rest, and intangibles – logistics, communication,

and other software and Big Data applications – allow for these processes to achieve optimal efficiency.

More to the point, the tangible economy is a prerequisite for the intangible economy. Through digitalization, tangibles can become intangibles and then overcome traditional limitations on scale and value creation. While heavily transactional and capital-intensive, this process hitherto

TRADE | TOURISM | TELECOMMUNICATIONS 2021

has been a positive mechanism for growth, providing some equity of opportunities for small and large countries alike.

But this standard account of the 4IR omits the recent decoupling of the digital and real sectors of the economy. Digitally native companies that benefited from the suspension of traditional factors of production have been growing even faster than they did before COVID-19.

By the beginning of September 2020, Facebook, Amazon, and Apple’s share prices had more than doubled since the start of the pandemic, with Apple becoming the first company ever to achieve a $2 trillion valuation. And while shares of Netflix and Alphabet (Google) – the other so-called FAANG firms – hadn’t quite doubled, they were nonetheless trading at or near alltime highs. Meanwhile, ExxonMobil, the S&P 500’s oldest member and a former icon of the tangible economy, was driven out of the index by Apple’s decision to split its stock. Those who own and run the tech giants are making ever more money while the rest of the world continues to experience economic devastation.

With real-economy assets being positioned far below digital financial assets, a K-shaped corporate recovery has emerged.

Digital firms can grow apparently without limit, whereas others’ growth remains circumscribed by the finite conditions under which they operate. This trend is not only challenging neoliberal assumptions about the creation of value; it is also pushing us toward a scenario in which government policies to redistribute value will no longer be plausible options.

To be sure, governments and some within the private sector have proposed remedies, such as a tax on digital assets, while proponents of a laissez-faire approach continue to insist that any form of government inter-

It is time to start identifying appropriate areas for “digital protectionism.” Just as some countries use trade tariffs to support nascent local production, digital tariffs could be used to foster local innovation ecosystems vention will merely introduce more market distortions. But neither camp has offered enough evidence for its preferred policy.

We suggest three other solutions. First, government grants and subsidies can be used to promote technological diffusion, and to close the technology gap between platforms and small and medium enterprises. Rather than expecting the market to provide equitable access to technologies like artificial intelligence, governments can fund programs that reach smaller firms directly, such as through tax write-offs or other measures (as already happens with incentives for consumers to buy environmentally friendly cars). While such outlays would increase public debt in the short term, these costs would be offset by the higher

productivity that would come with a more balanced distribution of economic power.2 Second, we should be working toward a more agile, multi-stakeholder model of innovation, so that concerns about inclusion and representation are addressed without curtailing the pace of technological advance.

The goal, here, should be to reduce the tensions between winners and losers across the platform economy’s new value chains.

Several existing cases have demonstrated that proper representation of stakeholder interests enables policymakers to mitigate the harms and adverse unintended consequences of new technologies without sacrificing speed or flexibility.

Third, it is time to start identifying appropriate areas for “digital protectionism.” Just as some countries use trade tariffs to support nascent local production, digital tariffs could be used to foster local innovation ecosystems. This would not work everywhere. But in places that have reached some threshold of technological adoption and diffusion, such policies could encourage grassroots solutions, creating new community-based approaches to managing how technology is designed, deployed, and funded.

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COMMENT

Pandemic Shows Agriculture's Strategic Importance The COVID-19 pandemic, which the whole world has been fighting courageously for more than a year, has resulted in consequences of unprecedented proportions in all segments of everyday life, business and the economy, but also reminded us, once again, that food is our most important resource

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uring the first days and weeks after the declaring of the pandemic, we witnessed similar scenes in all countries, regardless of their level of economic development and the habits of consumers - customers rushed en masse to shops to procure basic foodstuffs and secure for themselves supplies of flour, oil, yeast, rice, sugar, eggs, meat, pasta, frozen pastries, canned food etc.

And even at the global level, to this day, demand has increased on the international market for all goods from the agricultural sector, as countries are striving to ensure their own food security and create significant stockpiles, while we are also seeing record-breaking prices of agricultural products being reached.

Agriculture has been confirmed as the most important area of economic activity, and has shown stability, robustness and adaptability under these circumstances, continuing to produce at full speed and to distribute food to consumers on the domestic market and conduct export activities.

One such example is also represented by Serbian agriculture, which last year provided full food security to the population, gave a significant contribution to the country’s total GDP and managed to break records in terms of foreign trade exchanges.

Serbia realised exports of agricultural and food products in 2020 with a record high value of 4.2 billion dollars, as well as a foreign trade surplus of 1.85 billion dollars.

Serbian agricultural exports have grown by as much as 50 per cent over the last two years.

And export prospects are expanding even fur-

ther - the Chinese market is now open to corn from Serbia, while exports of Serbian products to Bahrain - which is interested in forest fruits and berries, beef and lamb, but also all vegetable crops - are expected to be able to commence soon. A readiness to deepen cooperation with Serbia in agriculture has also been expressed

by Iran, Vietnam and Indonesia.

Thus, producers from Serbia will have an opportunity to achieve even higher exports and better profits, given the continuing trend of increased demand for food around the world, as well as the constant growth of food prices that has been recorded for months.

According to the latest report of the United Nations Food and Agriculture Organization (FAO), the prices of food products on global markets continued to rise in March, for the tenth

Serbia realised exports of agricultural and food products in 2020 with a record high value of 4.2 billion dollars, as well as a foreign trade surplus of 1.85 billion dollars consecutive month, with prices of dairy products, meat and vegetable oils rising the most.

The FAO Food Price Index, which tracks monthly changes in the international prices of five basic foodstuffs - vegetable oils, dairy products, meat, cereals and sugar - averaged 118.5 points in March this year, which was 2.1% higher than in February and the highest level since June 2014.

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BRANISLAV NEDIMOVIĆ, MINISTER OF AGRICULTURE

Fruits of Considered Policies A strong turnaround in subsidies and their manifold increase is now yielding tangible results in terms of excellent exports, opening new markets and returning to rural areas young people who have access to knowledge and use new technologies

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erbia achieved record exports of agricultural products in 2020, worth 4.1 billion dollars. That is a significantly better result than previous years, when that figure fluctuated at a level of approximately 2.8 billion dollars. Although major leaps like this are very often a product of specific opportunities, Agriculture Minister Branislav Nedimović believes that this is a result that came as a product of public policies changes in this sector, primarily in the domain of subsidies, encouraging procurements of modern machinery and returning to rural areas young people who have access to knowledge and enthusiasm to start producing more added value. This is also the result of the policy of entering new markets, primarily those of China, India and the Middle East, which are highly solvent markets that are interested in both agricultural products and the products of our food industry.

You’ve said that agriculture was the “golden boy” of Serbian exports in 2020. What do the initial estimates of the state of crop yields and market demand for 2021 tell you?

Absolutely. Agriculture was one of the main pillars of Serbian GDP in 2020. Although it is too early to give a forecast for the entire year, at this moment everything is within the framework of good expectations, whether that relates to wheat or other crops. Snow and frost have had perhaps minor consequences for some early fruit varieties, but absolutely everything else is in good condition.

How much did the fall in demand for tourism influence results in agriculture, considering that the tourism industry is a large buyer of goods from the agriculture sector?

This is perhaps the biggest problem for Serbian food, for which tourism represents an important platform, whether we’re talking about tomatoes, potatoes or meat and the dairy sector, cheeses... The state has responded to this with different aid packages several times. We last year paid more than two billion dinars directly onto the accounts of farmers, after which we embarked on the interventive purchasing of beef, with about two million euros set aside for that purpose. And intervention on the pork market is also currently underway, which is why we are withdrawing 15,000 fatteners that indirectly led to a leap in the price of pork and thus provided essential support to pig breeders. I think this sends a clear message that the state has not

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March

DIGITALISATION

MARKETS

EURO INTEGRATION

Today, when the workforce in the rural areas is dwindling, digitalisation is perhaps one of the magic wands that you can use to solve all the consequences of the lack of people, but also knowhow.

We’ve opened new markets, such as those of China and Egypt, thereby bringing buyers to the Serbian farmer.

We are very satisfied with the process of harmonisation with the EU acquis. Everything happening on this front in this area tells us that good steps forward are being taken.

and will not abandon anybody to fend for themselves in the most difficult times.

Thanks to this and the conditions that we secured in order for production to run smoothly, we even succeeded in breaking records for exports last year, which we didn’t achieve even under normal conditions.

Are you satisfied with the state aid measures in this sector; where were those measures essential?

I know only that we invested every atom of our strength and the resources we had to help farmers. When it comes to the sectors that were hit the hardest, they were certainly those that depend on tourism and hospitality. Crises of gargantuan proportions, such as the current one caused by the pandemic, have flooded much stronger economies than ours. We are still doing excellently for now, and I believe that’s why we have strong reasons for optimism in the period ahead. I would therefore repeat that vaccination, where we are recording incredible results and slowly stabilising the situation, is the only way to accelerate our departure from the crisis and return to the economy the kind of strong impulse it had just a year and a half ago.

Serbia exported agricultural and food products worth a total of 4.2 billion dollars in 2020, which is double the total achieved five years ago. What has contributed to that when it comes to government policies?

Definitely investment support. It was four years ago that we made a strong turnaround in terms of subsidies, providing manifold increases in the total amount of subsidies for investments in agriculture.

This has resulted in the start of the renewing of machinery, tractors and everything that significantly reduces production costs and increases capacity through renewal. A fact that’s no less important is that we’ve opened new markets, thus

The state has not and will not abandon anybody to fend for themselves in the most difficult times. Thanks to this and the conditions that we secured in order for production to run smoothly, we even succeeded in breaking records for exports that we didn't achieve even under normal conditions bringing new customers to the Serbian farmer. Only everything mentioned in a package makes sense and represents the only correct route to the growth of exports and agriculture generally.

To what extent can digitalisation help in your part of the job, and where are the Ministry’s efforts directed in this segment?

Digitalisation is increasingly entering agriculture. Its significance can be seen at every stage. From sowing to harvest, from rearing to milking. Today, when the workforce in

rural areas is dwindling, digitalisation is perhaps one of the magic wands that you can use to solve all the consequences of the lack of people, but also knowhow. It was a few years ago that we recognised it as being a very present and an increasingly important model of production, which is why our measures also encompassed support for the procurement of equipment that changes the rural workforce and uses the most accurate data to ensure the most efficient production possible. Whether this relates to irrigating and fertilising plants through applications and special sensors or,

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for example, procuring robots for milking cows and milk vending machines that have proven to be an excellent substitute for street sales of milk, as a far more secure and profitable form for farmers.

Our traditional markets are those of CEFTA and EU member states. How much have we managed to open up to other markets in the meantime, and what is sold on those markets most successfully?

We certainly have. New markets are exactly what I’ve insisted on since entering the ministry. We have opened the market of the People’s Republic of China for beef and lamb, milk and wine, Egypt for cereals, which is the country that’s the largest importer of them while the market of the Middle East, which is currently one of the highest paying markets in the world, now imports our meat, apples etc. As I repeat persistently, even if we had yields equivalent to all the countries of the world combined, that would mean nothing to us if we didn’t have a place to sell them at a good price... Quite simply, that is the condition of all conditions.

One of the issues to which we often return is harmonisation with EU regulations when it comes to the acknowledging of laboratory results from the EU, the declaration of the country of origin and similar challenges in the regulating of

If there's anything that provides hope, then it is the growing receptiveness of young people for new investments in agriculture, in the countryside and life there... This represents a clear signal that we've made good moves that we are already elaborating on with new measures trade in food products. How is the removal of obstacles to EU integration in this domain progressing?

We are very satisfied with the process of harmonisation with the EU acquis. It could of course be better, but if you take into consideration all the circumstances and challenges imposed on us, whether that means the pandemic or some other factors, I think that good steps forward

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are still being taken. We have rounded off the complete system of laboratories for testing the quality of food with the most modern equipment, and regulations have also been seriously harmonised in that area. We will soon also receive the Law on the Market of Agricultural Products, which is completely aligned with European practises, so there is certainly no reason for greater dissatisfaction.

The inventory has been postponed, so we don’t have the latest data on our farmers. Do you nonetheless see progress in connection with some problems noticed previously, such as tiny holdings, the age of heads of households and similar problems? In short, to what extent are young farmers finding a place for themselves in Serbia, particularly those interested in applying for European funds, deploying modern working methods and utilising the findings of science?

The story of the “ageing” of rural areas is relevant all over the world. And it is also a serious challenge for highly developed countries. Unfortunately, this hasn’t bypassed Serbia either, but if there’s anything that provides hope, then it is the growing receptiveness of young people for new investments in agriculture, in the countryside and life there. It was only three years ago that we announced the first start-up call for young people, worth 1.5 million dinars, which around 600 interested people responded to, and now we will provide payments to approximately 3,000 young farmers from just the most recent competition. So, a fivefold increase. This is a serious advance, and although it won’t solve all problems related to the survival of villages, it represents a clear signal that we’ve made good moves that we are already elaborating on with new measures. A fact that’s perhaps even more important is that they exclusively use modern technologies and apply the most modern knowhow, which provides much greater certainty for their survival in agriculture.

How much is BioSense, along with the start-ups gathered around it, engaged in the modernisation of our agriculture; and how do you collaborate with them?

We have been partners with BioSense from the very beginning. This is an institution with exceptional potential that the Ministry and the Government have provided with significant supported in every sense, and which has shown that it can stand side by side with world platforms of that type. Although it is already recording top results, this is certainly a story that has yet to achieve serious momentum in Serbia.

“IT’S NOT THAT I’M SO SMART, IT’S JUST THAT I STAY WITH PROBLEMS LONGER” ~ ALBERT EINSTEIN

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7

ILAN LEVANON, CEO, ADAMA SERBIA

ADAMA Serbia Becomes Regional Hub BUSINESS EXPANSION IN THE FORMER YUGOSLAVIA, ALBANIA AND BULGARIA

In the previous year, despite the challenges brought by the global COVID-19 pandemic, ADAMA managed to accelerate its digital platform, launch nine new products, strengthen cooperation and develop business with partners throughout the region. budgets to support digital channels. This allows us to maintain communication, even if only remotely, and keep our customers informed and updated about any condition. Not only do we find those channels very effective, allowing us to address even larger number of farmers and provide them with a higher quality content

In 2021 alone, we have a record nine new products at launch, among which is a highly efficient new fungicide against sugar beet leaf-spot disease and a new corn herbicide to control a wide array of weeds

As a company, ADAMA is known for its individual approach to farmers and for striving to connect with them directly on the ground. Have any new ideas and innovative solutions in this regard been brought by the previous year, which was full of challenges caused by the COVID-19 pandemic?

“Farmer Proximity” remains a key pillar in ADAMA’s approach to the market. The global COVID-19 pandemic and the social restrictions pose an obvious challenge for us. Apart from meeting farmers face-to-face within the framework of national restrictions, we have significantly accelerated our digital platform and have shifted

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in an interactive fashion, we have also noticed a shift of users profile towards young and more technologically advanced farmers.

You’ve announced the implementation of a major development plan over the coming years, but also that your agenda includes new solutions for farmers in Serbia and the region.

Could you tell us what the main objectives are? Can you present to us some of those products that are current at this moment?

We have launched our long-term product development plan in Serbia and other former Yugoslav countries. We are excited to launch our bio-stimulant “Excelgrow”, a unique, all-natural alga extract that improves plant physiology, growth and resilience to stress,

which leads to higher yields of vegetables and higher quality even under sub-optimal growing conditions. We are re-launching our high-end “Brevis”, a fruit-thinning solution, after years of testing, to allow apple growers to thin their fruits in a cost-effective, safe and simple way.

In addition, we have introduced “Brevis Smart”, our in-house software that assists the apple grower in determining the best timing for his “Brevis” application, based on a complex matrix of morphological and environmental inputs made simple. Those are just few examples. Our R&D teams, headed in Israel, are working on ADAMA’s next generation of crop-protection technologies.

Given that Serbia represents an important market for the operations of your company and that it has the potential to become a regional hub, have any concrete steps towards realising that potential already been taken? Considering that you’ve already expanded your operations to all countries of the former Yugoslavia, could you tell us how your experiences have been so far?

ADAMA Serbia is now a regional hub for all ADAMA operations in the former Yugoslavia and Albania. Our Serbian team recently established ADAMA Bulgaria, which operates under our management and support. Operating as a regional hub, we have strengthened our cooperation and grown our business with our partners across the territory by sharing knowhow, providing expertise and serving as a one-stop regional centre.

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BY ALINE ROBERT | EURACTIV

‘Agri-tech’ spreading like wildfire across French farms Technology can already be found everywhere on French farms, but the so-called “agritech” trend wants to push innovation even further. Two hundred fifty of France’s startups are already specialising in agriculture and working towards developing software, drones, robots, artificial intelligence and satellites marketplaces to avoid Amazon, as well as creating decision-support software or even the participative financing platform, known as Miimosa.

EU AGRI-FOOD OPERATORS SIGN MILESTONE DATA SHARING DEAL In a bid to speed up the exploitation of new technologies in EU farming, a coalition of associations from the EU agri-food chain signed on 23rd April a joint EU Code of Conduct

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ince the time of draft horses, which were still being used in the 1960s, high-tech has been making its way into European agriculture at a rapid pace. Yet, if horses are making a big comeback for certain farming activities, such as organic viticulture, it is still at a very small scale.

“Today we have almost autonomous tractors, which hardly need drivers anymore,” said Stéphane Marcel, head of digital technology at InVivo. Guidance technologies, the use of satellites to geo-locate operations, but also smartphones, software and even drones are now an integral part of the daily lives of farmers.

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In France, agronomic research, which has always been widely supported by public authorities, has now shifted towards what is known as “agri-tech”.

Does it mean producing more with less?

Better and closer to the customer? At a distance but without labour? Or even sustainably? But while the keyword is innovation, the motivations leading to ‘agri-tech’ are multiple.

The association ‘Ferme Digitale’, paradoxically located in the Paris suburbs, includes 45 projects which are attempting to establish digital technology on farms. Its objectives include the development of organic fertilisers, setting up

“Today we have almost autonomous tractors, which hardly need drivers anymore,” said Stéphane Marcel, head of digital technology at InVivo.

Guidance technologies, the use of satellites to geolocate operations, but also smartphones, software and even drones are now an integral part of the daily lives of farmers on sharing of agricultural data.

In total, nearly 250 start-ups in France are focusing on the agricultural sector. On the cooperative side, the InVivo group, which brings together 3,000 companies, is also developing a more expansive range of tech products and services.

For example, the group’s Smag software covers 10 million hectares of France’s agri-

cultural territory. The software gives farmers access to cross-referenced information on their smartphone, including about the weather, optimum spraying dates, seeds, fertilisation plans (addition of nitrogen) and regulatory compliance.

And the consumer who buys his/her baguette every day is unaware of the tech involved, though it is so omnipresent in his diet.

“In France, it is often complicated regulatory constraints that drive the use of software, whereas elsewhere, technologies are developed to optimise productivity,” said Stéphane Marcel.

Between respecting grassed strips or watercourses, farmers must keep records that can be computerised. Software is also very present in animal husbandry, mainly because of the complexity of veterinary management The new wave of “AgTech” is also producing more specific innovations, particularly when it comes to precision farming. This involves mapping and monitoring geological and then plant data for a field so that inputs can be adapted to suit ultra-localised needs.

The Be Api company thus proposes to map land very precisely and to propose, according to the levels of fertility and exposure within the same plot, different treatments: increasing or decreasing the number of seeds, water, nitrogen, herbicide, etc. Precision farming is thus seen as a solution to pesticides: the technology allows for the adjustment and reduction of pesticide application.

ALGORITHMS AND SATELLITES TO MONITOR WHAT IS HAPPENING IN THE FIELDS High-tech is not only present at the developmental stage of the agricultural sector since the control of the entire Common Agricultural Policy (CAP) is also evolving thanks to the reinforcement of the algorithms. The €59 billion allocated to farmers is often subject to fraud, something the paying agencies are trying to reduce.

Aid is allocated according to specific criteria, which are also costs for the farmer, who has a potential interest in preserving certain information from the paying agency, as analysed by the OECD in its report on

In partnership with the European Space Agency, two satellites, Sentinels 1 and 2, provide permanent and precise images of agricultural plots, with ultra-precise information which includes the type of crop and the exact size of the plots of land “Digital Opportunities in Agricultural Policies“.

Satellite imagery may now offer an answer to this problem.

In partnership with the European Space Agency, two satellites, Sentinels 1 and 2, provide permanent and precise images of

agricultural plots, with ultra-precise information which includes the type of crop and the exact size of the plots of land.

The technology is also able to analyse whether the land is fallow or not. The data is distributed in open source, which makes developers happy for the data-driven part of agriculture.

In terms of monitoring agricultural activity subject to the CAP, Italy, Spain and Belgium, in particular, are already using them to determine whether or not to grant area aid, which accounts for nearly 80% of the funding.

But this is an insufficient number of countries according to the European Court of Auditors, which deplores the fact that the Commission has not yet validated the methodologies of other EU member states wishing to use satellite data.

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NEWS Serbia, which is among the world’s ten largest exporters of corn, is now able to sell corn on the market of China, which is the world’s largest purchaser of this product.

It was in February of this year that Minister of Agriculture, Forestry and Water Management Branislav Nedimović signed two protocols with the General Administration of Customs of China on phyto-sanitary conditions for the export of Serbian corn and dried sugar beet noodles to China.

The protocols with Minister Nedimović were co-signed on behalf of the General Administration of Customs of China by the Ambassador of that country in Belgrade, H.E. Chen Bo. Nedimović expressed satisfaction that, following the start of exports of beef and lamb, and the resolving of issues related to the export of dairy products from Serbia to China, it was now the turn of exports of corn and beet noodles.

Ambassador Chen Bo stated that Serbia has strong agriculture and high-quality products, as well as that she considers that great opportunities and potential exist for cooperation in the field of agriculture. She stressed that the Chinese embassy is ready to work with Serbian friends and the ministry on ways to export ever more and better quality products from Serbia to China.

Serbia Receives Permission to Export Corn and Beet Noodles to China

Grant Support Arriving for Small Agricultural Homesteads and Enterprises

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The Ministry of Agriculture, Forestry and Water Management has launched a project with the World Bank to allocate grants to small farmsteads and enterprises, but also for the ministry to modernise its own system for granting subsidies.

The new form of support will be paid in advance to farmers who satisfy the criteria. The maximum grant amount that one farmstead can receive is 25,000 euros, while companies will be able to count on 200,000 euros.

The Ministry will payout 20 million euros for these purposes by year’s end 2021, through three public calls. Representing an additional quality of this project is that, in addition to grants, farmsteads will also receive credit support with minimal participation.

Funds will be allocated through the format 50-40-10, i.e. beneficiaries will be able to receive grants in the amount of up to 50% of the total value of the investment, while 40% will be financed through loans from banks participating in the project, with producers providing just 10% of their own funds at the start, as their personal participation.

Among the priority grant recipients are women, young farmers and those working in less developed or impoverished municipalities. Alongside these groups, preference will also be given to those producers who have commercial potential but a capacity that is still too small to compete for financial support measures for the development of agriculture, such as IPARD. The Competitive Agriculture in Serbia Project will run for three years and will have a total value of around 38 million dollars.

First Online Review of Serbian Agriculture Held The International Agricultural Fair in Novi Sad was organised virtually for the first time in its long history in 2020, via an online platform that enabled the Novi Sad Fair to maintain the continuity of its events dedicated to agribusiness.

The fair took place from 14th to 18th December last year.

With the Czech Republic as the partner country, the fair saw the presenting, in a virtual format, of the products and services of about 200 exhibitors from eight countries: Czechia, the Netherlands, Croatia, Italy, Hungary, Turkey, Spain and Serbia.

The event was officially opened by Serbian Prime Minister Ana Brnabić, who congratulated the Novi Sad Fair for persisting in the decision to maintain the continuity of its event despite the pandemic, and for organising the fair in a digital format.

As Novi Sad Fair General Director Slobodan Cvetković stated at the time, this is the first event in the Balkans to be held in a digital format and it has all the elements ordinarily included in the real fair and to which visitors are accustomed.

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