Issuu

C R O A T I A N

S E R B I A N

REGIONAL COOPERATION 2016

EDITOR Ana Novčić

CONTENTS

ART DIRECTOR Jasmina Laković j.lakovic@aim.rs PHOTOGRAPHY: Zoran Petrović PROJECT MANAGERS: Ljiljana Knežević lj.knezevic@aim.rs

TWO GOVERNMENTS AWAIT NEW CHALLENGES COMMENT

CROATIA IS OPEN TO ALL FORMS OF COOPERATION

Aleksandra Ebilji a.ebilji@aim.rs

W HILE THERE ARE NEIGHBOURS, THERE WILL BE OPEN ISSUES

Biljana Dević b.devic@aim.rs

A SMALL COUNTRY WITH A RICH CULTURAL TRADITION

CULTURE

Dragana Radović d.radovic@aim.rs

H.E. GORDAN MARKOTIĆ Croatian Ambassador to Serbia

Nataša Trifunović n.trifunovic@aim.rs

DAVOR ROMIĆ Croatian Agriculture Minister

FINANCIAL DIRECTOR Dragana Skrobonja d.skrobonja@cma.rs

CYCLING HEAVEN ON SUNSHINE ISLAND

B USINESSPEOPLE SPEAK THE LANGUAGE OF COOPERATION

WE CAN DO BETTER

PUBLICATION MANAGER Neda Lukić n.lukic@aim.rs EXECUTIVE DIRECTOR aim Maja Vidaković m.vidakovic@aim.rs

TOURISM: Hvar

GENERAL MANAGER Ivan Novčić i.novcic@cma.rs PRINT Rotografika d.o.o. Segedinski put 72, Subotica

Makenzijeva 67, 11000 Belgrade, Serbia T +(381 11) 2450-508 F +(381 11) 2450 122 E-mail: office@aim.rs www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2016

MARIJA RADULOVIĆ President of the Croatian Business Club in Belgrade

A 300-YEAR-OLD KNIGHTS’ TOURNAMENT SINJSKA ALKA

LUKA BURILOVIĆ President of the Croatian Chamber of the Economy

H PK - ACTIVITIES

C ROATIA'S TOP 10 MUST SEES IN 2016

BUSINESS IS LIKE WATER

B IGGEST DISTRIBUTOR IN EUROPE

G REAT EXPERIENCE IN THE SERVICE OF DEVELOPMENT

MARKO ČADEŽ President of the Serbian Chamber of Commerce

- SERBIAN 4 CROATIAN REGIONAL COOPERATION

BRANKO ROGLIĆ President of Orbico Group

AD PLASTIK GROUP

COMMENT

Businesspeople in Favour of

COOPERATION

Although they belong to different worlds, with Croatia in the family of European countries and Serbia in the group of candidate countries, the businesspeople of the two countries have similar concerns, in terms of how to raise their efficiency and survive under conditions of harsh competition – where it is possible through combined forces

n the first quarter of 2016, real GDP in Croatia grew by 0.6% compared to the previous quarter, while the trend is upward, announced the Croatian National Bank recently. Serbia has also recorded favourable data on economic growth, which will probably surpass the initially expected two per cent. At other times these would have been weak numbers, but under conditions of the general slowdown in the global economy, every shift, even the smallest, brings a ray of optimism. This is especially the case given that both economies recorded worse results than these in the previous years. Both economies are at a delicate juncture: one is slightly more indebted than the other, while both could do with still higher exports and stronger domestic consumption, because with these trends they cannot reverse the spiral of increasing indebtedness. Likewise, both could also do with a greater government focus on structural reforms and less on political developments and on the internal front and in their mutual relations. Although they belong to two different groups, with Croatia in the family of European countries and Serbia only one among a series of candidates waiting in the lobby, the two countries have many similar concerns. They are both struggling to cope with the stiff competition from European countries and must do a lot more work on raising the efficiency of their enterprises, innovations and on the education of the workforce. Both countries are struggling with high unemployment, which is largely the result of a lack of adaptation of the education system,

and both aspire to the German dual education model, which would provide the economy with well-educated and well-trained people able to progress from school desks to entering the manufacturing process. The two chambers of commerce, which lead the way in fostering good relations, are strong advocates of this process. There is nothing strange in this, because the game is speeding up. When Europe isn’t busy dealing with its internal political problems, it is interested in the challenges of transition to the standards of Industry 4.0, which in itself adds the fruits of the Information Society and a highly trained workforce. In the book “The Smartest Places on Earth: Why Rustbelts Are the Emerging Hotspots of Global

change shows that those who believe they can attract investors to the region by selling cheap labour are deeply mistaken. This has already been perceived by the Croatian Chamber of Commerce, which – with the help of experts – devised the programme “Let’s Employ Croatia”. Its parts were met with interest by the new Croatian government, although it is also overwhelmed with an intraparty struggle. It seems that this is also at least declaratively being considered by the (new) government of Serbia, and its incumbent prime minister - who announced that his focus will (also) be on education. Here we should add a reserve, first in connection with the very small support of the current Minister of Education to try to at least start this process and, second, that the funds and personnel that will be ready for these endeavour will be modest. Education will thus have to go through the treatment of austerity, which – if not performed well – will the schools stripped of their highest quality personnel for the second time in the last decade. Through its regional initiatives, the EU has long been pushing all countries in the region precisely towards innovation and towards entrepreneurial initiatives. Here the chambers in the region also have an important role to play in encouraging new forms of entrepreneurship. Although it sometimes seems that we rarely see them, the emergence of attractive start-ups in both countries shows that, in the shade of large companies, they develop agilely and based on modern platforms of entrepreneurial initiatives that see their country, region and the world as part of the same milieu. «

The emergence of attractive start-ups in both countries shows that, in the shade of large companies, they develop agilely and based on modern platforms of entrepreneurial initiatives that see their country, region and the world as part of the same milieu Innovation” by Antoine van Agtmael and Fred Bakker, which was published in April, the authors argue that economic and technological trends have enabled many older industrial cities in the United States and northern Europe to advance again. Industry, therefore, in cooperation with the universities with which businesses and start-ups cooperate closely, is making a comeback in the developed world. This

- SERBIAN 6 CROATIAN REGIONAL COOPERATION

INTERVIEW

DAVOR ROMIĆ

CROATIAN AGRICULTURE MINISTER

By ZORICA TOD OROVIĆ MIRKOVIĆ,

Croatia is Open to All

Photo: Branko Lučić

FORMS OF COOPERATION H

Serbia and Croatia were until recently members of the same community, integral parts of a single country, while today they are the closest of neighbours, who have good cooperation in various fields because there is mutual willingness and scope for cooperation

ere we discuss strengthening cooperation in agriculture, easier access to third markets, European integration as a common goal of the two countries, investment and interest among Croatian companies in Serbia and vice versa, as well as Croatia’s readiness to support Serbia in its efforts to join the EU by sharing its experience gained during the EU accession process with Davor Romić, Minister of agriculture of the Republic of Croatia. » Cooperation between Croatia and Serbia in the areas of agriculture and food processing are very important for both countries. In your opinion, what steps should be taken to strengthen this form of cooperation? - It is in the interests of both sides for this cooperation between our two countries to be robust and strong. So far we have achieved significant cooperation in the process of European integration, while the mutual interest of both countries is to further deepen and enhance existing cooperation in the field of agriculture. Given that Serbia and Croatia were once both members of the same community, parts of the same country, we know each other, and when you know someone well it is easier to collaborate with them. And there is space for cooperation! Croatia is now a member of the European Union, which was preceded by a long and somewhat tiring journey. That resulted in us gaining vast experience

- SERBIAN 8 CROATIAN REGIONAL COOPERATION

and the huge benefits that Croatia now has as a member of the European Union, and we are ready to share this experience and transfer it to our colleagues from Serbia. In that way we want to help Serbia in the process of acceding to the EU and on its European path, and we, as the Croatian Ministry of agriculture and the Croatian Government, are ready to cooperate. » Croatia’s experiences in EU accession negotiations in the field of agriculture are extremely valuable for Serbia and its own accession process. How important are these lessons? - On its European path, Croatia had the opportunity to use EU programmes, such as ISPA, Phare and SAPARD, and today, under the auspices of the common agricultural policy, we have a rural development programme. This represented a great opportunity for Croatia, in which our path was marked out, and our European path has been mapped out in order for us to be competitive on the European market, and for us to be able to play the game on this large market, to which we have always claimed to belong. At this moment, as a member of the European Union, we have available in the rural development programme nearly 2.6 billion euros, which we should invest in our rural area. That journey, even in our experience, is not easy, on it there are always some “bumps” you need to jump over, to overcome, conquer, bypass ... we succeeded in doing this by learning from other older members of the EU. The experiences we gained along the way helped us to see what is not good, and the possibility always exists for

COOPERATION

PRIVATISATIONS

TECHNOLOGY

It is in the interests of both sides for this cooperation between our two countries to be robust and strong

All privatisations are in some way painful, though without having to be emotional, it is necessary to be realistic and to carry that out in the interests of society

Our society as a whole is not yet at that level in terms of technology whereby it can be competitive on the large European market

that which is done well to help at least a little. Those realisations can really be beneficial for Serbia and we are willing to generously share them with our colleagues in Serbia.

- Croatia is committed to the free market, and that means all foreign companies that have the ability, desire and intention to open their representative offices in Croatia are welcome. There is nothing of dispute in that and no obstacles, even in bureaucracy. Businesspeople always find business routes, and find a way to approach them, and then they find solutions and possibilities to do a good job. We are an open country; we respect everyone who wants to come to our country with a desire to invest in our territory and all the who want to do business with us. Once again, as Croatian Minister of agriculture, at this juncture, and as a member of the Croatian Government, I will repeat – we are open to all forms of cooperation.

» Due to the increasing need for food in the world, agricultural production represents a great development opportunity for Serbia and for Croatia. Do you see in this domain a favourable climate for possible partnership between the two countries in approaching third markets? - Everyone is seeking a way out and a way to approach third markets. Particularly good opportunities for cooperation between our countries, when it comes to agriculture, exist in the field of fruit production. Given that Croatia is more geared towards some of our own productions, especially those that are specific for Croatian agriculture and vice versa, Serbia favours the production of that » We live in a time of which is characteristic to agriculture in privatisation. How Serbia. For instance, Croatia is a signifiwould you comment cant producer of mandarin oranges (in on the pros and cons which record yields are expected this year), while Serbia has good experience in producing raspberries. This creates So far we have achieved significant cooperation in the opportunity for us to jointly approach the Serbian market and some other the process of European integration, while the mutual markets. The Croatian position and the interest of both countries is to further deepen and position of Serbia in the world provide enhance existing cooperation in the field of agriculture opportunities for joint cooperation, especially when we bear in mind the chanof privatising large domestic agricultural and food capacities? ges that are happening in the world, such as the Russian em- Privatisation is a question for the owner. That which is strabargo on Turkey, Turkish the embargo imposed on Russia, then tegically important for a country should remain under state relations between the European Union and Turkey ... There the ownership. Every nation must take account of its strategic vadoor is open for cooperation and a lot of Croatian companies lues, its resources, natural blessings, valuables ... Everything are today operating in Serbia, as well as the other way around. else is on the open, free market. It is necessary to manage resoBusiness and jobs are, thus, open; both countries have free marurces with the wisdom of good management. To privatise does kets, which enables businesspeople to find good solutions and not only mean to sell, but rather to invest. If you invest, you can establish good agreements. expect to improve an enterprise, with which you will automati» It is known that Croatian businesspeople have free access cally raise its value. Privatisation is a very good process. However, unfortunately, this process can be painful for many, but is to the Serbian market, where they are present in large numgenerally necessary in order for a company to survive and be bers. Although in Croatia the free market rules apply, a large able to cope with market competition. In addition, I must say number of Serbian companies failed to fight for a place on the that all privatisation is in some way painful, though without market of this neighbouring country. What needs to happen having to be emotional, it is necessary to be realistic and to for that to change and for the presence of Serbian companies carry that out in the interests of society. These are definitely in Croatia to increase? CROATIAN - SERBIAN REGIONAL COOPERATION

business decisions that should be done in accordance with the interests of the social development of a country. » Food production and the food security of a state, as well as trade with the world, determine, among other things, the manifold significance of agriculture in terms of socio-economic development. Is this fact in itself a reason for discontentment with the privatisation of agricultural and food capacities, of which, for example, almost every third has been conducted unsuccessfully in Serbia? - Agriculture plays an important role in every country. Food production and food security are of great importance ... No major country in the world cold have developed unless it developed its agriculture. And when it comes to the form of agricultural production they will opt for, the agrarian path along which an individual country wants to travel, these are decisions that they make on their own. In this t is important that each country adequately use the resources that they have in agriculture. Merely possessing resources – if they are not properly utilised – does not bring any profits. We can only achieve social development if we achieve the level of competitiveness and if we

- Some of our companies can be competitive with the technology they apply. Unfortunately, this is not true for all. Our society as a whole is not yet at that level in terms of technology whereby it can be competitive on the large European market. That’s why we develop our original indigenous products, which will be sold on our tourism market, which is huge. I consider this is additional motivation, because today we have 14.5 million tourists who come to Croatia and whom we want to offer that which makes us special; that which they will remember us for and that which will ensure they want to come to our country again. This is the road we have embarked upon, and along that road we see benefits for our country.

» Thanks to the Adriatic Sea, fishing is traditionally the most important economic activity of the Croatian coastal area, and that forms an indispensable segment of the country’s tourism industry. - We are a country with a long coastline and as such we have and cherish marine culture. In addition to agriculture, fishing is also very important for us. Fishing is our great advantage and today we export significant amounts of our tuna to the Japanese market, as well as exporting white fish to the EU market. Croatia is committed to the free market, and that means These are our competitive activities in all foreign companies that have the ability, desire and agriculture, in this case fisheries, and in my opinion we have made huge striintention to open their representative offices in Croatia des forward in this area. In recent times are welcome. There is nothing of dispute in that and no Croatia has paid great attention to this obstacles, even in bureaucracy domain and invests a lot in both continental and freshwater fisheries. In these two segments we see our opportunity and our future. are competitive in production. Croatia has a chance to compete on the market of the European Union, which has 550 million in» When it comes to the future, we should also mention that habitants, and thus compete with all those countries that have you have large companies in the food industry that are of stradeveloped their agricultural production over centuries. We must tegic interest to Croatia. What do you expect from them in the lead our own agricultural production towards being more comcoming period? petitive on this market, and we will only achieve that if we offer - Our Large food companies, which are present on regional and something that is specific to our country. It is possible to survive other markets, are also specific to us. That is why we are endeaon the great world markets provided you are competitive in terms vouring to save them; we want them to continue to be successful of amounts or with something that will set you apart from others: companies and, of course, to do business successfully. We are quality, products that have protected designation of origin, but currently working on a big project which we called “Adopt a stracertainly something that will make you specific in relation to ottegy, make a path”, which doesn’t merely means “adopt a piece hers, make you special... A product which is interesting locally or of paper”, but rather it mean to draw a path that we want to travel regionally, by which you will be more recognisable, different ... If along. With this in mind we, as a reform orientated Croatian goyou think and work in that direction, and if it proves successful, vernment, decided to develop our strategy by year’s end, both in you can certainly be competitive on the large market. the domain of agriculture and the area of the food industry, which » In which way do you think in that direction? must be synchronised, as two compatible industries. « - SERBIAN 10 CROATIAN REGIONAL COOPERATION

CROATIAN - SERBIAN REGIONAL COOPERATION

INTERVIEW

LUKA BURILOVIĆ

PRESIDENT OF THE CROATIAN CHAMBER OF THE ECONOMY

We Can

DO BETTER A

Serbia and Croatia have the potential to work together better than has been the case to date, from joint investments to joint exports. On the global scale, our economies are both small, but through joint forces we can count on larger markets, simpler business start-ups on third markets and better references

fter a long recession, Croatia recorded steady economic growth in the last year, and the president of the Croatian Chamber of the Economy, Luka Brailović, hopes that the new government, which has recognised the potential of guidelines for strengthening the economy proposed by the CCE, while soon focus more attention on their operationalisation. » To what extent is your appeal for policymakers to listen to the voice of entrepreneurs and science today recognised by the Croatian government? - At this juncture the political situation in Croatia is quite unstable, while the economy is often a collateral victim of the environment in which it finds itself. Unfortunately, decision makers have often lacked the ability to hear our appeals, despite the fact that without economists there can be no state and no progress, nor a contented society, and ultimately no high quality natural environment which we are all striving towards. I believe that politics will transcend all disagreements and I hope that we will soon have stability, which is one of the main prerequisites for the unhindered development of the Croatian economy.

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» Last year, the CCE was one of the key stakeholders in the project “Let’s employ Croatia”. To what extent are the guidelines for reform that you then defined now part of the working programme of state institutions? - The CCE, in cooperation with dozens of Croatian labour market experts and representatives of all economic sectors, produced 39 concrete measures and reforms for accelerating and increasing employment in Croatia. Each measure is complex and includes a large number of stakeholders. This is not just about recipes or changes to laws and regulations, thus their actual application will require some time and a certain type of institutional preparation. The new Government has recognised the potential of some of these guidelines and began their operationalisation. Such as the introduction of dual education based on the models of Germany and Austria, where the CCE has already established good cooperation with key ministries and other institutions, in order for us to be able to start as soon as possible at least with pilot projects, while our goal is to align educational programmes with the needs of the economy, thereby effectively reducing the high rate of youth unemployment, who – according to the principle of “learning by doing-working by learning” – would immediately walk into jobs. Serious consideration is being given, although a concrete legal form has not yet been received, regarding our proposals related to the extension of working life, which in Croatia is only 32 years.

TRENDS

JOINT FORCES

ECONOMY

It is important that in the last year and a half Croatia has been recovering from years of recession and that the trends are increasingly positive

Our economies are small on a global scale, but with joint forces we can count on larger markets, simpler business start-ups on third markets, better references etc.

The main task for chambers in the region is to raise awareness among all stakeholders regarding the current problems in the economy

» How satisfactory, considering the burden of external debt, tackling larger markets, simpler launches of doing business on is expected Croatian economic growth of 1.8 to 2%? third markets, better references etc. - In principle, Croatia cannot be satisfied with real growth in » How do you view the challenges of industry 4.0, which is economic activity of less than three to four per cent annually, slowly catching momentum primarily in economies towards because only such growth rates would enable stable longterm growth and development. However, it is important that in the last year and a half I believe that politics will overcome all the warning Croatia has been recovering from years of recession and that the trends are increasin- signs and disagreements, which are currently the basic gly positive. barriers to change, and that the Croatian economy will

be given a chance to develop unhindered » Do we use, as two close countries with many intertwined interests, sufficient resources that are available to us for joint marketing and the which our economies are turned the most, such as Germany, production of goods and services? and can our countries, with their modest production capacities, adjust to these new conditions? - One can always cooperate better, because the opportunities - Industry 4.0, based on the model of the Smart factory, is are numerous. Our economies are small in global terms, but gaining increased momentum in the highly developed worcertainly in some projects with joint forces we can count on

CROATIAN - SERBIAN REGIONAL COOPERATION

ld. In order to increase the quality of products and services, flexibility and efficiency, and reduce operating costs, it is necessary to connect all systems based on internet technology between machines, people, products and business processes. The industries and activities that are in the Industrial Strategy of the Republic of Croatia from 2014 to 2020 are recognised as the drivers that are ready for these challenges. I will give just three examples of highly sophisticated products that the World Bank has globally recognised as products with which Croatia can compete in the global supply chain of values - HS Product rifle, Končar’s transformer and Uljanik specialised ships. For active implementation of the concept of Industry 4.0 it is necessary to strongly connect the academic community and the economy. That’s why we decided to launch the Centre for Industrial Development as a link between the specified sectors that will encourage innovation and impact on the competitiveness of the Croatian economy.

- Besides daily cooperation between the CCE and the SCC, actively contribute to the work of the Chamber Investment Forum (CIF), which comprises six chambers of commerce from the region and the Chamber of Commerce of Slovenia. The CIF’s first joint body of the chambers of commerce of the region, which – through the activities of specially formed working groups – will work on the preparation and implementation of projects defined by the so-called Action Plan of the CCE, which has proposed three projects that were accepted by the CIF, and those include the construction of the so-called Digital Platform of Western Balkan Chambers (WB), which will unify all information and chamber services related to the activities of CIF WB and the establishment of the joint Venture Capital Fund WB, with the aim of financing start-up companies and projects of SMEs. The third project would be done in cooperation with the SEECEL (the SEE Regional Centre for Entrepreneurial Learning), based on the signed agreement on cooperation between SEECEL and the WB chambers, with the aim of promoting the development of entrepreneurial learning among entrepreneurs of the region.

Croatia has products with which it can be globally competitive in terms of strengthening Industry 4.0, but it needs a higher level of innovation and a better trained workforce, upon which the CCE insists » The CCE is one of the organisers of the regional agribusiness conference “Across the fields to Europe”, together with the Serbian and Croatian governments. Has it produced some concrete plans of cooperation for our economies and businesses? - At the conference it was concluded that there is great potential in the trading of finished food and confectionery products, wine, sugar, ecological and protected products, while the possibility of joint participation in new markets and the transfer of knowledge and experience was highlighted in particular. The CCE and Croatian companies are open for further cooperation and activities in the organisation of business meetings, workshops and training that will contribute to increasing trade and helping Serbian companies and the economy in preparing and successfully using EU funds. » Where do businesspeople from both sides face the biggest obstacles in cooperation and what can chambers of commerce do to remove them? - SERBIAN 14 CROATIAN REGIONAL COOPERATION

» You are a member of the Management Board of the association of European chambers. Where are the similarities and differences in the problems of businessmen in the region, in relation to your European colleagues? - Due to the fact that companies that want to survive must think and act globally, all companies today face similar problems: how to be more competitive, reduce production costs and maintain quality; how to find new and retain existing customers and to resist the increasingly stronger global competition. Companies in the region certainly, along with these market problems, also have additional problems over which they do not have a direct impact, such as illiquidity, inefficient and bureaucratic administration and the uncertainty of operations (unstable tax system and framework for doing business). Therefore, the main task for chambers in the region is to raise awareness among all stakeholders regarding the current problems in the economy, proposing solutions to regulators and implementing new services and projects aimed at raising the competitiveness of the economy by internationalising the operations of members. «

INTERVIEW

MARKO ČADEŽ

PRESIDENT OF THE SERBIAN CHAMBER OF COMMERCE

Business is

LIKE WATER I

n the following period, we would like to see fewer sparks flying between the politicians from our respective countries, because they cast a shadow over regional cooperation. At the same time, I am absolutely convinced that the stronger and better our economic ties are, the more political passions will subside – says Marko Čadež, President of the Serbian Chamber of Commerce.

It is easier for businesspeople than politicians to find common ground and remove obstacles, and they do so by identifying points of mutual interest and accentuating mutually beneficial things, profit and success. The principles and customs that rule the business world can certainly greatly contribute to political normalisation

» If you were to compare the period from a decade ago to the present juncture, do you think that the economic relations between the two countries have become so much stronger that they have become immune to the recent political tensions? - Economy has always suffered under politics, to a lesser or greater extent, here or abroad, just as economic trends affect political ones. Although political relations between Serbia and Croatia have developed greatly in the last ten years, they are still marred by certain unresolved issues from the past and occasional tension. However, trade between the two countries has been growing year-on-year and Croatian companies continued to invest in Serbia even during the time of the biggest political tension. Also, Serbian companies are slowly penetrating the Croatian market and there are more and more joint bilateral projects and regional initiatives, especially those that involve the chambers of commerce from both countries. Our companies have a natural inclination towards cooperation. Business is like water – it always finds its way around, be it a shorter or a longer way.

- SERBIAN 16 CROATIAN REGIONAL COOPERATION

Businesspeople are much faster at finding a common language and more easily remove barriers than politicians. Businesspeople solve problems by seeking points of mutual interest, placing an emphasis on that which brings mutual benefit, profit and success. The principles and practices that prevail in the business world can do a lot to help the process of political normalisation. As representatives of the business community, chambers of commerce in the region have provided a significant contribution to the normalisation of relations – with shared messages about the importance of preserving political stability and tangible activities. It is our wish that there be as few sparks as possible in the future, which have not been in short supply in the past, and which cast a shadow over regional cooperation. At the same time, I am deeply convinced that the stronger and better our economic ties, thus our communities will better recognise economic interests and reap the rewards of regional cooperation, and that political passions will lose their intensity. » On the other hand, how does the current economic situation in both countries affect the overall pace and volume of trade, and how much did Croatia’s accession to the EU impact on trade between the two countries? - Serbia’s trade with Croatia has been growing steadily in the last ten or so years – from €365 million in 2005 to €864.3 million in 2015. In the last three years, the volume of trade has gone up, but the trading structure hasn’t changed much. In 2014, the first year after Croatia’s accession to the EU, bilateral trade grew by 13.4%, to €756.9 million (or over a billion Dollars), which improved Croatia’s rank on the list of Serbia’s biggest trading partners from 14th place in 2013 to 10th place. Last year saw overall trade grow by another 14.2%

ACKNOWLEDGMENT

REMOVING BARRIERS

SYNERGY

Europe has already commended us for being the strongest cohesive factor in the region, while state officials show us due respect wherever we go

Businesspeople have a clear message for their politicians – remove the barriers. Both chambers reacted when our border with Croatia was blocked last September

The core issue for small domestic economies is not how can we sell more to each other, but how we can develop higher forms of cooperation

to €864.3 million, with Serbian exports to Croatia growing by their value ranges from €340 million net (as calculated by the 15.9% and Croatian exports to Serbia up by 12.7%. This upward NBS per country of payment) to over €700 million (as calculated trend continued in the first four months of this year too, with by the Croatian National Bank, which monitors initial and subsequent investments), to over €1 billion, which is the total value total trade amounting to €269 million. This is very important for of investments made by the ten biggest Croatian investors in Serbia, because we previously had a deficit in trading with Croatia for years, while now that trade is completely balanced, with Serbia according to the data collected in direct communication Serbia even recording a slight surplus worth almost €3 million. with these companies. Also contributing to this was certainly the implementation of the The fact remains that both Croatia and Slovenia have had Stabilisation and Association Agreement, which was signed on strategic access to Serbia as an investment destination; that they 1st September 2013 and is asymmetrically in Serbia’s favour, but also strengthened the export capacities of the Serbian Chamber due to a significant shift in the economic situation in our country. In truth, our desire and our goal is for the export lists in the coming years to be dominated, instead of by raw materials, by products with higher phases of processing. In short, bearing in mind what we have left behind us in this region, we have achieved a major breakthrough, but the potential of mutual trade and overall economic cooperation, as with other countries in the region, is a long way from being fully exploited, not in terms of bilateral relations, nor when it comes to entering markets beyond the region, which is especially important. Of course, every euro in exports means a lot to all of us in this region, and the markets in the region are natural export destinations, and that it is important to increase the mutual exchange, to trade as much as possible and remove all barriers to the free movement of goods and capital. However, the core issue for small domestic economies from the former Yugosla- Trade between Serbia and Croatia continued to grow in via, regardless of them being EU members – like the first four months of this year, amounting to €269 Croatia and Slovenia – or CEFTA members – like million. Completely balanced trade is important for Serbia and the other countries, is not how we can Serbia, because the country had previously recorded a sell more to each other, but how we can develop higher forms of cooperation and join our forces trade deficit for many years to gain common access to third markets. Of key entered our market at the height of privatisation, and that they importance is how to implement joint infrastructure projects, in order to improve the business climate of each country and the region launched certain greenfield projects. On the other hand, the participation of Serbian companies in privatisation in Croatia, which as a whole, to strengthen our capacities, export as much as possible was completed earlier, was negligible. Apart from non-economic and attract as many investors as possible. reasons that we have been mentioning a lot, this is one of the » What about the level of mutual investments? viable explanations why Serbian investments are not present in - For years we have spoken only about Croatian investments in the western parts of our former common state. Serbia and how there are no Serbian investors in Croatia. And In addition to that, Serbia has an open and attractive business environment: from a lower tax burden and incentives for that is a fact. There are over 200 companies in Serbia that are investment and employment, to free trade agreements that open either founded or bought with Croatian capital. These companies opened branch offices, participated in privatisation and inthe doors to markets with more than a billion consumers. We vested in new factories and production facilities. The statistical were recently declared one of the five most attractive countries data about Croatian investments differs, due to a discrepancy in in Europe for foreign direct investments in manufacturing. Such the way national institutions calculate the value of FDIs. As such, economic reasons always prevail in the end. CROATIAN - SERBIAN REGIONAL COOPERATION

In the other direction, the number of Serbian companies rum and that’s why we have been working on connecting branches operating in Croatia is, unfortunately, still low – only about a of our companies, which, individually, have insufficient resources to dozen, so their participation in this market and the impact on become serious competitors to large companies globally in regional trade between the two countries is negligible, and for years we and international tenders. We have been working on forming a construction consortium that could participate in tenders for large-scahave spoken only about three Serbian investments, which have le infrastructure projects funded by the EU and other partners. We actually transformed in the meantime. Nevertheless, I believe have been the link between metal processing and military industry that the aforementioned statistical data will change in favour of companies, energy companies and others. One of the projects permutual trading and investments. Last year, Serbian businessman tains to creating a joint regional tourism and owner of Matijević Meat Company, product, which is particularly important Petar Matijević, invested €15 million when it comes to attracting tourists from in acquiring Croatian agribusinesses, far away destinations, who certainly along with their farms, machinery and won’t travel thousands of kilometres just land, thus becoming the biggest owner to sit idly on Kopaonik Mountain or on of arable land in Croatia, as he stated. the beach. We also want to form a group It has been reported recently that MK of wine producers, who are going to joinGroup is interested in investing in Croatian tourism. tly approach consumers in far-away markets. At the same time, we are building a However, what is most important for mutual platform for SMEs, with the goal us, and for Croatia and all the countries in of improving their capacities and facilithe region, is that we are constantly improving the business climate, that in ecotating networking. We also have an idea nomic terms we are not closed within our for regional politicians to go to major national frameworks; that we do not percountries – like the U.S., Russia or China ceive each other as competition, but rat– to pave the way for regional economic her we stick together and work together forums with the participation of businesspeople from the entire region. to change the image of the region that has followed us for two decades; that we » What is the cooperation between appear to the world and before serious the two chambers like? investors representing individual projects, but also the region in which they - The Serbian Chamber of Commerce will be realised. That’s because when and the Croatian Chamber of the Economy are the first institutions to make measuring the justification for an investment, investors look at the possibilities an important step towards the normalisation of relations between the two coof the regional market, not just domestic Serbia has an open and untries following the civil war. Today we markets, and the possibility of spreading attractive business have excellent regular bilateral and daito neighbouring countries... environment: from a lower ly communication at all levels (through tax burden and incentives for the organisation of the Serbian-Croatian » Why did the initial ideas about business consolidation and joint access of investment and employment, business forum, which discusses the real third markets fail to take off? and needs of companies to coto free trade agreements that interests operate, via B2B meetings, to participa- Today’s businesspeople have a clear message for their politicians – remove open the doors to markets with tion in European and regional projects). more than a billion consumers Recently, for example, the SCC was a the barriers. This brings a whole new partner of the franchise fair “Franchising quality to regional business cooperation. For instance, when our border with Croatia was blocked last Exhibition Croatia 2016”, at which we successfully presented the September, that same night the president of the Croatian ChamSerbian franchise systems, while only a few weeks earlier, togetber of Commerce and I gave statements urging the reopening of her with the CCE, we supported and participated in a gathering borders. We also got our companies involved and appealed to within the framework of the Novi Sad Agricultural Fair on the topic of European Integration in the field of agriculture. Brussels for help. The information and experience of Croatian colleagues and The most important thing is that we don’t create barriers for ourselves; that we continue to remove the ones that we have inherited, experts who participated in Croatia’s negotiations with the EU are to network and jointly access regional and third-country markets. important to Serbia. They are now consultants to institutions and valuable support for the SCC and the economy on the road to the EU, This is important for large companies and even more important for especially for the chapters that are directly related to the economy. SMEs. That’s why we have established the Chamber Investment Fo- SERBIAN 18 CROATIAN REGIONAL COOPERATION

A special quality of inter-chamber cooperation in the past year has been provided by the joint work and initiatives within the framework of the multilateral chamber platforms - the Chamber investment forum, which consists of eight national chambers of the region – apart from the six chambers of the countries of the Western Balkans, the member of the Berlin process and the chambers of Croatia and Slovenia. On the proposal of our two chambers, the CIF (Chamber Investment Forum) formed a joint council with the Regional Centre for Entrepreneurial Learning for SEE countries – SEECEL, based in Zagreb, with the aim of improving inter-chamber cooperation in the field of entrepreneurship and the development of human potential. For the SCC it is very important that we have in this way become more actively involved in the SEECEL platform, in order for us to become acquainted as well as possible with examples of good practices, developed incentive schemes for the development of the entrepreneurial spirit and encouraged mutual visits of those responsible for the development of entrepreneurship from all countries of Southeast Europe (both in terms of chambers, as well as government institutions and bodies, commercial, industrial and other associati-

A special quality of inter-chamber cooperation in the past year has been provided by the joint work and initiatives within the framework of the multilateral chamber platforms - the Chamber investment forum ons). The SCC and CCE are planning a number of new joint projects within the CIF, in order to support the development of SMEs and e-commerce. The Croatian Chamber supported our initiative for a five-year extension of autonomous trade measures of the European Union for the countries of the Western Balkans. » What are the biggest achievements in regional cooperation? - The biggest achievement is that we, under the auspices of the Chamber Investment Forum and on behalf of 350,000 companies, have been constantly sending an important message to our respective politicians and have been raising awareness about the need for regional cooperation, the removal of all obstacles to doing business, trading and investing; establishing links between our economies and improving stability in the region. Europe has already commended us for being the strongest cohesive factor in the region, while state officials show us due respect wherever we go. The doors to meet the top officials in Brussels or the region are open to us. Most importantly, businesspeople really appreciate our work, because they can feel the benefits of inter-chamber cooperation and initiatives from month to month. « CROATIAN - SERBIAN REGIONAL COOPERATION

INTERVIEW

H.E. GORDAN MARKOTIĆ CROATIAN AMBASSADOR TO SERBIA

While There Are Neighbours,

THERE WILL BE OPEN ISSUES

Croatia strives to help Serbia in its European integration process, and the issues highlighted in this process are important both for Serbia and for the whole process of building sustainable peace, security and reconciliation in this part of Europe. For them, the European framework is relevant, rather than the bilateral one

mong neighbours there are always open issues, and as long as they are dealt with through mutual respect and openness for cooperation it will be possible to make progress, says H.E. Gordan Markotić, Croatian Ambassador to Serbia. Even when these relationships in the eyes of the public reach boiling point, at many levels cooperation remains regular and makes life easier for citizens. One such niche is economic cooperation, which progresses without regard for everyday challenges. » How would do you evaluate the current level of cooperation between the two governments and can that cooperation be strengthened? - Current cooperation between the two governments is determined by the election and post-election processes. It is to be expected that meetings will be organised between senior representatives of the two countries at which all outstanding issues will be discussed. Likewise, meetings between various joint com- SERBIAN 20 CROATIAN REGIONAL COOPERATION

mittees responsible for dealing with certain issues should also be intensified. However, regardless of this, regular cooperation continues at different levels and in various areas. Many areas are regulated that ease the everyday lives of citizens. In this context, I would mention the recent signing of the Agreement on the Exchange of Data of the Satellite System, which will allows construction companies, agricultural producers, scientific institutions, state administration and local government to utilise data with a greater degree of reliability on positioning in the border region of Serbia and Croatia. It is also important to note that there will always be outstanding issues with neighbours, but that they should be addressed through the development of good neighbourly relations based on mutual respect, commitment, cooperation and respect for mutual interests. » Do you think there can be respect for suggestions from the European Commission that many outstanding issues between the two countries should be resolved bilaterally, rather than as part of the process of Serbia’s European integration? - Serbia’s EU membership is to the long-term benefit of our interstate relations. For this reason, Croatia, as an EU member, strives to help Serbia on its path of sustained implementation of the reform process and the achievement of European values and standards that contribute to easing integration into the European Union. In contact with the European Commission and other member states, we want to be constructive and we want Serbia to make progress. In this, it is necessary to strengthen awareness of the necessity to implement various reforms and I completely agree with those who say that the essential reforms ahead of Serbia are not to be done because of some EU mem-

MEETING

PROGRESS

MINORITIES

It is to be expected that meetings will be organised between senior representatives of the two countries at which all outstanding issues will be discussed

In contact with the European Commission and other member states, we want to be constructive and we want Serbia to make progress

It is important to us to implement the Agreement on the Mutual Protection of Minorities, which was signed in 2004. Minorities should be the bridge of good neighbourly relations

ber states or because the EU, but for Serbia itself and because of its society as a whole. In this context, we highlighted certain issues that are important not only for Serbia but also for the overall process of building lasting peace, security and reconciliation in this part of Europe, and which are based on the European values and standards to which we all aspire.

ering whether there is any point in proceeding further. Are you afraid of the consequences of Brexit? - It was three years ago that Croatia completed its long and difficult journey to the EU, which it had strived to reach since gaining its inde-

» Serbian Prime Minister Aleksandar Vučić announced that he would like one of his first visits in his new mandate to be to Zagreb. Do you see that as a step in the right direction? - Interest in intensifying bilateral contacts and a desire for further improving relations has been expressed in both countries. Each bilateral meeting contributes to mutual trust and understanding and encouraging various forms of bilateral cooperation. In this regard, we welcome the initiative for bilateral gatherings and meetings. Precisely such meetings can equate to additional incentives for the continued operation of the joint committees that I have already mentioned, and which are very important for resolving outstanding issues. » Do you think this communication at the highest level could contribute to resolving the issues of the Serbian minority in Croatia and Croatians in Serbia? - Croatia’s attitude towards the issue of minorities is clear. Croatia guarantees the protection and realisation of the rights of national minorities, but at the same time is interested in protecting the rights and interests of the Croatian national minority in other countries. We are interested, therefore, in the position of the Serbian minority in Croatia and the Croatian minority in Serbia. For this reason it is also important to us to implement the Agreement on the Mutual Protection of Minorities, which was signed in 2004. We believe that minorities can and should be the bridge of good neighbourly relations. I would remind you that the rights of national minorities in Croatia are regulated by the Constitutional Law on National Minorities, which guaranteed a status in accordance with the highest European standards. They are guaranteed representation in the representative bodies at the national, regional and local levels. Thus, for example, minorities are entitled to eight seats in the Croatian Parliament, for which members of the Serbian national minority should elect three representatives. We now have a strong interest in ensuring the political participation of representatives of the Croatian minority in Serbia’s representative bodies. It is precisely communication at the highest level that can contribute to resolving this issue. » The third anniversary of Croatia’s accession to the EU will soon be marked. This small anniversary comes at a time when the EU faces major challenges and countries such as the UK are consid-

We now have a strong interest in ensuring the political participation of representatives of the Croatian minority in Serbia’s representative bodies pendence. That date will rightfully remain recorded as being among the most important in the country’s history. Accession negotiations with Croatia were opened in October 2005 and turned out to be among the longest and most complex negotiation processes in the history of the EU. They also differed from previous negotiation processes because each new enlargement requires more from the country aspiring to join. Croatia therefore faced much greater demands than merely fulfilling the requirements of the EU legal framework. At the end of this process, which involved all segments of Croatian society, the EU assessed that Croatia had implemented all reforms in a credible, sustainable and satisfactory manner. During our accession process, the EU also confronted many challenges, from the financial and economic crises, to problems related to the ratification of the Lisbon Treaty. Croatia, of course, monitored this course of events, but was not discouraged by them. Equally, it is important for Serbia to continue with reforms and fulfilling the CROATIAN - SERBIAN REGIONAL COOPERATION

requirements for membership. The European Union has in the past solved many difficult challenges, and I am therefore certain that the process of integrating European countries will continue, just as it has successfully endured for nearly seven decades. » As of joining the EU, Croatia ceased to be a CEFTA member, thus it cannot take advantage of the benefits of regional cooperation. Has that had economic ramifications? - By becoming an EU Member State the country became part of the European single market and began acting according to its rules and standards, which means that all previous bilateral and regional free trade agreements ceased to be valid. The Republic of Croatia prepared for this eventuality in a timely manner, knowing how important the market in the immediate neighbourhood is and with whom it has traditional economic and trade relations. The CEFTA market is ranked second in terms of importance and contributed more than 10 per cent in the total goods trade. This was also the case even before the accession of Croatia to the EU, and so it has remained until today. Exports from Croatia to CEFTA countries at a percentage of total Croatian exports accounts for about 20 per cent (from 2010 to 2015 this varied in the range from the minimum of 18 per cent in 2015 to nearly 21 per cent in 2012), while imports from CEFTA countries to Croatia account for around five to six per cent, which confirms the importance of the CEFTA market to Croatia. Even after the accession of Croatia to the EU, total trade with the CEFTA countries continued to grow, so that in 2015 it amounted to just over three billion euros and was higher compared to the previous year by 2.6%. At the same time, exports amounted to a total of 2.06 billion euros, while imports were worth 3.08 billion. Thus, Croatia’s entry into the EU did not lead to major distortions and negative consequences in trade with CEFTA countries, although there are still some problems, such as with Bosnia-Herzegovina, but they are also slowly being resolved.

ment in terms of the creation and improvement of the legal framework and an incentive framework for doing business better. Today in Serbia there are about 200 companies operating with capital of Croatia, of which 150 are active in business. Among them are major companies, such as Agrokor, Atlantic, Podravka, Vindija, NEXE Group, Croatia Insurance and others, which employ a significant number of people, contribute to Serbian exports and the development of local communities, filling the budget of Serbia. Croatian investments in Serbia have increased by 700 million euros, which is a large amount for such a small country as ours. Serbia is the third investment destination for Croatian investors who invest elsewhere in the world. The trade exchange between the two countries last year reached nearly a billion euros, which was a record for the last five years. At the same time, exports from Croatia to Serbia are also growing, while exports from Serbia to Croatia are increasingly dynamic, which is significant for the development of good partnerships. Serbia is an important foreign trade partner and businesspeople recognised that on time. What is missing is the larger and more successful linking of SMEs and more work needs to be done on that, precisely because they comprise the core of both economies, maintaining its vitality and ensuring it has a future. The chambers of commerce and other business associations, such as, for example, clusters, have a serious task of encouraging such cooperation and raising it to the level that it deserves, and thereby enhancing the dynamism of overall economic relations between the two countries.

The businesspeople of the two countries successfully resist all turbulences, both those caused by the challenges of the market, as well as others

» How would you assess economic cooperation between Serbia and Croatia, which appears to be able to resist changes in communication at the political level? - I think that our overall economic cooperation can be assessed as good. Entrepreneurs have achieved some kind of rhythm of their own and successfully resist all turbulence – both in terms of those challenges conditioned by the market and those, as you said, “at the political level”. Mutual interest and partnership have been found, which is natural and should continue. Of course, there is still room for improve- SERBIAN 22 CROATIAN REGIONAL COOPERATION

» In the era of globalisation and fierce market competition, smaller economies are advised to make joint participations on large markets. Does such a possibility exist for the economies of the region? - This is a region that requires more work and practical moves, because, apart from sporadic initiatives, mainly declaratory ones of a few years ago, not much progress has been made. It can often be heard how important this is at conferences and meetings that bring together participants from the neighbourhood, or which are held between our two countries. Such were the latest messages also emanating from the recent conference “Food for Europe”, held under the auspices of this year’s Agricultural Fair in Novi Sad, with examples of such cooperation relayed. However, as I have already said, this needs more work, research (which markets are they, how ready are we, do we have what is sought and in what quantities), via particular projects and investments that are economically justified by the objective of such realisation. «

FOCUS TOPIC: HOTEL ACCOMMODATION

TOPIC: CERTIFICATION IN THE SERVICE OF SUSTAINABLE DEVELOPMENT

The Best Courtyard Hotel in Europe

MISLAV MIKAŠEK

DIRECTOR, HOTEL MARRIOTT COURTYARD BELGRADE

 High quality services, with a fantastic and unique culinary offer, located in the very heart of Belgrade, are what have made the Hotel Marriott Courtyard Belgrade quickly become recognisable on the hotel landscape of Belgrade

must admit that I am proud of the great success that our team has achieved in our first year of operations. As part of the Marriott International chain, we have established a distinctive level of quality among our guests, evidence of which is provided by the daily comments on social networks like Booking.com and TripAdvisor. The foundation of our success is the excellent cooperation with our esteemed business partners and hotel owners, PFB Properties Ltd., which built this hotel while holding to the high standard. Our hotel was declared the best Courtyard hotel in Europe for the first five months of this year, and that came just eight months after the opening. Our team is the core of the hotel and it is their hard work and the quality of the services they provide, along with excellently equipped and designed accommodation capacities that are important. Another highlight is Credo Restaurant & Bar, based on the Urban Grill concept, where guests can enjoy daily the A la Carte and ‘Business Lunch’ menus, a wide selection of wines from around the world and delectable desserts, all with the most beautiful view of Republic Square. Moreover, the very location itself is also crucial, as it provides guests with easy access to all of the attractions of Belgrade, but also the city’s business zones, which makes us an ideal place for accommodation, whether you are in the city for business or leisure purposes. A visit to our hotel guarantees high quality hotel accommodation and services, with fantastic and unique cuisine, in the very heart of Belgrade.

EU Increasingly Insisting on Harmonised Standards MARINKO UKROPINA

DIRECTOR AT SGS BEOGRAD D.O.O.

 If we examine the official data from the ISO Survey’s website, we can see that the number of issued certificates in Serbia is substantially lower compared to other regional countries (like Romania, Bulgaria and others)

arge national and international investors, as well as international buyers have always insisted, and will continue to insist, on the stability of their key product and service suppliers, primarily in the automobile and food industry, in order to reduce their business risks. To that end, our economy will have to harmonise the way in which it implements its activities with the requirements of international standards for the sake of remaining competitive on the international market. As a certification body, SGS performs independent testing in order to determine the degree of harmonisation with certain standards. Companies that have valid certificates demonstrate that they have the right methodology in place for meeting the required standards as proven by the certificate issued by an accredited certification body. This practice has also been recognised in global international trade. EU regulations underline the importance of standardisation in the energy sector, the food industry, in environmental protection, workplace health and safety, and information safety because these standards are at their cores. Through implementation of international standards our companies will acquire excellent tools that will significantly help them with meeting the requirements of the EU and their country’s regulation and their stakeholders, as well as ensure sustainable development, crucial for surviving on an increasingly demanding market.

TOPIC: NEW FORMS OF INSURANCE

Improving Regional Insurance Market  Considering that in Serbia and the region only a small part of insurance options are applied compared to Western countries, where you see space in the near future to introduce new forms of insurance and improve the insurance market?

I PERO MIJAKIĆ

CEO AT MILENIJUM OSIGURANJE (INSURANCE)

n concrete terms, I think that in Serbia, like in Croatia and the EU, there exists are large palette of products of insurance companies, both in the segment of life insurance and in non-life areas, and that end-users can really find the product that

can suit their needs and requirements. Realistically, everything comes down to the living standards of the populations and their readiness for these products, as well as the ability of the insurance companies to present their products and educate existing and potential insurance policyholders. CROATIAN - SERBIAN REGIONAL COOPERATION

INTERVIEW

MARIJA RADULOVIĆ

PRESIDENT OF THE CROATIAN BUSINESS CLUB IN BELGRADE

Businesspeople Speak The

LANGUAGE OF COOPERATION

Strengthening economic cooperation between Croatia and Serbia contributes to progress in the entire region, and withstands the challenges posed by occasional political disputes. The operations of members of the Croatian Business Club, in which colleagues share their experiences about the challenges of European integration and jointly participate in international programmes and initiatives, is a good example of constructive responses to transient tensions

- Our goal is to build and improve business en years of the work of relations that would be in the interests of buthe Croatian Business sinesspeople from both countries, while resClub in Belgrade has pecting the interests of both countries. In our been marked by different periods of intensity of activity, mutual relations it is true to say that strengthening economic cooperation between but the club can boast that Serbia and Croatia contributes to progress its membership has grown in the entire region. It is true that we cannot during all periods and that completely rise above politics, but we can no member has left the club estimate which political statements could since it was formed in 2006. undermine cooperation, so we are trying to Following the initial focus on encourage a constructive political dialogue – gathering large members, the not only between the states, but also in the club, which today incldes more than 40 companies, has this year expanded the focus of its wider environment. All political issues that activities to the strengthening of cooperation could possibly burden mutual co-operation, with small and medium-sized enterprises, whiand which can be solved at the individual lech have potential and experience, and which vel, are resolved at our meetings, which are are open to new findings that membership can open to all members. Croatian businesspeople are willing to share experiences on the provide them with. The club is, amongst other things, also very active, in Among the members of the Croatian cooperation with the Croatian Business Club, which includes both Embassy, in researching further Serbian and Croatian companies, investment opportunities in the local communities of Serbia, there is a high degree of trust. We try which could lead to the further to encourage a constructive political strengthening of cooperation dialogue not only between states, but between the two countries and also in the wider environment their businesspeople. To discuss this and other topical issues relating to cooperation between road to the EU with their Serbian counterparts, and even to offer some concrete solutions Serbian and Croatian businesses we spoke to in specific areas of the economy. On the otMarija Radulović, President of the Croatian Business Club in Belgrade. her hand, businesspeople in Serbia, at least when it comes to our members, are willing to » To what extent are current political tenexpand cooperation with Croatian and parsions burdening mutual business relations ticipate jointly in international programmes between Serbian and Croatian companies? and initiatives.

- SERBIAN 24 CROATIAN REGIONAL COOPERATION

» To what extent has the club succeeded through its work to build trust between the partners in the two countries and expand the boundaries of mutual cooperation? - The proof that there is a high degree of trust between the members of the Croatian Business Club, which includes both Serbian and Croatian companies, lies in the fact that their number is increasing from year to year, while since the Club was founded in 2006 not a single company has withdrawn its membership. On the contrary, there are ever more meetings with the clubs and companies from other countries. We were initially joined in the beginning by mainly the largest companies, while from this year we started promoting cooperation at the level of small and medium-sized enterprises, which we consider as being a particularly positive development, because smaller companies have a lot of potential and experience, are dynamic and open to acquiring new knowledge and making new contacts, so this is one more possibility to expand them. » Has the CBC succeeded in realising the objectives it set for itself upon its establishment in January 2006? - After each completed objective we set new ones for ourselves, as new objectives are also new challenges that force us to always be active. Upon establishing the Club, its basic objective was to establish cooperation between Croatian companies operating in Serbia and Serbian companies that are willing to cooperate. The next goal was to expand the number of member companies, while it is now our intention to better inform SMEs about the possibilities offered by membership in the club. When it comes to the ultimate objective, it practically does not exist – some new opportunity to expand cooperation and improve relations between Serbian and Croatian businesses will always arise.

with investment opportunities in these municipalities, with the possibilities of the local economy, and to inform Croatian businesspeople about that. Of course, the next step is to connect stakeholders in order to establish cooperation and realise mutual interests. Serbia is a country that is attractive for investment, while a particular challenge is the fact that it is also interesting to other countries. Apart from the quality of their products, Croatian companies also have the major advantage of coming from a country with a similar mentality, where consumers have similar tastes, but which also have a tradition in this area – after all, we did used to be parts of a single country. » How has Croatia’s accession to the EU influenced the way in which companies from the two countries perceive the advantages of doing business and investing together? - It is true that Croatia’s entry into the EU has complicated the movement of Serbian goods on the country’s market. On the other hand, Serbian entrepreneurs can gain help and support in

Serbia is a country that is attractive for investment, while a particular challenge is the fact that it is also interesting to other countries. Apart from the quality of their products, Croatian companies also have the major advantage of coming from a country with a similar mentality, similar consumer tastes, but also a tradition in this area

» What do you consider as being the biggest successes of the CBC in the past decade? - The Croatian Business Club has existed for ten years - during that time there have been periods of more and less activity, but I consider the biggest success as being the fact that we now have more than 40 members, and that we have built up our image as an organisation that can be counted on, and whose good intentions will not be influenced by occasional conflicts on the political scene. » What topics dominate in your meetings, and what are the current challenges hindering the operations of Croatian companies in Serbia? - One of the main activities of our club are visits to municipalities in Serbia, which we realise in cooperation with the Croatian Embassy. The aim of these visits is to familiarise ourselves

the form of advice and the transfer of knowhow and experience when it comes to pre-accession funds, from which Croatia benefited considerably, and there have also been open calls for joint applications for specific European projects. » To what extent is your choice as president of the Croatian Business Club a sign that women are occupying an ever more important place in Croatian business? - I don’t think that my gender was a crucial factor in me being chosen as president of the Croatian Business Club, but obviously it was not a hindrance. I would say that this is an indication that the members of our club are primarily people who are free of prejudice of every kind – be that based on religious, ethnic or gender differences, which are not only not a hindrance, but rather are accepted with complete respect. « CROATIAN - SERBIAN REGIONAL COOPERATION

HPK - ACTIVITIES 06 CBC AT “SPEED BUSINESS MEETINGS” APR

The Association of Business Women of Serbia, in cooperation with the Slovenian and Croatian business clubs in Belgrade, organised Speed Business Meetings with the aim of establishing new contacts, presenting products or services, exchanging information on current business needs and opportunities to establish cooperation. Each company was entitled to a total of 12 meetings. - The meetings were attended by a total of 42 representatives of different companies from these three countries of the region. We believe that they will result in the establishing of business cooperation – noted Sanja Popović Pantić, president of the Association of Business Women of Serbia. - This was the first time that the Croatian Business Club took part in a gathering of this kind, which was extremely useful for all participants, not only to present their offers and meet potential clients, but also in order to establish continuing communication in the future and exchange good business experiences - said Marija Radulović, president of the Croatian Business Club. - I am glad that we have, along with the Association of Business Women of Serbia and the Croatian Business Club, gathered a large number of businesspeople who will have the opportunity to exchange contacts and information, and I am almost certain that each of them will seize the opportunity – highlighted Danijela Fišakov, President of the Slovenian Business Club.

25 HOTEL COURTYARD BY MARRIOTT HOSTS

APR

CCC MEMBERS

Belgrade’s Hotel Courtyard by Marriott was the host of the April gathering of members of the Croatian Business Club (CBC). In a friendly atmosphere, Mislav Mikašek, director, presented to those gathered the very interesting features of this hotel, which has recently become a member of the CBC. Hotel Courtyard by Marriott Belgrade City Center is located in the city centre, immediately alongside the National Theatre. It offers guests 114 modern-equipped rooms, the Credo Restaurant & Bar, free Wi Fi, its 24Havailable Fitness Centre, Business Centre, meeting room, underground parking and a unique Market in the lobby. The international team that manages this hotel has set high standards to ensure guests receive high-quality and faultless service – of which the members of the Croatian Business Club were convinced during this visit. - SERBIAN 26 CROATIAN REGIONAL COOPERATION

APR

TRADE EXCHANGE AND INNOVATIVE FORMS OF COOPERATION

On the first day of the International Technical Fair in Belgrade, the stand of the Croatian Chamber of Commerce saw Serbian and Croatian business leaders gather to exchange experiences on cooperation to date and discuss possibilities for its improvement. Representatives of the Serbian Chamber of Commerce, the Chamber of Commerce of Valjevo, Institute Goša and the Belgrade Fair, as well as representatives of the Croatian Chamber of Commerce – the County Chamber of Pula, representatives of exhibitors and representatives of the Croatian Embassy in Belgrade – gathered on the occasion of the appearance of the County Chamber of Pula at the 60th International Fair of Techniques and Technical Achievements in Belgrade, from 16th to 20th May 2016. The central topics during the discussion were the increasing trade exchange and innovative forms of cooperation. The meeting was also used for the presentation of Croatian companies that exhibited their products at the Fair, with a joint stand organised by CC Pula and co-financed by the CCC.

MAY

DAVOR ROMIĆ, Croatian Minister of Agriculture and SNEŽANA BOGOSAVLJEVIĆ BOŠKOVIĆ, Serbian Minister of Agriculture and Environmental Protection

“OVER THE FIELDS TO EUROPE”

As part of the 83rd International Agricultural Fair in Novi Sad, the second Regional Conference of Agribusiness was held, entitled “Across the fields to Europe” and organised by the Ministry of Agriculture and Environmental Protection of the Republic of Serbia, the Ministry of Agriculture of the Republic of Croatian, the Serbian Chamber of Commerce and the Croatian Chamber of Commerce The aim of the conference was to promote cooperation and opportunities for development, as well as responses to the high demands of the world market. The speakers included Snežana Bogosavljević Bošković, Serbian Minister of Agriculture and Environmental Protection, Davor Romić, Croatian Minister of Agriculture, Marko Čadež, President of the Serbian Chamber of Commerce, and Ivan Škorić, Vice President of the Croatian Chamber of Commerce. The conference was attended by leaders of the largest agribusiness companies from Serbia and Croatia, who participated in the first panel discussion, entitled “Experiences of agribusiness leaders in the region” and themed to address the possibilities of increasing trade and cooperation in agribusiness in the region, as well as the possibilities of joint approaches to, and appearances on, third markets. The second panel, “IPARD programme in Serbia and Croatian experiences with EU funds”, saw representatives of the Croatian Ministry of Agriculture and the Croatian Chamber of Commerce present their experience in using the pre-accession IPARD programme.

01 “SERBIA IN THE RHYTHM

JUN

OF EUROPE”

The Ambassador of the Republic of Croatia to Serbia, H.E. Gordan Markotić, and a delegation of Croatian businesspeople, together with representatives of the Croatian Business Club, visited the Municipality of Beočin, where they were welcomed by Beočin Mayor Mitar Milinković, together with local Beočin business leaders. The meeting was organised to mark the upcoming children’s festival “Serbia in the rhythm of Europe”, as well as cooperation between SMEs from the two countries and possible joint applications for IPARD funds of the European Union. The “Serbia in the rhythm of Europe” Festival brings together primary and secondary school students from 20 cities, which each represent a European country in song. Beočin will this year represent Croatia, thus this visit represents specific support of the local performance at the upcoming Festival. Noting that the future of both countries lies in cooperation between small and mediumsized enterprises, Ambassador Markotić invited partners from Serbia to jointly apply for IPARD funds when the time comes, and offered to help with advice for Serbian farmers when it comes to applying for pre-accession funds “from which Croatia received a lot, but much more once it joined the EU”. CROATIAN - SERBIAN REGIONAL COOPERATION

INTERVIEW

BRANKO ROGLIĆ

PRESIDENT OF ORBICO GROUP

Biggest Distributor in

EUROPE

oday, Orbico Group cooperates with over 50 suppliers, manages more than 200 global and local brands and supplies over 40,000 clients. The Group’s clients are some of the most important market stakeholders, including large international and local retailers, wholesalers, drugstores, pharmacies, local shop owners, B2B entrepreneurs and specialized sales channels.

Orbico Group provides comprehensive, high quality services – from business sales and distribution solutions, logistics and marketing to managing the world’s biggest brands. The Group covers 19 countries in their business segment – from Germany and Ukraine to the Czech Republic and Albania

» On what do you base your strategy of sustainable development, considering that you said that this strategy should make you the number one distributor of the biggest brands in Europe? - The strategy is not unique. What differentiates us is our focus and dedication to covering every nook and cranny on the market and all sales channels, as well as permeate the market as much as possible at optimum cost. When ORBICO entered the Polish market by taking over the distribution of P&G and Heineken products, we became the biggest distributor in Europe.

» To what extent does the economic crisis and political instability in the region affect Orbico’s operations? » Your company has quite - The economic crisis does affect us becauan impressive client portse it diminishes purchasing power. We have folio, which includes the learned to handle that, and we haven’t had likes of Procter & Gamble, Philip Morris, Kellogg’s and other global much difficulty since. We just became more brands. How do you manage to satisfy the cautious. » How can West Balkan countries become high criteria of your renowned partners on more efficiently linked in business? the very complex regional market? - The place for economic networking in the - At the beginning of my career, I managed a market is very much the Conditio Sine Qua branch office of the German company VARTA Non situation – it is and acquired the neceessential. Despite our ssary know-how there Keeping my word and working not too recent past, and then. I learned with quality people are the we have to establieven more after I started distributing Profoundations on which Orbico sh and develop regional cooperation. cter & Gamble (P&G) started and we are still Otherwise we are all products in 1991. It travelling this road is a well-known fact going to starve. that P&G is very demanding of its distributors, and if you manage » How much do administrative customs rules to please them, other clients come by default. impede efficiency and the profit-generating abilities of companies that are present in We have a highly professional approach to all Balkan countries and beyond? of them while trying to be the smallest share in - We are overly administrated and this slows their expenses.

- SERBIAN 28 CROATIAN REGIONAL COOPERATION

down efficiency and profitability of projects and complicates investments. Of course that administration needs to be cut down. » Did you have to change certain standards and procedures in your business following the EU accession of certain countries? - We did not change our operational standards after accession to the EU (first to be affected were our companies in Bulgaria, Romania and Slovenia) but we reduced our costs due to a tougher competition that we encountered. We reduced our overheads across the board through synergies and new IT systems ensuring our success in 10 EU countries to date. » Orbico Group cooperates with the biggest retail chains and independent local shops. How much do you have to deal with unsettled claims? - Problems with payment can be found in many countries. We have learned how to deal with this and there is no chance that anyone could deceive us. That occasionally happened back in

WE WIN TOGETHER

the 1990s, but today we know ins and outs of our clients, and we carefully monitor their work. Every client is allowed to take as many goods as it is capable of paying for within the set payment terms. Also, we assign credit ratings to each and every one of them. » Could you tell us, in brief, something about the market conditions in the region compared to those in the countries that are already EU members? - Businesses in the region are quickly adapting to the way things are done in the EU. However, there are certain differences as a result of a different approach to doing business. People apply the experiences they gain from travelling to their own practices. As I said earlier, the biggest difference is that the competition has grown a lot stronger. This fact alone will force regional companies to look for solutions that will improve their efficiency, and I am referring mainly to cutting back on costs. Of course, e-commerce is gaining in popularity. Furthermore, software is rapidly developing which expedites business processes. «

Belgrade office: Partizanske Avijacije 4, 11070 Belgrade, Serbia Phone: + 381 11 655 3923 www.orbico.rs CROATIAN - SERBIAN REGIONAL COOPERATION 29

CULTURE

B y RO B E RTA F

A Small Country With a RICH CULTURAL TRADITION

Traditional Croatian culture is characterised by exceptional diversity. FOLK GROUP FROM KOPRIVNICA Ecological conditions and the he Pannonian cultural zone has been chainteresting form of artistic expression was the influences of the decoration of gourds. Clothes were made from racterised by the growing of grain, flax cultures with which densely smocked cloth with richly woven or and hemp, and breeding larger domestic embroidered decoration, and topped off with animals (horses, cattle). The people lived in the Croats have broadcloth or leather jerkins, wide broadcloth single-storey houses made of wood or mud come into contact capes or sheepand wattle (in through history the west), or of skin coats and The most famous dance in northwest and broad soft-soled (Mediterranean, compacted clay Central European, central Croatia was the drmeš, danced shoes (kapičari), or unfired bricks Ancient Balkan, (in the east), with in pairs or small reels to the music of a or boots. Women straw roofs. Along wore necklaces Oriental, etc.), string ensemble known as guci the River Kupa made of coral or have resulted in and River Sava, glass beads and, the development two-storey houses were prevalent, the succein Slavonia, of gold coins. of three specific Annual processions of young people through ssors to pile-dwellings. Furniture was tall. Home regional cultures: the village on feast days, collecting gifts, were crafts which were particularly developed incluPannonian, Dinaric common (jurjaši on St. George’s Day, kraljice or ded weaving on a horizontal loom and pottery ljelje at Pentecost, ladarice on Midsummer’s Day, using a foot-turned wheel. One particularly and Adriatic

- SERBIAN 32 CROATIAN REGIONAL COOPERATION

betlehemari on Christmas Eve, etc.), as were lavish wedding customs. Music and dance traditions also varied greatly. In Međimurje, there was a specific form of unison singing based on medieval scales (known as the Old Church style), and the instruments played were the bordun zither, cimbalom and violin, to which couples would dance (the influence of the KORČULA TRADITIONAL ANCIENT KNIGHT GAMES Alpine zone). The most famous section, and the tall, steep roofs were covered dance in northwest and central Croatia was in wooden slats. Furniture was low. the drmeš, danced in pairs or small reels to the Home crafts included spinning and weaving music of a string ensemble known as guci. Reel woollen fabrics for soft furnishings and clotdancing was characteristic in Slavonia and Baranja, accompanied by bagpipes (gajde), folk hes, producing rolled broadcloth in mills poweinstruments made from animal skins, which by red by water, and pottery using a hand-turned the 20th century had been virtually replaced by wheel. Shepherds were particularly skilled in the tambura (a stringed instrument something woodcarving. Women’s costumes consisted of like a mandolin). cloth blouses, simply cut, with characteristic In the Dinaric cultural zone (highland Crogeometric embroidery on the breast and edges of the sleeves, atia and the Dalwoollen pinafomatian hinterIn the Adriatic cultural zone, the land), sheep and res and long, bropopulation was engaged in fishing goat breeding adcloth jackets was dominant. known as zobun. and cultivating olives, vines, figs and Shepherds spent Men wore narrow almonds and rearing sheep and goats the summers in broadcloth trouthe mountains sers and jackets with large flocks of sheep, and in winter, moin three layers over a shirt, a wide leather belt and several layers of woollen socks decorated ved them to the coastal areas, using mobile with scraps of broadcloth. Girls and men wore pens and huts. In Alpine regions, families wolow, red, broadcloth caps, while married women uld move their flocks in spring from the villacovered their heads with white kerchiefs. Light, ges in the valley to high dwellings, where they woven soft-soled shoes were worn on the feet. worked in the meadows and hayfields, then in Clothes for special occasions were set off by the summer months to the mountain pastures. large amounts of silver jewellery and men often In the autumn, they would gather the meadow carried engraved weapons. Social life included produce and return to the villages before winter specific forms of non-blood kinship (fraterniset in. In highland Croatia, houses were mostly made of wood, often with a stone ground floor ties, godparents, etc.). The musical tradition was characterised by a specific type of singing, ojkanje, which emerged as a refrain in various types of short song (rozgalice, gange, etc.). Longer narrative songs describing heroic deeds were performed by guslari, who accompanied their own singing on gusle, single-stringed instruments played with a bow. The typical dance was the nijemo kolo (SiBELLMEN (ZVONČARI) FROM THE KASTAV AREA lent Reel – also called the Vrlika, CROATIAN - SERBIAN REGIONAL COOPERATION

Integrated solutions for: • industrial plants • power generation, transmission and distribution • traffic monitoring and control • building automation • cloud telemetry INTIS is the hub of industrial activity in the region. Our cooperation with customers ranges from contracting to development, design, manufacturing, erection and commissioning, to maintenance and service during operation. While providing solutions for the industrial, power, traffic, and building sectors, we have acquired experience and worldwide references.

INTIS d.o.o. Belgrade Bulevar Mihajla Pupina 165a, 11000 Belgrade Phone: +381 11 311 3148 Fax: +381 11 311 3148 e-mail: info@intis.rs www.intis.rs

roženice (woodwind instruments with piercing tones) were based. Often two such instruments were played, one large and one small, producing two-toned close intervals or unison sounds, and ending in octaves. The same two-toned effect was mirrored in singing performed by several singers. The balun and tanac were danced to the accompaniment of the sopela. In the early 20th century, 80% of the population of Croatia was rural, and to a great extent continued to live along traditional patterns. Although traditional culture began to disappear in the late 19th century, affected by modernisation and urbanisation, this process accelerated in the mid 20th century. Many elements of traditional FOLK DANCERS IN ČILIPI culture today continue in changed forms and new contexts, and have gained new significance, while some have Lika or Sinj Reel), which was performed in large steps and come to denote national, regional or local identity. leaps with no musical accompaniment. These include, for example, the Carnival procession of the In the Adriatic cultural zone, the population was engaged bellmen (zvončari) in the Kastav area, performances of a miliin fishing and cultivating olives, vines, figs and almonds and rearing sheep and goats. They grew vegetables and, to a lesser tary dance with swords (moreška) in the town of Korčula, the extent, grains on small terraced meadows. They also used wild custom called kumpanija in the villages of Korčula, the annual plants such as broom (for yarn) and carob. Shipping and trade Pentecost procession of the kraljice, or ljelje in Slavonia and were also important. Their houSrijem, the knights’ tournament known as the Sinjska Alka, and ses were made of stone, usually The traditional music of Istria and the others. Traditional music, tall, narrow buildings roofed with Croatian Primorje were characterised by many songs and dances are most often cylindrical tiles or split limestochromatic scales, upon which songs and performed at folklore festivals ne slates. They had open hearths or during various ceremonial equipped with range-hoods and music played on sopele, or “roženice” events, when the performers typically Mediterranean utensils were based usually dress in folk costumes. (gridirons, chains, bellows). The best known such even is the Zagreb International Folklore Their costumes developed from their urban milieus. Men’s Festival, then there is the Vinkovci Autumn Festival, the Đakocostumes were characterised by typical Mediterranean components such as wide trousers, gathered at the waist, short vački Vezovi (also folklore festivals), the Dalmatian Klapa Festockings and cylindrical woollen caps. Women’s costumes stival in Omiš, and others. Along with many amateur folklore comprised cloth blouses over which bell-shaped broadcloth societies, the professional Lado Ensemble (founded in 1949) skirts with shoulder straps were worn, encircled by woollen or is particularly dedicated to nurturing the Croatian folk traditisilk belts. They preferred jewellery made of precious metals, on and performs folk dances and songs. « Source: croatia.eu complemented with coral or pearls, often in the form of filigree work. At Christmas and the New Year, it was customary to process through the streets, greeting the neighbours with songs and collecting gifts (koledanje), and Carnival customs were widespread. Klapa singing is considered to be a particular characteristic of Dalmatian folk music – multi-part singing in small groups, klape, with no musical accompaniment. Rural dances (the linđo and poskočica) were accompanied by lijerica, three-stringed bowed instruments, while in the towns, dances such as the šotić and kvadrilja were accompanied by guitars or mandolins. The traditional music of Istria and the Croatian Primorje were characterised by chromatic scales (the best known is the Istrian Scale), upon which songs and music played on sopele, or ADRIATIC AIREA IS KNOWN FOR CULTIVATION OF OLIVES - SERBIAN 34 CROATIAN REGIONAL COOPERATION

TOURISM:

HVAR

B y K AT I JA V U Č E T I Ć

Cycling Heaven on

SUNSHINE ISLAND

Cyclicts of all ages gathered on the island of Hvar in early June to take part in the 5th Jubilee Cycling Through Heritage Race. The race started in front of the bastioned summer house of Renaissance poet Petar Hektorović in the town of Stari Grad. The goal of the race was to make a link between sports and the historical heritage of the island's central part

selecting and tracing the trails to suit the race has been a great vehicle for proor the most part, the 32-kilometre trail needs of both tourists and the local comran through the Stari Grad Plain, one moting bicycle tourism, owing in part to of UNESCO’s World Heritage sites, and Eurosport’s coverage of this race, seen munity. The completion of the second staalong the same roads that have been reguworldwide. Many foreign media have also ge – putting up signs and info-panels – is praised Croatia, which puts the country planned for September this year, followed larly used by believers in a unique five-cenhead-to-head with other, more develoby educating the owners of tourist facilitury old procession called “Za Krstom”. The race brings together the most precious asties about the BED & BIKE project. In order ped bicycle tourism destinations. Anotfor the island’s bicycle tourism offer to be pects of this island – its rich cultural heritaher extremely valuable bonus was having as rounded as possible, the available acHvar appear on the list of the ten most ge and the beauty of its landscape, created beautiful places for coastal bicycle tours by nature and shaped by the diligent islancommodation for the cyclists has to be in Europe (compiled by the DuVine Agenadapted to include room for bicycle stoders. This is also the goal of the Sunshine Island’s bicycle tourism. cy). Also, Hvar was featured in the Cyclists discovered the challenges Cyclists discovered the challenges March issue of the British road cycling of offbeat paths, ancient roads and magazine – Cyclist. of offbeat paths, ancient roads breath-taking crags on the Island of To illustrate just how much the and breath-taking crags on the Hvar a long time ago. This year, they are Splitsko-Dalmatinska County has inIsland of Hvar a long time ago. able to enjoy 13 bike trails with a total vested into bicycle tourism, two years length of 470km, all mapped and puago, there were no marked cycling This year, they are able to enjoy trails in the county at all. Today, there blished online. This is just the first step 13 bike trails with a total are 70 of them, with a total length of in having a well organised and profeslength of 470km 2,250 km, in addition to the seven offisional approach to bicycle tourism. The joint project, implemented by five toucial bicycle races that bring an annual revenue of €2 million. Further plans incrist associations on the island of Hvar – the rage, maintenance and repair. In addition Tourist Board of the Splitsko-Dalmatinska to the relevant education, selection and lude getting closer to Istria, the leader of County, the County Cycling Association, development of lookouts and vacation lobicycle tourism in Croatia. Joint projects the Splitsko-Dalmatinska County and seimplemented both on the national and cations will have been finished by spring. county level, in addition to unique cycling After this joint project is implemented, veral island towns and municipalities – has tours put together by local enthusiasts in ensuing tendencies will be closely moniadded value to the island’s bicycle tourism collaboration with small family businesses, by establishing trails that are suitable for tored since it seems that the project is goare the surest way to create an exceptional both recreational cyclists and those who ing to bring many fans of active vacation bicycle tourism offer on an island that is a relish a real challenge. to the Adriatic coast and the islands. pioneer of organized tourism in Europe. « The first stage of the project entailed The international Tour of Croatia 2016 CROATIAN - SERBIAN REGIONAL COOPERATION

SINJSKA ALKA 5TH – 7TH AUGUST:

A 300-Year-Old

KNIGHTS’ TOURNAMENT

In 1715, the town of Sinj, located in the southern inland part of Dalmatia, Croatia was under attack by 10,000 strong Ottoman Army. Wanting to occupy Sinj, the Ottomans had reached the edge of town and were close to taking ownership. The battle for Sinj was brutal, with just 1,500 defenders the local priests of Sinj prayed to the Almighty for the town to be saved

ocal legend has it that the town of Sinj was granted a miracle when the home forces were victorious. The town was saved. Now, whether they achieved this feat on their own merits, by divine intervention or some combination of the two is a subject that remains up for debate, for anyone other than the people of Sinj. The people of Sinj believe that a woman in white was seen, walking on the walls of Sinj. The legend of Sinj is that this woman was Madonna. Appearing after hearing the town’s prayers, forcing the Ottomans to withdraw. The town of Sinj declared to host an annual festival in the Virgin Mary’s honor to show their gratitude for her assistance; the Sinjska Alka. Taking place each year on the 1st weekend of August, the historical Sinjska Alka event was inscribed on the UNESCO Intangible Cultural Heritage List in 2010.

Essentially it’s an equestrian competition, where a device called the alka is suspended 3.34 metres on a rope above the main street. The alka is a large iron circle that has a smaller iron circle held at its centre by three strips of metal. Riders strive to hit the alka directly through the

a marching band. The tap-tap-tap of the drums can be heard from one end of the town to the other. There is something about a marching band, the coordination of the band walking in rhythmic fashion together with hair-raising sounds of the instruments gets me every time. The marching band together with a police escort leads the way for the Knights of the Alka. The people of Sinj are silent and proud, watching as the parade makes its way toward the stadium. Though similar equestrian tournaments took place in many coastal Croatian towns in years gone by, the Sinjiska Alka is the last remaining competition of its type that is still being held in modern times. Participants, known as Alkars or Knights are selected from within the local community. A child of Sinj joins the local ‘Alka Club’ and trains for many years to learn the skills required to one day be an Al-

Taking place each year on the 1st weekend of August, the historical Sinjska Alka event was inscribed on the UNESCO Intangible Cultural Heritage List in 2010 centre circle of 33mm with their iron-tipped wooden lance of only 32mm in diameter as they gallop, full speed down the main street. This medieval-style jousting competition starts with a parade through town with all of the individuals mentioned above and

- SERBIAN 36 CROATIAN REGIONAL COOPERATION

kar. It’s a truly great honour to be selected. Each year the top 11 to 17 Alkars are named to participate. Dressed in traditional and elaborate 18th-century clothing, tall hats & boots the Alkars are sat on top of most grand looking horses. The Alkar Knights mount the horse at one end of the track, with hundreds of people sitting in the grandstands on either side, and with hundreds more congregating at the end of the track. At the start of the race, the crowd waits in anticipation of the Alkar and his horse to gallop past. The Knight and his horse begin slowly at first and then proceed into a full gallop rather quickly. The pair must race along the 160-metre track to reach the Alka in less than 13 seconds to qualify for the attempt to secure the Alka. The outfits worn vary based on the rank and position of the Alkar, however, he must keep every item of clothing, including his

hat on during the event. If his hat tumbles off during the event, it’s the judges decision if he can attempt to collect the Alka again. The entire tournament is presided over by a rider decked out in gold who is granted the honorary title of Duke. Other noteworthy participants include the shield and mace

responsible for the care of their knight’s lance and horse. Rules for this annual event were finalized in the 1830s, and the scoring system is based on what portion of the main ring is hit by the lance. On each attempt, contestants can receive from 0-3 points. Each gentleman gets several attempts before the tallies are counted and the prizes and honour of winning such a special event are awarded. Only male riders are eligible to join the riding club. They do so, at around the age of 9-10 and if they persist, show talent and other qualities they can join the procession around the age of 20. Several years later they are allowed to compete in the Sinjska Alka event, but only if rider or his father was born in Sinj. Training for the selection of the Knights begins each May and by the beginning of July, the Duke (vojvoda) announces the selected participants. «

Each year the top 11 to 17 Alkars are named to participate. Dressed in traditional and elaborate 18th-century clothing, tall hats & boots the Alkars are sat on top of most grand looking horses bearers as well as the grooms responsible for the Duke’s second horse. This animal’s accoutrements are said to belong to a Turkish duke from the time of the siege. The Alkars are kept under the command of a troop leader as are their squires. In keeping with tradition, the squires are

DALMATIAN KLAPA SINGERS

CROATIAN - SERBIAN REGIONAL COOPERATION

TOURISM

From the stunning, unspoilt Adriatic coast to the amazing natural parks inland, Croatia has extraordinary diversity as well as beauty – and only a short flight away. Here is a list of places you shouldn't miss! DUBROVNIK

Croatia's Top 10

MUST SEES IN 2016

tretching along the Adriatic Sea, just a stone’s throw from Central Europe, Croatia is a country defined by a rich cultural legacy. Today, history perfectly combines with a youthful spirit and vibrant energy that prove irresistible to those seeking diversity. Breath-taking natural beauty, endless coastlines, diverse gastronomy, adventure, sports and wellness, can be enjoyed all year round. Whether exploring the old city of Dubrovnik, a UNESCO World Heritage Site, island-hopping around the Split archipelago, truffle hunting in Istria, paragliding across the Plitvice Lakes, delving into Zagreb’s streets and hidden passages, birdwatching in Kopacki rit, partying the night away at Zrce beach in Novalja or taking time out with the family on Zlatni Rat beach, there truly is something for everyone in Croatia. Whether your preference is hopping from one pristine island to the next along the Dalmatian Coast, dancing the night away in Hvar, exploring ancient sites and cultural heritage in Dubrovnik and Split, sampling the best local food and drink in Rovinj or enjoying a wide range of adventure sports in the Istria region – Croatia has plenty to offer for every taste and lifestyle #1 DUBROVNIK is South Croatia’s most renowned hot spot and famous for its cultural heritage. Take a walk in its breath-taking, pedestrian-only Old Town, a UNESCO world cultural heritage, and explore the network of picturesque small streets and squares. One of the world’s most awe-inspiring walled cities, Dubrovnik has gained even more international fame since it doubles for the fictional ‘King’s Landing’ in HBO’s epic fantasy series Game of Thrones. Dubrovnik Summer Festival (10 July –25 August) is always a major draw and creates buzzing nightlife. For those preferring a calmer time, May/June and September/October are good months to visit the Dalmatian coastal town while December is a real insider tipp: Browse for unique presents at Dubrovnik’s Christmas Fair, enjoy culinary highlights in one of the city’s excellent restaurants and on New Ye-

ar’s Eve, dance the night away with a cheerful crowd on main street. #2 PLITVICE LAKES, the country’s largest National Park, is situated in a mountainous karst area. A UNESCO World Heritage Site, the park is renowned for its 16 shimmering lakes, arranged in cascades and showcasing distinctive colours from azure to green, grey and blue. The colours change constantly depending on the quantity of minerals, organisms in the water, and the angle of sunlight. A unique way to view this incredible scenery is from a bird’s eye perspective, which you can do if you partake in hang-gliding or paragliding. The lakes are located in Lika region in the heart of Croatia, between the country’s continental and coastal parts. The region is a popular stopover for people travelling from Zagreb to the coast, but with its natural beauty, lush green landscapes, majestic mountains, sparkling clear springs and a high concentration of protected Nature Parks, it is worth exploring in its own right. #3 SPLIT: The story of Croatia’s second largest city dates back 1700 years to Roman Emperor Diocletian who decided to build his palace right on the peninsula where he wanted to spend the last years of his life. Since 1979, the entire historical core of split, including Diocletian Palace, have been on the World Heritage UNESCO list and till today, all historical layers are alive and visible to visitors. But it is not only the city’s rich tradition and the beauty of its natural and cultural heritage that makes it irresistible. Local inhabitants sit in the same cafes and shop in the same stores as tourists, giving them the impression that, by arriving to Split, they become a part of the city and its rhythm. #4 POREČ is a town of culture, tourism, sport and leisure, where the aromas and colours of past times form a mosaic of unforgettable experiences. Its history dates back to the time of the Roman Empire and can still be felt in the city centre, whose symmetrical geometric layout of streets has been preserved and captivates visitors with its picturesque location on a small peninsula submerZAGREB, Photo: Boris Kačan ged in the sea. Euphrasian

Breath-taking natural beauty, endless coastlines, diverse gastronomy, adventure, sports and wellness, can be enjoyed all year round

CROATIAN - SERBIAN REGIONAL COOPERATION

KRKA, Foto: Ivo Biočina

Basilica from the 6th century is the most valuable cultural and historical monument in Istria, and is on the UNESCO World Heritage List. As for the fun and nightlife: This summer, Poreč invites locals and visitors to its first Open Air Festival. From June 9th to September 10th the streets and squares of the historic city centre as well as the enchanting Sveti Nikola Island will come to life with more than a hundred cultural events and street performances. Every Friday, the sea before Poreč’s promenade will lend its surface for a spectacular laser show. #5 ZADAR: Awarded as “European Best Destination 2016”, the 3,000-year-old city of Zadar infuses historical heritage with breath taking natural beauty to create a unique experience for visitors. Located in the northernmost part of Dalmatia, the coastal town is marked by its history and turned towards modernity. Take a stroll along the waterfront and listen to the “Sea Organ”, an experimental instrument which uses wind and waves to create music. Visit the largest Roman forum on the Croatian side of the Adriatic and the unforgettable Romanesque church of St. Donatus. A unique souvenir is Maraschino, a herbal fruit liqueur which was developed by pharmacists of Zadar’s Dominican monastery at the beginning of the 16th Century. #6 ROVINJ is an old, picture-perfect town that stretches into the sea and is often referred to as the Med’s most romantic spot. Known for its diverse tourist offerings, it prides itself on having a newly designed, contemporary beach and promenade in Lone Bay, which runs 200 metres along the beach. Rovinj is located in the region of Istria, the Adriatic Sea’s largest peninsula, which is a world renowned gourmet destination. Local specialties include black and white truffles - SERBIAN 40 CROATIAN REGIONAL COOPERATION

which are among the most prized in the world, fresh seafood, wild asparagus, top-rated olive oils and award-winning wines. Boasting great natural beauty, Istria also offers a wide range of adventures in the great outdoors such as paragliding, free climbing, canyoning, exploration of caves, horseback riding, mountain running and biking – perfect for those seeking an active holiday. #7 ZAGREB. Croatia’s capital is a city of contrasts: Young and old at the same time, it is dedicated to business in the morning but relaxed and fun in the evening. In the past it was often unfairly overlooked by visitors to Croatia, but now comes into its own thanks to rich urban offerings including culture, the arts, music, theatre, architecture and gastronomy. In 2016, Zagreb’s Maksimir park was awarded one of the most beautiful European parks by European Best Destinations. Founded back in 1794, it is home of a hundred-year old oak forest and the City ZOO, making it a refreshing getaway from hot days. Zagreb is a year-round outdoor city: in spring and summer

HVAR, Foto: Ivo Biočina

CORPORATE Jarun Lake is a popular sunbathing and sailing destination; autumn offers hikes in Samobor, and winter ski adventures can be found at nearby Mt Medvednica. #8 HVAR island is the number-one holder of Croatia’s superlatives: most luxurious island, sunniest place in the country (2724 hours of sunshine each year) and, along with Dubrovnik, most popular tourist destination. The island’s capital is a must-visit destination for those seeking fun and night clubbing and for those who love seeing and being seen. It is all about swanky hotels, elegant restaurants, posh yachts, trendy bars and clubs. The best way to explore Hvar and its neighbouring 79 islands and some 500 islets that run parallel to the Dalmatian coast is to charter a gulet and go island hopping. #9 SLAVONIJA region in the East is Croatia’s best kept secret. It is shaped by the force of the mighty Drava, Danube and Sava rivers and characterised by a distinctive, captivating rural landscape, featuring endless golden agricultural plains, hills peppered with excellent vineyards and one of Europe’s largest, most preserved wetlands, the Nature Park of Kopacki rit. The park covers an area of marsh and partly sunken forest, renowned for its abundant and rare fauna and flora, including almost 300 bird species. Slavonia’s history and ties to its neighbouring countries have created an intriguing cultural backdrop which is also reflected in its diverse regional cuisine: It is spicier than others in Croatia, using plenty of paprika and garlic as well as fresh fish from the rivers. #10 OPATIJA was considered to be the summer destination du jour for the Viennese elite during the days of the Austro-Hungarian Empire, a legacy that is still evident in the many remaining belle époque villas. Its tourist tradition began in 1844, culminating in the opening of Hotel Kvarner in 1884 – the first on the Eastern coast of the Adriatic. Opatija spreads out along the coast between forested hills and the glistening Adriatic, with the town’s entire waterfront connected by a promenade. Located in the region of Kvarner and flanked by majestic mountains, it is a year-round destination offering an unparalleled combination of sea, islands and highlands. Don’t miss the region’s culinary specialty, Kvarner Scampi, which are Source: HTZ considered to be the best in the world! «

AD PLASTIK GROUP

Great Experience in the

SERVICE OF DEVELOPMENT AD Plastik Group is a multinational company with more than thirty years of experience in the world auto industry and eight production locations in four countries

AD PLASTIK is a leading company in the development and production of components for car interiors and exteriors; it is the largest in Croatia and one of the leaders in Eastern Europe. The entire production is intended for export. Apart from two factories in Croatia, at locations in Zagreb and Solin, where the company’s headquarters are based, AD Plastik Group also has factories in Serbia, Russia and Romania, with a total of more than 2,100 workers. Thirty years of experience – during which AD Plastik has grown, developed and confronted different challenges – has contributed to the maturity and knowledge that characterise the company today. Just viewing the road travelled and the experience gained today contributes to continuing operations that are based on tradition, knowhow, capacities, exceptional expertise and the hard work of each employee. The company works with customers from the early stages of development to the final product, using modern tools and techniques,

along with the use of specific expert knowledge, skills and experience. The company’s long-term survival on the demanding automotive market confirms the high quality of its operations, primarily due to the quality of staff, constant investment in development and the advancement of technology. On the other hand, the company’s focus on customer needs, while maintaining high quality and the competitiveness of products and services, are a prerequisite for the survival and development of the company. AD Plastik uses a variety of technologies and materials in its production, through injection moulding, painting, blow moulding, thermoforming, production of non-woven textiles and extrusions. The company produces parts for 90 types of vehicles, while the most important customers with which AD Plastik develops successful business cooperation include Renault, Nissan, Peugeot, Citroen, Toyota, Ford, Opel, VW, BMW, Renault, Daimler, Ford, VAZ, GM-VAZ, Daewoo , Fiat-Chrysler, Mitsubishi, Alfa Romeo, Maserati and others. «

OUR PRODUCTS Vehicle interiors Instrument panels, door panels, pillar cladding, blinds, air ducts, armrests, roof lining, mats for passenger and cargo space, boot shelves etc. SPLIT, Foto: Ante Verzotti

Vehicle exteriors Coloured and uncoloured front and rear bumpers with components, boot lids, decorative door frames, lining above wheels, various underbody CROATIAN shields, extruded profiles etc. - SERBIAN REGIONAL COOPERATION

„On the last day of creation God desired to crown his work and thus created Kornati Islands out of tears, stars and breath.“ - George Bernard Shaw, Irish playwright

Vinkovci in eastern Croatia is the oldest city in Europe. People have been living there continuously for the past 8,000 years

English poet Lord Byron called the old town of Dubrovnik The pearl of the Adriatic - a name it still holds to this day

The oldest Croatian text was written in 1100, and it is called the Baska tablet, which is about the period of the reign of King Zvonimir

There is a Museum of Broken Relationships in Zagreb, where people display their memories of past relationships

The Roman amphitheatre in Pula is the 6th largest amphitheatre in the world and the only one that has all three rows completely preserved

FORBES magazine ranked Croatia in the top 12 world's best retirement havens. Describing Croatia as sitting across the Adriatic Sea from Italy, the country offers great beauty, a mild Mediterranean climate, ancient culture, tax breaks for retirees and low living costs

Croatia is rightfully known as a country of 1,000 islands, as it has 1244 islands, islets and reefs. However, less than 50 are inhabited