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NORDIC COUNTRIES WHAT CAN WE LEARN FROM THE NORDICS?

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CONTENTS

COMMENT

HOW THE DANISH FOOD INDUSTRY PRODUCES MORE WITH LESS?

PROVEN VALUES FOR BOTH GOOD TIMES AND BAD

VIEW TO THE TOP OF THE EARTH

5G NETWORK IS THE FUTURE

ANTONIO PASSARELLA, COUNTRY MANAGER AND KEY ACCOUNT MANAGER WESTERN BALKANS, ERICSSON

SUPPORTING NORDIC VALUES IN THE BALKANS

WHAT CAN BE LEARNED FROM DENMARK

WE TREASURE TRUST BETWEEN CITIZENS AND INSTITUTIONS

H.E. JØRN EUGEN GJELSTAD, AMBASSADOR OF NORWAY TO SERBIA

H.E. KIMMO LÄHDEVIRTA, AMBASSADOR OF FINLAND TO SERBIA

EDUCATION SYSTEM ONE OF THE BEST IN THE WORLD

WHAT CAN BE LEARNED FROM FINLAND

H.E. ANDERS CHRISTIAN HOUGÅRD, AMBASSADOR OF DENMARK TO SERBIA

WHAT I LEARNED ABOUT WORKING FROM HOME, WHILE WORKING FROM HOME

THE BEST FOOD DELIVERY

ĐORĐE DAVIDOVIĆ, GENERAL MANAGER, WOLT D.O.O.

KSENIJA PURKOVIĆ, PRESIDENT OF THE NORDIC BUSINESS ALLIANCE

TOMICA OREŠKOVIĆ, LOKOMOTIVA CEO

THE MARKETING APPLIANCE OF DATA SCIENCE

LUKA IGNJATOVIĆ, DATA SCIENTIST, POLARIS (I&F GRUPA)

COOPERATION IS INSPIRATIONAL AND REWARDING

H.E. JAN LUNDIN, AMBASSADOR OF SWEDEN TO SERBIA

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DIALOGUE IS CRUCIAL IN HARD TIMES

WHAT CAN BE LEARNED FROM SWEDEN

PRAGMATIC APPROACH LEADS TO PROSPERITY

SUSTAINABLE AND DYNAMIC EXPORT

MOST INCLUSIVE AND ADVANCED ECONOMY

WHAT CAN BE LEARNED FROM NORWAY

COMMENT

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Proven Values For Both

GOOD TIMES AND BAD In times of hardship, examples of true cooperation like the Nordic one seem even more meaningful than during “regular” times. Yet such relationships, based on shared values and a willingness to achieve results that contribute to the mutual development and well-being of citizens, will be equally if not even more important for the Western Balkan region once the current challenges pass.

t is now almost seven decades since the Nordic Council held its first ever session, in February 1953. As was pointed out recently by a commentator in the Nordic Labour Journal, “in the history of Nordic cooperation there are many examples of great ambitions that failed or came to nothing. But decisions have also been made that have fundamentally changed Nordic citizens’ opportunities.” This is exactly the reason why Nordic cooperation has been promoted for some time as a valuable approach to regional cooperation within the Western Balkans. Let us for a moment consider the pros of having something similar to the passport union, which was introduced in Nordic countries as early as 1952, or the Nordic labour market that was introduced in 1954, or the common social security that was established a year later. It was fairly recently that Western Balkan leaders were discussing more or less the same issues under the scope of the “mini Schengen” idea. Today an agreement that would regulate the common labour market would be very important for remedying shortages in the labour force in these parts of the region, where investors are arriving and seeking specific skills. Nordic cooperation is the result of a long and comprehensive process that took place within the EU, but is also a consequence of the willingness of Nordic political leaders to establish strong, transparent and effective institutions, all of which are kept ac-

countable and anchored within a political system based on the rule of law. Such an approach brought confidence, trust and a basic perception among citizens that the authorities care and stand up for them. Nordic societies were able to create such a space of trust by fostering genuine cross-party debates that led to broad consensus on issues of national interests and by investing in the development of cross-border cooperation aimed at improving the quality of life of their citizens through increased economic cooperation, the dissemination of technology and access to higher education, services and culture, as summed up by one of our interlocutors. All these advancements were based on independent institutions, inclusive parliamentary procedures, media freedom, anticorruption, equality, innovation and environmental protection. Western Balkan countries, including Serbia, have been expressing at least a formal willingness to align themselves with these values and principles in their dialogue with the EU. Nordic countries are contributing to such advancements by supporting the development of the rule of law, strong institutions, independent media and political dialogue in our societies. These basic principles are certainly important in times of challenges, such as the one we are all facing today, while they will be even more important during times when the economies start to recover.

Confidence, trust and a basic perception among citizens that the authorities care about them can only be built on strong, transparent and effective institutions, anchored within a political system that's based on the rule of law

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View To The

TOP OF THE EARTH

Sweden, Norway, Finland, and Denmark (collectively the Nordic countries) have a combination of high living standards and low-income disparity that has captured the world’s attention. At a time when the growing gap between the rich and poor has become a political hot button in developed nations, the region has been cited by many scholars as a role model for economic opportunity and equality

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Their policymakers have chosen a mixed The Nordic model has system that reduces the gap attracted a significant amount economic between the rich and the poor through of attention from other redistributive taxation and a robust pubnations. Many people wonder lic sector while preserving the benefits of capitalism. if it provides a template The model is underpinned by a capitalist economy that encourages creative for smaller countries destruction. While the laws make it is where citizens are more easy for companies to shed workers homogeneous in terms and implement transformative business models, employees are supported by of their opinions and generous social welfare programmes. experiences yet live in poverty The nation’s tax structure is based on or under repressive policies individual rather than household income,

he Nordic model is a term coined to capture the unique combination of free market capitalism and social benefits that have given rise to a society that enjoys a host of top-quality services, including free education and free healthcare, as well as generous, guaranteed pension payments for retirees. These benefits are funded by taxpayers and administered by the government for the benefit of all citizens. The Nordic countries are all socialdemocratic countries with mixed economies. They are not socialist in the classical sense – they are driven by financial markets rather than by central plans, although the state does play a strategic role in the economy. They have systems of law that protect personal and corporate property and help to enforce contracts. They are democracies with checks, balances and countervailing powers. Nordic countries show that major egalitarian reforms and substantial welfare states are possible within prosperous capitalist countries that are highly engaged in global markets. But their success undermines the view that the most ideal capitalist economy is one where markets are unrestrained. They also suggest that humane and equal outcomes are possible within capitalism, while full-blooded socialism has always, in practise, led to disaster. The citizens have a high degree of trust in their government and a history of working together to reach compromises and address societal challenges through democratic processes.

coupled with a flat-tax. The result is a system that treats all citizens equally and encourages workforce participation. Gender equality is a hallmark trait of the culture that not only results in a high degree of workplace participation by women but also a high level of parental engagement by men. What makes the Nordic model work? A combination of shared history and societal development is credited with much of its success. Unlike areas that developed around the formation of large corporate-owned farms, the history of Scandinavia is largely one of family-driven agriculture. The result is a nation of small entrepreneurial enterprises directed by citizens facing the same set of challenges. Solutions that benefit one member of the society are likely to benefit all members. This collective mentality results in a citizenry that trusts its government because the government is led by citizens seeking to create programs that benefit everyone. 7

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Accordingly, the citizens willingly chose to pay higher taxes in exchange for benefits that they and their family members will get to enjoy. The result is publicly funded services, such as healthcare and education that are of such high quality that private enterprise has no reason to offer these services or room to improve them. This mindset remained intact as capitalist enterprises developed. The Nordic model faces some notable pressures to its sustainability. Two of the largest concerns are an aging population and an influx of immigrants. In terms of an aging population, a large base of young taxpayers and a smaller population of older residents receiving services is the ideal scenario. As the population balance shifts the other way, benefit reductions are a likely outcome. Fortunately for their citizens, the Nordic nations have willingly chosen a path of greater equality for all citizens and have demonstrated an ability to work through their political differences for the greater good of all. In terms of immigration, Nordic countries attract a notable influx of newcomers seeking to enjoy generous public benefits. These new arrivals often come from nations that do not have a long, shared history of making decisions on behalf of the common good. While native Nordics tend to have a high degree of participation in the workforce as part of their collective decision to support the amenities their society offers, immigrants do not always share this vision. These new arrivals present a significant burden to the system and could, ultimately, result in its demise.

Two other concerns include native citizens taking advantage of the generous benefits system and the impact of poor global economic conditions. Again, the culture of cooperation and a shared interest in a strong social safety net has enabled these countries to adjust their benefit programs and continue to deliver a wide range of services even in the aftermath of the Great Recession. The Nordic model has attracted a significant amount of attention from other nations. Many people wonder if it provides a template for smaller countries where citizens are more homogeneous in terms of their opinions and experiences yet live in poverty or under repressive policies. Others believe it provides a template for reforming the unchecked capitalism that has created notable income inequality and dramatic differences between the quality of life between the rich and the poor in prosperous nations. Sitting between the controlled economy and unchecked capitalism at the other end of the spectrum, the Nordic model is sometimes referred to as “the third way.” The Nordic model has created quite a bit of controversy outside of the region. Many people in countries operating under what is often referred to as “the American model” of capitalistic enterprise see the Nordic model as an attractive alternative to the winner-take-all brand of capitalism that has resulted in poverty, a lack of affordable quality health care and education, a deteriorating social safety net, a lack of retirement security, massive scandals in the financial markets and tremendous income disparity. They point out that public

The inability of developed nations to move beyond vitriolic political rhetoric coupled with their lack of shared culture due to geographically and ethnically diverse populations that lack shared experiences will similarly serve as barriers to implementation of the Nordic model in those countries

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services, such as education and government-run programs in America are of poor quality and that the rich have access to far better resources than the poor and that implementation of the Nordic model could solve these issues. Opponents of the Nordic model criticize the high taxes, high degree of government intervention and relatively low gross domestic product and productivity, noting that these all limit economic growth. They point out that the Nordic Model redistributes assets, limits the amount of money available for personal spending and consumption and encourages reliance on government-subsidized programs. The inability of developed nations to move beyond vitriolic political rhetoric coupled with their lack of shared culture

due to geographically and ethnically diverse populations that lack shared experiences will similarly serve as barriers to implementation of the Nordic model in those countries. In any event, while outsiders argue vigorously in favor of social democracy or against so-called welfare states, Nordic countries themselves make no effort at all to induce or coerce other nations into adopting the their model. Rather, they seem content to work through their problems together in a collective manner that consistently results in placing them at the pinnacle of global surveys of the happiest people in the world. All four Nordic countries are within the top ten happiest nations in the world, according to the United Nations list.

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INTERVIEW

H.E. ANDERS CHRISTIAN HOUGÅRD, AMBASSADOR OF DENMARK TO SERBIA

PRAGMATIC APPROACH

Leads To Prosperity Offer equal opportunities to people, with a pragmatic rather than an ideological approach, and this will lead to a strong economy. This is the Nordic recipe that might work in the Western Balkans, provided all parties understand the value of this seemingly simple approach

or some time now, Nordic cooperation has been promoted as a valuable model for the Western Balkans. We asked H.E. Anders Christian Hougård, Danish Ambassador to Serbia, which question he would single out as one example in which Western Balkan countries could use the Nordic formula to resolve some of the issues they are facing, and in response we received an interesting and nuanced answer. “Good and friendly relations between neighbours!”, this is the straightforward answer that we received to our question. “However”, notes Ambassador Hougård, “it is important to stress that the Nordic formula, as we call it, has not always had such a strong sound to it. A hundred years ago, the Nordic region wasn’t at all prosperous, while since the 1970s the Nordic identity has been associated with seemingly endless economic growth.” The Nordic model is relevant to the Western Balkan countries, with examples of economically, socially and technologically driven societies, underlines our interlocutor. “We offer equal opportunities to people, with a pragmatic rather than an ideological approach, which again leads to a strong economy.” Ambassador Hougård believes that the Western Balkan region has the potential to create a common market in which businesses can thrive, while he stresses that protectionism and isolationism must be avoided in order to secure economic dynamism and competition.

What, for example, can the Western Balkans learn from the way you organised your labour markets and flows of workers from one country to another? - Free trade and competition are pillars of the Nordic socioeconomic model. We can certainly be proud of our open markets, with low tariffs and minimal barriers to trade. The idea of a ‘Mini Schengen’, if it stays on the right track and in accord with EU regulations, seems to be moving in this direction, so we are interested to see what comes of that model. When it comes to the Nordic countries, we established a common labour market to create jobs and growth more than 60 years ago. A well-functioning labour market gives Nordic people a chance to practise their professions in other countries. I hope this is an example that Western Balkan countries can follow in the near future. To what extent would a unified labour market across the region impact on the way companies from Denmark view the economic possibilities of Serbia and the region? - The labour market, at least in the countries we are covering from Belgrade, is experiencing the same trends – accelerated labour shortages paired with wage growth. Many companies find it increasingly difficult to fill certain job vacancies in both blue-collar and white-collar segments.

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However, disparities in wages even within a single country increase labour mobility. Having a regional labour market that’s more flexibly regulated would primarily indicate that governments are teaming up and working in the interest of companies that are seeking to invest and grow in the region. Although the unification of the labour market may not solve workforce-related challenges, it provides time to develop and execute other policies and measures aimed at preserving the competitiveness of the local business environment. Environmental issues are becoming a major political topic all around the continent, and there are some suggestions that companies coming from environmental-conscious states would avoid investing in countries that are among the worst polluters. How likely is it that these issues might impact on investments coming from the Nordic region? - Indeed, Nordic countries have all set an ambitious and extensive green agenda and today environment¬¬al issues are a global challenge. The Nordic region, which is relatively happy with the state of affairs in its own backyard, has an even greater responsibility to help and share knowledge in order to make other parts of the world more sustainable. Danish companies tend to lead by example, and I would offer an alternative point of view by asking a question; how can countries like Serbia attract companies that will work in the most sustainable and environmentally-friendly way? In parallel with this, investments might be aimed at reducing pollution – through the production of energy from renewable sources, water treatment and energy efficiency projects and initiatives. This is where the small Denmark punches well above its weight, and we know how to make a difference when it comes to sustainability.

State and private media play an equally important role when it comes to securing political pluralism and the public’s participation in political life. Freedom from editorial pressure, high ethical standards and good protection of journalists are thus key in any media landscape and must not be undermined. The situation in Serbia, on the other hand, seems vulnerable. Considering Serbia’s future EU membership, you need to be more ambitious in creating an unbiased media structure, because having independent and free media is in everyone’s interest. What are the major topics that the embassy is focused on and what events would you like to highlight? - In 2020, Denmark, Greenland and the Faroe Islands are

jointly presiding over the Nordic Council of Ministers, and we will work together locally with other Nordic embassies. We are thrilled to inform your readers that one of the priorities will be conducting a project on sustainable food in primary schools, guided by a Nordic example. In October we will gather together our strengths and organise a conference in the Mačva District. This April, we will support the Southeast Europe Space Conference, organised for the first time by the Serbian Office for Space Science, Research and Development. Among others, the director of the Space department of the Danish University of Technologies, Dr Kristian Pedersen, will share the Danish history of Space science, as well as discussing all the ways that a small country, such as Denmark or Serbia, can use space science in order to achieve the UN’s SDGs (Sustainable Development Goals). Among other activities, a Danish film festival will be on the repertoire this year at the Yugoslav Film Archives Cinematheque, which will focus on the journey from silent motion pictures to modern films.

Considering Serbia’s future EU membership, you need to be more ambitious in creating an unbiased media structure, because having independent and free media is in everyone’s interest

The media play an important role in putting relevant topics for society on the table. If you had to draw a parallel between the Danish and Serbian press, how would you describe their relative positions in society? - There are many similarities, due to the size of our two countries and the social structure. But where Denmark has had a long and uninterrupted period of political stability since World War II, things have been much more complex and challenging in and around Serbia. In both our countries, the constitutions guarantee freedom of the press and media ownership is diverse. But I think that in Denmark there is more transparency and that the media is less politically connected.

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BUSINESS

ANTONIO PASSARELLA, COUNTRY MANAGER AND KEY ACCOUNT MANAGER WESTERN BALKANS, ERICSSON

5G NETWORK Is The Future

Ericsson, a global leader in technology communications and services that is this year celebrating 140 years of its existence, whilst also commemorating 20 years of successful operations in Serbia, today collaborates with many telecommunications operators to develop and test the 5G network

e will see 5G scale up in 2020 and we estimate close to 100 million 5G subscriptions worldwide by the end of this year. Early mover service providers will focus on bringing wide 5G coverage. They will focus on consumer services as enhanced mobile broadband and Fixed Wireless Access.

We will see 5G scale up in 2020 and we estimate close to 100 million 5G subscriptions worldwide by the end of this year. Early mover service providers will focus on bringing wide 5G coverage. They will focus on consumer services as enhanced mobile broadband and Fixed Wireless Access and we will see trials continue for industries.

You are working intensively on the development and There could be a one-to-two-year delay on 5G in Europe testing of the 5G network. Where will it be possible to if a certain supplier is excluded, because European venapply 5G and what will it bring us? dors don’t have enough supply capac- We and partners have been working This is one of those moments ity. Is this true? with 5G technology for several years - It’s often said that the exclusion of when companies like in the labs and in advanced outdoor a particular vendor would delay 5G in Ericsson must strive more field trials. In Serbia we have already Europe by months or years. We think demonstrated 5G with Telekom Srbija. than ever to act with values there is a risk that certain European These tests were key to developing countries will fall behind, but 5G delays and responsibility in leading technologies for the standin Europe are not tied to the choice of technology vendor. Rather Europe ard, as well as competitive product the service of society faces a series of structural problems, portfolios. A year ago we saw the such as a lack of licenses for spectrum, high spectrum fees first 5G networks switched on, which focused clearly on and regulation that is not investment friendly. Countries consumers. These networks were primarily bringing 5G that have implemented national security restrictions on coverage to cities and highly populated areas and there 5G have not reported any delays in their roll-out of 5G. were 13 million subscriptions globally by the end of 2019. 12

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Is it true that non-European vendors are one-to-two Ericsson supports relevant activities towards setyears ahead of European competitors in terms of techting industry standards on security assurance for cloud nology and that no viable alternative exists? services and virtualised deployments that takes into - We find that difficult to believe, given that Ericsson was consideration relevant use cases from a 5G perspective. the first with commercial live networks on four continents. Ericsson contributes actively to security standards supEricsson’s technology delivered the first commercial 5G porting 5G security implementation such as 3GPP, GSMA, live network in Europe with Swisscom, which provided ETSI and IETF. coverage of 90 per cent of the population just eight months However, our experience also leads us to highlight after the launch. We currently have 86 commercial agreethat certifying software or hardware does not mean it ments or contracts with unique operators, 27 of which are is flawless. Unnoticed imperfections of testing lead to live commercial networks. In terms of 5G performance, a false sense of security. For example, the Common Criin South Korea our mid-band 5G delivers better coverteria (CC) certification evaluation process is too rigid in age, 100 per cent better uplink speeds and five per cent its requirement for each product to be evaluated, given better download speeds than the that any patch, update or feature addisecond-best competitor measured tion will render the certification void. Certifying software or in the same city. For this reason, the EU’s 5G toolbox hardware does not mean it added Technical Measures and also is flawless. Unnoticed The EU has unveiled a 5G toolbox to Strategic Measures. Member states tackle security threats. Do you agree imperfections of testing lead to are expected to assess the risk profile with its recommendations? of suppliers and consequently apply a false sense of security - Protecting end-users requires an holisrelevant restrictions for suppliers tic approach that considers mitigation in considered to be high risk, including four areas: standards, products and development processes, making necessary exclusions to effectively mitigate risks. network deployments and network operation. Collectively, these four areas define the security status of live networks With the Covid-19 epidemic, emergency mobile networks and hence the de facto end-user security experience. Given are even more crucial than usual. What is Ericsson’s role? the interdependency between areas, it is critical to ensure - I believe that this is one of those moments when compaa coordinated and comprehensive implementation of the nies like Ericsson must strive more than ever to act with mitigating measures proposed in the joint toolbox. The values and responsibility in the service of society. We responsibility for implementation rests predominantly with support our customers by granting network deployment EU member states, and in some cases with EU institutions. and maintenance, and therefore the availability of voice We stand ready to support this process to ensure a high level and internet services to citizens, public administrations of protection for European citizens and business. and enterprises. 13

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INTERVIEW

H.E. KIMMO LÄHDEVIRTA, AMBASSADOR OF FINLAND TO SERBIA

SUPPORTING NORDIC VALUES In The Balkans

The Western Balkan countries are small in terms of the size of their populations, as are the Nordic countries, and playing together makes all of us stronger in the European and global arena

he political and economic priorities of the Nordic countries in Serbia and the region are practically the same. From year to year, our countries top international rankings measuring happiness, equality, anti-corruption, media freedom, prosperity, environment and innovations. These are the areas where we would also like to see improvement in Serbia and other Western Balkan countries, says Finnish Ambassador to Serbia H.E. Kimmo Lähdevirta. As Ambassador Lähdevirta explains, the political priorities of Nordic countries are, overall,in line with those of the EU. “In the second half of 2019, Finland was presiding over the Council of the European Union. The priorities of our presidency included rule of law, a more competitive and socially inclusive environment, tackling climate change and protecting the security of citizens. Finland was also committed to working on a credible enlargement perspective for Serbia and other Western Balkan countries. Those priorities were, and remain, the cornerstone of relations of Finland, as well as other Nordic countries, towards Serbia and the region.” According to our interlocutor, more alignment with EU policies, especially those related to the rule of law, will bring numerous benefits for both Serbian citizens and business stakeholders in the long run.

What are Nordic and Finnish economic interests when it comes to economic cooperation with Serbia? - The Embassy of Finland often joins forces with other Nordic Embassies, as well as the Nordic Business Alliance, when tackling topics that are important for Serbia and that are closely related to the Nordic values. One of the latest examples was the creation of a Nordic Task Force that worked on improving the business environment and fair competition by tackling public procurement issues. Furthermore, the Embassy has been working on sharing Finnish experiences and knowhow in many other fields, including innovations, digitalistion, transport, smart cities and other relevant sectors. Lately, we have noticed increased interest among Finnish companies in the renewable energy and environment sector in Serbia. Those sectors will require large investments in the coming years if Serbia wants to reach the minimum EU requirements. Companies from Finland, like those from many other countries, also recognise the potential of outsourcing and manufacturing in labour-intensive industries. Do you see something that resembles Nordic cooperation in the Western Balkans’ ‘mini Schengen’ initiative? - We follow the evolution of the “mini Schengen” initiative with interest. In principle, we support regional cooperation,

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developing connections between the Western Balkan countries, as well as initiatives that promote free movement and reduce unnecessary bureaucracy. However, it is crucial that this type of cooperation is in line with the obligations related to the EU membership aspirations of the countries involved. For Finland, our experiences with Nordic cooperation were also very helpful for our EU membership. For example, the Nordic Passport Union has been in place since the 1950s, well before the Schengen agreement. However, comparing our system directly with the “mini Schengen” initiative would not be very productive, as the contexts are quite different. The Nordic model of cooperation led to great trust among nations. How can it be used to overcome the distrust among countries in the Western Balkan region? - As I just mentioned, the contexts are different. There has been no war between the Nordic countries during the last 200 years, whereas the Western Balkan countries faced devastating wars during the 1990s after living in the same country. Building or re-building trust in that context is very demanding. It requires that all sides accept their responsibility for the mistakes of the past, as well as completely different narratives and rhetoric from those of the ‘90s. This is not an easy process, but it is the only way for this region to play as a team. The Western Balkan countries are small in terms of the size of their populations, as are the Nordic countries, and playing together makes all of us stronger in the European and global arena. When we set aside the geopolitical context, principles of good regional cooperation are universal. Among them are determination to gather around common goals and develop understanding that when a neighbouring country is doing well it can have a spillover effect on your country. Of course, there are differences and conflicted interests, but there must be a rational viewpoint that we do not want to endanger all other aspects of cooperation until we reach the same understanding on disputed issues. There is no point in losing time waiting for that, while - on the other hand - there is a need to work with what you have and work on having more in common.

- Fake news and tabloid journalism are creating distrust not only between the countries of the region, but also within them. Currently, one can notice at least two different realities in the media reporting. Those divisions are very dangerous, as they also exist between citizens. Coming from different realities, relevant stakeholders struggle to find channels of communication between them and there is no dialogue. The media have the right to pursue their own editorial policies but, first and foremost, they should follow the standards of the profession of journalism. On the other hand, the media alone cannot be held responsible for overall mistrust, which also has a lot to do with the role of institutions tasked with securing the rule of law. For example, when the media reports about a corruption scandal and there is no proper followup to that case by judicial institutions, it might look like the media is creating those affairs. It is therefore crucial that all actors play their roles, as it is only in that way that there can be trust within and between societies in the region. What are your priorities in 2020, and which events would you single out as the most important for us to watch for? - In cooperation with the Chamber of Commerce & Industry of Serbia and the Western Balkans 6 Chamber Investment Forum, the Embassy of Finland is organising a Western Balkans-Finland business seminar to be held in Helsinki on 17th March. The main focus of this seminar will be on exploring possibilities for cooperation between Finnish and local companies. Another interesting activity during this spring is the promotion of Serbian craft breweries and beers in Helsinki. Specifically, Serbia will most likely be the partner country of this year’s Helsinki Beer Festival, to take place from 3rd to 4th April. The Embassy will participate in a project focusing on healthy food in schools in October. This project is being implemented in cooperation with the Nordic Council of Ministers and other Nordic Embassies in Serbia. Finland supports innovations and the start-up ecosystem in Serbia. Since 2015, in cooperation with the Serbian Innovation Fund, we have been promoting the Slush conference in Helsinki, which is one of the leading start-up events in the world. We have managed to send at least one local start-up to the Slush each year. After a short break last year, we hope that we will be able to reactivate the programme this year and send a local start-up to Helsinki in November.

Finland is committed to working on a credible enlargement perspective for Serbia and other Western Balkan countries

It is often said that the media fabricate fake news and thus create distrust between the countries of the region. How must media freedom be understood when it comes to bringing value to society?

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ĐORĐE DAVIDOVIĆ, GENERAL MANAGER, WOLT D.O.O.

THE BEST

Food Delivery Wolt isn't just a technology company, nor is it just an app. Wolt is the people who stand behind everything. Wolt is more than 10,000 delivery workers, more than 7,000 restaurants, strong support and more than 750 employees from 20 countries

he Wolt app is extremely easy to use and aims to connect the user with their desired restaurant. Due to the new situation with the Corona Virus, Wolt has also introduced the option of “No-contact delivery” which is now automatically turned on in the app. This means that the courier will leave the food at the customers’ doorstep. Wolt is a technology company that raises the experience of ordering food to a whole new, significantly higher level. How did Wolt manage to reach the level of more than 750 employees and build a great reputation in just six years? - Wolt was founded in Helsinki in 2014, with the first version of the Wolt app already launched in 2015, with 10 restaurants from which customers could only order food to take away. Shortly thereafter, we introduced a food delivery service, and in 2017 we began our expansion and entered the markets of Sweden and the Baltic states. We are grateful and are aware that we were also somewhat fortunate to have set out precisely from Finland, from Helsinki, which has a fairly small population, high population density and bad weather conditions. Our focus from the very beginning was on the development of the technology, increasing efficiency and learning from the customer experience.

Wolt today operates in 20 countries and 80+ cities; we cooperate with more than 7,000 restaurants and over 10,000 couriers. What can you tell us about Wolt’s operations on the Serbian market? - Wolt brought a completely new user experience to Serbia and raised the standards of food delivery to a higher level. We have been operating in Serbia since April 2019. We began with delivery in Belgrade, only to expand to Novi Sad in December. We currently have more than 250 restaurants on the app and are working daily on the introduction of new restaurants, while actively listening to the market and trying to meet the diverse wishes of our customers. We follow examples of good practice, primarily from countries in the region, which is of great help to us when it comes to developing our business in the right direction.

You can use the app to track how the preparation of your food is advancing, as well as the current location of the courier in real time

Your app received an award from Apple, and you recently also found yourself among the rankings of The Financial Times. What is it that such big names have recognised in your app and what sets you apart from the competition? - Apple’s recognition testifies to the flawless user experience

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provided by the app. Apart from Apple, Wired also proclaimed us one of the best European start-ups. We are also very proud that Wolt has been listed by The Financial Times magazine as the second fastest growing company in Europe. These acknowledgements tell us that we’re on the right track. One of the things that sets us apart from the competition is certainly the possibility to track orders in real time, where our user can see exactly where their food is at any time. We succeeded in quickly developing a portfolio of eateries that encompasses fine dining restaurants, international and local cuisine, as well as renowned chains of fast food restaurants. We add new restaurants on a weekly basis, in order to meet the desires of our customers, and strive – through various activities – to enable the most diverse offer for everyone’s taste.

Wolt users don’t need cash, but rather can pay for everything through the app and online, with any Mastercard or Visa card that they generally use to make daily payments. It is enough to enter the card information once, after which you can just select the restaurant and meals in a few clicks. The card remains in the app’s memory, so afterwards the user can order food without having any money or payment cards with them. Alongside all the options that are available to users, due to the new situation with the Corona Virus, Wolt has also introduced the option of “No-contact delivery” which is now automatically turned on in the app. This means that the courier will leave the food at the customers’ doorstep. Those wanting to collaborate with you must respect Wolt’s standards. What does that mean when it comes to deliver operators, and what does it mean for restaurants? How much respect is given to the specifics of the local market? - In order for a restaurant to be included on our app, it has to meet high standards, ranging from hygienic conditions to the way food is prepared. Every restaurant undergoes training in order to meet the rigorous level of service, as well as optimal times for food preparation. Once it becomes our partner, Wolt promotes the restaurant’s brand, both through the app itself and through other communication channels. You will easily recognise our delivery workers on the street. Before anyone becomes a Wolt delivery worker, they must undergo special training, where we harmonise our expectations and theirs when it comes to behaviour and relations with restaurants and customers, as well as the Wolt brand. Their task is to deliver food in the best possible condition, through the optimal time, regardless of weather conditions and other external factors. In this way we gain the standardised and high level of service that we’ve accustomed our customers to receiving.

Customers can take advantage of local user support, which responds to all questions and requests within a deadline of 60 seconds

Could you explain to us how ordering food via your app functions; can we order a delivery a few days in advance, specifying the time; how do users pay; how can we know when our delivery will arrive? - The Wolt app is very easy to use and aims to connect the user with their desired restaurant. The app has several basic options for the user: the user can order for delivery to a requested address, to pick up the food personally from the restaurant or for the desired food to be waiting to be served to them at the restaurant itself. A great option for meal planning is also to pre-order, or to schedule an order for a specific later time. This option is ideal if you know when you want to take your lunch break during a busy day or if you’re planning a dinner at home. You can use the app to track how the preparation of your food is advancing, as well as the current location of the courier in real time. We keep you informed regarding all important steps and you will know exactly when your food will arrive. Customers can take advantage of local user support, which responds to all questions and requests within a deadline of 60 seconds.

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INTERVIEW

H.E. JØRN EUGEN GJELSTAD, AMBASSADOR OF NORWAY TO SERBIA

WE TREASURE TRUST

Between Citizens And Institutions Independent institutions, inclusive parliamentary procedures, media freedom and anti-corruption are indeed the keys to any political ambition regarding societal development. We are happy to support Serbia in its efforts to embrace these values

ome experts suggest that cooperation in the Western Balkan should start from the Nordic example of bringing national parliaments to work together. H.E. Jørn Eugen Gjelstad, Ambassador of Norway to Serbia, believes that this is just one of the strong sides of the Nordic model. “I believe that the most important effect and impact the Nordic model has ever had on Nordic societies is its capacity to create a high level of trust between citizens and their institutions. This is sometimes referred to as the “Nordic Gold”, and rightly so in my opinion. The Nordic region has strong, transparent and effective institutions, which are all kept accountable and anchored within a political system based on the rule of law”, says the ambassador, adding: “this construct has managed to deliver confidence, trust and a basic perception among the citizens that “the authorities care and stand up for me”. Another feature of Nordic societies has been the ability

to foster a genuine cross-party debate in order to forge a broad consensus on issues of national interest, explains our interlocutor. “A third dimension is the effort exerted by the Nordic countries to enter into cross-border cooperation with a view to improving quality of life through increased economic cooperation, the dissemination of technology and access to higher education, services and culture,” concludes Ambassador Gjelstad. Would these solutions be viable at the current level of democracy and freedom of press in the Western Balkan countries? - I truly believe that the values and principles guiding the societal development of the Nordic region, such as independent institutions, inclusive parliamentary procedures, media freedom, anti-corruption, equality, innovation and environmental protection, are the keys to any political ambition regarding societal development. Its opposites can easily bring a society into stagnation or prompt setbacks.

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Based on this background, I am happy to see that there is a declared political will among Western Balkan countries to align themselves with these values and principles in their dialogue with the EU. When it comes to pollution, the Western Balkan region is often described as a black hole close to Europe. How can environmental challenges be translated into economics possibilities? What knowhow can Norwegian investors bring to Serbia when it comes to the circular economy? - We can still hear from some corners that the transformation of our energy systems to a low- or no-carbon economy is an impediment to economic growth and prosperity. I am happy to say that there is plenty of documentation refuting this claim, including the Norwegian report “The New Climate Economy”. Current reports on this issue show that technological innovation and investment in efficient low-emission solutions will create new opportunities, more jobs, increased corporate earnings and sustained and well-balanced economic development. The green economy has not only become profitable; this segment of the global economy has the strongest growth rate and the brightest future. The new climate economy is about to become the major driver of the modern global economy. And I truly believe that we should all relate to that. It is time to embrace the idea that we have the brainpower and the technology to carry out a transitional change for the entire global environment and to make it clean. In this context, I would highly recommend that the Western Balkan countries avail themselves to the opportunities provided by the EU’s preaccession process, such as access to funding, expertise and projects with the potential to transform their energy-mix into a more environmentally-friendly construct. I hope to see Norwegian renewable companies taking a greater interest in the Western Balkans through the coming year, and I would most certainly like to take part in such an endeavour.

- Norwegian exports to Serbia have increased over the past decade, and are now 3-4 times the level of Serbian exports to Norway. Norway exports mostly chemicals, fish/ salmon and polyethylene. Those three sectors account for approximately 70 per cent of Serbian imports from Norway. Norwegian imports from Serbia have been dominated by agricultural products, car engine transmission systems, plastic and paper masses. We have seen that the business climate in Serbia for Norwegian companies has improved somewhat over the years, but there is still some way to go, in particular when it comes to meeting the interests of small and medium-sized companies. SMEs represent a significant segment of the Norwegian economy, and Serbia has to step up even further to make itself an attractive partner to high-tech orientated Norwegian companies. If the business framework is made right, I can see huge potential for future cooperation. What are the most important goals that Norway will pursue in Serbia in 2020? - Through the coming years, Norway hopes to see progress along various axes within Serbian society that correlate with the priorities set out in our programme of grant allocations for Serbia, aligned with Serbian priorities and the EU accession agenda. In this regard, I would like to specifically mention economic development rooted in innovation and a more predictable framework for how the market operates; environmental protection; media sector reform, with a focus on the empowerment of free media; strengthening the rule of law with a specific focus on anticorruption and independent institutions; and women’s rights and gender equality within society.

We have seen that the business climate in Serbia for Norwegian companies has improved somewhat over the years, but there is still some way to go

What are the characteristics of economic exchange between Nordic countries and Serbia? How much has the business environment in Serbia changed over time?

Which activities of the embassy would you like to highlight? - I would like to additionally stress that activities related to culture will also be a priority in our bilateral cooperation with Serbia. And I’m taking a special interest in cooperating with your excellent talents within areas like music, film, literature and visual arts. In that context, I would like to mention a novel programme we have called “Jazz in the Residence”, which aims to give young, talented Serbian musicians an arena to present themselves to an international audience. 19

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BUSINESS

TOMICA OREŠKOVIĆ, LOKOMOTIVA CEO

WHAT I LEARNED About Working From Home, While Working From Home Four aspects of remote work you need to pay attention to

orking from home is fairly different compared to working in an office. It is often more relaxed and allows us to focus more easily on specific tasks, while we are close to family and working in an environment that we have created, designed and decorated for ourselves. The following paragraphs are an overview of several aspects of working from home that need to be addressed so that we can truly benefit from the experience. COMMUNICATION What we took for granted is no longer possible. There is no colleague with whom you can consult sitting next to you, you can’t glance over the shoulder of a colleague at the table behind you and reply to a client’s email together, or chat about “things” in the lift. All of that is gone. Ensuring an uninterrupted flow of information is one of the biggest challenges for remote teams. Working from home quickly teaches us that communication is one of the key prerequisites for the success of virtually any project. When working remotely, even those who always thought they could do everything on their own very quickly realise how much information they received and shared with their colleagues every day. Although the right tool can help establish and facilitate it, effective communication, above all, requires good organisational structure and well-established processes. Who, with whom, when and why information is communicated is as important as the information itself, and far more important than the technique or tool used to communicate. SMALL TEAMS The management of processes and people is also a significant challenge for remote teams.

The universal solution to this problem is to re-shape the organisation and set up as teams that are as small as possible. Ideally, teams should be the smallest possible functional units. A team of three will find it easier to communicate with each other, to choose communication tools and schedule meetings, than a team of 20. It will be easier to share tasks, agree on a common approach and coordinate activities to make the process more efficient. Waiting for a colleague to finish something is a significant source of inefficiency within organisations. It is much easier for managers to manage an organisation with six teams of three members each than one team of 18 members. The 18-member team is, in reality, 18 teams of one member each. ERGONOMICS Even though working from home is generally comfortable, sitting is harder and more uncomfortable than sitting in the office. The reason is simple: most of us don’t have proper office furniture at home. If you are using a laptop, you may be tempted to work from the sofa or from bed. Don’t! Stand up, stretch and walk regularly. DISCIPLINE Make your daily work schedule and stick to it. Get up in the morning at the same time as when you went to work in the office, change out of your pyjamas into comfortable clothes that will not embarrass you if you need to suddenly join a video conference, set aside some time for a lunch break and work until the time when you would usually leave the office. And one more thing. When you are working from home alone, there are no colleagues around you to lift you up, pull you in and help you focus. You are the source of your own enthusiasm and the generator of your own energy. www.lokomotiva.tech

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LUKA IGNJATOVIĆ, DATA SCIENTIST, POLARIS (I&F GRUPA)

BUSINESS

THE MARKETING

Appliance Of Data Science

Data science revolves around the interpretation and analysis of data arriving from different sources, as well as different types and structures of data. Various scientific methods, processes, algorithms and front-end solutions are fed with countless rows of data in order to extract patterns of behaviour, insights or information.

hen it comes to applying data science in marketing, the goal is to provide insights that let marketers know if their decisions have paid off. These insights can help brands dig deeper into customer psychology by quantifying intent, desires, experiences and behaviour. This, in turn, will enable business strategists and planners to optimise their media spend, improve media buying efficiency, reach narrower target audiences and pick the right creatives, leading to significant improvements in media planning and cost efficiency. In order to achieve these goals certain rules have to be in place when handling data, along with appropriate digital infrastructure and a team of people. In terms of infrastructure, specialised tools have to be in perpetual use to ensure past, present and future data is stored. Rules in the form of internal conventions are necessary when handling data. This ensures understanding among everyone in the organisation who’s involved in data-related processes. Lastly, a team of people that work with the data has to be ready to apply mathematical, statistical and programming knowledge to extract insights. In the world of marketing, data scientists work closely with people from agencies during projects, because their invaluable domain knowledge puts raw data points into context. The projects that can be offered by data science departments’ blend of skills are extremely diverse in goals and content, like maximising TV exposure for a new brand on the market or raising brand love for an already established

one. It is merely up to the client to ask the questions or have a media/sales objective in mind. Then data science teams can build the right analytics or modelling solution to meet their needs. It should be noted that there is a trend in the industry that includes shifting the data storage paradigm from relational databases to a newer one called “big data”. Big data’s defining properties are 3Vs (volume, variety and velocity) and they have emerged out og a technological need to handle data that comply with the aforementioned three Vs. We here at I&F Grupa jumped aboard the “Data Science” bandwagon early-on by establishing a brand new analyticsfocused agency – Polaris. The task was not an easy one, as all the existing client data infrastructure and reporting processes needed to be maintained, while simultaneously being updated and improved. We have also successfully built and tested media and sales models that help brands plan for the future by identifying their leading sale indicators and optimal media spends to improve their profit margins. Building synergy between the technical and business side in data science is very much a continuous process, so you can expect even more of our solutions that offer improved segmentation of user bases, more powerful media buying, advanced social media marketing, and more precise results management and understating of key metrics to our clients.

www.polaris-see.com 21

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INTERVIEW

H.E. JAN LUNDIN, AMBASSADOR OF SWEDEN TO SERBIA

COOPERATION IS

Inspirational And Rewarding Sweden supports a number of initiatives in the area of reform of the judiciary and the fight against corruption, which is important for the prosperity of Serbia and the region. They complement other projects supported by Nordic cooperation

ordic Day is a manifestation of Nordic interstate and inter-parliamentary cooperation, which is one of the oldest and most complex models of regional cooperation in the world. We spoke with H.E. Jan Lundin, Ambassador of Sweden to Serbia, about possible parallels and inspiration relevant to the Western Balkan region.

Which dimension of Nordic cooperation would you single out as the most relevant for the Western Balkan region? - I believe the Nordic experience is interesting, since there was a time when our relations were quite difficult. Nordic cooperation has remedied that. Two things come to mind: first, Nordic countries have made great efforts to facilitate life and work in neighbouring Nordic countries for their citizens, including issues such as school access and social security system access for neighbours from other Nordic countries. Only lately has the EU introduced similar solutions, and the “mini Schengen” initiative by Serbia, North Macedonia and Albania should be welcomed in this context; second, Nordic Ministers meet quite regularly, except the foreign ministers. The point made is that our relations should be closer than “foreign” relations, and should focus on everyday societal issues addressed by other ministers in each government. 22

Maybe here there are things that might be institutionalised by the Western Balkans? What are the priorities of Nordic cooperation for 2020 that resonate with your engagement in the region? - In addition to comments made by my Nordic colleagues, I might like to mention the joint project on sustainable food that’s made possible by a grant from the Nordic Council of Ministers, and which will start in the Loznica region in September, addressing sustainability with regard to school meals. We are also preparing some kind of event together with the Nordic Business Alliance in the autumn, at which we will probably present the Nordic Innovation Policy in a specific field. The state of media freedom is still rated the best in Norway, Finland and Sweden. What we can learn from you? Where can we start untangling the situation we have today? - Transparency and the protection of journalists are extremely important in this regard. I believe the institutions and rules for this largely exist in Serbia today, but it takes time to build a culture in which critical and investigative journalism is not only allowed, but encouraged. Sweden shall certainly continue cooperation

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with Serbia in this regard, through support to organisations such as CRTA, KRIK etc., but also to Serbian authorities wherever that may help. How has the progress on reforms achieved by Serbia over the years impacted on economic cooperation between our two countries? - Here perhaps we can start by assessing Serbia’s progress with reforms. Yes, certain progress has been achieved. However, when it comes to business and the economic environment, there’s still much that can and should be done. The reform of the judiciary still has some way to go and corruption still remains one of the major impediments to fair and transparent business cooperation. Sweden supports a number of initiatives in this area through its development cooperation with Serbia, in order to help with the reform process. Economic cooperation between the two countries is steadily increasing, although it started from a low base. We don’t yet have the final figures for 2019, but in 2018 overall trade was 322 million euros, which was a considerable increase on 2017, when it was 287 million. Over a hundred Swedish companies are doing business in Serbia, many of them with mixed Swedish and Serbian capital. The role of the Serbian diaspora in Sweden could be seen as significant when it comes to investment in Serbia. The arrival of IKEA and its plans to invest another 50 million euros during this year and next in the development of a retail park next to their store, which opened in 2017, is an important segment of the economic cooperation between our two countries. Companies such as Tetra Pak, Ericsson, Securitas and Transcom are all here. We could mention some of the most recent investments, such as the arrival of Rimaster in Paraćin and NIBE Industier AB’s acquisition of the Gorenje TIKI hot water tank production plant in Stara Pazova. There are many more companies across various sectors that are facilitating the flow of business and trade cooperation between our two countries and we hope that this will continue to expand.

for a future “beyond” fossil fuels. Energy production is largely fossil-free thanks to our fortunate position, with plenty of hydro power and renewable energy, complemented by nuclear power at least for a few decades more. Transport is the big challenge, but also here a gradual transfer to non-fossil fuel is happening, and in a few years Volvo will probably no longer produce fossil-fuel based cars. Serbia is blessed with the world’s greatest deposits of lithium, which are used in making batteries. I believe this will be a great asset if used strategically when departing from fossil fuels, in for example energy production, which is a necessity implied in the recent “Green Deal” initiative launched by the European Union. The Serbian public recently had the opportunity to see an exhibition devoted to Raoul Wallenberg, a Swedish diplomat, businessman and humanist. Which events would you recommend to the Serbian public in the weeks and months ahead? - The exhibition about Raoul Wallenberg, entitled “To me there’s no other choice”, has been shown in six cities in Serbia to date and has been at the core of many workshops about values and civil courage with young people. Being Sweden’s special envoy in Budapest between July and December 1944, Wallenberg issued security passports and protected Jews in buildings designated as Swedish territory, thereby saving thousands of lives. Our project partner, the Centre for Developing Children’s Right to Culture - C31, has done a tremendous job in involving young people in primary and secondary schools in Bečej, Zrenjanin, Šabac, Kragujevac, Belgrade and Smederevo in values-based dialogues highlighting that everybody is a hero and can make a change. The exhibition will conclude its tour in Smederevo on 20th February. For us, activities of this type are very important, as the Swedish Government will hold a conference in Malmö on 26th–27th October 2020 aimed at combating anti-Semitism and passing on the memory of the Holocaust. Just recently, I handed over an invitation from Swedish Prime Minister Löfvén to President Vučić to take part in the conference. I also think the Serbian public might be interested in a series of public dialogues called “Serbia 2030 – what is our path?”, organised jointly by Nova Ekonomija, Vreme, Danas, Beta, Fonet, Juzne vesti and TV N1, and supported by Sweden within its Drive for Democracy programme. These public dialogues will be held once a month until June, and topics have been chosen that are considered as being of great importance to Serbia’s future.

The “mini Schengen” initiative of Serbia, North Macedonia and Albania should be welcomed as an enterprise that resembles the Nordic approach to cooperation

Nordic countries are said to be among the regions that will be strongly hit by climate change, which also applies to our region. What we can learn from your example in fighting climate change, pollution and biodiversity loss? - I believe each country has its own specific situation, and one cannot always apply solutions in other countries. Sweden is preparing

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DENMARK What can be learned from Denmark

How The Danish Food Industry Produces MORE WITH LESS? The agri and food industry is a major industrial sector in Denmark. Around 20 % of total industrial turnover still comes from the food industry and that places the sector in a remarkable position seen from a global perspective. Denmark is recognised globally for its sustainable food production. Both customers and producers are dedicated to leaving a better world for future generations. The Danish food cluster is home to one of the most sustainable and least polluting productions in the world. When doing business with the Danish food cluster, you’ll find a wealth of experience and knowhow within resource efficiency and discover how to produce more with less – while actually saving money. Throughout the Danish food production chain, you can find innovative, new solutions for a world that soon has to feed nine billion people. Denmark is also among the happiest and most satisfied nations on earth! 24

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ompared to other countries on a similar level of economic Financially, cooperatives have a unique construction: Cooperatives are development Denmark has an extremely important agriculture owned by the members – by the farmers - but the financial contribution is and agribusiness sector. Danish agri and food cooperatives rather limited. Because farmers agree to deliver their production to the seem to have been successful in obtaining international comcooperative, the need for capital in the cooperative is reduced. In a way, petitiveness. The transformation and the structural development of the farmers’ commitment to deliver their production to the cooperative is the cooperative sector has more or less been completed. In Denmark, the major contribution and support from the farmers, and indeed a stable cooperatives play a major role in the agri and food industry - especially supply from the farmers, is a very important asset for any company. in sectors close to the farmers in the food chain. Cooperatives have In this way cooperatives need less capital, and the farmers can be ownsucceeded in building up greater market power to strengthen the ers of their own cooperative company without adding huge capital input. marketing of farmers’ products. The lessons learned by Danish agriculture and cooperatives might The development of the industrial structure among Danish agribenefit farmers and cooperatives in foreign countries - in several ways. cooperatives has been very rapid during the latest decades. Through First of all, the cooperative movement is based on the principle of mergers and acquisitions the number of firms has fallen dramatically, supporting one another and other cooperatives. The transfer of knowledge and the result has been increasing concentration ratios in almost all and support to build up new cooperatives in e.g. developing countries is groups of the food industry. Structural development, concentration and completely in line with the values and ideas of the cooperative movement. globalisation in recent decades have Secondly, Danish cooperatives take resulted in the agri and food companies part in the globalisation process through now being among the largest in Europe. export and increasingly also through To a large extent, agriculture all over the foreign direct investment, global strateworld faces similar problems and chalgic alliances, foreign joint-ventures etc. lenges. For this reason, it is essential Partnerships with companies or group of that knowhow, experiences and lessons farmers in foreign countries are common, can be transferred and adopted by agand the concept of such cooperation is riculture in other countries around the that all partners are supposed to benefit. world. In many ways, the experience and Thirdly, Danish cooperatives and the success behind Danish agriculture Danish agribusiness have developed and and agribusiness can be transferred to strengthened their structure, competitiveother countries. ness and market power in many decades, However, profound studies of specific and farmers from other countries - whose needs and conditions are necessary. The DENMARK SUPPORTS SMALL FARMERS IN VIETNAM agribusiness sector is less developed - can transfer of knowledge from Danish agri copy or learn from the Danish experiences. and food businesses can take place through jointThe process of developing agribusiness often has ventures or foreign investments, in which mutual and to go through similar stages, so companies at an equal benefit is obvious. However, the transfer of early stage are more or less able to learn from the knowledge can also be facilitated by development experiences of companies at a later stage. assistance from industrialized countries. Fourthly, the combination of a highly competitive For decades, Danish agriculture and agribusiagribusiness and a dominance of cooperatives is a ness have been characterised by a high market unique case, from which lessons from successes and share for cooperatives and strong international failures can be learned. Researchers, consultants competitiveness. The structure of companies in and farmers from many countries study the Danish the sector has, to a high degree, been export and cooperatives in agribusiness in order to learn and globally oriented. Also, in a global perspective, the copy from the Danish experiences. world market shares, the competitive strengths and the size of cooperative The Danish food industry is dominated by two major branches – the food companies etc. in Denmark is remarkable. dairy and meat industries - which account for more than 50 % of the turnoCooperatives have succeeded in building up more market power to ver for the sector. The export orientation has been high for many years, strengthen the marketing of farmers’ products. By pooling products in larger almost dating back to the beginning of the 20th Century. In general, about and larger cooperatives, the market position has improved, and managing 60-70 % of agricultural production is exported, which indicates strong the globalisation process has been facilitated. Barriers to globalisation international competitiveness. have been avoided as the big cooperatives had resources and products Today, Danish companies are in the top 3 in several important sectors to invest in international marketing. in the agri and food business in Europe. The result is remarkable considerCooperatives are recognized as being structurally robust in many ing that Denmark accounts for less than 0.5 % of the total economically areas. Vertical integration, traceability, supply management etc., give active population within agriculture in Europe, and less than 0.7 % of the cooperatives a competitive advantage. Many cooperatives have proved total agricultural land in Europe. to be extremely competitive having a high quality management and busiSource: Study ’Economical benefits ness administration. of using precision agriculture technology’

Structural development, concentration and globalisation in recent decades have resulted in agri and food companies now being among the largest in Europe

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FINLAND What can be learned from Finland

EDUCATION SYSTEM - One Of The Best In The World Finland's education system is considered one of the best education systems in the world. It has been a top performer since the first Program for International Student Assessment (PISA) triennial international survey back in 2000. Finland's education system works because its entire structure has been around several core principles. First and foremost, equal access to education is a constitutional right. Another important principle is that one should be allowed to choose their educative path, which should never lead to a dead end. Learners can always continue their studies on an upper level of education

2017 article published in the Smithsonian reported, “Ninety-three percent of Finns graduate from academic or vocational high schools, 17.5 percentage points higher than the United States, and 66 percent go on to higher education, the highest rate in the European Union. Yet Finland spends about 30 percent less per student than the United States!”

Education is one of the cornerstones of the Finnish welfare society. Finish educational system offers equal opportunities for education for all. Education from pre-primary to higher education is free of charge in Finland. The new core curricula for pre-primary and basic education adopted in 2016 focus on learning, not steering. Finnish teachers are highly educated and strongly committed to their work.

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Early childhood education and care (ECEC) combines education, teaching and care in a systematic and goal-oriented manner. The goal of ECEC is to promote children’s development, health and wellbeing as well as to improve children’s opportunities for learning. Local authorities, i.e. municipalities, are responsible for providing ECEC for children under school age. A client fee is charged for early childhood education and care. The fee is determined on the basis of the family’s income and size and the time that the child spends in ECEC. The National Curriculum Guidelines on Early Childhood Education and Care in Finland, approved by the Finnish National Agency for Education, guide the planning and implementation of the contents of ECEC and function as the basis for drawing up the local ECEC curricula. PRE-PRIMARY EDUCATION The goal of pre-primary education is to improve children’s opportunities for learning and development. Pre-primary education plays an important part in the continuum stretching from early childhood education and care to basic education. Since 2015, participation in pre-primary education has been compulsory for all children in Finland. Pre-primary education is provided free of charge. The person who has custody of a child must ensure that the child participates in preprimary education or other corresponding activities meeting the objectives set for pre-primary education. The National Core Curriculum for Pre-Primary Education, approved by the Finnish National Agency for Education, guides the planning of the contents of pre-primary education and functions as the basis for drawing up the local curricula. BASIC EDUCATION The nine-year basic education, or comprehensive school, is compulsory for all children aged between 7 and 16. Compulsory education begins in the year during which a child turns seven and ends when the basic education syllabus has been completed or when ten years have lapsed since the beginning of the compulsory education. Every child permanently residing in Finland must attend compulsory education. Basic education is free of charge. Free school meals are also provided. In 2015, there were around 2,500 schools providing basic education in Finland. Comprehensive schools are maintained by the local authorities (municipalities) and other education providers. Less than two per cent of comprehensive school pupils go to a private or state school. GENERAL OR VOCATIONAL UPPER SECONDARY EDUCATION After comprehensive school, students continue to the upper secondary level and choose between general and vocational education. General upper secondary education (lukio in Finnish) provides, as its name suggests, general education. It does not qualify students for any particular occupation. At the end of general upper secondary school, students take a national school-leaving examination known as the Finnish matriculation examination. Those who pass the examination are eligible to apply for further studies at universities, universities of applied sciences and vocational institutions. General upper secondary education usually takes three years to complete. Vocational qualifications include upper

secondary qualifications, further qualifications and specialist qualifications. Vocational upper secondary qualifications provide the basic skills required in the field. Further and specialist vocational qualifications enable people to develop their skills at different stages of their career. The scope of vocational upper secondary qualifications is usually 180 ECVET points, further qualifications 150 points and specialist qualifications 180 points. At the beginning of vocational education and training, the student and the institution draw up a personal competence development plan for the student, outlining the content, schedule and methods of study. Vocational education and training can also be delivered in workplaces through an apprenticeship agreement or a training agreement. Prior learning acquired in various ways can be recognised as part of the studies. Both young people and adults can apply for vocational education and training. Graduates are eligible to apply for further studies at universities or universities of applied sciences. FINNISH HIGHER EDUCATION SYSTEM The mission of universities is to conduct scientific research and provide education based on it. Universities of applied sciences (UAS) provide more practical education that aims to respond to the needs of the labour market. Universities, offering higher scientific and artistic education, award Bachelor’s and Master’s degrees as well as postgraduate degrees, i.e. licentiate and doctoral degrees. Universities of applied sciences award UAS Bachelor’s degrees and UAS Master’s degrees. The target completion time for a Bachelor’s degree at a university is three years and for a Master’s degree two years on top of that. The completion of a UAS degree takes usually between 3.5 and 4.5 years. The requirement for Master’s studies at a university of applied sciences is a UAS Bachelors’ degree or another suitable degree and at least three years of work experience after the completion of the previous degree. ADULT EDUCATION AND TRAINING Adult education and training encompasses education leading to a qualification, degree studies, training preparing for competence-based qualifications, apprenticeship training, further and continuing education updating and extending the professional skills, studies in subjects relating to citizenship skills, working life skills and society, and studies in different crafts and subjects on a recreational basis. Adult education and training can either be paid for by the student himself or herself or it can be apprenticeship training, labour policy education, or staff-development and other training provided or purchased by employers. Adult education and training is provided by educational institutions mainly providing education for young people, educational institutions providing only adult education, private companies, and workplaces (staff-development). Finland has vastly improved in reading, math and science literacy over the past decade in large part because its teachers are trusted to do whatever it takes to turn young lives around. Source: Finnish National Agency For Education 27

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NORWAY What can be learned from Norway

Most Inclusive AND ADVANCED ECONOMY Norway is one of the world’s most prosperous countries, and oil and gas production account for 20 percent of its economy. Other important sectors include hydropower, fish, forests, and minerals. State revenues from petroleum are deposited in the world’s largest sovereign wealth fund. Unemployment is low, but an aging population could prove challenging in the future

orway’s economic freedom score is 73.0, making its economy the 26th freest in the 2019 Index. Its overall score has decreased by 1.3 points, with lower scores for judicial effectiveness, trade freedom, and government spending outweighing modest improvements in monetary freedom and the tax burden. Norway is ranked 15th among 44 countries in the Europe region, and its overall score is above the regional and world averages. Norway’s rich endowment of natural resources and vibrant private

sector have funded a large state sector and extensive social safety net without disrupting economic stability. Although oil prices are recovering, the drop in investment after the global oil shock underscored the need for economic diversification. The government has identified the aluminum industry, health care, fisheries, and green technology as potential areas for growth. Norway’s business environment benefits from monetary stability and an independent judicial system that provides strong protection of property rights.

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The small Nordic country of five million people does things differently. It has the lowest income inequality in the world, helped by a mix of policies that support education and innovation. It also channels the world’s largest sovereign wealth fund, which manages its oil and gas revenues, into long-term economic planning. Norway has managed to translate economic growth into high and rising living standards, with a GDP per capita of $89,741, well above the average of $44,656 for 30 advanced economies. Although the cost of living is also high in Norway, when adjusted for purchasing power parity it still has the highest median income of the economies, at $60.4 per person per day. How does it achieve this? Like the other Nordic countries, Norway does not have a statutory minimum wage, but 70% of its workers are covered by collective agreements which specify wage floors. Furthermore, 54% of paid workers are members of unions, compared to 11% in the United States and 25% in the United Kingdom. Overall, Norway tops the employment part the index, both in terms of how accessible and stable employment is, and how well workers are paid. Inclusiveness goes beyond employment to take into account other key factors such as education, efforts to close the gender gap and the carbon intensity of its economy. On the education front, Norway comes in second on our index for the quality of the schooling it delivers, while it also tops PISA’s Social Inclusion Index, a measure of how socio-economically diverse its schools are. The government has prioritised education as a means to diversify its economy and foster higher and more inclusive growth. It promotes Science, Technology, Engineering and Mathematics (STEM) subjects, along with vocational and entrepreneurial skills. This year, it has launched a five-year Masters course for teachers, aimed at raising the quality of teaching and raising the status of the profession. In the business sphere, it runs a Research Based Innovation (BIA) programme allowing companies to apply for Research and Development (R&D) grants as long as value is created not only for

the company but for society too. Similarly, the SkatteFUNN R&D tax incentive scheme offers a tax credit to encourage R&D spending by Norwegian companies. Norway does consistently well at closing the gender gap – whether on access to education, labour force participation or income. The ratio of women to men in the job market is 0.95, while the ratio of female to male earned income is 0.79. Norway ranks fourth out of 30 advanced economies on both counts. Back in 2003, Norway imposed a gender quota obliging companies to ensure at least 40% of board members were women. Norway provides early childhood education and care for children from zero to five years of age, while parents are legally entitled to place their children in kindergartens from the age of one. The Norwegian state heavily subsidies childcare, capping fees and using means-testing so that places are affordable, although some parents report difficulty in finding an available place. Kindergartens focus on seven areas of learning, including language, numbers, creativity, nature and ethics. Since 2013, Norway has provided for 49 weeks of parental leave at full pay (or 59 weeks at 80% of earnings). Additionally, mothers and fathers must take at least 14 weeks off each after the birth of a child. On the environmental front, although Norway has historically benefitted from selling fossil fuel reserves, some 98% of its energy production currently comes from renewable sources, mainly hydropower. Other policies include support for electric vehicles which means that half of all new cars bought in Norway are electric or hybrid. Overall, Norway has identified the weaknesses that its economy is exposed to – such as oil price shocks – and harnessed its natural strengths to deliver broad-based growth, employment and high living standards through long-term policies. Calls for inclusive growth have mounted. While Norway is more fortunate than most, it does offer some valuable lessons to policymakers from other parts of the world.

Norway has managed to translate economic growth into high and rising living standards, with a GDP per capita of $89,741, well above the average of $44,656 for 30 advanced economies

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SWEDEN What Can Be Learned From Sweden

Sustainable And DYNAMIC EXPORT Swedish exports are a linchpin of the economy that create growth, employment and increased prosperity. By exporting and importing goods and services, Sweden’s business sector has been able to grow strongly far outside of the country’s borders and to take advantage of the global marketplace

he combined value of Swedish exports and imports is equal to 86.4 per cent of GDP. The average applied tariff rate is 2.0 per cent. Sweden implements a number of EU-directed nontariff trade barriers including technical and product-specific regulations, subsidies, and quotas. Open-market policies that sustain flexibility and competitiveness facilitate large flows of investment. A public-private partnership is at the core of “the Swedish model” and co-creation is encouraged everywhere. This

unique focus is seen as key for solving the challenges Sweden is faces and is also widely regarded as a major factor behind Sweden’s long and robust annual growth. It has also allowed Sweden to create a world class tech industry, made them a global leader in digitalization and to put sustainability as an integral part in everything that’s done. This makes them an attractive partner for co-creating solutions for the future; a business-critical competitive advantage in an increasingly purpose-driven world.

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ATLANTIC PORT OF GOTHENBURG

hours worked to such an extent that we achieve the lowest The World Economic Forum ranks Sweden among the top unemployment rate in Europe by the year 2020. The export ten most competitive countries in the world. Sweden is also industry already directly and indirectly employs over 1.3 milone of the easiest countries in the world to do business with, lion people in Sweden. according to the World Bank. With the current trends in economic globalization, proA key feature of the Swedish economy is its openness moting exports has become a common strategy to boost and liberal approach to trade and doing business. Sweden has economic growth. Exports of environmental technologies traditionally been an export-orientated nation, and typically represent a new window of opportunity for economic growth maintains a trade surplus, i.e. the value of goods and services and a contribution to global sustainability. With this in mind, it exports is greater than the value of imports. Swedish government have designed initiatives that aim to Timber, hydropower, and iron ore constitute the resource promote exports within this sector. To address their objecbase of an economy heavily oriented toward foreign trade. tives, governments provide initiatives to promote foreign Sweden’s engineering sector accounts for 50% of output and commerce with their environmental technology sector. exports. Telecommunications, the automotive industry and Sweden’s new export strategy has the pharmaceutical industries are also of been developed in close collaboration great importance. Main export partners The World Economic Forum with the business sector. In the strategy, are Germany, United States and Norway. the Government addresses the challenges In addition to maintaining competitive- ranks Sweden among the top ness in goods and manufacturing, growth ten most competitive countries faced by Swedish exports with a large number of concrete measures. in contemporary service sectors such as in the world. Sweden is also Trade is driven by the business sector, information and communications technolbut the State can provide support and ogy (ICT) has been strong in Sweden. one of the easiest countries in complement the market. However, the Sweden’s present economic and social prosperity was built on the lessons the world to do business with, State does not have unlimited resources learned from the financial crisis in the early according to the World Bank and thus has to priorities so that support is provided where it is most beneficial. 1990s. Governments pursued reforms The State’s promotion of the business sector’s exports and and fiscal sustainability became institutionalized. Stable internationalization will, within the scope of the EU’s rules economic policies combine with competitiveness, innovation governing state aid, rectify those market failures that surand an open approach to trade to make Sweden a model for round international trade by supporting small and mediumeconomic success. sized enterprises with: The Swedish Government’s overall goal is to increase • Information about exporting and internationalization the number of people in employment and the number of 31

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Given Sweden’s population of 10 million people, its total • Information about individual export markets $166 billion in 2018 exports translates to roughly $16,500 for • Information about export promotion in the form of every resident in Sweden. guarantees and funding solutions In macroeconomic terms, Sweden’s total exported goods • Contacts with buyers, procurers and decision makers represent 30.6% of its overall Gross Domestic Product for • combined presentations of Swedish solutions and 2018 ($542 billion valued in Purchasing Power Parity US experiences dollars). That 30.6% for exports to overall GDP in PPP for • help with bureaucratic barriers to trade. 2018 compares to 36.5% for 2014, seeming to indicate a From a continental perspective, 71.6% of Swedish exports relatively decreasing reliance on products sold on internaby value were delivered to European countries while 13.2% tional markets for Sweden’s total economic performance. t were sold to Asian importers. Sweden shipped another 7.6% is interesting to note that Sweden also to North America. Smaller percentages provided $73.1 billion worth of exportswent to buyers in Africa (1.8%), Latin Sweden’s new export related services to global customers for America (1.4%) excluding Mexico but strategy has been developed an additional 13.5% of GDP in PPP. These including the Caribbean, and Oceania (1.2%) led by Australia. in close collaboration with the metrics include a significant amount of re-exporting activity. Sweden’s top 10 exports accounted Another key indicator of a country’s for almost three-quarters (72.3%) of business sector. In the strategy, the overall value of its global shipments. the Government addresses the economic performance is its unemployment rate. Sweden’s unemployment rate • Machinery including computers: challenges faced by Swedish was 6.8% at May 2019 up from 6.5% one $27.1 billion (16.4% of total exports) • Vehicles: $24.9 billion (15%) exports with a large number year earlier. There were on average 5 132 000 employed persons aged 15–74 in 2019, • Electrical machinery, equipment: of concrete measures 34 000 more than in 2018. There were 373 $14.9 billion (9%) 000 unemployed persons, up by 28 000. • Mineral fuels including oil: $13.2 This corresponds to an unemployment rate of 6.8 per cent, billion (8%) 0.5 percentage points higher than in 2018. Youth unemploy• Paper, paper items: $9 billion (5.4%) ment increased by 2.6 percentage points and amounted to • Pharmaceuticals: $8.7 billion (5.2%) 20.0 per cent. • Iron, steel: $7.3 billion (4.4%) The number of underemployed persons increased for • Plastics, plastic articles: $5.7 billion (3.5%) the first time since 2013. The same is true for the number of • Fish: $4.7 billion (2.9%) latent job seekers. • Wood: $4.3 billion (2.6%) 32

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KSENIJA PURKOVIĆ, PRESIDENT OF THE NORDIC BUSINESS ALLIANCE

INTERVIEW

DIALOGUE IS CRUCIAL

Photo: Anđela Grozdanić

In Hard Times

We believe that good policies come as a result of permanent dialogue and trust between the public and private sectors. That is especially so now – when the global pandemic is changing the way we work and live. Our cooperation, trust and dialogue are essential

gether. How are these principles applied when it comes owadays, when the world is witnessing a viral to the Nordic engagement in Serbia? outbreak that’s unprecedented in the modern - Members of the Nordic Business Alliance in Serbia history of the world, the Nordic Business Alligather around the core Nordic principles, such as transance is contributing actively to the continuing parency, cooperation, innovation and corporate social efforts of the Government and ad-hoc bodies aimed at responsibility, regardless of their country of origin. helping Serbian society cope with the consequences Our members are Nordic, but also other international of the Covid-19 crisis. Although it is obvious that the and local companies gathered around those core valassociation’s initial plans developed for 2020 will go ues. In practical terms, we strive to through some changes in scheduling, the good dialogue already the major topics that the Alliance is Members of the NBA in Serbia maintain established with the Government on working on won’t be changed, says gather around core Nordic topics such as the environment, digital Nordic Business Alliance President technologies, innovation and tourism. Ksenija Purković. principles - transparency, We believe that good policies come cooperation, innovation and as a result of permanent dialogue and Nordic countries and companies cooperate very well and often act to- corporate social responsibility trust between the public and private 33

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Photo: Anđela Grozdanić

Although the Covid-19 pandemic will impact on our work in 2020, our mission and strategic goals will remain the same, and they are related to environmental protection, ICT and healthcare

sectors. Especially now - when the global pandemic is changing the way we work and live - our cooperation, trust and dialogue are essential. Luckily, we can work and communicate digitally, which will hopefully minimise the impact of the pandemic outbreak. If we take the example of the Nordic Days event, how do you decide which topics are important to be pursued? Which of them are in your focus in 2020? - Our goals for 2020 are a result of deep internal consultations among members. Taking into account the interests and structure of our members, we have decided to launch several working groups. Those groups will promote good practices in the areas and interests of our members. The Nordic Business Alliance in Serbia has established several working groups in this regard: the Task Force for Environmental Protection, Waste and Renewable Energy; the Task Force for ICT – Information and Communication Technologies; the Task Force for Healthcare and Public Health. Of course, we are fully aware that the Covid-19 pandemic will impact on our work in 2020 and that we 34

will most likely have to recalibrate our activities for this year. Nevertheless, our mission and strategic goals will remain the same. Considering that Nordic countries are among the most advanced, both in terms of innovation and, for example, in education, how do you relay acquired knowledge and knowhow with your Serbian counterparts? One example of the use of digitalisation and innovation for good is related to healthcare in Nordic countries. Which of those solutions can be applied in Serbia? - New technologies and innovation are things for which Nordic countries are famous. Innovation is spread over practically all parts of society – business, public services, transport, tourism, environmental protection and, of course, healthcare. We had several opportunities during 2019 to communicate good practices and the benefits of innovation to institutions - sometimes via more private platforms organised by the embassies of Nordic countries in Serbia, but also via conferences like the one entitled Innovation and Digitalisation in the Serbian Healthcare Sector, which was held at the National Assembly of the Republic of Serbia in November last year. This conference was supported by the Ministry of Health of the Republic of Serbia, and we had a fruitful debate on the integration of both digital technologies and innovation into the Serbian healthcare sector. I also have to note that last year was

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relatively good for innovative pharmaceutical companies in Serbia, as more innovative medications found a route to patients thanks to the decision of the National Health Insurance Fund of Serbia, and we also salute the efforts of the state to embrace more innovative medications in the upcoming period. How does this impact on the work of pharmaceutical companies when it comes to bringing new solutions to the Serbian market? How would you assess the level of cooperation with the Serbian government vis-à-vis these initiatives? - As previously pointed out, we see more progress in cooperation and dialogue in general. Within the NBA we have three innovative pharmaceutical companies and have been maintaining a constant dialogue with institutions, both individually and collectively, throughout the year. We are aware that introducing innovative medications requires additional funds. Nevertheless, we believe that the wellbeing of patients and benefits to society outweigh the financial pressure in this case. The dialogue also ensures that we are listening to the needs of institutions and the community, and we are trying to respond adequately when possible. We are nowadays witnessing a viral outbreak that’s unprecedented in the modern history of the world, and we know that in such difficult times we need to be there for society. During these days we are consulting

Photo: Anđela Grozdanić

Last year was relatively good for innovative pharmaceutical companies in Serbia, and we also salute the efforts of the state to embrace more innovative medications in the upcoming period

actively with the Government and ad-hoc bodies to help in coping with the medical consequences of the crisis. As a female who chairs a major business alliance, how often do you see businesswomen occupying leading positions in Serbia? How do we fare compared with the level of equality in Nordic companies? - It is a pleasure to be at the helm of the NBA. I am also happy to tell you that, even in our board of governors, ladies usually represent the majority in meetings. Female empowerment is essential for the NBA, but even beyond that I believe that women still need to be more empowered to take on leading roles in society. Although there are successful women in the Serbian corporate world, we can do better. According to the EU Gender-Equality Index, Scandinavian countries top the list when it comes to gender equality in general. Serbia, on the other hand, is doing better than some EU member states, which means it isn’t that bad. According to some information I came across recently, females hold around 30 per cent of all managerial positions in Serbia. We can certainly do better than that! 35

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Nordic culture and society have been having a bit of a moment internationally. Entire books have been written about the concept of hygge, and various Nordic words have been doing the rounds (lagom and kalsarikännit being rather different examples)

MYTHS

About Nordic Society

t seems that the Nordic countries are being noticed for more than just woolly socks and buzzwords, though. The “Nordic model” and Scandinavian society are being referenced by politicians and commentators more and more. In Europe, the Nordic countries are often brought up either as examples of successful welfare states – or as areas that breed depression and isolation simply by

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NORDIC PEOPLE DO NOT LIVE IN THE COUNTRYSIDE

NORDIC PEOPLE ARE THE HAPPIEST IN THE WORLD

virtue of geography. As is often the The majority of people across volcano. The rest of the Nordic countries are not too far behind (88, 87, 85 case though, the truth is more nuanced the Nordic countries live and 82 per cent for Denmark, Sweden, than is often portrayed. in urban areas these days. Finland and Norway, respectively). Picture a Nordic home. Chances So, while Nordic cities and towns are you see a small red cottage with In Iceland, the proportion are fairly small on a global scale a pile of firewood outside – perhaps of city dwellers is a rather high (Stockholm’s metropolitan area is with a fjord or a forest in the distance at 94%, though you’re the largest in the Nordic region with and the calm of the countryside all 2.4 million inhabitants), the vast maaround, adding to the cosy atmosphere. never that far from a hot jority of Nordic people do not live in It is true that the populations of spring or a volcano. The rest the countryside. But you’re never too the Nordic countries are not very large relative to the size of the countries of the Nordic countries are far from a lake to jump into, a forest to wander in or a fell to climb. themselves. Iceland has a populaListening to some of the comtion density of 3.4 people per square not too far behind (88, 87, 85 kilometre. Denmark is fairly densely and 82 per cent for Denmark, ments popping up in the North-Amerdialogue about Nordic societies, populated (134.76/km2 – although the Sweden, Finland and Norway, ican you might be forgiven for thinking that UK still has twice as many people per respectively) they are all single-party dictatorships square kilometre – 270.7). Sweden, where you get assigned a job, a place Finland and Norway are all relatively to live and a haircut. sparsely populated (23, 16 and 13.8 people per square At times, the European media seem to paint a pickilometre, respectively). ture of blissful socialist societies with flawless social With stats like these, you might well think that evesecurity systems and schools that have done away with ryone has a fjord or a forest for a back garden. However, classrooms, tests and bullying altogether. the majority of people across the Nordic countries live The success of the workers’ movement and the social in urban areas these days. In Iceland, the proportion of democratic parties did shape the Nordic region in the city dwellers is a rather high at 94% – the same as Puerto 20th century. In Sweden, the local social democratic party Rico – though you’re never that far from a hot spring or a 37

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PEOPLE IN FITNESS COURSE NORDIC WALKING IN NATURE

ESPLANADE PARK IN HELSINKI, FINLAND

While all Nordic countries have a history that involves pivotal healthcare, social security and educational reforms pushed through by social democratic parties in the 20 century, the power of the social democrats is certainly not what it was in the past

was in power from 1932 to 1976, which allowed it to introduce significant social reforms, during a period which came to be known as Folkhemmet (“the people’s home”). Folkhemmet was not so much a socialist utopia as it was a compromise between capitalism and socialism, and reliant on the practice of consensus in politics and th society at large. Looking at Nordic governments today, the social democratic parties are certainly still a driving force – even if their glory days seem behind them. Norway has a centre-right coalition government – Norway’s Prime Minister Erna Solberg is from the Conservative Party. Denmark’s social democrats have just won the largest share of the vote in the country’s latest election and are looking to form a broad coalition with ideas from both the left (a stronger welfare state) and the right (an even tougher immigration policy). Iceland’s coalition government includes parties from the left to the right and it is headed by Katrín Jakobsdóttir of the Left-Green Movement. At the moment, both Sweden and Finland have a PM from a social democratic party. Sweden’s government is a minority leftgreen coalition government and Finland’s has just announced a left-green-centre coalition government after tough negotiations. Like elsewhere in the world, the Nordic political map has 38

been shaped by the rise of new right-wing populist parties, which often attract voters by focusing on immigration and nationalism. In Sweden, the Swedish Democrats, whose Eurosceptic, antiimmigration and socially conservative agenda got them 17.5% of the vote in the latest election in 2018, are in opposition, largely because most major parties refused to negotiate with them. While all Nordic countries have a history that involves pivotal healthcare, social security and educational reforms pushed through by social democratic parties in the 20th century, the power of the social democrats is certainly not what it was in the past. A common stereotype about the Nordic countries is the idea that, as they are plunged into darkness half the year, depression is rife and suicide rates are extremely high. This is something that is hard to measure: misreporting and inaccurate statistics mean that global rates are not entirely reliable. It does seem that current suicide rates in the Nordic countries are relatively low on the global scale, although they do make it into the top 100 according to the WHO: Finland is in 32nd place and Iceland in 40th place (Sweden, Norway and Denmark are in 51st, 74th and 89th place, respectively). However, this is not the whole picture. Greenland is not included on this list as it is not an independent country, but an

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exactly central to the Nordic identity. According to the United Nations, happiness is about wellbeing: income (GDP per capita), social support, healthy life expectancy, freedom, generosity and the absence of corruption. It’s hard to argue with GDP or life expectancy figures. Apart from these facts, the survey also takes into account “national averages of positive and negative affect” – that is, people’s emotional experiences. Gallup conducted a survey of positive and negative emotions (e.g. experiencing respect, pain or worry or feeling well-rested or sad) in which the Nordic countries did not score anywhere near the top (the top three comprised Paraguay, Panama and Guatemala). It seems that people in the Nordic countries feel comparatively safe, if not enamoured with their existence. As long as “happy” does not mean “ecstatic” or “joyful”, Nordic people can be as content with the term as they (generally) are with their lives.

COPENHAGEN, CITY OF CYCLISTS

autonomous constituent country under Denmark. The suicide rate in Greenland began to rise in the 1970s and it is now the highest in the world. The rates in other Nordic territories have fallen considerably in recent decades – Finland’s was among the worst in the world only a few decades ago. It seems that societal changes might go further to explaining depression and suicide rates than climate – according to studies, the spring peak is a widely spread phenomenon on a global scale (and seems to be related to the change in temperature). NORDIC PEOPLE ARE THE HAPPIEST IN THE WORLD The World Happiness Report was first published in 2012 and the Nordic countries have featured heavily in the top 10 every year since. In the 2019 report, Finland, Denmark, Norway and Iceland occupy the first four places, with Sweden in seventh place. The reactions in the Nordic countries themselves have been somewhat mixed – of course people have it good, but “happy”, really? Being cheerful and happy-go-lucky isn’t

N O R D I C

CO U N T R I E S