Switzerland 2015

2015 SWITZERLAND & SERBIA

Through Deeper Reforms to New Investments

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THROUGH DEEPER REFORMS TO NEW INVESTMENTS

SWITZERLAND & SERBIA

Through Deeper Reforms to New Investments 2015 CO N T E N T S

EDITOR Tanja Jakobi ART DIRECTOR Jasmina Laković j.lakovic@aim.rs

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VALUABLE SUPPORT

14 MORE COOPERATION,

MORE TANGIBLE DEALS

EXECUTIVE PROJECT MANAGER Maja Vidaković m.vidakovic@aim.rs

H. E. JOHANN N. SCHNEIDER-AMMANN Vice-President of the Swiss Confederation and Head of the Federal Department of Economic Affairs, Education and Research of the Federal Council

COPY EDITOR Mark Pullen

PHOTOS Zoran Petrović

INDEPENDENT AND SUCCESSFUL

ECONOMIC COOPERATION Swiss-Serbian Chamber of Commerce (SSCC)

32 INVESTMENTS

PROJECT MANAGERS Biljana Dević b.devic@aim.rs Ljiljana Kneževć lj.knezevic@aim.rs Aleksandra Ebilji a.ebilji@aim.rs

TRANSLATION Snežana Bjelotomić / MRP

30 YOUNG,

8

FAST-TRACK REFORMS

BRING NEW JOBS

MARKO ČADEŽ President of the Serbian Chamber of Commerce

18 VALUABLE

PARTNERSHIP

ECONOMIC COOPERATION

34 GENIE FROM A

SMALL BOTTLE

SWISS ECONOMY

38 SUPERB EDUCATION

LEADS TO LOWER UNEMPLOYMENT

OFFICE MANAGER Nataša Nešić n.nesic@aim.rs EDITORIAL MANAGER Tanja Banković t.bankovic@aim.rs FINANCIAL DIRECTOR Dragana Skrobonja d.skrobonja@aim.rs EXECUTIVE DIRECTOR Ruža Ristanović r.ristanovic@aim.rs GENERAL MANAGER Ivan Novčić i.novcic@cma.rs PRINTING Rotografika d.o.o.

ZORANA MIHAJLOVIĆ Deputy PM and Minister of Construction, Transport and Infrastructure

11 SYNONYMOUS WITH

QUALITY

MARINKO UKROPINA President of the Swiss Serbian Chamber of Commerce (SSCC)

22 PARTNERSHIP FOR

SUCCESS

EDIN DACIĆ CEO at Daccomet AG

EDUCATION Swiss Apprenticeship System

40 HANDMADE

PLEASURE TRADITION

42 MUSEUM OF HOPE

12 A FRIEND WHEN YOU

NEED ONE

Makenzijeva 67, 11000 Belgrade, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs www.cordmagazine.com ISSN no: 1451-7833 All rights reserved alliance international media 2015

ANA GRUJOVIĆ Executive Director of the Swiss-Serbian Chamber of Commerce H.E. JEAN-DANIEL RUCH Swiss Ambassador to Serbia

26 FROM HUMBLE TOOL

TO GLOBAL ICON

SWISS ARMY KNIFE

CULTURE

44 WHERE BUSINESS

MEETS EXCELLENCE TOURISM Trade Fairs

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

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H. E. JOHANN N. SCHNEIDER-AMMANN

INTERVIEW

VICE-PRESIDENT OF THE SWISS CONFEDERATION AND HEAD OF THE FEDERAL DEPARTMENT OF ECONOMIC AFFAIRS, EDUCATION AND RESEARCH OF THE FEDERAL COUNCIL

Valuable SUPPORT Switzerland has supported Serbia diligently for years in almost all key aspects of its reforms, both in terms of financial and expert assistance. As of recently it has also been helping Serbia to introduce an effective education system as a third pillar of economic prosperity

T

he recent visit to Belgrade of H.E. Johann N. Schneider-Ammann, Minister and Head of the Swiss Federal Department for Economic Affairs, Education and Research, provided additional impetus to already excellent bilateral relations between the two counties. In this interview, Mr Ammann talks about the most important aspects of Swiss support for Serbian reforms. â– How would you assess the outcome of your recent visit to Belgrade in the broadest terms?

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THROUGH DEEPER REFORMS TO NEW INVESTMENTS

- My recent visit to Belgrade was very positive in the sense that it contributed to consolidating the strong bilateral economic cooperation which prevails between Switzerland and Serbia, particularly regarding Swiss investments here, as well as our multilateral cooperation in the framework of the World Bank, IMF and EBRD. We also discussed Swiss support to the economic development of Serbia, as Switzerland is investing almost twenty million Swiss Francs a year to make the Serbian economy more competitive, including through the export of innovative products. One specific issue we discussed on this occasion, and which is very important to me, was how Switzerland can share its knowhow on dual education with Serbia, in order to increase youth employment. â– Serbia and Switzerland are members of the same constituency in international financial institutions (IFIs), such as the World Bank, the IMF and the EBRD. How has this marked our relations? How does Switzerland support Serbia on its reform path?

- Switzerland strongly appreciates the reliable and fruitful cooperation, and continuous dialogue, it enjoys with Serbia within

RECOGNITION

Serbia is well positioned on the radar screen for potential Swiss investors, which is also a tribute to the reforms and the improvement of the business climate

SUPPORT

Switzerland supports the modernisation of the Serbian tax administration and public financial management, as well as the implementation of Serbia’s national strategy to address non-performing loans

the common constituencies in the Bretton Woods Institutions (World Bank and IMF) and in the EBRD. We consider relations between our two countries as being very important. Our cooperation, which has gained in intensity over the years, allows for regular and direct exchange both at the ministerial and technical levels. In Washington – where we have common offices in the World Bank and the IMF – Serbia provides valuable support to handling common tasks and strategic decision making. Some 10 years ago, current Minister of Finance Dušan Vujović was also part of these common offices, which is now yielding even more intense relations.

At the same time, IFIs are crucial strategic partners of the Swiss economic cooperation programme in Serbia, through which Switzerland supports Serbia’s fiscal consolidation and structural reform efforts. Switzerland finances, for example, two IMF resident advisors in support of the modernisation of the tax administration and the strengthening of public financial management. In addition, together with the World Bank, Switzerland also supports the implementation of Serbia’s national strategy to address the issue of nonperforming loans.

COOPERATION

Switzerland strongly appreciates the reliable and fruitful cooperation, and continuous dialogue, with Serbia within the common constituencies in the Bretton Woods Institutions (World Bank and IMF) and in the EBRD

is also essential for investors that they have access to legal security and legal remedies.

■ What are the main characteristics of Switzerland’s dualtrack system of vocational education that make it stand out when compared to similar systems in other European countries?

- In Switzerland, two thirds of our youth leave school at 16

H.E. JEAN-DANIEL RUCH (left), JOHANN SCHNEIDER-AMMANN, ALEKSANDAR VUČIĆ, MARKO ČADEŽ and ŽELJKO SERTIĆ

■ What are the most important feato enter companies as tures sought by Swiss investors when Through its new “Education to paid apprentices, and this they opt to invest, and in that respect what can the Western Balkans, and Employment Programme”, Switzerland is where they acquire the professional skills that Serbia in particular, offer them? will help Serbia introduce some them attractive on - Over the past three years, Swiss comaspects of its professional education make the labour market. Lapanies have even been among the top market-orientation three foreign investors. Around 200 system, based on apprenticeships and bour is one of the characterisSwiss companies are already present public-private partnerships tics and strengths of the in Serbia and we see new ones expressing their interest on an almost daily basis. All in all, Swiss Swiss dual-track system of vocational professional educainvestments in Serbia will soon cross the one billion franc tion and training (VPET) programmes: skills acquired by apthreshold. This indicates that Serbia is now on the radar prentices are based on the actual needs of host companies. screen for potential Swiss investors, which is also a tribute Employers’ involvement in planning and providing VPET is to the reforms achieved by Serbia in order to advance the high in Switzerland. Our model is based on a public-private business climate. Political stability, an affordable and quali- partnership between public authorities, at the federal and fied labour force, good infrastructure, close proximity and cantonal levels, and the private sector: branch associations, good connections to other markets and the dense network social partners and companies involved on a voluntary baof human connections between Switzerland and Serbia are sis. Technological innovations and developments are taken the most important factors attracting Swiss investments. It into account on a continuing basis and the training content THROUGH DEEPER REFORMS TO NEW INVESTMENTS

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of VPET programmes are revised accordingly. Our education system, which has been built progressively over more than a century, can of course hardly be reproduced as is. Therefore, Switzerland, through its new “Education to Employment Programme”, will help Serbia introduce some aspects of Switzerland’s professional education system, based on apprenticeships and public-private partnerships.

■ To what extent is your dual track system replicable in states which have less developed business sectors and modest state resources for investing in such a type of education, as is the case with Serbia?

as well as supporting high-tech companies in the development of innovative projects for international funds – for instance, in the areas of IT, biotech, medtech, new materials and energy efficiency. Business-to-Business meetings will be organised and the Serbian-Swiss Business Days event will ensure the exchange between our countries. The Park will also foster the development of entrepreneurship in Serbia, as well as supporting the transfer of experience within Serbia and the Balkan region.

■ To what extent are the slow progress of recovery in the EU and the current migrant crisis impacting on the prospects of the Swiss economy and how are continuing trends influencing Swiss investments abroad, in terms of volume and geographical interests?

- Despite the current challenges, the most prominent one being the sudden increase in the value of the Swiss franc by almost 20 per cent in January, the Swiss economy has proven very robust.

Overall growth in Swiss GDP for 2015 is expected to be 0.9%, with a moderate increase to 1.5% for 2016, provided the global economy remains on an upward curve and, in particular, that the Eurozone is able to continue its recovery.

Whilst the pressure on the Swiss franc has thus far mostly affected the export industry, companies in Switzerland have generally managed to adapt by increasing their productivity and reducing costs and prices. The fact that domestic demand - There are three eleSwitzerland is investing almost twenty million an important ments that contribute Swiss francs a year to make the Serbian economy remains pillar of the Swiss econosubstantially to economic prosperity and more competitive, including through the export of my has also contributed to limiting the impact of a low unemployment innovative products the slow recovery from rate: the first element is a liberal and flexible labour law; the second is a well- the Eurozone crisis. Moreover, the major banks and financial functioning solution-orientated social partnership; and institutions, which account for only 13 per cent of Switzerland’s the third is an effective education system that provides for GDP, have firmly returned to the black in recent years. Consea qualified workforce. In states which have a less devel- quently, our unemployment rate remains at three per cent. At oped business sector and modest states resources, the es- the moment it is not yet possible to predict if and how the curtablishment of a market-orientated education system will, rent migrant crisis will affect the Swiss economy.

When it comes to Swiss investments abroad, Swiss comof course, need time. As such, besides its support to the development of a VPET system in Serbia, Switzerland will panies are among the biggest investors worldwide. Swiss FDI strive to improve entrepreneurial education, support busi- abroad has been growing continuously over the last five years in all regions (developing and developed countries), includness start-ups and facilitate access to finance. ing in Serbia, where Switzerland currently ranks as the sec■ To what extent can institutions like Belgrade’s Sci- ond largest bilateral investor. ence and Technology Park promote cooperation be■ Some 84 million Swiss francs has been budgeted tween Switzerland and Serbia in the IT sector?

- Switzerland supports institutions like the Science and Technol- for the 2014-2017 period to support Serbia’s integraogy Park because it will indeed help to develop platforms in IT, tion and transition in local governance, economic de-

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THROUGH DEEPER REFORMS TO NEW INVESTMENTS

velopment, energy efficiency and renewable energy. versify its exports. In the field of energy efficiency and the promotion of renewable energy sources, Switzerland has Do you believe that money is being put to good use?

- As the second largest bilateral donor in Serbia, Switzerland contributed to reducing CO2 emissions and to substantial is contributing effectively to Serbia’s transition towards a energy efficiency gains. strong democratic system, social inclusion and the enhanced competitiveness of its economy. Switzerland’s support to lo- ■ Where do you see room for improvement in terms cal governance has already translated into increased trans- of the bilateral exchange of goods and services? parency and accountability within local assemblies and mu- - Between 2002 and 2007, the volume of commercial trade between Switzerland and Serbia innicipalities. It has also creased by 30 per cent. In helped with the estabThere is room for improvement in our bilateral 2014, notwithstanding the lishment of a financial trade in well-established sectors, such as long-lasting effects of the oversight portal for the pharmaceuticals, chemicals, the automobile economic crisis from 2008, parliament to oversee Swiss exports to Serbia government expendiindustry, machinery, agro-food production and increased by 13.5% (worth ture in real time. Such measures contribute to textiles, as well as in growing sectors like the watch 183.9 million Swiss francs), industry, electrical production and IT while Serbian exports to fostering trust in instiSwitzerland increased by tutions, which is a precondition for directing further investments. As to economic three per cent (worth 104.3 million Swiss francs).

This translated into an increase of 30 per cent in our development, Switzerland has endeavoured to improve the business environment, mobilise the private sector and ulti- trade balance compared to the previous year. I see room for mately create new jobs in Serbia. To that end, Switzerland no- improvement in our bilateral trade in well-established sectably supports labour market reform by introducing private tors, such as pharmaceuticals, chemicals, the automobile sector responsive education, which has elements of the “dual industry, machinery, agro-food production and textiles, as well as in growing sectors like the watch industry, electrieducation” system applied in Switzerland.

Switzerland is also helping Serbia strengthen and di- cal production and IT. ■

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

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ZORANA MIHAJLOVIĆ

INTERVIEW

SERBIAN DEPUTY PM AND MINISTER OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE

Fast-Track

REFORMS Everything we do today – through reforms, through advancing the business climate and through the construction railways and roads – we do so that our citizens can have better lives and our children can choose to stay in Serbia

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e are quite ambitious in preparing to continue with reforms, improving the business climate and constructing the main transport routes – says Zorana Mihajlović, Deputy PM and Minister of Construction, Transport and Infrastructure. She also expects the effort exerted by the Serbian Government to be recognised through objective indicators, such as the opening of new chapters in the negotiations with the EU, IMF reviews and the World’s Bank Doing Business list, as well as through increased interest among investors.

■ How long is Serbia going to have to wait until new chapters are opened, and what are the biggest obstacles currently hin-

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dering the European integration process? − The Serbian Government has demonstrated a sincere commitment to Serbia’s path towards EU membership status, as this is in Serbia’s best interests and is the road we have chosen. Serbia is today a stability factor in the region politically, as an example for other countries in terms of how to conduct economic reforms. If we are talking about the implementation of the Brussels Agreement, Serbia has done everything it could have. What needs to happen now is for Pristina to also show good will and take the concrete steps necessary for agreements to be implemented. The progress report revealed recently is very positive and I expect Serbia to open the first chapters by year’s end.

The screening process relating to chapters 14 and 21, which deal with transport policies and trans-European networks, has been completed and the next thing for the European Commission to do is screening reports, so that we can continue with negotiations. A lot was done in the previous period, particularly when

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

it comes harmonising Serbian legislation with the EU’s and restructuring public enterprises, which is why I expect us to be ready once the negotiations commence.

■ Could you tell us about your main impressions following the meeting with the IMF delegation? In which reforms did Serbia achieve good progress and where does the country need to do more work? − The most important thing is to implement the programme agreed with the IMF successfully, particularly the part relating to fiscal consolidation. The fact remains that the deficit is decreasing much faster than originally agreed, the IMF has corrected the growth rate, which now stands at 0.75%, and has also approved a raise in civil servant salaries and pensions for next year. The challenge in the following period will be primarily keeping public sector reform on course and restructuring public enterprises, which should operate in a far more efficient manner in order for their operational costs not to be a burden on citizens.

■ Could you also tell us about your impressions following the meeting in Rus-

SUCCESS

Today Serbia is a factor of stability in the region politically, as it is an example for other countries in terms of conducting economic reforms

AMBITIONS

We have already adopted an action plan with related activities for 2016, so that Serbia can break into the top 40 countries on the next Doing Business list. I also believe we can even make it to the top 30

CHALLENGES

The challenge in the following period will be primarily keeping public sector reform on course and restructuring public enterprises, which should operate in a far more efficient manner

lines along pan-European Corridor 10? − Number one, we need to complete all the transport routes which we have been talking about for decades and which, until recently, have been a never-ending project. Because we did not complete construction of Corridor 10 earlier, we are now losing between €50 and 70 million annually. This speaks volumes about where the biggest problems lie.

■ Serbia recently terminated the contract with one of the contractors working on Corridor 10. What should be done, at the institutional level, in order to avoid the kinds of problems we’ve had with foreign contractors? − The implementation level at one of the segments of Corridor 10 (near Dimitrovgrad) was so low that we had to decide to terminate the

Some of the biggest Swiss companies already operate in Serbia and the main avenues of cooperation should be in attracting new FDI

contract with the contractor – Bulgarian company Trace. By doing so, we also sent a message to other contractors that we are not going to tolerate lateness and failure to perform contractual obligations. As a ministry, we have improved our project management skills significantly. We now have a special sector that deals only in project management and each project is assigned to a person responsible for its implementation, a sort of a project mentor.

We also insisted on having a work dynamics plan for each investment, in order to better monitor their implementation. Thanks to all of this, as well as our constant presence on the ground, we will be the only ministry this year to spend all the funds assigned to capital projects, or 98% of them, to be precise.

sia, which was about expanding bilateral economic cooperation? − It is a great thing that representatives of 120 Serbian companies were given an opportunity to talk to Russian partners, primarily about new construction projects. In Q2 this year the Serbian GDP rose mostly thanks to a 12.6% growth in construction activities, and we would also like to see Serbian companies participating in largescale projects in other markets. In Moscow we signed a Memorandum with Russian Railways that will enable us to modernise the dispatch centre for Serbian Railways. We also discussed Russian credit that we want to utilise even more effectively, considering that we have removed all the obstacles that previously stood in our way, and this year alone we have modernised 45km of rail track thanks to this loan.

■ In light of Serbia’s advancement on the World Bank’s 2016 Doing Business list, which priorities have been set by the taskforce which you head? − Serbia jumping from 91st to 59th place on the

Doing Business list is the biggest leap forward in the last nine years, and it happened primarily thanks to the reforms we conducted in issuing building permits and enabling electronic tax collection. Forming the taskforce also proved to be a good way to bring together all state institutions dealing with the business environment and implement the reforms much faster. We have already adopted an action plan with related activities for 2016, so that Serbia can break into the top 40 countries on the next Doing Business list.

I also believe we can even make it to the top 30.

Our medium-term objective is to be among the top 15 countries in terms of conditions for doing business and, of course, to have the best business climate in our immediate surroundings.

■ What do you think Serbia needs to do in order to better utilise road and rail

In the last year and a half we have re-instigated and expedited all projects relating to road and rail infrastructure, which have a total value standing at approximately €4.3 billion. This year we are going to complete around 100km of motorways, compared to 15km completed in 2012. This year we have also already modernised 45km of rail track, thanks to the loan from Russia. In comparison, back in 2012, not a single kilometre of railway was built. The Corridor 10 roads will have been finished by 2016, and by mid-2017 we will have 105km of motorways on Corridor 11, which will link Obrenovac to Preljina. Today anybody passing through Serbia can see for themselves that things are changing and that, in a year or two, travelling through Serbia will be much faster and easier. By the same token, we also expect a higher transit volume will translate into dozens of millions of euros in annual revenue.

■ What stage has been reached in construction of the Budapest-Belgrade railway and which new projects is the Serbian Government preparing for the upcoming summit of China and the 16 CEE countries in Bejing?

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− I expect the modernisation of the BelgradeBudapest railway to commence by year’s end; firstly on the 43km segment between Stara Pazova and Novi Sad, where we have achieved the most progress in terms of preparation and for which we have almost drafted the relevant construction project. We will reach agreement with the Chinese partner regarding the two other segments – from Belgrade to Stara Pazova and from Novi Sad to the Hungarian border. The text of the framework agreement has been agreed and it is due to be signed by the relevant Serbian and Chinese institutions at the summit of China and CEE countries in China in late November. We are negotiating with Chinese company CRBC about the construction of the two Corridor 11 sections – Surčin-Obrenovac and Preljina-Požega – covering a total length of 50km. Once we complete these sections, and the pending projects, we will have 150km of Belgrade-Požega motorway, which will halve the commuting time.

■ In the same context, what do you expect from railway reforms, namely liberalisation and the promotion of a larger volume of cargo transport? − Changes to Serbian railways are being conducted in two directions – through modernisation of rail tracks and through the acquisition of new trains, on the one hand, and through reform of the Serbian Railways enterprise, on the other. There is today a huge gap between the potential that our railways have and their current situation, considering that the average speed of our trains is the same as it was almost a century ago. In three years we will have modernised approximately 500km of rail tracks, where the average speed will be at least 120km/h.

In parallel with the modernisation, we have also embarked on reforming Railways of Serbia, which was split into a holding company and three other separate companies in July – Srbija Voz, Srbija Kargo and Infrastruktura Železnice Srbije. Anybody who has been following the restructuring process, including the IMF and the World Bank, has been praising this reform and agrees that everything has been going according to plan and that, in this segment, Serbia can serve as an example to other countries. Once modernisation is complete and following the acquisition of new locomotives

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and cargo trains, which is already planned, the volume of the goods transported via railway will have doubled – from 10 million tonnes to 18-20 million tonnes – while revenue will also increase, from the current €75 million to around €200 million per annum.

■ How can we expand our economic cooperation with Switzerland? − Some of the biggest Swiss companies already operate in Serbia and the main avenues of cooperation should be about attracting new FDI. Following amendments to the Law on Spatial Planning and Construction, and other construction laws, we now have in place the main prerequisites for faster implementation of investments.

and what measures, from the scope of your ministry’s work, will be implemented with the aim of creating a more favourable business environment? − All laws that have been passed in the last year were passed with the goal of advancing conditions for doing business and investing in Serbia; starting with the Law on Spatial Planning and Construction, the Law on Land Conversion and the Law on Legalisation, to the new Law on State Surveys and Cadastre. We are communicating with investors on a daily basis and we react as soon as they point out a problem or a deadlock.

We do this within our legally defined scope of activities. We are currently preparing a book of projects that will come out in December and will present all the current and potential transportation and construction projects. Also, for the first time ever, the book will contain gender equality projects.

■ How much can dual education help to counter the brain drain from Serbia? − Since 2000, close to 300,000 people have left Serbia and during the same period we also lost around 35,000 people annually due to a low birth rate. When we add everything up, it turns

There is a lot that needs to be changed in managing human resources and I think that, in 2016, the entire government will be much more involved in education reform and the implementation of dual education Establishing the Swiss-Serbian Chamber of Commerce should also facilitate the faster flow of information for Swiss businesspeople. Dual education, in line with the Swiss model, is one of the topics our two countries have been discussing. In terms of infrastructure, Swiss companies have free reign when it comes to considering opportunities to participate in infrastructure projects of regional importance. Some 18 of 21 Stadler trains are already operating on our railways, which will vastly improve the image people have of Serbian trains.

■ What priorities do businesspeople usually emphasise when you meet them;

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

out that we have lost almost a million people in the last 15 years. There is a lot that needs to be changed in managing human resources and I think that, in 2016, the entire government will be much more involved in education reform and the implementation of dual education, as noted by our prime minister. Young people in Serbia have huge potential and creativity, which can be seen from their successes at competitions and as reflected in the SMEs that the bravest among them have founded. The task for the state, universities, high schools, educational institutions and experts is to find a format to properly utilise this potential, and this is where we have to fall back on the latest global experiences. ■

CORPORATE

EDIN DACIĆ,

CEO AT DACCOMET AG

Synonymous With QUALITY We intend to continuously improve the quality, productivity, and profitability of our companies in Serbia and BosniaHerzegovina in order to secure future growth

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hen it comes to wood and furniture production, Serbia and Bosnia-Herzegovina are competitive in terms of quality and prices of raw materials and energy, but in order for labour costs to be truly competitive social charges should be reduced, says Edin Dacić, CEO at Daccomet AG, an IKEA partner and majority owner of the furniture production factories “Standard Furniture Serbia” and “Standard” in Prnjavor.

we would not have been in a position to satisfy the quality requirements of our customer, IKEA. But good quality alone is not enough to be competitive. Only after the investment was it possible to work intensively on productivity.

The reason is that it is only when you are representing an important stakeholder – which in my case was the majority shareholder - are you in a strong enough position to initiate major change. Our first step was to hire a Senior Expert from Swisscontact, who helped us to improve our productivity decisively, and consequently our competitiveness.

So, based on my experience, without privatisation Standard would not have created hundreds of new jobs and most probably would not have survived, like many other exsocialist factories.

■ To what extent ■ Privatisation is often seen in a negative context in our region. From your own perspective, how do you see these processes in Serbia and Bosnia-Herzegovina?

- I can only answer based on my own experience, which is acquisition of the Standard AD furniture factory in Prnjavor in BosniaHerzegovina in 2004.

Privatisation was the conditio sine qua non for the first investments in general, and in new technologies in particular. Later we invested in industrial buildings and machinery for additional capacity. So, in the previous 10 years we have invested approximately six million euros. Without these investments,

ment is in the level of automation, which would increase productivity per capita, on the one hand, and the fixed cost coverage which is dependent on the size of the company.

■ Would you say that companies like yours, which obey the rules, are able to set standards for those others that are operating partially or totally within the grey economy, or do they still dominate?

- I am afraid that I am not in a position to answer your question, as I do not really have reliable figures regarding the informal labour market and do not like to speculate. However, what I can say is that the fact that there is an apparently significant informal labour market does not make it easier to compete for workers, which is the biggest asset of every company.

Swisscontact assistance was of utmost importance for Daccomet AG to improve the productivity and competitiveness of its factory in Prnjavor

are Serbia and Bosnia-Herzegovina competitive in the export of wood and furniture?

- The quality and prices of raw materials are competitive in both countries. Energy prices are also competitive. Prices for direct labour costs are competitive as long as you compare at only the net level, meaning what is paid out to the employee.

However, when you compare gross salaries i.e. how much an employee costs the company in total, competitiveness is reduced significantly. The reason is the excessively high social costs.

Where we still have room for improve-

■ How do you see your Serbian and Bosnian companies performing within the next five-year period?

- We will do our utmost at both companies to continuously improve ourselves at all levels, meaning in terms of quality, productivity, profitability and, of course, continuing to grow.

However, I sincerely hope that within the mentioned five years the announced economic reform policies of both countries will have been implemented and will already be showing positive results. For me, as an entrepreneur, that primarily means reducing social charges to a competitive level. ■

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INTERVIEW

H.E. JEAN-DANIEL RUCH SWISS AMBASSADOR TO SERBIA

A Friend When YOU NEED ONE From assisting Serbia in dealing with the influx of migrants, to supporting the country in its EU integration process and re-establishing a market orientated education system, Switzerland nurtures good bilateral relations with Serbia

S

witzerland supports Serbia’s EU integration process and commends the government for achieving much better placement in the World Bank’s “Doing Business Report” than in previous years.

This success is based on the adoption of some important laws and is mirrored in the state budget. However, some examples on the ground suggest that there is a way to go when it comes to the rule of law, says H.E. Jean-Daniel Ruch, Swiss Ambassador to Serbia.

■ In your opinion, how could the current EU policies aimed at responding to the refugee crisis impact on security and stability in the region, and particularly in Serbia? − Switzerland believes that the current refugee crisis must be met with a concerted effort by all concerned European countries. To date, Serbia has had to manage the flow of refugees crossing its country. Serbia has proven to be professional and competent in assuming this task. The civil society’s reaction has also been remarkable. Switzerland has been in the benefit of a migration partnership with Serbia since 2009. In this context, Switzerland has invested a million Swiss francs over the past four years to help Serbia deal with migration. To face the current crisis, Switzerland has released another one million Swiss francs for Serbia.

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■ Speaking at the opening of the Fourth Regional School of Transitional Justice, you said that Serbia has made significant progress as a society when it comes to awareness and acknowledgement of crimes committed 25 years ago, but that State institutions are still hiding such information. How important is open acknowledgement of past events to new regional cooperation efforts in the Western Balkans? − One should not neglect the importance of symbolic gestures to foster reconciliation. Remember, for instance, Mitterrand and Kohl holding hands at a commemoration of World War I in Douaumont back in 1984.

We need more such gestures in the former Yugoslavia. It is not that top officials, especially in Serbia, have not acknowledged openly past crimes.

It is that the process of solving the issue of missing persons is far too slow. And no one can seriously believe that information on the location of mass graves is not buried somewhere in some State institutions.

■ How successful do you think Serbia has been in maintaining its progress on EU integration while nurturing close ties with Russia? − Switzerland supports the process of Serbia’s integration into the EU. This is the overarching objective of our 75 million francs/euros/dollars – proveri! cooperation programme, extending from 2014 to 2017. So far, Serbia has not had to apply the EU sanctions against Russia. Switzerland has not applied such sanctions either, but has taken measures to prevent them being circumvented through our country. I remain hopeful that the situation in Ukraine will evolve in such a way that the EU sanctions can be lifted sooner rather than later. Russia is an important European country, and, as Foreign Minister Didier Burkhalter said in the context of the Ukraine crisis, “no country should be forced to choose between East and West.”

■ When it comes to EU integration from the economic aspect and market reforms, how far do you think Serbia has progressed in the last year? − Important pieces of legislation have been passed and are being implemented, like the new labour law and the new regulations on

SUPPORT

Switzerland supports the process of Serbia’s integration into the EU. This is the overarching objective of our 75 million francs/euros/dollars – proveri! cooperation programme

FOCUS

The main focus of Vice-President SchneiderAmmann’s visit to Belgrade was to help the government in the re-establishment of an effective system of vocational training

construction permits. This has allowed Serbia to jump 29 places ahead in the World Bank’s famous “Doing Business Report”. The government has to be commended for its achievements, which also reflect positively on the State budget.

■ To what extent are proposed reforms in streamlining and reforming administration steps in the right direction when it comes to cutting red tape? − Precisely, some success has been recorded, and it is easier to carry out a greenfield investment today than it was a few years ago. However, there are still problems, in particular when it comes to legal security. I have seen court decisions which were not implemented or were changed by administrative decisions at lower levels of the bureaucracy. This sort of a “deep state” is still marred by corruption and a mindset which is far from the attitude any government official should have today: a service provider.

■ What carries more weight when it comes to the attitudes of Swiss businessmen regarding investments in Serbia: the aim of the countries in the region to make their markets more homogenous and interacted, or specific market conditions in each country? − They primarily look at the business environment in one specific country. There is also some competition between the countries in the region to offer the best conditions, and companies are aware of this. Serbia enjoys some specific comparative advantages, including its road network, but also its free trade agreement with Russia and other countries.

RECONCILIATION

One should not neglect the importance of symbolic gestures to foster reconciliation.

We need more such gestures in the former Yugoslavia

■ When reflecting on our mutual ties, the memory of Dr Archibald Reiss always comes to mind. Which other prominent figures have marked the long standing cooperation between our two countries? − Well, Roger Federer and Novak Ðoković cooperate very well on tennis courts to offer us great emotions! More seriously, the figure of Nicolas Bouvier comes to my mind. His most famous book, “L’Usage du Monde”, recounts his time in Belgrade in 1952 with great precision and a wonderful ability to catch the spirit of the city. I could also speak about more recent Swiss personalities who did a lot to help this region resolve its past, like Carla Del Ponte or Dick Marty, two former prosecutors from the Italianspeaking Canton of Ticino.

■ What do Switzerland and Serbia have in common when it comes to young artists and the cultural topics they want to share with the public? − Young artists, wherever they are, are the barometer of any society’s creativity. I notice with pleasure that Belgrade is increasingly attracting young Swiss artists. They find that the atmosphere here is inspiring. I wouldn’t say that there is any particular topic that comes to the fore. It is about creativity and producing works of art that impact on the viewer.

I have seen court decisions which were not implemented or were changed by administrative decisions at lower levels of the bureaucracy. This sort of a “deep State” in Serbia is still marred by corruption

■ How satisfied are Swiss investors with Serbia when it comes to the competence of the workforce and how can the Swiss approach to education add to their professional abilities? − This is a very important issue. Most Swiss companies have to train their workers after they have been hired. Some companies, especially in the manufacturing sector, have difficulties recruiting, which is a paradox in a country with high youth unemployment. One option we are working on with the Serbian government is to re-establish an effective system of vocational training, together with private companies and the relevant ministries. This was the main focus of Vice-President Schneider-Ammann’s visit to Belgrade at the end of October.

■ What opportunities does Switzerland offer Serbian students who are eager to upgrade their knowledge? − We have outstanding universities and top technical schools where, every year, many Serbian students complete their studies. Switzerland, however, offers only one to two scholarships per year.

■ How has the Embassy’s Facebook page changed the way the Swiss Embassy communicates with the broader public in Serbia? − Using Facebook is a way to inform the Serbian public about what we are doing. Switzerland is doing a lot in Serbia in many areas, but this often goes unacknowledged. By using Facebook we are trying to bring Switzerland closer to the minds and hearts of the people. At the end of the day, our message is clear and simple: Switzerland is a reliable partner. Our partnership builds on the hundreds of thousands of human contacts taking place every day between our two societies. ■ THROUGH DEEPER REFORMS TO NEW INVESTMENTS

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INTERVIEW

MARKO ČADEŽ

PRESIDENT OF THE SERBIAN CHAMBER OF COMMERCE

More Cooperation,

MORE TANGIBLE DEALS Although satisfied Swiss investors already doing business in Serbia are the best promoters of our country, objectively speaking, the local Swiss business community is still insufficiently aware of Serbia’s potential. Increasingly frequent meetings between companies from the two countries, and concrete business deals, are slowly filling this gap

I

n terms of exporting Serbian products, Switzerland is an underutilised market, despite the fact that very detailed analyses about Serbian economic sectors suggest more of their products could be sold on this selective market. At the same time, many Swiss investors are yet to discover what their colleagues – around 200 Swiss investors in Serbia – have found from their experience, and that is that Serbia is a good investment destination, despite the fact that there are always obstacles to overcome. Based on the relevant indicators from the first half of this year, Switzerland is the 5th biggest investor in Serbia in 2015.

Several important meetings between state officials and businesspeople took place both in Switzerland and Serbia last year and this, at which the parties discussed the potential of trade and investment collaboration.

“Our economies have all the prerequisites to cooperate well and, thanks to complementary opportunities and needs, mutual trade can become much more balanced, while investment collaboration and

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overall economic relations can be more successful and of a better quality,” says Marko Čadež, president of the Serbian Chamber of Commerce.

Statistics covering the 2005-2013 period show that Switzerland is the 10th biggest investor in Serbia. However, this result could have been much better if Swiss companies had been better acquainted with our inve stment incentives and the opportunities provided by our free / industrial zones, for instance. In this segment there is a lot of room for Serbia to better inform investors, via more powerful campaigns, about the institutional prerequisites of investing in our country.

The two countries recently launched cooperation in the area of knowledge transfer within the framework of education reform, in order to adapt education to better suit the economy’s needs. Just like Germany and Austria, Switzerland also has an advanced dual education format. The importance of dual education in terms of eliminating unemployment and improving economic competitiveness was highlighted during the recent visit of the Vice President of the Swiss Confederation and head of the Federal Department of Economic Affairs, Education and Research, Johann Schneider-Ammann, to Serbia.

The Serbian Chamber of Commerce plays an important role in implementing dual education and, accordingly, it will soon sign a Memorandum with the Swiss Agency for Development and Cooperation (SDC) on education cooperation, Čadež points out. A welltrained and educated workforce is an important component in attracting foreign investors to Serbia, but also a prerequisite for transferring the high technologies essential to the Serbian economy.

■ How much has the appreciation of the Swiss Franc affected the dynamic of overall Swiss-Serbia trade? − For incomparable economies like the Swiss, which is much strong-

PROGRESS

If the dynamics of the FDI influx recorded during the first eight months of this year continues through to year’s end, we could have over €1.5 billion worth of FDI in 2015

POTENTIAL

We could export more food products, pharmaceutical products and cosmetics to Switzerland, as well as more meat and meat products, fruits and vegetables, bottled water and wine

er, and the Serbian, which is far weaker and more dependent on import, where mutual trade is not so substantial, the price factor is important, but is also not the only one impacting on the volume and dynamic of trade. If our economies were similar in strength and were mutually competitive, appreciation of the Franc would push our imports forward, our products would have been cheaper and we would have sold more of our goods on the Swiss market. At the same time, our import would drop because we would refrain from buying at higher prices. However, our import, which was last year 2.5 times greater than our export to Switzerland, has been mostly unadaptable to such changes, because we don’t have here the relevant substitute for the goods that we import from Switzerland – like, for instance, certain medications, train cars, medical equipment, machinery etc. Also, considering that our annual trade is relatively small (in 2014 it stood at €257.5 million), all that is required for the statistical data to improve significantly is to have just one major import-export deal.

According to the Statistical Office of the Republic of Serbia, and in spite of the Swiss Franc appreciating in early 2015, our export (expressed in euros) by the end of August had dropped by 12.7% to €44 million, compared to the same period last year. Contrary to usual expectations in a situation when the Franc strengthens, our import from Switzerland rose by 81.2% and amounted to €195 million, as a result of the implementation of the train purchase contract between Serbian Railways and Swiss company Stadler. Some 35.5% of Serbian imports in 2015 relate to the purchase of Swiss trains valued at €70 million. On the other hand, and independent of import-export relations between Switzerland and economies like ours, appreciation of the Swiss Franc has also affected overall Swiss export results, particularly in the Eurozone, due to higher export prices and an increase in export goods stock.

■ Which segments of Serbian export have the greatest potential for increasing and, thus, contributing to a more balanced trade? −Our biggest export opportunities lie in agriculture, textile, metal processing, food and machine industries. Serbian tourism could also generate more substantial foreign currency income from Switzerland. If we are talking about tangible goods, the list of the products that can be sold in Switzerland is very long – providing, of course, our production stand-

EDUCATION

Switzerland’s experiences are valuable to Serbia, which is why the Serbian Chamber of Commerce is set to sign a memorandum soon with the Swiss Agency for Development and Cooperation (SDC) covering the area of education

ards are in line with the demands of this very selective market.

Following analysis of the Swiss market and our economy’s potential, as well as based on previous experiences of our companies and interest shown by potential partners, we could export to Switzerland, for example, more food products, fruits and vegetables, bottled water and wine. Our textile products (sports clothing, knitwear, nightwear, underwear), handicrafts (handmade products for personal use, gifts and interior decoration products with ethnic motifs) and toys could also be very marketable. Switzerland also needs furniture made from various materials – from garden furniture and indoor furniture, to smaller items for living rooms and decorative elements. ICT (software applications, maintenance and service), metal processing (Switzerland is seeking cooperatives in the production or assembly of parts) and electronics are economic sectors that could reduce our bilateral trade deficit. There is also demand for industrial and household plastic and rubber products, as well as industrial wood products – parquet floors, doors, window frames and sawed wood.

Over a third of Serbia’s imports from Switzerland in 2015 relate to the purchase of Swiss trains produced by the Stadler Company, valued at €70 million ■ What effect did establishing stronger economic ties at events like seminars in the Geneva Chamber of Commerce and the major business forum in Zurich have on the interest shown by Swiss companies when it comes to our market? −Forums and similar business meetings are always a good opportunity to jointly assess the current state of economic cooperation between the two countries, to exchange as much information as possible about current conditions and business frameworks in our respective economies, and to also exchange experiences and present potential economy sectors that we think have great potential for our cooperation and individual products. These events are especially important for Serbia, considering that our future sustainable development depends on growing imports and higher investments. Although there are over 200 Swiss companies operating on our market, THROUGH DEEPER REFORMS TO NEW INVESTMENTS

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and although Serbia has been commended by the Swiss investors who operate here successfully, the fact remains that the business community in Switzerland is still not sufficiently informed about investment and business benefits in Serbia. This applies in particular to investment incentives, an opportunity to partake in privatisations, activities in free and industrial zones, public-private partnerships, the development potential of the Serbian market and the regional market, as well as advantages stemming from free trade agreements.

Direct B2B talks between our companies and Swiss businesspeople, which are held at such events and which always provide a good foundation for concluding concrete business arrangements, are especially useful for improving cooperation between the two countries. The respective chambers of commerce also play an important role in organising such forums, establishing links between the two business communities and providing support to implement their business arrangements.

■ What level of foreign investments can we expect in 2015 and how big is the Swiss share in the final result? − The official estimates of the National Bank of Serbia (NBS) show that net FDI in 2015 will amount to €1.34 billion, or 4.1% of national GDP. According to the latest data, the results are better than expected – in the first eight months of this year, FDI inflow stood at €1.2 billion, of which €460 million is reinvested profits and €740.5 million is new foreign revenue streams. Analysts from Macroeconomic Analyes and Trends magazine estimate that, provided this dynamic continues, Serbia could end 2015 with over €1.5 billion worth of FDI, while there is the possibility that this amount will grow to €1.7 billion.

According to the data from last year and the first six months of this year, Switzerland’s share of total FDI inflows to Serbia ranged from seven to 11 per cent, depending on the period. The official data compiled by the NBS for the first half of this year also shows that Swiss FDI in Serbia amounted to €61.3 million, which ranks this country fifth among the biggest foreign investors in Serbia after The Netherlands, Austria, Italy and the Russian Federation. Of course, we should bear in mind that the NBS receives its data about cash FDI from business banks, and that this FDI is classified per country of payment.

The NBS statistical data on Swiss investments in the period from 2005 to 2013 shows that Swiss FDI stood at €483 million, which puts Switzerland in 10th place on the list of the biggest foreign investors in Serbia. Calculated in line with the new methodology, Swiss FDI amounted to €126 million in 2014.

Forum and this year’s repeat event, what would you highlight as the key new developments in the exchange of opinions between Swiss and Serbian businesspeople? −At this year’s business forum, the interests of Swiss companies were much more detailed than before. For instance, the Swiss business delegation is now focused on several basic sectors, unlike in previous years, and those sectors are metal processing (automation, mechatronics and robotics), the pharmaceutical industry and the production of transport devices. For Serbia, this forum provided an opportunity to showcase to potential partners the progress we have made in economic reforms, advancing the business climate and building the capacity of the domestic economy.

Switzerland is an important economic partner to Serbia, and also our most important partner among the members of the European Free Trade Association (EFTA). Both sides have also concluded that our respective economies possess all the prerequisites for good cooperation and, thanks to complementary opportunities and needs, our mutual trade can be more balanced, while investment cooperation and overall economic relations could be more successful.

A roundtable discussion about the substantially of dual education contributed to the quality of this business forum, particularly with the participation of the Vice President of the Swiss Confederation and the Serbian PM. Swiss experiences, and Swiss readiness to help with the introduction of this novel concept for the Serbian education system, are very valuable.

ICT, metal processing and electronics could lower our trade deficit with Switzerland

■ If you had to compare last year’s Swiss-Serbian Business

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■ What messages were sent from the discussion entitled “Experiences and Perspectives of Dual Education in Serbia,” which took place during the forum, in terms of improving the quality of the Serbian workforce? − Our joint message was that a qualified workforce possessing not only academic knowledge, but also practical knowhow, is the prerequisite for economic growth and development, and the advancing of our economy’s competitiveness. Companies participating actively in the education process, and a good legislative framework, also hold special importance. The fact that Switzerland has one minister of both the economy and education speaks volumes about how much importance this country attaches to the link between the two when it comes to raising the competitiveness of its economy based on excellent education and the successful implementation of dual education. Switzerland’s experiences are valuable to Serbia, which is why the Serbian Chamber of Commerce will soon sign a memorandum with the Swiss Agency for Development and Cooperation (SDC) covering the area of education. ■

CORPORATE

JOINT LAW OFFICE MARIĆ AND MUJEZINOVIĆ IN COOPERATION WITH KINSTELLAR

Clients Appreciate OUR EXPERTISE We advise a wide range of clients who are either in the process of launching investments in Serbia or are already doing business in our country

SELMA MUJEZINOVIĆ

BRANISLAV MARIĆ

G

iven that Serbia is in the process of joining the European Union (EU), which entails a series of normative and practical harmonisations with EU regulations and practices, the experience of our colleagues from Kinstellar in countries that are already EU members helps us to better understand EU regulations and practice and, consequently, respond better to the needs of our clients in Serbia which increasingly take into consideration EU standards.

■ Please tell us more about Kinstellar and its presence in the region and in Serbia?

- Kinstellar, as the international law firm with which the joint law office Marić and Mujezinović cooperates, operates in seven other countries, mostly members of the EU. Our office is relatively young, as we have only been present in Serbia since 2010, but we are very pleased with the growth and development of the office during these past five years and we expect this trend to continue in the period ahead.

The fact that the process of Serbia’s EU accession is underway and that this process carries a need for normative and practical harmonization with EU legislation and practice, is important for the work of our office, given that the experience of our colleagues from Kinstellar in those countries that are already members of the EU (e.g. the Czech Republic, Slovakia and Hungary) helps us to better understand EU regulations and practice and, consequently, respond better to the needs of our clients in Serbia which increasingly take into consideration EU standards. The possibility of

transposing experience and solutions applied and tested at the European level in the everyday work of our office is something that we consider our advantage in the domestic context.

Moreover, in the last few years we also had the privilege of being engaged in very complex projects in some strategic sectors of the Serbian economy (e.g., energy), in which our combination of domestic and international/comparative experiences helped us in terms of implementation. The consistently high quality of the legal services we offer r emains our primary objective and the benchmark of the success of our work.

■ Who are the main clients of your law office?

with assisting clients in implementing and enforcing internal compliance procedures as well as conducting certain sensitive internal investigations.

■ In which areas of law do your clients most often seek your advice?

- In general, our office is evenly diversified in dealing with different areas of law. However, lately, there has been a certain predominance of requests for advice with regard to various aspects of corporate law, energy law, publicprivate partnerships, financing, banking services, protection of competition, as well as with regard to real estate.

■ In the areas of law you work in, to what extent could it be said that Serbia has harmonised its legislation with European regulations?

- First of all, we would like to note that foreign investors’ interest in our country has been on the rise over the past two years and it is up to our authorities to continue to create a more favourable climate for the largest possible influx of new foreign direct investment. This automatically triggers a need for further harmonization of our legal framework and practice with that of the EU. We believe that our country has already done a lot on the harmonization of different regulations with European models and standards, but it is necessary for a number of regulations adopted in the previous period to actually come to life in practice, because without that the necessary legal protection certainty is lacking. ■

In recent years, we had the privilege of being engaged in very complex projects in some strategic sectors of the Serbian economy, such as for example energy - We advise a wide range of clients who are either in the process of launching investments into Serbia or are already doing business in our country, such as multinational companies, banks, insurance companies, investment funds and various local companies. Our clients have, in recent years, been especially interested in the sectors of agriculture, energy, metals and the mining industry, as well as in the ICT field. Likewise, we are actively engaged in dispute settlement and

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

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INTERVIEW

MARINKO UKROPINA

PRESIDENT OF THE SWISS-SERBIAN CHAMBER OF COMMERCE (SSCC)

Valuable

PARTNERSHIP Swiss companies are responsible investors and members of the business community. They employ several thousand qualified workers and are among the key players in strengthening Serbian exports with high quality products

foreign and domestic companies, the absence of professionalization in the operations of public companies, poor transport infrastructure, and excessively long terms of payment.

S

ince its establishment last year, the SSCC has succeeded in positioning itself as a true representative of the Swiss business community in Serbia, gathering together all the most important companies present on our market, says Marinko Ukropina, president of the Swiss-Serbian Chamber of Commerce (SSCC). In this interview, Ukropina explains what Serbia needs to do to attract more high quality investors to its economy, and to better position its products on the Swiss market.

■ When you explain to interested Swiss companies the investment opportunities in Serbia, what do you most commonly highlight as advantages, and what do you point out as key institutional risks? −Among the advantages, I primarily like to single out the beginning of negotiations for Serbia’s membership in the European Union. Although Switzerland is not a member of the Union, this process is very important for companies from the country, since they expect business in Serbia to be eased significantly, with conditions nearly equal to those currently present in developed European countries. Other advantages include a favourable geographic location, a long tradition in industrial manufacturing, an educated workforce, a strong raw materials base and free trade agreements.

The disadvantages include excessive state influence on economic activities, administrative obstacles, an insufficiently predictable economic policy, in both short-term and the mid-term, a lack of transparency in the public procurement process and unequal treatment of

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■ What were the most commonly expressed concerns among companies considering entering our market that you have heard at the major business forum in Zurich, and how much is this about prejudice and how much does it relate to relevant cause for concern? − The basic goal of the assembly in Zurich was to introduce Swiss businesses to the current political and economic situation in Serbia, and the possibilities for doing business on the Serbian market.

It did not strike me that there was any real apprehension among the Swiss companies regarding their coming to Serbia, but I’d rather say that our market, for various reasons, is not among their priority markets. Serbia will only be interesting to Swiss SMEs if it sorts out its business environment entirely and makes use of its advantages.

■ How can large Swiss companies help SMEs interested in investing here and in which areas is this type of investor assistance needed the most? −The presence of large Swiss companies in Serbia can have a positive influence on small and medium-sized Swiss companies in deciding whether to invest on this market or not, but this influence is not decisive. Every investment decision, regardless of the size of the company, has its clear logic and is considered carefully, and the key factors are political and economic stability.

■ In the past year or more of its existence, how has the SwissSerbian Chamber of Commerce managed to establish itself as an interlocutor of the Serbian government and institutions

EXPECTATIONS

Swiss companies expect doing business in Serbia to be eased significantly, with conditions nearly equal to those currently present in developed European countries

CHANGES

There are still bad examples in doing business in Serbia, and they harm not only businesses, but also the reputation of the entire country. However, certain positive developments are evident

when it comes to improving the business climate in Serbia? − The Swiss-Serbian Chamber of Commerce has existed for just over a year, not long enough to show its results to the full extent, but its importance in promoting Swiss values and knowledge in Serbia, as well as creating conditions for business networking and reinforcing dialogue between members of the Chamber and the governmental and private sectors, is already evident. Swiss companies in Serbia bring new rules of corporate behaviour and organisation of work and production, the constant need for an educated workforce and clear export orientation. I am certain that these are the values that Serbia also stands for, and in that sense we are completely open for cooperation with state authorities and institutions that deal not only with improving the business climate in Serbia, but primarily with creating economic policy and strategy in accordance with the best practices of developed countries.

■ What would you highlight as the most significant results of the work of Swiss-Serbian Chamber of Commerce in the previous period and how does the SSCC differ from other business associations of the same type in Serbia?

REPUTATION

Knowing that they will receive excellent working conditions, Serbian experts and young people gladly seek employment in Swiss companies

− In an organisational sense, the difference between our chamber and other business associations in Serbia is not so striking. Perhaps we could say that the qualities specific to us are our insistence on following ethics, consistent implementation of business integrity and conducting business according to Swiss standards.

Certainly the most important result of the Chamber’s operations is that it has succeeded in positioning itself as a true representative of the Swiss business community in Serbia, gathering together all the most important companies present on our market. As for activities, I would like to point out the organisation and participation of the members of the Chamber at two important business forums (Zurich and Belgrade) and a business seminar in Geneva that took place in April this year.

■ In your opinion, how ready is the Serbian government today to engage in dialogue with the business community; and how much can the results of such exchanges of opinion be seen in the tangible process of reducing red tape, corruption and similar phenomena, which are overburdening the business environment?

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− Of course, I cannot talk on behalf of everybody, as experiences are different. The Swiss business community in Serbia has fair cooperation with government departments and institutions. It’s another question as to whether that is sufficient and what our objective influence is when it comes to the process of making decisions that relate to doing business on the Serbian market. We respect the authority and power of state institutions, and we react to negative occurrences that are familiar to all of us and which impact on doing business in Serbia. There are still bad examples, and they damage not only businesses that maintain a high quality of work, but also the reputation of the entire country. However, certain positive developments are visible.

■ SGS led a programme to combat the grey economy, in terms of trade in fuel. Is there room for a similar approach to fighting the grey economy in other areas?

■ To what extent have Swiss companies in Serbia managed to impose business standards on their partners in the country that imply the consistent implementation of regulations, compliance with obligations towards the government, employees and local communities? − I am certain that Swiss companies have a positive influence on the Serbian market, but it might not be so clearly visible in practice. Unfortunately, for most companies, implementing Swiss standards into their business is not a priority; they have insufficient capacity, interest or funds.

Globally, Swiss companies have an exceptional reputation when it comes to corporate responsibility, and this also applies fully to the Swiss business community in Serbia, which is why Serbian experts and young people setting out on their careers gladly seek employment in Swiss companies, knowing that they will receive excellent working conditions.

■ A large part of the European integration process relates to standardisation in the narrow and broad sense of respect of European rules of doing business. To what extent are Serbian companies aware of the importance of respecting these rules? − Awareness about this point is not the issue. What is more important is the gravity in addressing said issue. From the viewpoint of a long standing businessman and managing director of SGS, I can confirm that running a serious business, especially in times of globalisation of the economic space, is not possible unless you can ensure the quality of products and services according to the highest standards. This goes for everybody in international trading. Special-

− We work together with the Serbian ministries of finance and mining & energy on the programme of fuel marking, which resulted in an increase of the budget of the Republic of Serbia in 2014 of over 200 million euros.

Inspection of the origin of the fuel sold at petrol stations has great economic, financial and ecological importance, and is bringing order to this field. In cooperation with the Customs Administration, we are enforcing a programme called SGS TransitNet, the electronic submission of customs transit declarations, which significantly accelerates and eases international traffic of goods through our country.

SGS has offered to implement the SGSLayer4 programme, which is a unique system for monitoring and measuring international incoming telephone traffic. On the basis of uncollected taxes due to activities of illegal providers, the budget of the Republic of Serbia loses out on tens of millions of euros annually. We believe that the state authorities will recognise the importance of this programme.

There is also a lot of unfair competition in SGS’s line of business. A market of Serbia’s size should have 10 credible certification bodies at most, and now we have over 100, many of them not even accredited.

Many companies willingly risk having invalid accreditation behind reports certifying quantity or quality of goods traded or quality management certificates, just so they can pay unrealistically low prices. In such cases companies dealing mostly in export suffer the most damage, but also Serbian economy in its entirety, since serious foreign partners can easily see if they are dealing with unstable partners.

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Serbia would only be interesting to Swiss SMEs if it sorts out its business environment entirely and makes use of its advantages ised, internationally acclaimed organisations, such as SGS Belgrade, have great importance worldwide, because they help companies attain that goal. Fulfilling this very important task means constant independent inspections, testing, monitoring and certification, for the purposes of the domestic market, as well as for the realisation of various business arrangements abroad.

■ What is your advice to Serbian companies interested in appearing on the Swiss market? − The Swiss economy has been among the most stable and competitive in the world for years, and its market, although relatively small, is quite attractive, due to its open nature and the high spending power of its population. Goods mostly imported are raw materials, semi-finished products, consumer goods and food products.

To export to Switzerland, and this goes for most other developed European countries, it is necessary to ensure the high quality of products, attractive packaging, adherence to strictly agreed delivery and payment terms, finding a reliable local partner etc. The price of the product is not a decision breaker for Swiss consumers. ■

CORPORATE

MIŠA JOVANOVIĆ,

CEO AT AQUAWELL GROUP AG, SWITZERLAND

Bottled EXCELLENCE The quality of water from Kosjerić can be compared with the world’s top brands, like Evian, Vitel and Volvic, and will soon reach consumers all over the world rights and legal standards. I would like to use this opportunity to thank all departments of the Serbian Government that have supported us in the past four years. And I hope this will continue in the future.

W

ith the continous administrative support of the Serbian government, Aquawell Group AG managed to complete all the procedures necessary to open its bottled water facility in Kosjerić. After investing €10 million in its production plant, machinery, infrastructure, branding and operations, the company can say with pride that is ready to export various types of water to consumers all over the world. Aquawell is especially proud of its Baby Water, which is unique when its coms to the high standard of quality.

■ What kind of water (in terms of the type of consumer) will you bottle in Kosjerić and which markets do you intend to conquer?

- We are going to bottle several different kinds of water - Natural still and sparkling mineral and classical water, Baby water and Kids water. And we are all very proud of our Baby Water, which will be exclusive in that there is no other water on the market with the kind of high quality of our Baby Water. We will have PET and glass products. Our world class design and price structure

- The total investment in the production plant, machinery, infrastructure, branding and operations will reach 10 million euros by the end of this year. When it comes to standards, we have done our best to implement ISO certification and receive HACCP and FDA approval. We implemented Swiss standards at our factory when it comes to employment, construction materials and project management.

■ What were the main factors that led you to decide to open a factory in Kosjerić?

- The first factor was certainly the quality of water provided by our spring.

The quality is unique and can be compared with the world’s top brands, like Evian, Vitel and Volvic. The second factor relates to the opportunities that kind of water provides in terms of positioning us as an innovative producer of new products, such as our Baby Water and Kids Water. And the third factor is Serbia as country, which gave us the opportunity to invest without major complications, implement construction works and receive permits, exporting

We implemented Swiss standards at our factory when it comes to employment, construction materials and project management allows us to access consumers all over the world. We are looking forward to gaining consumers on different markets and will do that with our clear organisation, streamlined processes and distribution concept, which will position us in a nitche segment.

■ How much was the initial investment worth and which standards do you intend to implement in Kosjerić?

■ Were you satisfied with the investment opportunities and conditions offered by the local municipality?

- First of all, we are satisfied with Ministry of Agriculture and Environmental Protection, which provided us with the necessary support. When it comes to the local municipality, there were different project milestones for which the local municipality was unable to help us, due to the inexperience of working on such projects. We also receive help from local people. There were only a few that were not overwhelmed by our project, but I guess it’s like that everywhere. At the end of the day, the right communication and local integration will bring the expected success. ■

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INTERVIEW

ANA GRUJOVIĆ

EXECUTIVE DIRECTOR OF THE SWISS-SERBIAN CHAMBER OF COMMERCE

Partnership for SUCCESS Since its founding in March 2014, the SSCC has built a strong network of institutional partners both in Switzerland and Serbia, positioning itself as a reliable partner for further strengthening Swiss-Serbian economic relations

I

n the recent period, the Swiss-Serbian Chamber of Commerce (SSCC) has organised a series of events aimed at better familiarising Swiss companies with investment opportunities in Serbia, possibilities for strengthening trade and the creation of new SwissSerbian business contacts.

■ How would you evaluate the success of the recent SwissSerbian Business Forum and what do you consider as being the most significant achievements of this gathering? − Staging the Swiss-Serbian Business Forum, which was organised in cooperation with the Chamber of Commerce of Switzerland-Central Europe and the Serbian Chamber of Commerce, and which was attended by approximately 150 participants, confirmed that there is interest in further promoting economic cooperation between Switzerland and Serbia. During the forum, representatives of the Swiss business delegation presented the economic potential of Serbia, a number of projects open to foreign investment, the benefits provided by the free trade agreements Serbia has with its trading partners, as well as other advantages of doing business and investing in Serbia, with the aim of considering the possibility of improving economic cooperation and cooperation between companies.

Under the auspices of this forum, a roundtable event was organised and attended by the Vice-President of the Swiss Confederation

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THROUGH DEEPER REFORMS TO NEW INVESTMENTS

and the Federal Minister of Economic Relations, Education and Research, H.E. Johann Schneider Amman, and the Prime Minister of the Republic of Serbia, Aleksandar Vučić, the main topic of which was “Experiences and Perspectives on Dual Education in Serbia”’. On this occasion, Mr Amman expressed Switzerland’s willingness to use its experience to help Serbia establish a dual education system.

Following the plenary part of the Forum, bilateral meetings were held between Serbian and Swiss entrepreneurs, aimed at strengthening existing business contacts and establishing new ones.

■ Which topics were to the fore during the seminar at the Geneva Chamber of Commerce and at the Business Forum in Zurich, and what sort of conclusions can we derive from them when it comes to furthering interest in our market among Swiss companies? − The main objective of the seminar held at the Chamber of Commerce of Geneva was to promote Serbia as a potential business destination for Swiss companies. The seminar included the staging of presentations on Serbia’s macroeconomic performance and economic potential. Representatives of Swiss companies that already operate in Serbia also presented their experiences of doing business in Serbia, as well as the business opportunities and challenges they face on the Serbian market.

The Business Forum “Serbia on the path of modern economics”, organised by the Chamber of Commerce of Switzerland-Central Europe in Zurich in June this year, also conveyed the message that Serbia offers foreign investors attractive conditions for doing business.

On this occasion we had the honour of introducing forum participants and familiarising them more closely with the work and core activities of our association.

■ What other results of the operations of the SSCC from ■ What business values have Swiss companies brought to the the previous period would you emphasise?

Serbian market and how much do they succeed in imposing − Since it was founded in March 2014, the SSCC has built a strong netthose values on their partners when it comes to respecting work of institutional partners, both in Switzerland and in Serbia. We are contracts, maintaining a responsible attitude towards the pleased that numerous institutions recognised us as a reliable partner for state and employees? further strengthening Swiss-Serbian economic relations, and that we had − Switzerland has proved to be one of Serbia’s most reliable business partners. It is today among the leading foreign investors in the opportunity to work with these partners on the organising of numerous events, both in Serbia and in Switzerland. In addition to the aforethe domestic market and is considered Serbia’s most important mentioned events, the SSCC, in cooperation with “Switzerland Tourism”, foreign trade partner within the framework of the EFTA region. recently also organised the “Swiss Credit for this positioning of Switzerland also belongs to Swiss Business Lunch”, at which our member companies had an opportunity to companies, which are considered better acquaint themselves with the responsible and serious business education and health system of Switpartners. Through their daily busizerland, as well as with this country’s ness activities, they promote basic developed and varied tourism offer.

Swiss values, such as quality, innovation and efficiency. Furthermore, Then, the growth in the number they also contribute significantly of member companies is also one of the results achieved during the last to the sustainable development of year, which enabled the building of a the Serbian economy, through the transfer of skills and knowhow to well-connected Swiss-Serbian business community, as well as increaslocal partners, as well as through ing its visibility. The SSCC today has their corporate social responsibility activities. During our recent visover 50 members who are actively it to company “OMYA Venčac” in involved in the growth and development of our association.

Aranđelovac, member companies Finally, receiving a large numhad the opportunity to familiarise ber of inquiries from Swiss comthemselves with the many activipanies about conditions for doing ties of the company that are aimed ANA GOVEDARICA (left), General Manager at Roche d.o.o., and ANA GRUJOVIĆ business in Serbia, as well as inquiries from local businessmen who are interested in successfully developing their own business activities on the Swiss market, is proof that the SSCC has built its reputation and image as the “first point of contact” at ensuring the sustainable development of the local community. for obtaining relevant information and practical support in relation to the way business is done in Serbia and Switzerland.

■ What will be the key directions of the SSCC in the coming period?

■ When it comes to improving regulations and eliminating − One of the main directions of our work is reflected in our support administrative barriers to everyday business, how would aimed at raising the competitiveness and sustainability of SMEs. you evaluate cooperation with state institutions?

The majority of the Swiss economy, which is one of the world’s most − We have received the most inquiries from Swiss companies in relation competitive economies, is comprised of SMEs. Currently, the SSCC is to customs procedures and processes. In accordance with that, the SSCC organising a series of educational workshops at which novelties and has established successful cooperation with the Customs Administration innovations in different areas of national legislation are presented. of the Republic of Serbia, organising a seminar on this topic and exchanging information of practical relevance between the private sector and the These seminars are particularly useful for SMEs, as they enable them Customs Administration of the Republic of Serbia. The main objective of to obtain timely, fresh, reliable and accurate information, which can the seminar was reflected in providing support to companies with busibe crucial for achieving success under modern business conditions. ness orientated towards trade, thereby contributing to expanding the volThen there is the promoting of Serbia as an attractive business ume of trade between Switzerland and Serbia. Moreover, the attendance destination among Swiss companies, which remains among our primary objectives. of local government officials at events organised by our association is yet Finally, maintaining a relationship of mutual trust with our memmore evidence of the willingness of representatives of state institutions to bers, as well as further increasing the number of members of our asbecome more familiar with the needs and expectations of representatives sociation, remains among our primary objectives in the future. ■ of the Swiss-Serbian business community.

Switzerland is today among the leading foreign investors in the domestic market and is considered Serbia’s most important foreign trade partner within the framework of the EFTA region

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

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CORPORATE

PREDRAG BOGAVAC CEO AT NOVARTIS

Patients the

TOP PRIORITY

N

ovartis’s clinical research programme is one of the most comprehensive in the world and its portfolio also includes a wide range of medications intended for the treatment of oncological diseases.

However, many of them are not available to patients on the Serbian market, as the C-list of the Health Insurance Fund has not been innovated for years.

Despite the current situation on the market not favouring the pharmaceutical sector, Novartis will always be strongly committed to its patients in Serbia, with the aim of providing them with safe and effective therapies for the diseases from which they are suffering

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■ What are the most important goals of Novartis in the coming period, when it comes to the domestic market?

- Novartis has been present in Serbia for almost 20 years in the form of a representative office. The current situation on the market does not favour the pharmaceutical sector, which is in constant restructuring and is making job cuts due to tough working conditions. Our market has not yet adopted the value of innovation as an important driver of future development. However, considering that our patients are our focus, Novartis will always be strongly committed to its patients in Serbia, and our goal is to provide them with the quickest way of obtaining safe and efficient therapy for the diseases from which they are suffering.

■ In which areas of health are Novartis’s medications most commonly represented in Serbia?

- Novartis has a very broad portfolio of medicines and the most common are products in cardiology, oncology, immunology, dermatology, neurology and ophthalmology.

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

■ In Serbia we see high levels of mortality rates among cancer patients, even in cases of such forms for which an adequate medical response exists. Where do you see the greatest obstacle to patients gaining access to therapies in an optimal timeframe?

- Oncologic diseases are on the rise throughout the world, not just in Serbia. It is believed that by 2050 every other person will have some form of oncological disease. That’s why oncology is a priority area for almost all governments and health systems. Unfortunately, although much has been said about the increase in the incidence of oncological diseases in Serbia, very little has been done in terms of making modern oncological therapies available to patients. In support of this is the death rate from oncological diseases in Serbia, which is considerably higher than in other European countries.

At the moment there are modern, much more effective therapies for many oncological diseases that are not available to our patients.

These medications have been registered by manufacturers, but we have a situation where C-list of the Health Insurance Fund has not been updated for years in terms of introducing new treatments, or even in the planned budget. The focus is normally placed on the fact that the state has no money for expensive treatment. However, that fact is disputed by the fact that many states that allocate less for health than Serbia have greater access to new therapies.

■ What are the key directions in which Novartis is making innovative approaches to treatment at the global level?

- Novartis continually has a rating as a company with an innovative product line worthy of respect. At the moment we have more than 200 projects in clinical development. Many of them, whether they involve new molecules or additional indications for existing product formulations, are related to medicines that can significantly push boundaries in the treatment of certain diseases. What we are very proud of is the strong research focus directed towards the discovery of medicines for the treatment of rare diseases.

We strive to provide patients with the maximum benefits of new and more efficient medicines by prioritising research in line with the needs of patients, using the synergy with our Alcon and Sandoz divisions, identifying biomarkers in order for diagnostics to support the treatment of patients suffering from rare diseases, and carefully designing clinical studies to help health authorities assess the clear economic benefits of new therapies.

■ What kinds of challenges does an aging global population present for the pharmaceuticals sector?

- With the advancement of medicine and the improvement of nutrition, the average life expectancy of the human population is ever increasing. According to some statistics, the existing population of people over 65 will triple by the middle of this century.

In the same period, the number of children will record only very modest growth. This will inevitably lead to increased consumption of medical services and medicines.

Also, during their working lives people usually have private helath insurance secured for them by the company where they work, and after retirement most are fully refunded at the expense of State insurance. This leads to increasing pressure on health budgets and difficulties in financing, and the pharmaceutical industry has to take care of this aspect. At the same time, the costs of the pharmaceutical industry are increasing rapidly, as are regulatory barriers. However, I am optimistic that the pharmaceuticals industry is working with its main partners in

the health sector to find a successful model, primarily for the benefit of patients for whom these medicines are essential.

■ What does the new Novartis Access project entailand what is Novartis hoping to achieve with this?

- The answer to this question is contained in Novartis’s recently published declara-

■ In which areas do you see the great-

est changes when it comes to the health needs of the population in Serbia, and to what extent do they correspond with global trends?

- The needs of patients in Serbia do not differ markedly from the global needs of patients in any part of the world. However, when it comes to the availability of medicines for patients in Serbia, I have to say that we have in recent years begun to lag behind Europe, even those least developed European countries. Here I am primarily referring to oncological treatments, which should be a priority for every government and state, given that oncological diseases are in the greatest expansion.

■ You recently helped to equip the Obrenovac Health Centre. What are

Although much has been said about the increase in the incidence of oncological diseases in Serbia, very little has been done in terms of making modern oncological therapies available to patients. Money is not the determining factor, as demonstrated by the experiences of countries that are poorer than us tion for patients. For the first time in history, a pharmaceutical company has publicly addressed patients and told them what they can expect from the company. These are primarily availability of our medicines, patient safety, consideration for the perspective of patients, transparency and integrity of information and informing about clinical trials.

The Novartis clinical research programme is one of the most extensive in the world, covering many therapeutic areas. We have promised that in every country where we perform clinical trials we will register our new medicine and make it available commerically if possible. Where a medicine is not available commercially, we will provide it for patients who were involved in clinical trials, in order to ensure their continuous treatment.

the guiding principles of Novartis’s CSR activities in Serbia?

- As a global company, Novartis has corporate responsibility towards the countries in which it operates. That is also the case in Serbia. After we witnessed the catastrophic floods that hit our country last year, we felt a responsibility to do something. I am proud that, within 24 hours, Novartis approved a very large sum of money, which we directed towards the renovation and refurbishment of the Obrenovac Health Centre, which was badly damaged during the flooding.

Corporate responsibility is at the core of our business strategy. It is reflected in the availability of our products to patients, transparent reporting, efficient use of natural resources and the minimising of our environmental impact. ■

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

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Strong Potential for Improvement

FOCUS

Investors are choosing Serbia for their long term endeavours for many reasons: an excellent geographical position, political and economic stability, a dynamic government open for dialogue and a fine labour force. However, fine tuning is needed in many areas, such as law enforcement and cutting red tape and administrative procedures We asked members of the Swiss business community in Serbia to answer the following question: “Based on your experience of working in Serbia, what do you see as major positive aspects and in which areas do you see the greatest room for improvement?”

Businesses Need a Stable Legal Framework

Right Address for FDI  Serbia offers many advantages to foreign investors and the country will benefit even more if transparency and administrative efficiency are improved

XAVIER DAVARD

GENERAL MANAGER AT SICPA ALBANIA AND BALKAN REGION

he Republic of Serbia is one of the most attractive countries in the Balkan region by virtue of its dynamism, geographic position and tax incentives for foreign direct investments.

Moreover, Serbia’s highly skilled and educated labour force, as well as accelerated processes for issuing building permits, enables swift project implementation in the country. These advantages are the consequence of the strong and clear policy framework put in place by the Government of Serbia in order to attract Foreign Direct Investments, although the Republic of Serbia has further work to do to improve transparency and administrative efficiency.

SICPA has for decades been a strong partner of the National Bank of

T

SICPA has for decades been a strong partner of the National Bank of Serbia and of ZIN, the Institute for Manufacturing Banknotes and Coins Serbia and of ZIN, the Institute for Manufacturing Banknotes and Coins.

The excellent reputation of SICPA, and its success in developing strong relationships of trust with governments and central banks, is based on the company’s focus on promoting profound knowledge, respectful entrepreneurship and a continuous commitment to local partners. These are values shared by the Swiss Serbian Chamber of Commerce.

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THROUGH DEEPER REFORMS TO NEW INVESTMENTS

DRAGAN MAKSIMOVIĆ

GENERAL MANAGER AT SIKA D.O.O., SRBIJA

 Serbia is geographically advantaged and tax friendly location for businesses, but the country has to put more effort into making the legal framework simpler and more predictable

erbia is a geographically attractive location with good transport connections with neighbouring countries; within 400km of the capital of Belgrade are the capital cities of Hungary, Bulgaria, Croatia and Macedonia, which creates the potential for the market to be multiplied through export opportunities.

The Serbian tax system features one of Europe’s lowest corporate tax rates, set at 15%, VAT of 20% and a 10% tax on earnings. The favourable corporate tax rate is supported with 54 effective double taxation conventions.

However, improvements could be made in the area of simplification of the

S

Laws are being changed too often and that makes it difficult to maintain medium- and long-term business plans legal framework for business. Laws are being changed too often and that makes it difficult to maintain medium- and long-term business plans, due to constant amendments to legislation. Unfortunately, legislative changes often do not keep pace with business, always lagging a few steps behind.

Shortages in laws are usually covered by too many bylaws on exclusions and exceptions, which further complicate the course of the legal framework for business.

Local authorities and municipalities use bylaws to levy various para-fiscal charges against companies.

Medicine Market Not Easy

Priorities: Deeper Structural Reforms and EU Legislations  Serbia is the biggest market in the Western Balkans and it is growing constantly

YANA MIKHAILOVA

REGIONAL DIRECTOR, NESTLÉ ADRIATIC

he country’s very good geographical position, along with its political and economic stability, are the major factors attracting a wide network of foreign companies to invest in both the Serbian economy and people.

It is also worth mentioning that the government and public sector are open for dialogue with the private sector on all matters, especially when it comes to resolving issues like youth unemployment.

Besides that, the experiences I have had so far with people are rewar-

T

Reforms have to tackle laws and regulations related to important issues, such as further reducing the economy's grey sector, fighting corruption and raising the efficiency of the administration ding, based on their overall strong business orientation, accountability and responsiveness.

On the other hand, Serbia needs to continue with further and deeper structural reforms and harmonisation with EU legislation. These are the essential priorities in order to additional strengthen the country’s economic stability. Reforms must tackle laws and regulations related to important issues, such as further reducing the economy’s grey sector, fighting corruption and raising the efficiency of the administration.

These are the areas with the most room for improvement, which would result in advancing the overall business climate and, thus, luring even more investors.

 Investors can count on a stable macroeconomic environment, a good labour force and a government open to cooperation he most obvious reasons to invest in Serbia are its good geographical poGENERAL MANAGER AT sition, broad network of foreign companies, ROCHE D.O.O. qualified labour force and the openness of the Government of Serbia to cooperation and suggestions. The stable dinar exchange rate and stable banking system, as well as trade agreements with Russia and the region, are additional advantages to doing business in Serbia. The price of labour is lower than in most of European countries and foreign investors can easily receive a variety of benefits, especially in public-private partnership arrangements.

As far as the medicines market is concerned, the state – as the largest purchaser – pays its obligations within deadlines that are shorter than in other countries in the region.

ANA GOVEDARICA

T

As far as the medicines market is concerned, the state – as the largest purchaser – pays its obligations within deadlines that are shorter than in other countries in the region The negative aspects include a low purchasing power and small retail markets, a lack of infrastructure in major parts of the country and a lack of full compliance with EU regulations, the low level of economic activity and the low rate of economic growth, as well as the aging population and lack of specialists in certain areas and impeded exports to the EU market.

The biggest challenges on the pharmaceuticals market come from huge state pressure on drug producers in terms of prices and the almost nonexistent introduction of new innovative drugs on the reimbursement list.

Slow procedures for medicine approvals, price and exchange rates determination, the unpredictability of the business and the inability to plan for a longer period, due to behaviour which differs from regulations governing the pharmaceutical market.

www.cordmagazine.com

www.aim.rs THROUGH DEEPER REFORMS TO NEW INVESTMENTS

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SWISS ARMY KNIFE

From Humble Tool to

GLOBAL ICON

In Switzerland, there is a saying that every good Swiss citizen has one in his or her pocket. It is an object that is recognised all over the world, and it is globally popular.

But the Swiss army knife had humble beginnings, and, at the start, it wasn't even red. However, this year Victorinox celebrated the 131st anniversary of the Swiss army knife

I

n the late 19th Century, the Swiss army issued its soldiers with a gun which required a special screwdriver to dismantle and clean it. At the same time, tinned food was becoming common in army rations. Swiss generals decided to issue each soldier with a standard knife.

It was a life-saver for Swiss knife makers, who were, at the time, struggling to compete with cheaper German imports.

“My great-grandfather started a small business in 1884, more than 130 years ago,” explains Carl Elsener, head of the Swiss knife manufacturer Victorinox. ”He was making knives for farmers, for in the kitchen and so on, and then he heard that the Swiss Army wanted a knife for every Swiss soldier.”

Carl Elsener senior seized that opportunity with both hands and designed a knife that the army loved.

“It was a very simple thing,” explains his great-grandson. “It had a black handle, one big blade, a tin opener and a screwdriver.”

GLOBAL CULT OBJECT

The very first knife was designed to dismantle guns and open tinned food.

A more elegant design, it included a corkscrew and a pair of scissors.

Interestingly, the officer’s knife was never issued to those serving in the

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army. The Swiss military purchasers considered the corkscrew not “essential for survival”, and so officers had to buy this knife individually.

But it was this design, says Carl Elsener, which launched the knife as a global brand.

“After the Second World War, Europe was

full of American soldiers,” he explains. “And as they could buy the Swiss army knife at PX stores (shops on military bases), they bought huge quantities of them.”

“But it seems “Schweizer Offizier Messer” was too difficult for them to say, so they just called it the Swiss army knife, and that is the name it is now known by all over the world.”

PROTOTYPES

Today, there seems to be a knife for every kind of activity. There are knives with altimeters for mountaineers and knives for anglers with special tools to get hooks out of the mouths of fish.

But not every prototype proved successful, and some of these are on display as well, including a knife with a pencil sharpener. It made an ugly bulge at one end of the knife, and was eventually rejected.

Then there is the knife with a special blade for cutting cheese in precise slices of exactly the same shape and thickness. It seems that even in Switzerland, there was not enough of a market for this one. And in pride of place, there is the knife which no-one will ever put in their pocket, but which has an entry in the Guinness Book of Records. With 314 blades, it is the world’s biggest penknife.

Interestingly, the officer's knife was never issued to those serving in the army. The Swiss military purchasers considered the corkscrew not "essential for survival", and so officers had to buy this knife individually

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

SPACE SHUTTLE

Master knife makers can put one together in less than two minutes, but for amateurs it takes much more time, patience, and a very steady hand. It is a sign of just how successful the idea has become, despite one or two false starts, like the cheese blade.

The Swiss army knife has even been into space with the crew of the space shuttle. And an oversized copy is on display in New York’s Museum of Modern Art. Its original designer probably never dreamt of such attention.

“I do not expect my great-grandfather ever had the idea that the Swiss army knife would be popular over the whole world, and become a symbol for Swiss quality and reliability,” says Carl Elsener. ■

TENNIS

ONE OF THE MOST BEAUTIFUL STORIES OF THE WHITE SPORT

Mr Champion vs MR NO.1

Like true gentlemen, Roger Federer and Novak Đoković offered each other well-deserved compliments after the completion of the Masters in London at the end of November.

Only the two of them know the secrets of tennis that we, mere mortals, can only guess. And only they know how difficult, and often impossible, it is to beat the other

D

espite the “bad blood” that the media spent days persistently trying to create between the two rivals during the tournament at London’s “O2 Arena”, on the court was seen all the purity of sport, a great battle, fair play, outmanoeuvring each other, but also the great respect that Roger and Novak have for one another.

Perhaps this respect did not manifest immediately, it may have required some time to pass for the once undisputed ruler to get better acquainted with the young man from Belgrade who made his way to the top at immense speed and then overtook the old champ.

After all, they have met during their careers 44 times, with the score currently all-square at 22-22. This is the second most intense rivalry in the Open era of tennis, while ahead of it, in terms of the number of duels fought, is only the rivalry between Đoković and Rafael Nadal (46 duels). Of these, 14 encounters have been Grand Slam finals, while nine have been semi-finals.

Statistics still show that Federer is the only player in the world to have managed to beat Novak at all four Grand Slams, and it is interesting that Đoković is the only player on the planet to have succeeded in beating Roger at every grand slam event!

Moreover, unlike other tennis rivalries, where the ratio of wins and losses depends on the playing surface (with one player dominant on clay and the other on hard surfaces), this is not the case with Novak and Roger. Both handle all surfaces extraordinarily well, so it is no wonder they never managed to string together more than four consecutive victories against each other.

However, in order to catch up with Roger in terms of total results, Novak will have to continue playing at this level for a long time. In his career to date, the Swiss ace has clinched 1,059 victories (only Lendl (1,071) and Connors (1,264) have amassed more), won 88 titles and spent 302 weeks as the world’s number one player. Novak, on the other hand, has 686 wins – which currently ranks him 12th on the all-time list of champions – taking 59 titles and spending 174 weeks as number one.

He might catch up in three years, but he might not be able to do so. However, that race for records, accomplishments, history; that competition, with battles between them that are open from the first point to the last,

sation and the like. Newspapers recently floated the story that Federer reportedly deliberately sat on Novak’s bench before the match in London, in order to shake his rival psychologically, while Đoković, again allegedly, said that he “allowed” Roger to beat him, thereby undermining the Swiss champ’s triumph. Of course, neither of those incidents actually happened, with both being taken out of context and exaggerated. The players responded to all these things during the award ceremony at the O2 Arena, when they addressed each other warmly, congratulated each other, but also offered best wishes for their rival, as well as their family, friends and teams.

Anyone who knows these two players is aware that it is not merely the kind of courtesy generally seen at such events, but rather sincerity and truth. Novak Đoković and Roger Federer represent the best thing that has happened, and is still happening, to the so-called white sport; this is about such great champions, people, humanists, that casual tabloid gossip will certainly not shake their relationship. They have built their rivalry on clear relations, without intrigue, tricks, underhand tactics and arguments. Hatred does not exist in their vocabulary. Only victory, defeat and respect. That’s why they are the best among the best.

And that’s why tennis is an elite sport.

That’s also why many already consider Novak and Roger as being eternal champions, who provide gold lettered entries in the annals of tennis history on a daily basis. A new chapter in this book begins in January next year. Let’s see how it will start. ■

Novak Đoković and Roger Federer represent the best thing that has happened, and is still happening, to the so-called white sport that epic rivalry, sparks, represent the crème de la crème of the white sport and the best thing there is in world class tennis, and fans around the world agree.

On and off the court, Roger and Novak always behave immaculately towards one another. They behave sportingly, fair, considered, correct, well-mannered.

That might not be “interesting” enough for some, who try to “cook up” a story and create conflict between them. It is generally known that only a bad story is a proper story for the media, so they make “something” out of nothing for the sake of greater circulation, sen-

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

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SWISS-SERBIAN CHAMBER OF COMMERCE (SSCC)

Young, Independent and The increase in the trade exchange and continued investments by Swiss companies support the conclusion that, in a year and a half of operations, the Swiss-Serbian Chamber of Commerce has provided a significant contribution to strengthening economic relations between the two countries

O

ver 50 members of the Swiss-Serbian Chamber of Commerce (SSCC) can be more than satisfied with the results of the work – from the formation of the Chamber in March 2014 to the present, extremely important events have been organised that have contributed to intensifying economic cooperation and strengthening ties between businessmen from Serbia and Switzerland – and fully justifying the establishment of the Chamber. Or, as stated at this year’s anniversary of the work of the Chamber by SSCC executive director Ana Grujović, the Chamber “as a young, independent and fully self-financed institution”, succeeded in building a strong network of institutional partners in Switzerland and Serbia, in order to strengthen economic relations between the two countries.

Also testifying to the success of the Chamber is increased trade exchange and continued investments from Switzerland, such as the delivery of trains of Swiss manufacturer “Stadler” to Serbian Railways, the opening of the first Swiss hotel, Holiday Inn Express, in Belgrade, and the opening of a factory for mineral water in Kosjerić – an investment of Swiss company “AQUAWELL Group AG”, which suggests that

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SUCCESSFUL ADRIEN ALKABES (left), Director at Monterosa, ANSGAR BORNEMANN, CEO at Nestle Ukraine, DRAGAN MAKSIMOVIĆ General Manager at SIKA, MARINKO UKROPINA, Managing director of SGS, Adriatic region, ANA GRUJOVIĆ, Executive Director of the SSCC, H.E SNEŽANA JANKOVIĆ, Serbian Ambassador to Switzerland, H.E. JEAN-DANIEL RUCH, Swiss Ambassador to Serbia, DEJAN RALEVIĆ, Serbian Premier Counsellor in Bern

Switzerland will maintain its position among the leading foreign investors in Serbia.

ORGANISATION The Swiss-Serbian Chamber of Commerce as w officially registered in the Business Registers Agency as a non-profit association on 14th March 2014 and the official opening ceremony was held on 24th April 2014 at the Serbian Chamber of Commerce, in the presence of the President of the Swiss Confederation, H.E. Didier Burkhalter, and the then first Deputy PM and now Prime Minister of the Republic of Serbia, Aleksandar Vučić, and over 150 private sector representatives, diplomats and businesspeople. The SSCC defines its vision as providing support for the sustainable development of Serbian society through the achievement of sustainable and durable Swiss-Serbian business relations, as well as taking on the mission of facilitating and improving dialogue between Switzerland and Serbia, promoting the concept of “Swissness” – neutrality, quality, innovation, fairness and reliability – Swiss values and knowledge, as well as assisting on the improvement of the domestic economic environment and creating conditions for business networking between busi-

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

ness leaders from Switzerland and Serbia.

As of May this year the SSCC has been led

by Marinko Ukropina, Managing Director of SGS for the Adriatic region, who succeeded Ansgar Bornemann, Regional Director of Nestlé Adriatic, which took on a new position in May. The other members of the SSCC Board include: - Ana Govedarica, General Manager of Roche d.o.o. Serbia, - Dragan Maksimović, CEO of Sika d.o.o., Serbia, - Xavier Davard, CEO at Sicpa Albania, - Adrien Alkabes, CEO at Monterosa d.o.o.

- Sava Petrović, director at Petite Geneve Petrović - Yana Mikhailova, Head of Marketing at Nestle Adriatic

RESULTS The SSCC organised a number of activities recently. In partnership with the Customs Administration of the Republic of Serbia, on 18th March 2015 the Swiss-Serbian Chamber of Commerce held a seminar on the topic of “Customs procedures and processes” in the Serbian Chamber of Commerce.

More than 50 participants gathered at this event, which aimed to contribute to increasing the volume

of trade between Switzerland and Serbia through the presentation and explanation of customs procedures and processes in order to increase the competitiveness of SMEs. The seminar covered the following topics: import-export documentation required for customs clearance, customs procedures, a new computerised transit system, transit Serbia, the origin of goods and customs tariffs.

In line with its mission of strengthening economic relations between Switzerland and Serbia, the Swiss-Serbian Chamber of Commerce, in direct cooperation with the Chamber of Commerce of Geneva, one of the oldest cantonal chambers of commerce in Switzerland, organised a seminar entitled “Serbia: your new business destination”, which was held in April 2015. Through this seminar, the Chamber of Commerce of Geneva provided an opportunity for companies from Geneva to learn more about Serbia as a potential destination for doing business, and to obtain detailed information regarding the Serbian business environment, fiscal system and the leading sectors of the Serbian economy. The aim of this seminar, which brought together around 60 participants, was to raise awareness of existing business opportunities on, and challenges to, the Serbian market, as well as for companies from Geneva to obtain the information necessary for the development of their business activities in Serbia.

The seminar’s honorary guests were H.E. Swiss Ambassador to Belgrade, Jean-Daniel Ruch, as well as H.E. Serbian Ambassador in Bern, Snežana Janković. Following this gathering, the SSCC received a large number of inquiries from Swiss companies regarding business conditions in Serbia and the Chamber gained new members from Switzerland, as well as a significant institutional partner in the form of the Chamber of Commerce of Geneva.

Subsequently, in June this year, the SSCC took part in the business conference “Serbia on the road to a modern economy”, held in Zurich on 16th June. The Forum saw the gathered investors addressed by Serbian Prime Minister Aleksandar Vučić and Finance Minister Dušan Vujović, who presented the government’s reform measures, the benefits of investing in Serbia and directions for further action.

Finally, at the end of October this year, the SSCC, along with the Chamber of Commerce of Switzerland-Central Europe, and the Serbian Chambeer of Commerce, organised the traditional “Swiss-Serbian Business Forum”, which

ment of dialogue between members, official representatives of Switzerland and Serbia, as well as the wider business world.

In order to thank its members for their trust, the SSCC celebrated its first anniversary in May 2015 at Belgrade’s Franš restaurant. “Today our association has more than 50 companies, which have recognised us as a reliable organisation that is important for the further development of sustainable economic ties between Switzerland and Serbia. As such, building long-term relationships with members, as well as ensuring mutual trust and confidence, will always be among our key objectives in the future,” said executive director Grujović. In the culmination of the event, guests were greeted by Jean-Luc Ash, chargé d’affaires of the Swiss Embassy, who congratulated the SSCC on its first anniversary and expressed his satisfaction with the results achieved by the Chamber during the previous year. Mr Ash also announced his departure from Serbia in June 2015, taking the opportunity to introduce his successor, Polina Montoneks. Furthermore, in cooperation with Switzerland Tourism and Swiss International Airlines, the SSCC organised a working lunch for its members in October this year, with the aim of providing up-to-date information on tourism, education and health system services in Switzerland.

Finally, the Chamber is a significant local partner when it comes to corporate social responsibility activities. In February this year members organised the donor conference “Swiss Fondue Evening”, aimed at helping the Mokranjac Music School. Alongside sampling Swiss wine and cheese, guests of the gathering had the opportunity to discover the art of preparing fondue, as well as attending the musical performances of talented students of the Mokranjac School. ■

Testifying to the success of the Chamber is increased trade exchange and continued investments, both from Swiss companies already operating in Serbia and new investors from Switzerland was held within the official visit to Serbia of Johann N. Schneider Ammann, Vice-President of the Swiss Confederation and Federal Minister of Economic Relations, Education and Research.

OTHER SSCC ACTIVITIES The Chamber’s activities go far beyond the aforementioned gatherings. The activities of the SSCC, in the words of Mr Burkhalter, represent a “new road that opens up for further strengthening ties between Switzerland and Serbia, which will enable these connections to become more productive”.

Objectives set in such a way imply daily and continuous work on the monitoring of key political and economic events that impact on the operations of member companies, fostering and encouraging the establishment and develop-

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ECONOMIC COOPERATION

Investment interest among Swiss companies in the sectors of manufacturing and services is encouraging, especially as it regards investments that would mean higher Serbian exports, job creation and the employment of an educated workforce

Investments Bring NEW JOBS D

espite the fact that Serbia could easily export to Switzerland meat and meat products, fresh fruit and vegetables, natural juices, non-ferrous metals, aluminium and copper products, machine parts and accessories for the pharmaceutical and cosmetic industries, plastics, furniture and other products, Serbian export possibilities to Switzerland are underexploited.

In the January-August 2015 period, total trade with Switzerland amounted to €239.3 million, with Serbian exports falling by 12.7% compared to the same period of the previous year. In contrast to the €44 million worth of exports, imports rose by as much as 81.2% (€195.3 million), resulting in an extremely high deficit of €151.3 million, and a very unfavourable ratio of import coverage by exports of only 22.5%. With this result in mind, it is noteworthy that the majority of our imports during that year, as many as 35.5% (€69.3 million), relate to rail wagons on the basis of a contract between Serbian Railways and Swiss company Stadler.

Considering the foreign trade results over a longer period of time, it could still be said that there have been certain developments: the value of exports from Serbia in the 2002-2014 period increased almost fourfold. In 2013, exports reached a record €77.8 million, while in 2014 they hit €74.4 million. Last year was a record year for total goods exchange of €257.5 million, which is 11.4% more than in 2013, but has primarily been contributed to by growth of imports by 19.4%, in the amount of €183.1 million.

The largest exporters in 2014 were the Sevojno Copper Mill (11%

compared to total exports to Switzerland), Fiat Automobiles Serbia (10.6%) Impol Seval (3.5%), NIS (3%), Tigar Tyres (2.8%), ToblerSkele (2.6%), Absolut Time (2.4%), Ekstraform d.o.o. Senta (2.2%), Carlsberg Serbia d.o.o. Čelarevo (2%); RTB Invest (2%), Mikrotec Optics; Kolarević, Pojata; EMILIO STECHER; DUAL-PVC, Smederevo; Tetra Pak Production; 8.Mart, Belgrade; UNIMET; TELSONIC; Gorenje, Valjevo; HIPRA Inženjering, Pančevo. The import side is dominated by Serbian Railways JSC (12.4% of total imports from Switzerland), then Roche d.o.o. Belgrade (11.9%), Erma d.o.o.

Belgrade (10.5%), EFT Trade d.o.o. Belgrade (5.3%), Syngenta Agro d.o.o. Belgrade (3.6%), the National Bank of Serbia (2.6%), PKC Wiring Systems d.o.o. (2.3%), Tetra Pak Production d.o.o. Belgrade (2.2%), Fiat Automobiles Serbia (1.7%), Maestro Jewellery d.o.o. Belgrade (1.5%); Galenika; Hemofarm; SIKA, Belgrade; Philip Morris Operations; Leoni Wiring Systems Southeast; Petite Geneve-Petrovic; BIMED; BH Chemical Industry; Mikrotec Optics; Pharmaswiss.

Around 190 Swiss companies currently operate in Serbia, employing about 8,000 people. Swiss investors are represented in both production and service sectors. According to National Bank of Serbia statistics, total net investments from Switzerland in the period from 2002 to April 2014 amounted to €523.3 million. In 2014, total net investments of Swiss companies amounted to €126.2 million (proceeds from investments of Swiss residents amounted to €139.1 million), while in the first quarter of this year Swiss overall net investments amounted to €26 million (proceeds

Around 190 Swiss companies currently operate in Serbia, employing about 8,000 people. Swiss investors are represented in both production and service sectors

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THROUGH DEEPER REFORMS TO NEW INVESTMENTS

from investments of Swiss residents amounted to €27.4 million).

Basler is the first Swiss greenfield investment in Serbia (personal and property insurance). It is part of the Baloise Group from Switzerland, which has operated for more than 150 years.

The most important greenfield investment is Pharmaswiss, in the chemical industry, and in 2006 it invested three million euros in a pharmaceutical factory in Belgrade (as of 2011 Swiss company PharmaSwiss S.A. has operated as part of Canadian Group Valeant Pharmaceuticals International). Nestlé, through its company Nestle Adriatic (covering our region) bought Centroproizvod a.d. in late 2011, the leading domestic manufacturer in the food sector, with the aim of becoming a regional centre for the production of culinary products and, according to SIEPA, it has so far invested €53.2 million.

In September 2014, Swiss company SIKA opened the most modern factory in Šimanovci for the production of materials for special applications in construction and industry, in which it has invested five million Swiss francs (about €4.2 million) and at the beginning of October this year in Belgrade the first Swiss hotel in Serbia, Holiday Inn Express, opened, in which company Monterosa invested around €16.5 million.

Swiss company Aquawell Group is finalising construction of a factory in Kosjerić for the production of mineral water – AUDIOTEL V, which should be completed in November.

Company Barry Callebaut is currently selecting a location for the construction of a factory for the production of industrial chocolate (capacity of around 100 tonnes), with the options narrowed down to Croatia (Osijek), Greece (Thessaloniki) and Ser-

development of software and ICT outsourcing, is considering the possibility of opening a software development centre in Serbia that would employ 400 workers. Swiss company SR Technics, headquartered in Brussels, which is 100% owned by Mubadala from the United Arab Emirates, announced in February this year the opening of its Centre for business processes in Serbia (Business Process Offshoring, shared administrative processes), and

thus relocation of its administrative centre from Zurich to Belgrade. Company Sowre, a qualified system integrator and leading provider of services in the fashion and retail industry, registered in March this year in Serbia with the plan of investing €12.7 million and employing 226 workers in the next three years. They plan to open an ICT centre and build their own facility to equip the latest IT technology. This company has opted for Serbia due to the possibility of providing services to the growing markets of Eastern Europe, Russia, the former Soviet republics and the Middle East, and to respond to the increasing demands of their clients.

Company ATC Fluviale, which specialises in international maritime and river transport of goods and cargo (especially oil and petroleum derivatives), is interested in investing in Serbia - €30 million, employing 150 workers. The realisation of this project essentially requires either the purchasing of enterprise Jugoagent AD, which is in bankruptcy, or the privatisation of part of the Yugoslav River Shipping company, in which this investor has shown interest.

Company Namics AG, which deals in the development of business software, e-banking and m-banking solutions (ICT sector), is considering investing in a new development centre in the region, and Serbia is the most attractive option for the company, due to the availability of suitable IT professionals (planned creation of 30 jobs).

The following are singled out as promising areas of Swiss-Serbian cooperation through strategic partnership and investment in the Serbian economy: mechanical and pharmaceutical industry, tourism, export of fresh vegetables and fruit, meat and meat products, and the IT sector. ■

According to National Bank of Serbia statistics, total net investments from Switzerland in the period from 2002 to April 2014 amounted to €523.3 million

bia. The greatest interest is shown for Ugrinovci, Zemun (alongside the Milšped factory). The investment is worth €14 million and will employ 60 workers. In the developed stage the value of production at current prices would be close to €300 million. Production would be primarily intended for export (80%, about 80 million euros annually). Similar projects of this company in other countries led to the concurrent arrival of 2-3 sub-contractor/confectionary firms. Swiss company Luxoft, which is engaged in the

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SWISS ECONOMY

Genie From a SMALL BOTTLE

This year’s strong performance of the Swiss economy has been partly slowed down by the strong franc and weaker than expected economic growth in Europe and the U.S., which, alongside Asia, are the most important markets for highly sophisticated Swiss products

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A

lthough it is not an EU member, does not cover a large territory and does not possess a wealth of natural resources, the Swiss economy is the world’s most stable and most competitive. For the sixth consecutive year, the economy of this country, according to the World Economic Forum, is ranked first in the world on the basis of the degree of competition.

The success of the Swiss economy is essentially based on political stability, first-class education, developed infrastructure, excellent geographic location and high use of innovative technologies.

Switzerland has a modern, liberal market economy in which around 72% of GDP is generated in the service sector, 27% in industry, and only 1% from agriculture. The greatest number of companies (99%) are flexible SMEs with fewer than 250 employees. The leading economic branches are banking, tourism, pharmaceuticals and chemicals, the precision instruments industry, watches, optical glass, paper and pulp, chocolate, biotechnology and the services sector. Given its small internal market, Swiss companies are mostly export-oriented, and, due to the specific structure of exports, this is dominated by products with high added value (72% of exports are high-quality products), achieving outstanding results in foreign trade. Switzerland is a world leader in the export of watches, machines for paper processing, machinery for the textile industry, food processing and packaging, production of medicines, in the sector of private bank-

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

ing, insurance and reinsurance. According to statistics of the Swiss Customs Administration, goods exported in 2014 had a record value of 208.3 billion Swiss francs, which represents an increase of 3.5% compared to 2013.

Exports have been on the rise for the last six years consecutive, while imports worth 178.3 billion francs are holding at the level of the previous year. The surplus of 33 billion francs is an increase of 27 per cent compared to 2013. The leading export sectors in 2014 were chemicals and pharmaceutical products (85.3 billion francs or around 41% of total exports), machines and electronics (33.3 billion francs, or 15.9% of exports), watches and clocks (22.2 billion francs, 10.7%), production of precision instruments (14.7 billion francs, 7.1%), metal processing (12.5 billion francs, 6%) and manufacturing of jewellery (10 billion francs, 4.8%) .

The Swiss economy last year recorded the highest growth of 17.6% in exports of jewellery, which is also partly a result of increasing prices, while exports of chemical and pharmaceutical products increased by 5.4%. However, in terms of value of exports, these products accounted for 60% of the total increase in Swiss exports and 4.4 billion francs in respect of these products. The largest fall in exports was recorded in the paper industry - 5.8%. Due to a lack of raw materials, Switzerland’s economy is open: in the structure of imports, approximately 70% relates to raw materials, semifinished products and consumer goods, while the share of investment goods is about 24%.

In 2014, the percentage was increased the most due to exports to North America (10%, primarily due to growth in exports to the U.S. by 11.1%), Africa (3.5%), Asia (3%) and Europe (2.7% , export growth in the EU was 3.2%). At the same time, imports increased from North America (9.9%) and Asia (5.7%). In the last three years, Switzerland has recorded a decline in imports from European Countries – last year by 0.9% (1.1% reduction in imports from the EU).

Switzerland’s most important trading partner for both imports and exports is Germany (exports to Germany in 2014 amounted to 38.6 billion francs, while imports totalled 51.3 billion), followed by the U.S., France, Italy, the UK and China, in exports, and Italy, France, China, the U.S., Austria and Ireland, in imports. Trade with the U.S. and China reached record levels last year, while in trade with the U.S. Switzerland achieved the

highest surplus – 15 billion francs (as much as 50% of the total surplus in the previous year). According to the annual report of the WTO for 2014, Switzerland is ranked 23rd among the world’s largest exporter of goods, while in terms of the value of exported services it is in 16th place. In terms of the value of imports of goods, Switzerland is the world’s 26th largest importer, and when it comes to imports of services it is ranked 24th.

According to the latest relevant data of the Central Bank of Switzerland, Swiss investments abroad slightly decreased in 2013, to 1073 billion francs, 1.9% less than in 2012. In the structure of investment, 465 billion francs have been invested in the EU (97 billion francs in Luxembourg alone, and 79 billion in the UK). The services sector attracted investment of 739 billion francs, and 333 billion francs in production activities, mostly in the chemical sector and the plastics industry, where a total of 136 billion francs has been invested.

In 2013 alone, 31.5 billion francs were invested abroad (in 2012 that was as much as 40.6 billion), mostly in Europe, as much as 12 billion francs (mainly EU, in the UK and France with 3 billion francs each and in the Netherlands, with 2 billion francs) and Asia - 11 billion francs (as much as five billion francs was invested in the UAE). Some 2 billion francs were invested in China in 2013. Income from these investments amounted to 57 billion francs.

In 2014, GDP grew at a slightly higher rate than in 2012, or 2% compared to 1.7% a year earlier. Expressed in current prices, Swiss GDP in 2014 reached 648 billion francs. In the growth achieved as much as 1.4% is the contribution of the positive foreign trade balance last year. GDP per capita (2013) is about 78.5 thousand francs. Although in 2014 the budget deficit amounted to 124 million francs, public debt was reduced by 2.8 billion francs, totalling 108.8 billion francs. The unemployment rate in December 2014 was 3.2%. The average deflation rate last year was 1%.

The success of the Swiss economy is essentially based on political stability, firstclass education, developed infrastructure, excellent geographic location and high use of innovative technologies Switzerland’s strong national currency impacts negatively on the country’s economy, making it more difficult for Swiss companies to do business on the world market, and also has consequences for tourism. In order to maintain the competitiveness of the domestic economy and because of the strong franc, the central bank placed restrictions of 3.5 years on the movement of the domestic currency by setting the lower limit at 1.2 francs per euro. However, in January this year the defence of this minimum exchange rate against the euro was abolished and the interest rate was lowered to 0.75%. This led to rapid strengthening of the Swiss currency and had a negative impact on its economic prospects. Although many Swiss companies complain that the strong franc had an impact on their business results, due to uncompetitive prices, the Federal Chamber assessed that the expected recovery of the EU and the good prospects of the U.S. economy mitigate the negative effects of a strong domestic currency. However, with respect to the adjusted forecasts, which again anticipate slower growth of the global economy and continued stagnation of the European economy, Switzerland has also revised its forecasts of economic growth downwards. Thus, according to the latest forecasts from September this year, the Swiss economy in 2015 is expected to grow by 0.9%, followed by 1.5% in 2016. At the same time, a slight decline is expected in unemployment, to 3.3% this year and 3.6% next. ■

CORPORATE

MEŠA PODBIĆANIN

FOUNDER AND OWNER OF “EMILIO STECHER”

With Us Everything is

POSSIBLE C

ompany Emilio Stecher is one of the largest foreign investments in Prijepolje and that part of Serbia, and almost everything it produces is intended for export. Its founder and owner, Meša Podbićanin, is known as a man who returned from Switzerland out of love for his home country and city in order to start a business in Prijepolje whose operations benefit not only its employees, but also many others in the city and the surrounding area.

The company exports everything it produces to foreign markets. About 60% of products are exported to Switzerland, while the rest are sold in Germany, France, Austria and the countries in the region. The company specialises in the manufacture of kitchen tiles, but also takes pleasure in engaging in interior design and exterior luxury facilities in Europe. It has excellent references and a lot of satisfied clients that constantly return.

“Everything you can imagine from stone, we can make. That is why the company slogan is “With us, everything is possible,” says Meša Podbićanin, co-owner of Emilio Stecher, who began as an ordinary worker when he moved to Switzerland in the 1990s, later becoming the head of production and then one of the owners.

■ What do your customers mostly seek? − Clients from Switzerland want functional products, choosing black and grey colours, while, for instance, in Montenegro the favourites are interiors and exteriors that reflect the heat, and thus the colour of stone is adapted accordingly. Asked which business principles he adheres to and what he considers important for doing business successfully, Podbićanin indicates that the manager, as a visionary, must inspire the team until this joint effort goes towards fulfilling the mission, as well as highlighting the successes achieved in this way.

As Podbićanin notes, managing means knowing how to draw the best out of people. ■

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SAŠA MIRKOVIĆ

CORPORATE

MAYOR AND PRESIDENT OF THE ZAJEČAR CITY ASSEMBLY

Zajеčar is the City of the Photo: Vreme

FUTURE

Investments are only just about to flow into Zajеčar and factories are about to open, but for that it was first necessary to create the necessary preconditions – primarily by restoring and building infrastructure

F

or the last two years the City of Zaječar has been engaged in arranging infrastructure in the city and by the beginning of 2016 this dynamic city will look very different to its appearance prior to 2013. Two billion dinars was allocated, via Public Enterprise “Serbian Roads”, in order to sort out road transport infrastructure, while the magnificent structure of the recently opened bridge in the Zaječar settlement of Kotlujevac is the first of its kind in Serbia.

that it was first necessary to create the necessary preconditions – primarily good infrastructure.

Zaječar is the city of the future. The local authorities in Zaječar achieve positive results. For the first time, the City of Zaječar has recorded a positive balance of 10 million dinars. Simultaneously, the current city government managed to repay more than two million euros of credit debts from the previous period, while avoiding getting into a

do to attract investments from the members of our expat community working abroad?

- Eastern Serbia is known for having many citizens who are temporarily working abroad. The first and second generations of our fellow citizens have earned money abroad and invested and spent it here. Today we have the third and fourth generations of our people who were born outside the country, who receive their education and start families there. They mainly know about their homeland from stories. That’s why I launched the initiative to open the Office for Cooperation with the Diaspora under the auspices of the Zaječar City Administration. We must find a way to motivate young people whose roots are here to become a driving force in Eastern Serbia.

Zaječar, which is one of four awardwinning municipalities for the best collection of property taxes within the GIZ and Swiss SDC project, will use the funds awarded for developmental purposes

■ How much do investors recognise Zaječar as a place to invest?

- German company “Viktorgrup” will open its factory in Zaječar for the production of biodegradable carrier bags, which will employ 200 workers. The new factory will be completed in March 2016 and in phase one it will produce biodegradable carrier bags, while in the second phase it will produce raw materials and biodegradable granulates. It is a huge success when a factory opens in Serbia and is able to provide jobs for so many people. Negotiations are also underway with an investor from Italy who is ready to invest about 30 million euros on the opening of a factory in Zaječar.

Around a hundred people will work there.

■ What does the Municipality of Zaječar do to promote the development of the city and create conditions for a more dynamic business economy?

- Investments are only just about to flow into Zaječar and factories are about to open, but for

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single dinar of debt. We expect to carry out additional infrastructure works in the coming period.

Within the framework of the project of the German Organisation for International Cooperation (GIZ) for improving tax collection, Zaječar found itself among the awarded municipalities.

We will use the cash award, which was secured by the Swiss Agency for Development and Cooperation, for development purposes. Better tax collection is a clear signal that rules are respected in the municipality of Zaječar and that conditions for doing business are clear. We consider that such an environment for doing business suits both successful domestic companies and foreign investors.

■ What does the Municipality of Zaječar

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

■ To what extent is it possible to nurture a skilled workforce in Zaječar?

- Young people who leave to study in large university centres usually remain there to live and work after completing their studies. In the last two years we have been attempting to motivate them to return by providing scholarships for the best among them. Those with the best average grades, or those who opt for occupations that are in short supply, are eligible to apply for the scholarships. I think that nurturing them from early childhood is the way to solve the problem of a lack of investment. Investing in our children is an investment in the future, and that has no price. ■

CORPORATE

JOVAN MILOVANOVIĆ

PRESIDENT OF THE MUNICIPALITY OF NEGOTIN

New Public Lighting - Reward for

ALL CITIZENS

It is obvious that we have made a positive impression with our attitude and behaviour in an administrative sense resents the basic document for all future domestic and foreign investment, and we will continue with the practice of making new plans in the future.

T

he Municipality of Negotin possesses an international certificate as a municipality with a favourable business environment, as well as planning documents, a Strategy of sustainable and rural development, which is very important fact for investors. It is also important to note that the Municipality of Negotin is subject to numerous cross-border cooperation projects.

■ What does your municipality do to attract foreign investment to Negotin? − We have sent positive signals to investors in the agricultural sector, so Italian company Rigoni di Asiago took, on a longterm lease, large areas of state agricultural land for production of organic hazelnuts, while company NTS Food has done the same for the production of apples.

By engaging local government in solving complicated administrative procedures, we have finalised the process of issuing building permits for the construction of a wind farm with a total output of 45 MW, worth 65 million euros. For the municipality of Negotin this will mean 200,000 euros of annual revenue from electricity generation, increased economic activity during construction and the engaging of people to work on its maintenance. In the complex of the Negotin brewery, a winery has been opened by investors from France and England, who sell their wine on the international market. The detailed regulatory plan of the Rajac brewery, which we recently compiled, rep-

■ How will your municipality use the funds awarded by the Swiss Government for being the second most successful municipality in the collection of property taxes? − This award will be used for the modernisation of public lighting. We will use modern LED bulbs to replace almost a quarter of the total number of existing dilapidated and outdated lamps. The new LED lamps consume six times less electricity and their

− The Municipality of Negotin has been cooperating with the Swiss Agency for Development and Cooperation since 2007, through the project “Municipal Economic Development in Eastern Serbia”, which has already contributed to higher levels of investment in infrastructure and the economy on the territory covered by the project. Through cooperation to date, we have confirmed ourselves as a serious and conscientious partner, willing to learn and solve accumulated problems in order to achieve more intensive local development. Our desire is to continue cooperation with SDC after completion of the project in 2016.

We have been cooperating with the Swiss Agency for Development and Cooperation since 2007, through the project “Municipal Economic Development in Eastern Serbia”, which has already contributed to higher levels of investment application solves the problems of the unreliable operation of existing lighting and, in terms of the financial aspect, the funds invested are returned after three to four years. The savings that will be achieved by introducing new LED lighting will enable us to direct funds towards development projects in Negotin municipality that are of general importance to the local community and all of its citizens.

■ Do you plan to continue cooperation with the Swiss Agency for Development and Cooperation (SDC)?

■ How successful is your municipality in terms of stimulating our people in the diaspora to invest in business in this part of Serbia? − The Municipality of Negotin is characterised by the fact that nearly a quarter of the population is abroad. They have great potential and represent a great development opportunity, but so far we have realised only smaller projects with the diaspora. We recently launched an initiative for cooperation with companies operating in the energy sector in Vienna, given that the chance exists to implement larger projects. We will continue to negotiate and we hope for a positive outcome that depends not only on the local government. I would also like to point out that in several local communities, together with our compatriots, we are building water and sewer lines, paving roads and arranging villages. In this way, we are joining forces to provide better living conditions for local residents. ■

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EDUCATION - SWISS APPRENTICESHIP SYSTEM

Superb Education Leads to

LOWER UNEMPLOYMENT Switzerland’s unemployment rate averaged 3.33 per cent from 1995 until 2015, reaching an all-time high of 5.4 per cent in March 1997 and a record low of 1.6 per cent in November 2000. These impressive numbers are a result of a superb education system that is connected closely to the market needs of Swiss companies

T

oday’s knowledge economy demands that young people interested in white-collar jobs in high growth areas, such as healthcare, tourism, and technology, as well as those choosing older trades, like plumbing, electrical work and auto mechanics, need sophisticated skills. The recognition of this reality has put a spotlight on vocational education and training (VET)—as it is called in Europe, as a the preferred strategy for transitioning young people smoothly into the labour market. This has led to growing recognition of the Swiss Apprenticeship System in recent years.

Switzerland scores consistently well in world education rankings, boasting one of the world’s most successful apprenticeship systems and regularly topping results tables in international skills competitions.

From information technology to carpentry to laboratory technicians, Swiss students have the option to participate in early career training and apprenticeships in 230 different occupations created with the help of employers who design and assess the curriculum of the vocational education and training (VET) system for apprenticeship programmes available to school leavers, allowing them to match curriculum content with the needs of the labour market.

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THROUGH DEEPER REFORMS TO NEW INVESTMENTS

VET in Switzerland is set up differently in the two major language regions, namely the German-speaking part (Deutschschweiz) and the smaller French-speaking part (Westschweiz). Dual apprenticeship training dominates in the German-speaking part, while in the French-speaking part the focus is more on full-time schoolbased VET, which is partly due to the geographic and cultural proximity to France, where full-time VET schooling has a long tradition.

Nevertheless, the overall rate of participation in apprenticeship training in Switzerland still exceeds 60 per cent.

The federal and sub-federal state levels – through numerous intermediary actors – work together constructively. Thus, regional diversity is not seen as an obstacle to the creation of transparent national educational standards. In fact, the cantonal system can actually be understood as a form of “laboratory federalism” in which VET reforms can be tested locally and, if successful, diffused at the national level.

The most striking feature of this Swiss system is the sense of collective responsibility felt by employers, educators and learners for the success of apprenticeships.

In Switzerland, small and large companies, state of the art factories and insurance agencies, banks, hospitals, and retail stores host apprentices who greet customers, work on complex machines, carry out basic medical procedures and even advise investors – in short, they do everything an entry level employee would do, albeit under the guidance of credentialed teachers within the company. The percentages of “educational” employees are similar in the 30 per cent of Swiss companies that participate in the vocational education system.

The interests of firms are mediated by the respective interest associations to avoid training programmes leading to excessively narrow company-specific skills. Training ordinances are worked through their associations, ensuring that a sufficiently broad set of skills is forming the core of the curriculum. At the same time, large firms are not in a position to dominate training ordinances in their own interest, as small and medium-sized firms are well represented in the relevant negotiations through their respective trade associations.

Apprenticeship programmes in Switzerland typically last three to four years, with young people spending an average of three days a week in the workplace and two days studying at a vocational college – a combination that makes them highly employable. Pupils are encouraged to start thinking about their future early. From the age of 14, all school children have one hour of mandatory careers education in school every week. They can also visit a careers advisor in their local region for one-to-one advice and guidance. Most academic students are generally allocated to a high school in their early teens (based on their grade average and sometimes an exam) known as “gymnasium” or “Kantonsschule”, to prepare for the “matura” (the school leavers’ equivalent qualification needed to get a place at university), while the majority stay in general education before choosing apprenticeships or specialist vocational schools at the age of 14 or 15.

Initial VET related to apprenticeship training can be further distinguished according to three major types of qualifications. First, there are two-year programs tailored for students that are considered to be primarily practically-skilled, leading to a Basic Federal Certificate (eidgenössisches Berufsattest). The second and major organizational form in the dual system, namely the three- to fouryear programs, prepares apprentices for a specific occupation and leads to a Federal Certificate (eidgenössisches Führungszeugnis), which also gives apprentices access to higher VET programs at the

post-secondary level (höhere Berufsbildung). Third, there is the additional option of acquiring a vocational baccalaureate, which grants access to the universities of applied sciences. Therefore, apprenticeship is not “a one-way street”.

Students can move between academic and VET systems, and can chose among six postsecondary occupational fields (technical, business, design, commercial, natural sciences, and health and social work) after completing their upper secondary training.

With an upper secondary completion rate above 90% and a goal of moving the needle even further, Switzerland’s success is attributed by Swiss researchers to VET programs ”[that] closely match

From information technology to carpentry to laboratory technicians, Swiss students have the option to participate in early career training and apprenticeships in 230 different occupations

the needs of the labor market, both in terms of professional qualifications and the number of available jobs,” according to a 2009 report from Federal Office for Professional Education and Technology. A vocational credential can land you in upper level management or at “Switzerland’s MIT,” the University of Applied Sciences. As the Swiss say, and as the VET system confirms: there are no dead ends.

Switzerland, unlike many dual-system countries, provides no special incentives to companies to participate. Companies benefit financially from the work of apprentices, value the privilege of employing young people they already know, and see training the next generation as part of their mission.

The work pupils do through apprenticeship do returns the cost of training and a bit more to their employer, according to the studies of Stefan Wolter, Managing Director of the Swiss Coordination Centre for Research in Education and a Professor of Economics at the University of Bern. In return, the Swiss have a “talent pipeline of young professionals”. ■ THROUGH DEEPER REFORMS TO NEW INVESTMENTS

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TRADITION

Handmade PLEASURE A unique culinary pleasure with culture and tradition - this is the definition of the aromatic Swiss Alpine cheese produced from cows, goats or sheep milk to which a dozens of herbs, a crystal clear sky and summer mountain scenery add specific taste

S

älmi Töngi, who has run a diary in Gerschnialp since 1975, is just one the producers who could say with pride that they are producing “Alpkäse” or Alpine cheese. Alpine cheese is only produced in the summer – with milk from the cows, goats and sheep that graze on the Alpine pastures.

Töngi’s diary converts 300,000kg of cow’s milk and two tons of goat’s milk into rounds of cheese that are then stored in cellars until mature enough to take to market.

Nearby, located at an altitude of 1300m, are Thomas Scheuber’s modern facilities, which have been there since 1996. Within a period of four months he turns 300,000 kg of milk into Sbrinz Cheese, one of several types of Alpine cheese, which is a refined blend of melted cheese, cheese with herbs, cream butter and cottage cheese. This cheesemaker, along with his wife Andrea and daughter Franziska, represent the fourth generation of the Scheuber family to cherish this tradition.

The term Alp cheese is protected and may only be used for cheeses made in

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“ALPKÄSE” ALPINE CHEESE

summer on Alpine farms. Hundreds of different herbs, numerous pastures and the crystal clear mountain water all add specific flavours to the raw milk, which is tuned into numerous types of cheeses.

Fragrant raw Alpine milk is processed on site in a “Chessi” (a big cheese kettle) over a wood fire. Alp cheese is often

There is no uniform Swiss Alpine cheese product.

Each Alp cheese has at least as much individual character as the Alpine cheesemaker who produces the cheese handmade using primitive utensils, but it demands elaborate methods of production and requires instinct and experience.

Smoke from the wood fire, various locallygrown herbs, as well as individual production methods and traditions, determine

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

the flavour, colour, shape, maturity and level of hardness of the cheese.

Thus, there is no uniform Swiss Alpine cheese product. Each Alp cheese has at least as much individual character as the Alpine cheesemaker who produces the cheese.

This creates a wide variety of types – semi-hard, hard and extra hard Alp cheeses for grating, breaking up and slicing, from young mild cheeses to more spicy varieties.

The limited duration of production and varying storage times mean that Alp cheeses are not always available everywhere. The best tasting sites are in the Alps, during the summering season, and the best location is probably Central Switzerland, which is the epicentre of the country’s production.

In Switzerland there are many Alpine dairies where visitors may watch the process, but also lend a hand themselves. They may also visit cheese cellars, where hundreds of cheeses are stored in one place.

Some of them offer tastings and tours.

There are also many festivities con-

nected to Alp cheese. At the end of the summer grazing season, the canton of Bern is especially vivid. At the “Chästeilets”, which take place at the end of September, Alp cheeses are divided among owners of cows. In many places, the Chästeilet is also a cause for celebration and ends in a traditional festival, with music and a large party.

The tradition of making hard cheese goes back to the 15th century, when the peo-

PRODUCER OF BÜNDNER ALP CHEESE

ple living north of the Alps discovered rennet – a substance from the stomach of a cow that represents an indispensable ingredient in making hard cheeses. Unlike sensitive cottage cheese, this hard cheese was greatly appreciated due to its durability, which allowed people to create a milk supply for the winter. That is how the foundations of the Swiss cheese culture emerged... Until the 18th century, hard cheese was made exclusively during the summer in the Alps.

Then, in the early 19th century, when the practice of intensive agriculture enabled cheese to be produced in the valleys and during the winter, mountain cheese was created. Having been produced in the winter too, it is obviously made from the milk of animals fed with hay in a barn or cowshed.

To distinguish those varieties, Alp cheese comes with a high standard of quality which is marked by the AOP specifications. AOP (Appelation d‘Origine protégée) is a protected label guaranteeing that 100 per cent of the cheese comes from the area of origin.

Berner alp cheese AOP are produced at the sunny Bernese Oberland. Depending on seasoning, the cheese takes between 4½ and 12 months to mature, when it is ready for consumption. Its re-

fined taste is due to the lush alpine herbs that serve as nourishment for the cows.

Another cheese from the same region is the spicy Hobel AOP cheese. Stored at a temperature of 12 degrees, with carefully regulated air humidity of 70 to 75 per cent, this cheese takes two to three years to mature. As it ages, its aroma becomes even more pronounced.

Le Gruyère d’alpage AOP is produced in summer on the uplands of the western Swiss Alps and the Jura.

It has a grainy and evenly brown rind, with each round weighing between 25 and 40 kilos.

The Etivaz AOP is a hard cheese with a pronounced spicy-fruity taste. Its production requires

the specific Glarus alp cheese culture. In central Switzerland, the Pragel – Bödmeren region is an impressive natural and cultivated landscape where a variety of different specialities are created at alp cheese dairies. Urner alp cheese is a semihard cheese with a very mild to full spicy taste, depending on its maturity. This special cheese requires the processing of a mixture of milk stored and cooled overnight and fresh milk from the morning’s milking. The alpine farmers often enrich it with various aromas, such as garlic, chives, caraway, basil or pepper. On the south side of Buochserhorn is the Bleiki Alp. Here 26 milk cows on about 20 hectares produce the spicy Nidwaldner alp cheese. The summer grazing season lasts from midMay until the beginning of October.

Bündner alp cheese is a semi-hard cheese that is produced from June to September on the Maran, Carmenna, Sattel or Prätschli Alps. It is smeared with salt water, initially on a daily basis and later weekly. Up

Smoke from the wood fire, various locally-grown herbs, and individual production methods and traditions determine the flavour, colour, shape, maturity and level of hardness of Alp cheese the raw milk of more than 2,800 cows that graze on 130 alpine pastures located at an altitude of 1,000 to 2000 metres. This cheese is produced directly on the spot in mountain huts.

The formaggio d’alpe ticinese (Ticino alp cheese) is the ambassador of moun- AT THE “CHÄSTEILETS” (END OF SEPTEMBER) ALP CHEESES ARE DIVIDED AMONG OWNERS OF COWS tain agriculture in the to three months’ old it is mild, while aged Ticino region. The flora on the Ticino Alps, from three to six months it becomes more inwhich rise to a height of between 1,500 tense, then becoming spicy after six months. and 2,400 metres above sea level, gives the St. Gallen alp cheese also belongs to cheese its unusual and unique flavour and the family of semi-hard cheeses that come fragrance. onto the market after two to three months Glarner alp cheese AOP, with a characand can be found in both mild and spicy teristic taste and aroma, is a product of the forms. Usually eaten at breakfast or supparticular fodder of the alpine pastures, per, it is also perfect as a dessert cheese, the traditional handwork, daily processaccompanied by a glass of wine. ■ ing in copper pots and the application of THROUGH DEEPER REFORMS TO NEW INVESTMENTS

| 41

CULTURE

Virtually no other country in the world has as many museums per capita as Switzerland.

One of them is the International Red Cross and Red Crescent Museum in Geneva, which has exhibitions that send a strong message about compassion and human resilience INTERNATIONAL RED CROSS AND RED CRESCENT MUSEUM IN GENEVA

Museum of

W

HOPE

hile Red Cross and Red Crescent staff and volunteers are at the forefront of current assistance to tens of thousands of refugees along their route to Europe, it is good to know that there is a history of humanitarian help for those imperilled. The story offered by the International Red Cross and Red Crescent Museum in Geneva is one of compassion and timely help for those in need; it is about hope and perseverance in finding lost family members and restoring the trampled dignity of individuals.

The fist ideas to establish a Red Cross Museum in Geneva emerged in early 1960, as the ICRC’s hundredth anniversary loomed. In 1985, Laurent Marti, a former delegate, presented the idea of a museum and sent a memorandum to Jean Pictet, then Director-General of the ICRC. The aim was to trace the major stages of humanitarian history before and after the creation of the Red Cross. The Museum’s cornerstone was set in place on 20th November 1985 and three years later, with Laurent Marti as its director, the Museum opened its doors to the public on 29th October 1988. and got its official name the International Red Cross and Red Crescent Museum. Since then it has kept track of the long history of humanitarian efforts to bring people shelter, reconnect them with their families and offer the hope of a new life.

In May this year the Museum was awarded the Kenneth Hudson Award, in recognition of the most unusual and daring achievement that challenges common perceptions of the role of museums in society.

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THROUGH DEEPER REFORMS TO NEW INVESTMENTS

This reward is the result of the complete renovation of the Museum and its permanent exhibition. “It was important to have the museum be a museum of hope, to show that it is possible to rebuild a new life after living through something very dramatic,” said director Roger Mayou, speaking after the museum reopened following two years of refurbishment. The new museum, flanked by the ICRC’s Geneva headquarters, shows little resemblance to the one that shut its doors at the end of June, 2011. The 20-million Swiss franc ($21 million) renovation added 600 square metres to the permanent exhibition space and a brand-new temporary exhibition space stretching across 500 square metres, which is due to open in 2016.

In contrast to the old concept, where guided visitors walked along the traditional chronology of the history of humanitarian action, the new exhibit, dubbed “The Humanitarian Adventure”, is thematic and almost fully interactive. To convey the main idea of human resilience, 12 interactive witnesses guide visitors through the exhibit, with their projected images jumping to life when touched and describing their journeys from darkness toward the light.

As the jury for the award said, “the museum has transcended the boundaries of a typical corporate museum and recomposed its vast and constantly growing collection into an emotionally touching and engaging story. The story is about compassion and timely assistance for those in need; it is about hope and perseverance in finding lost family mem-

it to the position of a prize winner. There are three sections covering the themes “Defending Human Dignity,” “Restoring Family Links” and “Reducing Natural Risks”. These sections are each presented through the distinct designs of three internationally renowned architects.

To enter the “Family Links” section, Burkina Faso architect Diebedo Francis Kere for instance forces visitors to pass through a dark corridor obstructed by a thick curtain of chains, thrusting them “into the heart of family tragedies which begin during conflict situations,” the museum said. The “Natural Risks” section, sculpted with waves of cardboard tubes by Japanese architect Shigeru Ban, gives visitors a chance to test their disaster preparedness skills with an interactive game requiring players to plant mangroves, build shelters, reserve stocks of food and organize evacuations in the aim of saving the most possible lives when the hurricane hits.

PICTURES TAKEN IN 1994 OF CHILDREN SEPARATED FROM THEIR FAMILIES BY CONFLICT IN RWANDA And in the “Human Dignity” bers and restoring trampled dignisection, created by Brazilian The International Red Cross and Red ty. The International Red Cross and Gringo Cardia, a plaster sculpRed Crescent Museum presents Crescent Museum presents facts without ture of Red Cross founder Henry Dunant sitting at a desk with the facts without passing judgement. passing judgement. Its mission is to founding ideas of the organizaIts mission is to preserve the Red Cross and Red Crescent Move- promote a certain idea of human solidarity, tion moving beneath his feet is ment’s heritage and to promote a followed by a massive plaster to inspire hope and provoke reflection certain idea of human solidarity foot symbolically trampling on a by depicting the work of the world’s first humanitarian organisation in large screen filled with images of war, destruction and humiliation. such a way as to inspire hope and provoke reflection.

“That is what humanitarian actions are: Not to be happy with a In a break with traditional museum concepts, the exhibition is an given situation but to do something to change it,” Mayou explained. ■ adventure, initiating visitors into contemporary humanitarian action.

It is an experience primarily to be lived through, then described during the second phase, so that visitors become actors within each theme.

Strong messages embed themselves in their emotions.

The Defending Human Dignity exhibition in the Red Cross Museum has a small display on Henry Dunant, who founded the Red Cross in 1863. Also on display are the original Geneva Convention, a few items used to identify the Red Cross, and listings of some major events in the protection of human dignity – the oldest goes back to 1750 BC (“The King of Babylon expresses his will that the strong should not oppress the weak” in the Code of Hammurabi).

About 50 per cent of the Museum’s visitors are aged between eight and 18 and generally come with their school class. A visit to this museum is not an easy one. One of the interactive witnesses, Najmuddin Helal, the head of ICRC’s orthopaedic centre in Kabul, tells the story of how he lost his legs due to a land mine explosion. After five years of despair, he received help and physical rehabilitation and decided to put his own experience to good use, in Kabul.

The witnesses also include a former child soldier from Sudan, a dentist who helped identify victims after Japan’s 2011 tsunami and former international war crimes prosecutor Carla del Ponte.

Documentary accounts of witnesses are masterfully woven into the ambience. The newly redesigned exhibition appeals to the emotive mechanisms of perception, and touches on the topic of strong moral values. The Judges were particularly impressed by the Museum’s decision to choose three famous designers from different cultural backgrounds to visualise three major topics of the permanent exhibition.

This, they felt, was a bold manifestation of true cultural diversity and as such represented an outstanding aspect of the Museum, which elevated THROUGH DEEPER REFORMS TO NEW INVESTMENTS

| 43

TOURISM - TRADE FAIRS

Where Business

MEETS EXCELLENCE

THE BASEL TRADE FAIR AND EXHIBITION CENTRE’S NEW HALL, DESIGNED BY HERZOG & DE MEURON

Switzerland hosts some of the most important international trade fairs every year, bringing together numerous businesspeople, experts and visitors to Zurich, Basel and Geneva, cities which offer superb locations, logistics and infrastructure for various events

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I

t was back in 1471 that Kaiser Friedrich III granted the City of Basel the privilege of being allowed to conduct trade fairs and exhibitions “for all eternity”. The city has since grown to become one of Switzerland’s leading trade fair and congress centres.

In 1970, three Basel gallerists put their passion and determination behind an ambitious vision to form an international art fair.

Now, Art Basel stages the premier international art shows, providing platforms for galleries and artists from around the world.

Today, Art Basel is the most prestigious and durable modern and contemporary art fair franchise in history.

The city’s congress centre sits at its heart and offers superb infrastructure and the kind of first-class transport connections that make Basel one of the most important trade fair and congress cities in Europe. Hundreds of thousands of visitors are attracted each year to

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

events such as Art Basel, the largest art fair in the world, or Baselworld, the world trade fair for watches and jewellery, Swissbau, one of Europe’s biggest trade fairs for the construction industry, and many other diverse events.

The next Swissbau is to take place from 12th to 16th January 2016. Organised every two years, it hosts approximately 1,300 exhibitors from 20 countries, more than 100,000 professional visitors, including around 10 per cent from abroad — representing the areas of planning and investment, the real estate sector, construction, trade, education and research — and people with a general interest in building.

Swissbau constitutes a central meeting point for Switzerland’s construction industry and lasts for five days, sprawling over 140,000m2 of exhibition space. It offers visitors the opportunity to gain a comprehensive overview of the market and gain insight regarding a large number of new products and services. This is also true of Swissbau Focus, which has around 60 events dedicated to areas such as spatial development, the construction industry, the energy U-turn, architecture and planning, construction systems and materials, interior design, use and maintenance, and building services engineering.

One of the most famous fairs is certainly Baselworld – When it comes to the world of timepieces and jewellery, it has a level of importance equivalent to that of the Detroit Motor Show or the Paris Fashion Week for their industries. The history of the show dates back to 1917, with the opening of the first Schweizer Mustermesse Basel (muba) – a section of which was devoted to watches and jewellery.

It is the focal point of the watch and jewellery industry, where players including the likes of Rolex, Omega, TAG Heuer, Breitling, Patek Philippe, and Breguet showcase their creations and innovations. Top jewellery and fashion

houses with a strong presence in the world vations. Around 20,000 Swiss and foreign hair style fair takes place once a year in Zurich. of watches, such as Chopard, Harry Winston, visitors are expected at the four-day annual The exhibition is aimed at manufacturers, suppliers and distributors of products and equipHermès, Bulgari, Louis Vuitton, Chanel, Gucci “Salon international leader de la haute précision” fair, featuring about 900 exhibitors ment for beauty, hairdressing, nail design and and Dior, also present their latest creations. from a dozen countries and running from podiatry, but also operators of wellness faciliBaselworld attracts over 94,000 visitors ties, solariums and all providers of hairdressing, 14th to 17th June 2016. and around 2,100 exhibitors from over 45 One of the most important fairs in Geneva manicure, chiropody and plastic surgery sercountries, including the leading watch and vices, as well as trade unions, associations and is the “International Geneva Motor Show”, one jewellery brands, as well as companies specialising in precious gems. editors of journals. Exhibitors show products of the leading auto exhibitions in Europe. This Scheduled to next take place from 17th to 11-day show, which in 2016 will run from 3rd to and innovations in the areas of care, decorative and operative cosmetic and 24th March 2016, this is an eightday event that occupies about 1.5 natural and dental cosmetic. The million square feet of fair space in exhibition’s medical beauty section presents everything regarding several buildings and requires a the hot topic of anti-aging, as well long preparation period – about as medical cosmetic and aesthetic six weeks in advance, with about plastic surgery. Beauty Forum 20,000 people engaged in assembling more than 7,000 truckloads Swiss will take place in Zurich over of material and goods weighing the course of two days on Saturday tens of thousands of tonnes, de27th and Sunday 28th February. livered from all over the world.

The leading trade fair for Those wondering why packaging solutions, design and brands like Cartier, IWC, Jaegerbranding, the Packaging Innovations Trade Fair, also takes place LeCoultre and Panerai are not on in Zurich. The latest trends and the Baselworld list of participants innovations in primary and secshould know that they are among GENEVA INTERNATIONAL MOTOR SHOW ondary packaging, branding, PoS several companies that have their & displays are displayed to proown show in Geneva called the Salon International de la Haute Horlofessional visitors. Together with gerie, or SIHH, which takes place a Empack and the Label & Print Exhibition, the fair covers the whole little earlier, from 18th to 22nd January 2016. SIHH hosts 24 houses on spectrum of the packaging and an exhibition space of 40,000m² labelling industry. In 2016 this and attracts about 15,000 visitors two-day event will take place on 6th and 7th April. and 1,500 journalists and international media representatives.

IFAS is the leading trade fair SIHH takes place at the Paland a central hub for exchanges expo, Geneva’s premier exhibition within the health industry. The and convention centre, offering fair is held at the Exhibition Centre Zurich, a premium venue for 106,000m2 of interconnected event space close to Geneva interstaging world-class events, with national airport and the city’s rail around 33,000m2 of total exhibition area. IFAS, which attracts station. Apart from SIHH, Palexpo the majority of Swiss suppliers in is home to the Vitafoods event the medical sector, will next take (for the European agri-food sector), INDEX (for the non-woven place over four days from 25th to m making subcontractors and 28th October 2016 in Zurich.

TRADE FAIR FOR THE HEALTHCARE MARKET AT THE EXHIBITION CENTRE ZURICH From 10th to 13th November micro-technologies). th March, presents the most innovative and 13 2016, Zurich will host the Auto Zürich Car EPHJ-EPMT-SMT is the most important glamorous side of the automotive industry. professional show held annually in SwitzerShow, the biggest car show in the Germanland in the high-precision sector, embracing Automobile manufacturers from around the speaking part of Switzerland, presenting a jewellery and watchmaking subcontracting tried and tested combination of new cars, world, as well as suppliers, tuners, etc., will present their product ranges, which will include micro-technologies and medical technolotuned vehicles and components, accessogies. The show is a multi-domain field for ries and services in seven different halls at numerous world and European premieres. business interactions and the latest innothe Messe Zurich Exhibition Centre. ■ Zurich international cosmetics, beauty and

One of the most famous fairs in Basel is certainly Baselworld. It attracts over 94,000 visitors and around 2,100 exhibitors from over 45 countries

THROUGH DEEPER REFORMS TO NEW INVESTMENTS

| 45

CORPORATE

Serving Industry and NATURE We are a natural and reliable partner for every industry which generates dangerous industrial waste at the end of its cycle. After being treated with our technology, waste molecules are permanently transformed into the new product-NEUTRAL

Y

UNRISK deals with dangerous industrial waste using patented technology that has been used successfully in developed EU countries. The MID-MIX® technological procedure we use on different types of dangerous waste is considered one of the permitted and recommended technologies in Europe for industrial waste recycling – “BATNEC” – the best available technologies that do not require excessive waste management costs and do not pollute the environment.

INTRODUCTION We live in an accelerating and upwardly mobile industrial world. Industry, with its work and intensity, has become a symbol of society’s progress. Unfortunately, industry leaves behind a lot of waste that, if not treated properly, becomes very dangerous for the natural environment. One of today’s most important goals is environmental protection at both the local and global levels. YUNIRISK is meeting this goal at the local level, resolving issues related to the disposal and treatment of industrial waste using an environmentally responsible method.

We have been dealing with industrial waste disposal for more than a decade. Our job is to treat and process most different kinds of dangerous industrial waste, transforming it into a

NEUTRAL material, harmless for the people and the environment, and able to be used for further purposes. YUNRISK uses patented technology that has been used successfully in developed EU countries. We are a natural and reliable partner to every industry that, among other things, generates dangerous industrial waste at the end of its cycle. We are proud of our recent work and the long list of our partners and collaborators.

The MID-MIX® technological procedure is used to treat different solid, liquid and sludge waste containing hard metals, organic components or other characteristics hazardous to the environment, such as: • Different types of waste oils and oil emulsions • Different types of waste contaminated with heavy metals • Different types of sludge

PROCEDURE The MID-MIX® technological procedure is based on the process of solidification with the purpose of converting waste with at least one dangerous characteristic into a form in which its constituents are immobilised in such a way that they no longer constitute an environmental hazard. The MIDMIX® technological procedure is a

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TYPES OF WASTE TREATED

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COMPANY REGISTER ABSOLUT TIME D.O.O. Jovan Birač, Direktor www.jti.com Olivera Stojanović, Director Ibarska 13/5 KINSTELLAR D.O.O. Kneza Mihaila 47 11000 Belgrade Patrick Lynch, Director 11000 Belgrade Tel: +381 11 7838 156 Takovska 23-25 Tel: +381 11 3287 292 Fax: +381 11 6430 002 11000 Beograd Mob: +381 66 345 600 office@birac.rs Tel: +381 11 3210 200 info@absolut-time.rs www.birac.rs Fax: +381 11 3210 222 www.absolut-time.rs BUZZ HAVAS patrick.lynch@kinstellar.com WORLDWIDE BELGRADE ADECCO www.kinstellar.com HOUTSOURCING D.O.O. Ilijana Stamenković, Director KONZUL D.O.O. 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Milan Protić, Zastupnik Fax: +381 11 2284 241 LAW OFFICE Fax:+381 11 26 38 109 Theodor Moser, Director Christian Braunig, Director Milutina Milankovića 23 sgs.beograd@sgs.com Sremska 4 miodrag.jelisavcic@ Tršćanska 21 Knez Mihailova 22 11070 Belgrade www.sgs.rs 21000 Novi Sad power.alstom.com 11080 Zemun 11000 Belgrade Tel :+381 11 2209 400 SICPA HOLDING SA Tel: + 381 21 4721 788 www.alstom.com Tel: +41 81 842 6079 Tel: +381 11 3039 104 Fax:+381 11 2209 444 Av de Florissant 41, 1008 Prilly Fax: +381 21 66 17 541 BALKAN LIFT KOMERC D.O.O. Mob: +41 79 354 6104 Fax: +381 11 3039 105 innovation.rs@3m.com 1000 Lausanne 16 office@sunjkalawoffice.com Miroslav Markuc, Director www.moser-sqts.com office@confida.rs www.solutions.3m.com Switzerland www.sunjkalawoffice.com Ljube Didića 28 MRG D.O.O. www.confida.rs PRETEK D.O.O. Tel: +41 21 6275 555 TSG- TOMIĆ SINDJELIĆ 11000 Belgrade Milun Grbović, Director CRH (SRBIJA) D.O.O. 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Ljubica Tomić, Managing Partner 35254 Novi Popovac, Paraćin blk@sbb.rs Tel: +381 11 2433 705 Tel: +381 11 3940 071 Dragan Maksimović, Director Carice Milice 3 Tel: +381 35 572 200 www.balkanlift.co.rs Fax:+ 381 11 2433 792 pfl@pfl.ch Patrijarha Pavla br. 1 11000 Belgrade Fax +381 35 572 207 BARRY CALLEBAUT office@mrg.rs www.precel.ch 22310 Šimanovci Tel: +381 11 3285 227 SOUTH EAST EUROPE D.O.O. aleksandar.milosevic@ www.mrg.rs PRICA & PARTNERS Tel: +381 22 2155 777 Fax: +381 11 3285 153 rs.crh.com Stojan Kemera, Director MUTARA TREUHAND AG ATTORNEYS AT LAW Fax: +381 22 2155 778 office@tsg.rs www.crhserbia.com Jurija Gagarina 32 Séverin Knüsel, Director Mihajlo Prica, Partner office@rs.sika.com www.tsg.rs EVOLVEA D.O.O. 11070 Belgrade Dorfstrasse 38, Lindenhof Kosancicev venac 20 www.srb.sika.com VISUAL IMPACT D.O.O. Avel Lenttan, Director Tel:+381 11 3532 805 CH 6340 Baar 11000 Belgrade SKY EXPRESS D.O.O. Srđan Ršumović, Director Prizrenska 7/2/4 Fax:+381 65 3423 801 Tel: +41 41 790 77 77 Tel: +381 11 2621 741 Majo Mićović, Director Oblakovska 28 11000 Belgrade stojan_kemera@barry-callebaut.

Fax: +41 41 790 77 76 Fax: +381 11 2629 331 Uroša Martinovića 13 11000 Belgrade Tel: +381 11 3623 111 com www.barrykontakt@mutara.ch office@pricapartners.com 11070 Belgrade Tel: +381 11 3690 043 Fax: +381 11 3623 114 callebaut.com mutara.ch www.pricapartners.com Tel: +381 11 2421 580 Fax: +381 11 2648 466 info@evolvea.rs BASNA D.O.O. NESTLE ADRIATIC S D.O.O. PROFESSION GROUP Fax: +381 11 2421 945 info@visuals.rs - EKOLOSKA TEHNOLOGIJA www.evolvea.rs Yana Mikhaylova, Director Snežana Simin, Director prodaja@sky-express.rs www.visuals.rs INTERTRAVEL D.O.O. Vesna Baur, Director Milutina Milankovića 11a Dečanska 13/V www.sky-express.rs YVES-MICHEL - MEMBER OF PUTNIK Ulica 74/1, Atenica 001 11070 Belgrade 11000 Belgrade STAR IMPORT D.O.O. CRVCANIN-BOIVENT AVOCAT GROUP SWITZERLAND 32104 Čačak Tel:+381 11 2019 398 Tel: +381 11 3245 742 Rolf-Jűrgen Seyerle Avenue de l’Avant-Poste 19 Slobodan Ilić, Director Tel./Fax: +381 32 5435 363 Besplatna linija: 0800 000 100 office@professiongroup.com Omladinskih brigada 33 1005 Lausanne - Suisse Topličin venac 19-21 Mob: +381 64 6440 141 info@rs.nestle.com www.professiongroup.com/ 11070 Belgrade Tél. : + 41 21 5446 576 11000 Belgrade info@basna.net www.nestle.rs PUTNIK GROUP/APG SRB Tel: +381 11 3019 000 Fax : + 41 21 3233 062 Tel: +381 11 31089 99 www.basna.net NOVARTIS PHARMA & WESTERN BALKANS D.O.O. Fax: +381 11 3019 036 ymc@ymclaw.ch SERVICES INC Fax: +381 11 3121 568 BDK ADVOKATI Ilija Todorić, Director informacije@starimport.rs www.ymclaw.ch PREDSTAVNIŠTVO info@intertravel.rs Vladimir Dašić, Partner Toplicin Venac 19-21 www.mercedes-benz.rs ZUHLKE Predrag Bogavac, Zastupnik www.intertravel.rs/ Dobračina 38 11000 Belgrade SWISSMADE TRADING LTD. ENGINEERING D.O.O. Omladinskih brigada 90a JT INTERNATIONAL AD 11000 Belgrade Tel: +381 11 3108 959 Hallwilerweg 2 Aleksandar Marjanović, Director 11070 Belgrade Christopher Woods, Director Tel: +381 11 3284 212 office@apg.rs CH-6003 Lucerne, Switzerland Španskih boraca 3 Tel: +381 11 2014 000 Vladimira Popovića 38-40 Fax: 381 11 3284 213 www.apg.rs Tel: +41 41 2101 929 11070 Belgrade Fax: +381 11 3112 602 11070 Belgrade www.bdklegal.com www.putnik-group.org www.swissmade.com Tel: +381 11 4426 700 office.serbia@novartis.com Tel: +381 11 2050 300 BIRAČ RINGIER AXEL SPRINGER D.O.O. SYGMA CONSTRUCTION D.O.O. info@zuehlke.com COMMUNICATIONS D.O.O. www.novartis.com Fax: +381 11 2050 301 Jelena Drakulić-Petrović, Zoran Jevtić, Director www.zuehlke.com

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