Issuu

MINISTRY OF TRADE, TOURISM AND TELECOMMUNICATIONS

TRADE | TOURISM | TELECOMMUNICATIONS 2021

Leadership in telecommunications is also essential, since we are now in the age of e-commerce. Michael Oxley 3

TRADE | TOURISM | TELECOMMUNICATIONS 2021

CONTENTS

WE WERE READY 06 FOR UNEXPECTED DISRUPTIONS TATJANA MATIĆ, Minister of Trade, Tourism and Telecommunications

FROM THE 10 LEARN SUCCESSFUL

DEJAN ĐUKIĆ, Director of the Serbian National Internet Domain Registry (RNIDS)

DIGITAL 16 TRANSFORMATION MUST BE INCLUSIVE

MILOŠ CVETANOVIĆ, Secretary of State in the Sector for Information Society and Information Security

AGE OF 17 GOLDEN E-COMMERCE

VLADIMIR SPASIĆ, Account Executive, Dell EMC

SOLIDARITY AND TRUST ACQUIRED 12 13 COOPERATION ARE KEY THROUGH QUALITY TO SUCCESS OLIVERA JOCIĆ, Assistant Minister in the Sector for Foreign Trade Policy, Multilateral and Regional Economic and Trade Cooperation

WE WANT TO THE LAW MUST 18 25 ELIMINATE THE DIGITAL FOLLOW LIFE’S DIVIDE IN SERBIA IMPOSED DEMANDS

ZORAN ĐORĐEVIĆ, Post of Serbia Director

MILAN DOBRIJEVIĆ, Assistant Minister, Sector for Electronic Communications and Postal Traffic

JOVAN STOJIĆ, Assistant Minister of Trade, Tourism and Telecommunications

mts IN THE GROUP 14 OF EUROPE’S BEST OPERATORS

OF 19 FOUNDATIONS AUTOMATION

26 WORLD-CLASS NAVIGATION SERVICES

ĐORĐE MAROVIĆ, Chief Technical Officer, Telekom Srbija

AIGO

CAN BOOST 22 5GECONOMIC GROWTH ANTONIO PASSARELLA, Country Manager, Ericsson Serbia

5G REMAINS AN ESSENTIAL DRIVER

BRANISLAV STAMATOVIĆ, Country Manager for Serbia and Montenegro, R&M

LOCAL TOURISTS REVEAL A DIFFERENT SERBIA

RENATA PINDŽO, Assistant Minister of Tourism

EDITOR IN CHIEF Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com ART DIRECTOR Branislav Ninković b.ninkovic@aim.rs

PROJECT MANAGERS Biljana Dević b.devic@aim.rs Vesna Vukajlović v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs

PHOTOS Zoran Petrović

OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs

COPY EDITOR Mark Pullen mrpeditorial@mail.com

EDITORIAL MANAGER Neda Lukić n.lukic@aim.rs

FINANCE Dragana Skrobonja finance@aim.rs GENERAL MANAGER Maja Vidaković m.vidakovic@aim.rs PUBLISHER Ivan Novčić i.novcic@aim.rs DIRECTOR Ana Novčić

a.novcic@aim.rs a.novcic@cordmagazine.com PRINTING Rotografika d.o.o. Segedinski put 72, Subotica TRADE | TOURISM | TELECOMMUNICATIONS 2021 Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia

IVAN BILIĆ PRCIĆ, DIPL. ING., Inland Navigation Division Manager, Croatian Register of Shipping

THE PANDEMIC HAS 28 CHANGED CONSUMER HABITS VIŠNJA RAKIĆ, Assistant Minister in the Consumer Protection Sector

CONTINUING 29 GROWTH DESPITE CHALLENGES UROŠ KANDIĆ, Secretary of State at the Ministry of Trade, Tourism and Telecommunications

Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs; office@cordmagazine.com www.aim.rs; www.cordmagazine.com No 27 ISSN: 2560-4465 All rights reserved alliance international media 2021 The views expressed in this publication are those

of the presenter; they do not necessary reflect the view of publications published by alliance international media THIS PUBLICATION IS FREE OF CHARGE

TRADE | TOURISM | TELECOMMUNICATIONS 2021

COMMENT

E – LIFELINE The Coronavirus pandemic has highlighted the importance of digital transformation and connectivity for Serbia. It also showed that the diligent work of the Ministry of Trade, Tourism, and Telecommunications, as well as other partners in the public and private sector, has paid off.

here aren’t many policies (aside from fiscal discipline) that have been subjected to such fierce scrutiny as the long term work of the Ministry of Trade, Tourism, and Telecommunications in the areas of telecommunications and digitalisation. It was a year ago, almost overnight, that everybody shifted their work and life online as much as possible – from the public administration and large public institutions, such as schools, hospitals and social services, to large sectors that were capable of transferring to remote work, small and medium-sized companies that suddenly found themselves ready to enter the waters of e commerce, and ordinary citizens. This wouldn’t have been conceivable without the adequate infrastructure and long term planning and collaboration. It became evident that inter-sector policies that steered the way to e-government, e-banking and several other e-s, made the lives of businesses and citizens easier than we’d thought. In other words, thanks to a systemic approach to digitalisation in terms of regulatory devel-

opment, encouraging the development of telecommunications, information security, raising digital skills, developing e-commerce and enabling market liberalisation all paid off – for everything from e- learning to support for vaccination. As a result of this, it turned out that most of Serbia had better internet connections

Many business procedures couldn’t be completed entirely online, as some legislation was missing or confusing. And some businesses in areas that had less 4G network coverage felt left behind. With the current wisdom earned through the tough days of COVID-19, which is still with us, some of the policies envisaged as part of

The development of broadband is a great opportunity to accelerate economic progress in less developed areas of Serbia than many states with more advanced telecommunication sectors; that the Ministry, in collaboration with other partners, supported the massive shift of both large and small companies to E-commerce, providing a lifeline for many businesses that thought they wouldn’t be able to cope with so many health related restrictions. Indeed, many loopholes also appeared. One of them is certainly digital illiteracy, both at the level of companies and the public administration, as well as in services and schools.

the Digital Agenda for the Western Balkans, as well as national polices related to digital transformation, seem to have become even more relevant. This relates to the 5G roadmap to digital transformation, the objective to cover all parts of Serbia with high-speed internet access, including those areas that private operators have no interest in developing, and to dramatically increase digital literacy across sectors and fields of work and life while further boosting ICT capacities and human capital. 5

TRADE | TOURISM | TELECOMMUNICATIONS 2021

INTERVIEW

TATJANA MATIĆ, MINISTER OF TRADE, TOURISM AND TELECOMMUNICATIONS

We Were Ready For

UNEXPECTED DISRUPTIONS Careful, systemically conceived and implemented digital transformation in Serbia has enabled the economy and citizens to be far more ready to confront the challenges they faced during the pandemic. Even in the tourism sector, which suffered the greatest consequences of the crisis, this sequence of events did not hinder the digital promotion of domestic potential.

he economic sectors that come under the scope of the work of the Ministry of Trade,Tourism andTelecommunications experienced tectonic disruptions during COVID-19, from the strong rise of E-commerce and the mass transition to working from home, to great pressures felt by the tourism sector. We spoke with Minister Tatjana Matić about the digital transformation process in Serbia, the introduction of the 5G network and a new reconsidering of Serbian tourism’s position on the global map. How would you summarise a year of life under the pandemic, from the perspective of your ministry? The strategic commitment to digitalisation that was made five years ago has enabled Serbia not only to gain numerous development potentials, but also to fortify itself for the challenges of the modern era in terms of current social and economic changes. Although nobody could have predicted the terrible global crisis and the blow of the pandemic, it could be said that we were ready for unexpected disruptions thanks to our systemic approach to digitalisation in the areas of the development of regulations, stimulating the development of telecommunications, information security, raising the level of digital skills, developing E-commerce and enabling market liberalisation.

TRADE | TOURISM | TELECOMMUNICATIONS 2021

BRANDING

DEVELOPMENT

NETWORKING

It is crucial for us to encourage investments in, and the promotion of, tourism in Serbia, given that we are awaited by the redefining and retaking of market positions around the entire world

Even at the current level of industry development, the development of the 5G network, as well as modern technologies, will undoubtedly provide a strong impetus to Serbia's overall development

The goal of the Government of Serbia is for there to be no household in the country without the possibility of fixed access to high-speed internet by 2025

All activities directed towards the development of the digital society and economy, including the adoption of laws, strategic documents and the implementation of numerous programmes and projects, have contributed to it being possible, under the circumstances of a pandemic, to do business and conduct activities related to education, communication and the overall functioning of society. The tourism sector alone suffered seriously, due to the impossibility of travel, but digital promotion was also carried out in that area, in parallel with the adoption and implementation of support measures and the planning of new strategic goals towards the conquering of market positions in the post-pandemic period. In short, the results of our work from previous years significantly eased the tremendous stress that we’ve all been subjected to during this crisis. When you look back, what are the strategic moves made in recent years that have enabled Serbia, according to the assessments of many, to succeed in ensuring good quality telecommunications during the mass transition of companies to working from home? Intensive work on the development of broadband infrastructure has been carried out in Serbia over the last few years, thanks to the adopted strategic framework. Electronic communications operators are developing their own networks in line with the latest trends, which includes setting up optical communication infrastructure and increasing the coverage and capacity of mobile communication networks. This enables uninterrupted work from home, as well as the use of broadband services even under the conditions of the COVID-19 pandemic. The timely release of parts of the radio frequency spectrum was provided, which enabled the intensive development of mobile networks. Today we have secured 4G mobile network coverage for more than 95% of the population. Likewise, considering the existence of the digital divide in Serbia, as well as in other European countries, the Ministry of Trade, Tourism

and Telecommunications has launched a project to develop broadband access in rural areas. What further steps will you take in bringing high-speed internet connections to parts of Serbia that don’t yet have such services? The goal of the Government of Serbia is for there to be no household in the country without the possibility of fixed access to high-speed internet by 2025. Within the framework of that initiative, a capital project was launched for the construction of broadband communication infrastructure in rural areas, and a loan agreement between the Republic of Serbia

2021/2022. This will also create a new platform for the development of digital services in these areas, i.e. new channels for the development of IT services - the IT industry, E-commerce and E-tourism, together with the economic strengthening of underdeveloped areas. Many people consider that COVID-19 has led to the significant accelerating of the digital transformation process in Serbia. Who are its champions and what challenges were faced by those who didn’t cope as well? There are a large number of examples of successfully transitioning to working online in

The results of our work on digital transformation from previous years significantly eased the tremendous stress that we’ve all been subjected to during this crisis and the European Bank for Reconstruction and Development, amounting to 18 million euros, is envisaged for the implementation of the first phase. With this we will secure ultra-fast broadband access in 500 settlements, or for about 80,000 households in rural areas, for which there was no commercial interest among operators to investment in the network. The Ministry conducted analysis to review the current situation when it comes to broadband internet access, which showed that Serbia has “white zones”, territories that don’t have adequate access to broadband networks and where operators have no plans to build them in the next three years. It has also been recognised that around 2,800 settlements with over 320,000 households have a problem with broadband internet access and these are areas that are candidates for state incentives. The implementation of the first phase of the project will actually enable inclusion in the digital society for nearly a third of those who’ve had problems to date with fixed internet access. The second phase, which is aimed at connecting through the network up to 900 schools/public institutions and up to 135,000 households, is planned as a separate project for

Serbia, as well as digital transformations. These are, for example, the education system, remote shopping, the banking system and doing business with citizens. I would also highlight the services that are available through the eGovernment portal, which ease the everyday lives of citizens and render business operations more efficient. This kind of development of events required many to develop their digital skills and improve their digital literacy overnight. How do you intend to encourage the further development of these skills? With the aim of raising digital literacy generally, the Strategy for the Development of Digital Skills for the period from 2020 to 2024 was adopted, which includes improving the digital knowledge and skills of all citizens, including members of vulnerable social groups, but also digital professionals, in order to enable the monitoring of the development of information and communication technologies in all areas. We have developed particular programmes that are intended to empower and increase the inclusion of girls and women in digital technologies, training projects in the area of digital skills for women in rural areas, as well as the “Smart 7

TRADE | TOURISM | TELECOMMUNICATIONS 2021

We are witnessing a major debate in Serbia about the introduction of the 5G network. How much does the domestic industry primarily need 5G solutions and, given the level of our development, where could it be applied? The main advantages brought by 5G mobile networks encompass a significant increase in throughput with reduced delays, which is essential for efficient automation and other processes that are important for the development of industry. There are numerous examples of potential applications of 5G networks, and they cover areas such as agronomy, the automotive industry, telemedicine and applications for mining, transport and storage. Even at the current level of industry development, the development of the 5G network, as well as modern technologies, will undoubtedly provide a strong impetus to Serbia’s overall development.

The public tender for the issuance of individual permits for the use of radio frequencies in the bands intended for the development of new mobile systems, including 5G, is expected to be conducted by the end of 2021 at the earliest and Safe” platform for encouraging the use of new technologies in education, trade and business. For the youngest users, alongside the annual school campaign ‘IT caravan for the creative and safe application of technologies in learning’, four years ago we established the National Contact Centre for the Safety of Children on the Internet, which functions as a service for citizens to report the endangering of children, but also as a centre for education and information. Digital literacy is practically a new form of literacy that’s essential in all spheres of life, while digital skills are increasingly confirmed as a prerequisite to work and operate successfully, and in accordance with that we will certainly continue implementing and further developing existing strategic programmes which, together with the development of networks, should contribute to the complete elimination of the digital divide and the inclusion of all citizens in the contemporary digital society. 8

When does the Ministry intend to conduct the auction? What will the practical sequence of steps be like? The public tender for the issuance of individual permits for the use of radio frequencies in the bands intended for the development of new mobile systems, including 5G, is expected to be conducted by the end of 2021 at the earliest. The practical sequence of steps is stipulated by the Law on Electronic Communications and encompasses the bringing of decisions regarding the fulfilment of conditions for the issuance of individual licenses under the public tender procedure conducted by the Regulatory Agency for Electronic Communications and Postal Services, the adoption of an act prescribing the minimum conditions for the issuance of individual licenses under the public tender procedure conducted by the Ministry of Trade, Tourism and Telecommunications, after which the Agency decides about the initiating of a public bidding procedure. How much of a position was the government in to help the tourism sector and are you planning some additional measures to help the most vulnerable subgroups in this segment? The Government of Serbia last year adopted several measures to help tourism due to the pandemic, with about nine billion dinars allocated for that. A Decree was adopted at the beginning of this year that envisages a minimum wage for tourist guides and escorts, then two Decrees for subsidies intended for the hospitality and tourism industry, and for the hotel industry, in

a total amount of three billion and 612 million dinars, and a call was made for supporting the work of hospitality and tourist businesses, for which 350 euros per individual bed and 150 euros per accommodation unit were secured. The first 100,000 vouchers in support of domestic tourism were also provided and distributed. We hope that, thanks to the immunisation process, we will soon see the start of the period of normalisation, but we will certainly continue to introduce support measures as necessary. It is, however, crucial for us to encourage investments in, and the promotion of, tourism in Serbia, given that unutilised potentials still exist and that we are awaited by the redefining and retaking of market positions around the entire world, which can be a great opportunity for Serbian tourism. What does the new digital agenda at the European level mean for the Western Balkans; what are your further strategic priorities? Cooperation at the regional level is of great importance to Serbia and the Ministry of Trade, Tourism and Telecommunications. With the aim of achieving the best possible cooperation in the Western Balkan region, the Ministry participated actively in the development of the Action Plan for the development of the common regional market for the period from 2021 to 2024, and it also participates actively in its implementation. That Action Plan recognises as a priority the development of a regional digital territory, within which the priority areas are the aforementioned digital infrastructure and connectivity, digital skills and competences, the digital economy in the era of new ICT technologies, and services of trust and security. These areas represent strategic fields for the development of electronic communications and information society, as well as the priorities of the Ministry. Within the scope of the aforementioned priority areas, an Agreement was also signed on lowering the prices of mobile roaming services. With the implementation of this agreement, as of 1st July 2021, the prices of calls, sending SMS messages and transferring data in roaming within the Western Balkan region will correspond to the prices that citizens pay within their home network. This Agreement is also significant because it represents an important step in preparations for the region’s integration into the EU digital single market, as well as an important step in the process of reducing roaming costs between the EU and the Western Balkans.

TRADE | TOURISM | TELECOMMUNICATIONS 2021

The real voyage of discovery consists not in seeking new landscapes, but in having new eyes. Marcel Proust

TRADE | TOURISM | TELECOMMUNICATIONS 2021

BUSINESS

DEJAN ĐUKIĆ, DIRECTOR OF THE SERBIAN NATIONAL INTERNET DOMAIN REGISTRY (RNIDS)

Learn From

THE SUCCESSFUL The RNIDS Foundation has spent the last 15 years managing the registry of national internet domains and infrastructure of special importance. RNIDS is among the rare registries around the world that have recorded the highest level of availability for years and that offer the highest level of protection against cybercrime.

NIDS has done a lot on the creation of ecosystems for the normal and stable functioning of the internet in Serbia. Our basic mission, which we have been performing successfully for years, is to ensure that our domains and the infrastructure we take care of function flawlessly, without interruptions - notes RNIDS Director Dejan Đukić with pride. What are all the advantages of the national domain; how important is it for doing business on our market and for the positioning of websites in searches? We’ve already spent a decade and a half managing the registry of national internet domains and infrastructure of special importance, which is extremely important and extremely responsible work. If our services or system were delayed at any instant, all services on the .rs / .срб domains would stop working - sites would be unavailable and there would be no email exchanges. This would lead to standstills in business processes, use of online services and the executing of online transactions. Considering that national domains have an almost two-thirds share on the Serbian market, such a standstill would be felt massively. Businesspeople have recognised the importance of appearing on the local market with local domains. From international corporations operating in Serbia, to small and micro domestic companies. Similarly, customers expect businesses to address

TRADE | TOURISM | TELECOMMUNICATIONS 2021

them from the national domain, especially if that business operates in the financial sector, so they are more credible. Users describe the national domain as stable and secure. It is important to them that they receive support in Serbia from their authorised registers, and ultimately from RNIDS. The national domain has another important advantage. Google experts state that the geographical signal of the country from which searches are performed is important when ranking results in local searches, which ensures that sites on local domains are better positioned. Is it true that RNIDS is one of just a few registries that record the highest level of availability? What else distinguishes you? Yes, RNIDS is among the rare registries around the world that have been recording the highest level of availability for years. In a world where cybercrime is one of the most common threats, and where attacks are often carried out through the misuse of DNS services, it is vital to protect domain names. Even the simplest level of protection provides some degree of protection against the hacking of domain names, and for several years there have been two types of protection available for the .rs / .срб domains that RNIDS does not charge for (Secure Mode and Client Side Lock), but also the most efficient form of domain lock in terms of Registry Lock. As of a year ago, we’ve also had available DNSSEC [Domain Name System Security Extensions], as a form of protocol protection that confirms the authenticity of DNS responses and ensures that a user who’s headed to a certain location is not redirected to the wrong site due to a hacking intervention. The pandemic has caused serious declines for a significant part of the economy, whilst also leading to great growth being recorded by E-commerce, courier deliveries and the pharmaceutical industry. What would you advise both the winners and losers? You should learn from the successful. Under crisis conditions, large organisations with complex structures demonstrated that they are very agile and adaptable. That speed of adaptation comes from the ability to quickly make the necessary changes and

digitalise business processes. The growth of certain industries is conditioned by need during the pandemic - need for medicines, food supplements, home deliveries, online shopping due to shops being closed. However, the quality and speed of responding to increased demand has conditioned not only growth, but also market positioning in relation to competitors. Small and micro enterprises also have their chance in the speed of adaptation and digitalisation. Our research shows that 87% of small and micro enterprises that are present on the internet have their own website, which they consider as the most important digital channel for acquiring new business opportunities, which has impacted on increasing sales and expanding their networks of contacts. Other research shows that 43% of micro companies don’t operate online. Such companies are missing out on their market opportunity. RNIDS has launched the pitajte.rs project with the aim of helping current and potential participants

and the Ministry are implementing certain projects jointly, while there are prospects for some new ones. We also cooperate with other ministries, such as the Ministry of Defence and the Interior Ministry, but also with the National CERT etc. Cooperation is always welcome, because we can thereby respond more successfully to the needs of various digital market stakeholders. You recently organised the Serbian Internet Domain Day (DIDS), which was held in an online format for the first time and included the regional TLD forum. What did all the discussions encompass? What were the conclusions? The slogan “Servant. Master. Internet.” described, in just three words, the central topic of this year’s DIDS - the role the internet has played in our lives and businesses over the past year. A significant part of the economy has recorded a slowdown in operations since the appearance of the

RNIDS has launched the pitajte.rs project with the aim of helping current and potential participants in the online market in the online market to make informed decisions that will help them effectively use the internet to develop their business. RNIDS has done a lot on the creating of an ecosystem for the normal and stable functioning of the internet in Serbia. Could you do more in the future if you had the help of the state and the Ministry of Trade, Tourism and Telecommunications? RNIDS is based on a multi-stakeholder model of governance that all legal entities and entrepreneurs in Serbia can engage in. Alongside this type of cooperation, RNIDS also has several special agreements with individual state bodies and other organisations. RNIDS has a special form of cooperation with the relevant ministry, which is improving constantly. It supported the delegation of the RNIDS .rs and .срб domains to ICANN [Internet Corporation for Assigned Names and Numbers], while the registry has been recognised by domestic legislation as an ICT system of special importance. RNIDS

first case of the novel coronavirus in Serbia, but there have also been those that have had surprisingly high growth, such as Ecommerce or delivery services. Panellists shared their experiences of doing business during the pandemic and spoke about the importance of the internet to maintaining the continuity of their business. We heard data about current and expected trends, as well as tangible advice, from tips on how to optimise sales sites and improve communication with clients, to tips on how to adapt communication between businesses and institutions to handle the situation caused by the pandemic. We recorded a really exceptional level of attendance, with more people following the conference live at the same time than is usually the case in the conference hall. The Regional TLD Forum, which traditionally follows DIDS, brings together colleagues from the region’s national registries. We discussed current events, but also plans for further regional cooperation. 11

TRADE | TOURISM | TELECOMMUNICATIONS 2021

INTERVIEW

OLIVERA JOCIĆ, ASSISTANT MINISTER IN THE SECTOR FOR FOREIGN TRADE POLICY, MULTILATERAL AND REGIONAL ECONOMIC AND TRADE COOPERATION

Solidarity And Cooperation Are

KEY TO SUCCESS

All measures that have been initiated, at both the national and regional levels, have contributed to Serbia's trade exchange recording less of a decline than was forecast at the beginning of the crisis and the achieving of satisfactory results overall. flow of basic products that are essential for the population during the time of the pandemic, such as medicines, protective equipment and basic foodstuffs. In accordance with that, late March 2020 saw the establishing of green corridors/lanes in the CEFTA region, as a network of priority roads and border and administrative crossings through which the transport of goods could unfold unhindered. A list of basic products that have the right of priority passage

We expect to face the same challenges in foreign trade exchanges at the global and local levels this year as we did in 2020

he pandemic caused by COVID-19, which impacted the entire world in 2020, had a strong influence on the volume of trade and flows of goods transported in the region and beyond. As a response to the outbreak of the pandemic, the Government of the Republic of Serbia had a proactive approach and reacted immediately, with the introduction of measures at the domestic level, as well as internationally, and primarily at the regional level. The government adopted a series of measures that were aimed at combating the pandemic and regularly supplying the population, while in parallel an initiative was launched towards the CEFTA region that aimed to ensure the unhindered 12

was defined, with 24-hour working days secured and the presence of competent state bodies and inspectors, while there was also the specific establishing of electronic exchanges of information and advanced announcements of the arrival of priority goods at border/administrative crossings. It should be noted that the countries of the region showed exceptional solidarity and successful joint work. We would emphasise the fact that this initiative proved itself to be one of the most successful examples of regional cooperation, which has contributed to meeting the needs of the population during the pandemic and preserving trade flows with our neighbours. On the basis of the successful implementation of this initiative within the CEFTA region, a proposal came to expand the modified mechanism of Green Corridors

to encompass border crossings with the EU, which would be extremely significant given that the EU is the most important trade and investment partner of the entire CEFTA region. It is important to highlight that all the measures that were initiated, at both the national and regional levels, have certainly contributed to Serbia’s trade exchange recording less of a decline than was forecast at the beginning of the crisis. Thus, in 2020 Serbian exports to the world recorded a decline of 2.7%, while imports fell by 3.8%. Compared to global trends or those of the EU, where exports fell by as much as 9.4% and imports by 11.6% last year, it can be concluded that Serbia achieved satisfactory results that were even better than those of its most important partners. Serbia’s total world trade (worth over 40 billion euros) fell by 3.4% in 2020, while trade with the EU fell by 1.9% compared to 2019. In the trade exchange with CEFTA, that decline totalled 4.1%, while with the Russian Federation it was 31.2%. On the other hand, during the observed period the total trade exchange with China was up by 26.3% compared to 2019. In contrast to that, data from the World Trade Organization show that the volume of global trade was 5.3% lower in 2020 than it was in 2019. All regions recorded sharp declines in both imports and exports, with the exception of Asian countries, where exports were up by 0.3% and imports fell by 1.3%, primarily thanks to China’s dominant role and exports of essential products for combating the pandemic.

TRADE | TOURISM | TELECOMMUNICATIONS 2021

ZORAN ĐORĐEVIĆ, POST OF SERBIA DIRECTOR

BUSINESS

Trust Acquired

THROUGH QUALITY The leading position held by the Serbian postal service, Pošta Srbije [Post of Serbia], in the domain of postal traffic and logistics services is based on the carefully developed and constantly improved synergy of key resources - personnel, technology, equipment and infrastructure

Foto Pošta/ Igor Đukanović

imperatives, and those imperatives arise from the business and social responsibility that is brought by such an important role that Post of Serbia plays. The greatest responsibility is in the hands of our 15,000 employees, who are trained professionals and, above all, motivated to perform their tasks to the maximum professional level. The development of their competencies is part of the strategic programme that is based, among other things, on the development of technological processes, the advancement of equipment capacities, modernisation and the constant introduction of new technological and IT solutions.

he numerous acknowledgements that Post of Serbia has received from service users, along with the official A certificate of the Universal Postal Union at the international level, which confirms that the quality of services is harmonised with the highest world standards, obliges Post of Serbia to accept every challenge as an opportunity, says director Đorđević. Does the credit for your leadership position belong to people, knowhow and experience or equipment, monitoring new achievements etc.? Due to the specificity of its activities, Post of Serbia, as a business system of strategic and national importance, is woven into every pore of the lives of people and the economy in every part of Serbia. That’s why the development and continuous improvement of operations are our

Although this is a huge system, with a large number of employees, facilities, vehicles and a large territory to cover, Post of Serbia successfully adapts to market trends and requirements. Are those major challenges?

One of our priorities is the introduction of “green technologies” and the transferring of the entire fleet to environmentally friendly vehicles with hybrid and electric drive systems The development of ITand digitalisation have set development challenges for all activities, and Post of Serbia is no exception to that. The pandemic has further confirmed the essential need to adapt more quickly to new and growing needs of users for affordable and fast postal and logistics services at affordable prices. And

this is why the priority for the management of Post of Serbia is to reorganise and restructure operations, with an emphasis on the digitalisation of processes and services and the constant innovating of solutions for end users that are in accordance with their needs. In essence, our goal isn’t to retain our current positions, rather to use an advanced development-innovative approach to take an increasing part of the market, not only in Serbia, but also around the region. Apart from the conquering of new technologies and the application of innovations, what will mark the period ahead of us? What are your plans? It is our obligation to respond to the trust placed in us by citizens and corporate users with an even better service based on new technologies and modern postal and logistics solutions, in which the digitalisation of services and processes is a key priority that we are implementing with the full support of the Government of Serbia and Prime Minister Ana Brnabić. The development process for Post of Serbia is also based on a deeply ingrained sense of social responsibility, or our obligation to society as a whole and to the generations that will succeed us. One of the priorities is therefore the introduction of “green technologies” to all segments of business, the first of which will be the transferring of the entire fleet to environmentally friendly vehicles with hybrid and electric drive systems. Likewise, our employees are the face of Post of Serbia and our goal is for that “face” to represent us in the best possible way, which is why the development of employees will also be one of the future priorities. 13

TRADE | TOURISM | TELECOMMUNICATIONS 2021

BUSINESS

ĐORĐE MAROVIĆ, CHIEF TECHNICAL OFFICER, TELEKOM SRBIJA

mts In The Group Of Europe's

BEST OPERATORS

Telekom Srbija is increasing its investments year-on-year in the development of fibre optics and the expansion of its mobile network. It has additionally acquired a large number of cable operators, while at the same time the company is very active in the multimedia domain, in the field of content production. user apps. On the other hand, some global brands make their own business decisions about when they will enable services on the territory of Serbia, so for instance Netflix only appeared in 2016 and Apple only enabled access to the App Store in 2020. However, it is noticeable that the habits and needs of users in Serbia, the region and the wider world don’t differ and boil down to users expecting to have an accessible, affordable and reliable telecommunications service always and everywhere, as well as the freedom to choose the content and apps that they will use.

ATEL has declared us the best mobile network in Serbia for the second consecutive year, which confirms that results have been yielded by all our efforts to provide users with the best experience in using our mobile services. All of our users are equally precious to us, which is an important characteristic of our company’s operations - notes Telekom Srbija CTO Đorđe Marović proudly.

Telecommunications is experiencing constant expansion. In that context, what is the position of Serbia and the region like? The field of telecommunications has been developing intensively in Serbia for more than two decades, since the introduction of mobile 14

The total internet flow through the Telekom Srbija network during the state of emergency exceeded 1Tb/s, which the mts network supported without a problem telephony and the later arrival of broadband internet. In that respect, Serbia and the region are not lagging behind the rest of the world, and technologies that are becoming the standard around the world are almost simultaneously being introduced to Serbia. All Smartphone models are available to our users immediately after their world premieres, and this also applies to the largest number of

Over the course of the past year, due to the pandemic, the need for communication has increased dramatically, primarily in terms of high-speed internet and mobile signals. Have you been able to meet the expectations of clients? Telekom Srbija has recorded a significant increase in the use of many services during the pandemic. Users are working from home and using the internet en masse, which needs to be supported on the network. During the state of emergency we recorded a 52% jump in the total amount of data transmitted over the internet, while the average amount of data transmitted via the Viber application in the mobile network jumped by 150%, use of the Netflix platform doubled and use of the TikTok platform even tripled. The total duration of mobile calls increased by 80%, and landline calls by 40%. Even today, long after the lifting of the state of emergency, trends in the use of services have remained such that constant growth is noticeable. Telekom Srbija responds suc-

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cessfully to all these demands, without any kind of negative consequences for network infrastructure and the quality of services, with which we fully satisfy our users’ expectations. In fierce competition between both mobile operators and free communication services, how do you retain your existing users and acquire new ones? Is the secret in new contents and new ways of “consuming”? All operators are experiencing great market pressure and battling in the competitiveness of offers, both among themselves and with global players, such asViber,WhatsApp, Google and various content providers. The market is saturated with offers of free communications services and affordable video platforms. This trend is also leading to a decline in the revenues of operators from traditional services, such as telephony and SMS messaging, so operators are trying to retain their users by offering them new innovative and more affordable services. In accordance with that, Telekom Srbija offers users its Box service packages, which provide significant discounts. Our company has also been engaging intensively in the production of multimedia content over the last few years. These activities have resulted, among other things, in the creation of many TV series that are very popular among the public. All this is fully in line with global ICT trends and represents a new source of revenue for telco operators. How much have you progressed when it comes to developing your own infrastructure? Significant funds were invested in the development of fibre optics and mobile infrastructure in the previous period, and the results are very evident. Connecting to fibre optic infrastructure is currently enabled for almost 800,000 households in Serbia. When it comes to the mobile network, with 2,800 mobile telephony stations, more than 98% of the population, and more than 84% of the territory, are covered by a quality LTE signal, which is the best result in Serbia. Another interesting fact is that, during the state of emergency, the total internet flow through the Telekom Srbija network exceeded 1Tb/s, which was supported by the mts network without any problems whatsoever.

The plan is for the number of households with access to the optical network to exceed a million soon What are your plans for the coming period? Telekom Srbija is continuing its activities in the field of acquiring cable operators and producing multimedia content, as well as investing in fibre optics and mobile infrastructure, with the aim of maintaining a leading position in the region. The plan is for the number of households with access to the optical network to exceed a million soon. Likewise, we also have very ambitious plans for the diaspora and our goal is to strengthen our presence on various markets, specifically those of Europe, the U.S. and Canada. RATEL declared you the best mobile network in Serbia for the second consecutive year. How important is this acknowledgement? What does it actually show? RATEL’s acknowledgement provides confirmation that all our efforts to provide users with the best experience in using mobile services have yielded results. The mts network achieved the best result thanks to the top quality of all services in all cat-

egories. An important characteristic of our company’s operations is that all of our customers are equally precious. Thus, we don’t only provide top quality voice service and mobile internet to the population in urban hubs, but also in rural areas. A call in the mts network is connected in less than a second, the sound quality is “crystal clear”, and users are available anywhere in Serbia. The best experience has also been achieved in the segment of the speed and quality of “surfing” the internet and watching video content. The availability of YouTube, which is reflected in an uninterrupted service when watching content for a large number of cities, has been as high as 100%. Are the quality of services provided by the mts mobile network in Serbia comparable to the quality of services available in the EU? The methodology for measuring the performance of mobile networks in Serbia and the analysis of the results was done according to international standards prescribed by ETSI [standards organisation]. We are proud of the fact that, according to the results of measurement, mts could be ranked among the best European operators in terms of mobile network quality. We are convinced that we will further improve the quality of service achieved in the future. 15

TRADE | TOURISM | TELECOMMUNICATIONS 2021

INTERVIEW

MILOŠ CVETANOVIĆ, STATE SECRETARY IN THE MINISTRY OF TRADE, TOURISM AND TELECOMMUNICATIONS

Digital Transformation

MUST BE INCLUSIVE In order for a society to progress through the process of digitalising all of its segments, it is necessary to build trust, influence the raising of levels of knowhow, and create safe surroundings that have a stimulating influence on citizens in particular, in order for them to recognise the benefits of digitalisation and services that are provided electronically. participants in these processes, which are primarily the public sector, the private sector and citizens. Bearing in mind that this is one comprehensive area, it is also necessary to emphasise that the Government has already adopted strategies to govern specific individual areas that are an integral part

Use of the internet, computers, broadband internet connections, mobile phones and internetbased trade are increasing constantly in Serbia

igitalisation implies the establishing of a system in which there must be a strong link between all stakeholders involved in that chain and which must be based on three key factors: trust, knowledge and security. The digitalisation process has begun and is certainly unstoppable, although a need for consolidation of all processes that take place is evident, at least when it comes to the public sector, and therefore the Strategy, defining the development of the information society and information security that’s been prepared by the Ministry of Trade, Tourism and Telecommunications, addresses this topic in a comprehensive way, by recognising the 16

of digitalisation, and with which the directions of the development of digital skills are defined, then Artificial Intelligence is recognized with its potential to improve the quality of life of every individual and society as a whole, and finally Smart Specialisations are defined with an aim to increase the competitiveness of the economy, economic growth and society’s progress via the connecting of research, industrial and innovation forces and resources, as well as enabling the domestic economy to more effectively utilise its potential and better position itself on global markets. When it comes to the current situation and the use of information and communication technologies in the Republic of Serbia, it can be concluded that all trends related to the use of the internet, computers, broadband internet connec-

tions, mobile phones and internet-based trade are increasing constantly, while the most common categories of people that least use these technologies are older citizens and they are used the least in rural areas. It can also be stated that the ICT sector is experiencing constant growth and recording advances every year when it comes to employment, earnings, foreign trade exchanges and exports of computer services. One topic that permeates all these areas to a great extent is information security and the protection of information systems, which are important from the point of view of national security, but also for the economy and citizens. The main holders of activities in the field of information security are the Ministry of Trade, Tourism and Telecommunications and the National CERT, which implement activities aimed at preventing and protecting against security risks in ICT systems in the Republic of Serbia. In order to further develop the information society, it is necessary to continue improving the digital knowhow and skills of all citizens, building capacities to use new technologies among employees in both the public and private sectors, as well as improving digital infrastructure in educational institutions. Moreover, it is essential to continue and intensify activities on the digitalisation of services and operations in the public and private sectors, and it is very important to improve information security alongside all of that.

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VLADIMIR SPASIĆ, ACCOUNT EXECUTIVE, DELL EMC

BUSINESS

Golden Age Of

E-COMMERCE At Dell EMC they've known for a long time what we only recently discovered - that the contemporary global economy is rapidly becoming digital and that, accordingly, information technology is no longer a specific sector of the economy, but rather the foundation of a new and innovative economic system than clear that the golden age of E-commerce had arrived. This has benefitted entrepreneurs who do business in the online world, i.e. who own E-commerce sites, as well as those who are turning their operations towards the internet.

It is necessary to seriously raise the quality of services and the way e-commerce operates, in order to retain customers who are ready to buy online

ven the most traditional consumers have finally realised that it is possible to buy “from an armchair”. Now we are already witnessing a large number of online shopping platforms. It is now necessary to seriously raise the quality of services and the way E-commerce operates, in order to retain customers who are ready to buy online.

Thanks to the pandemic, our country has had five years’ worth of accelerated development of E-commerce in just a year. Will this bring new platforms and will they compete for both E-consumers and traditional consumers? Is the golden age of e-commerce starting? No previous campaign to date has impacted on the development of E-commerce in Serbia like COVID-19. In April last year, at the very beginning of the pandemic, it was already more

A high percentage of traditional shoppers have switched to online purchasing. And just as entrepreneurs “on the ground” deployed various methods in the fight to attract customers, these same methods and new ones will be copied online. However, some entrepreneurs express fear that the growth of E-commerce is only temporary. They are scared that things will return to normal when the pandemic ends, but the problem with such thinking is that we don’t know what normal now looks like. “The genie is out of the bottle, and it doesn’t seem like it will go back anytime soon.” Is the process of digitalising the economy and society one of the key challenges for our country? How does digitalisation impact on cooperation between companies and the state, the public sector and public enterprises? If we look at the age structure of our society and the number of digitally literate people, we will realise that we’re confronted by a great challenge in advancing the literacy of society, which is also reflected in the economy. The state has digitalised and accelerated a large number of

processes during the previous period, thereby raising cooperation between private companies and the public sector to a higher level compared to the same period before. It is evident that the public sector and public enterprises are addressing this challenge intensively, and if that continues it can be expected that digitalisation will impact successfully on cooperation and provide the state and the economy with successful growth in every segment. Many areas of our lives, such as education, the healthcare system and jobs that are conducted through E-government, have shifted to the online world. What kind of impact does this have on the ICT sector and citizens? Prior to the pandemic, the government launched the digitalisation process and the trend really looks impressive. A large number of services that were once conducted over counters, where crowds were created, have now relocated to the online world, with which these processes have been accelerated significantly. And the economy has greatly accelerated operations via E-government, which in turn speeds up the entire economy. The ICT sector is recording noticeable annual growth, while Serbia is also recording notable IT successes. Current events provide hope that the development of the ICT sector will move forward with great strides. Some of the latest occurrences in the field of ICT application show that the successes achieved so far were not accidental, and that the ambitious development of IT activities is upcoming, and as an example of that we see the success of E-government in terms of services, where Serbia ranks 15th in Europe. 17

TRADE | TOURISM | TELECOMMUNICATIONS 2021

INTERVIEW

MILAN DOBRIJEVIĆ, ASSISTANT MINISTER, SECTOR FOR ELECTRONIC COMMUNICATIONS AND POSTAL TRAFFIC

We Want To Eliminate The Digital

DIVIDE IN SERBIA

The Government's fundamental commitment has ensured that Serbia has become a leader of digitalisation in the region and, with the implementation of capital projects, we are continuing to climb the digital ladder that leads to us becoming a modern and humane society ety. When it comes to the legislative and strategic framework, Serbia can boast of having extremely advanced solutions in the domains of information society, information security and innovation, which are practically completely harmonised with, and in some cases even ahead of, the EU’s legislative framework. We were among the first in Europe to introduce a law on digital assets, while we’ve also adopted and implemented a raft of planning documents (strategies, programmes with accompanying action plans) that cover all

he Digital Agenda for the Western Balkans was launched on the initiative of the European Commission at the Digital Assembly held in Sofia on 25th June. On that occasion, the EC, together with its Western Balkan partners, committed to investing in broadband connectivity, strengthening information security, advancing the digital economy and society, and encouraging research and innovation. The Ministry of Trade, Tourism and Telecommunications, together with the government’s Office for IT and eGovernment, is a key institution in this process, tasked with creating the required legislative and infrastructural preconditions to successfully implement the digital transformation programme, which consists of a series of projects in all spheres of modern soci18

Serbia can boast of having extremely advanced solutions in the domains of information society, information security and innovation, which are practically completely harmonised with, and in some cases even ahead of, the EU’s legislative framework important areas, such as the development of digital skills, artificial intelligence, smart specialisations, E-commerce etc. In terms of communications infrastructure, we can be extremely satisfied with the situation from the aspect of mobile network coverage, because - with more than 98% of households covered by the 4G signals of mobile operators – we are the absolute leader in the region and are simultaneously ahead of many EU member states. On the other hand, from the aspect of the availability of fixed broadband access, a significant divide exists between urban

areas, where the situation is completely satisfactory and over 70% of households have next generation internet access, and rural areas, where electronic communications operators have no commercial interest in building the essential infrastructure. The government has placed the solving of this problem among its highest priorities, and the Ministry is responsible for implementing an incentive programme aimed at reducing and, ultimately, completely eliminating the digital divide in Serbia. That programme will run until 2025. Implementation of the first phase is underway and, during 2022, will provide the possibility of high-speed internet access to approximately 600 rural settlements with about 90,000 households. A second major project, “Connected Schools”, which began being implemented in 2018, aims to secure the communications prerequisites of modern digital teaching for every schoolchild in the Republic of Serbia. Over 1,600 main school facilities are currently connected to the Academic Network of the Republic of Serbia (AMRES), while other school facilities are planned to be connected by the end of this year. In parallel with this process, a wireless local computer network is being built in school facilities and has been completed in more than 900 facilities that are attended by 60% of school pupils in Serbia. Another 900 facilities will be covered by year’s end, equating to 90% of the pupil population. The remaining 10% of pupils attend classes in smaller facilities and internet access will be provided for them through the procurement of communications devices that will use a mobile network to gain access.

TRADE | TOURISM | TELECOMMUNICATIONS 2021

BUSINESS

Leveling Up The Business By Leveraging

BENEFITS OF AUTOMATION Digital transformation is no longer a novel approach, it is not a step we are awaiting, nor are we equipped with just a bunch of assumptions about the kinds of benefits it can bring us. Rather on a daily basis, as business and private users, we are witnessing it being woven into the very way that a large number of innovative companies operate, but also the way they think about making their operations more efficient and their products and services more accessible to users

t the foundation of the digital transformation process, and the paradigm of new productivity, are specialised solutions that automate processes and enable different sources and forms of electronic data to become purposeful. With the development of mobile apps, social networks, websites and the Internet of Things (IoT), there have been manifold increases in the amount of structured and unstructured content available. It is precisely this great amount, coupled with the diverse types of data that we can collect, that have given rise to the need for more efficient management to ensure companies really benefit from them. Only processed data that can be analysed qualitatively contribute to business processes in which numerous stakeholders make different decisions that are often very complex. With the applying of the software solutions that stand behind digital transformation, the modelling of business processes according to a company’s procedures has been enabled. In this way, modelling contributes to formalisation, or the precise definition of the way in which processes are executed without the possibility of skipping a stakeholder or not performing some procedure. Once processes are formalised, automation can be applied to individual activities, entire sequence of steps or scheduling tasks and association information according to predefined rules, so employees don’t need to think about what and when they need to complete a particular task.

Additionally, the possibility to control the flow of processes provided by these software solutions helps companies identify bottlenecks and open space for optimisation, and thus even more efficient operations. The development of technology has led to the evolution of software into “Intelligent Business Process Management (iBPM)” platforms, which are synonymous with speed and ease of implementation. AIGO Digital Business Automation, as an iBPM solution for the implementation of hyper-

automation, i.e. the next step in the evolution of automating business, enables the performing of a significant number of processes without the involvement of employees. Capture, or Input Management, comprises a collection of tools for capturing content (scanned documentation, emails or other electronic channels), placement in the system and advanced processing (images, QR codes, image enhancement filters) in order to obtain information valuable to business. The Content segment of the service is responsible for ensuring the safe and reliable manage-

ment of processing content: from regulating rights of access, via the managing of versions and transforming content to other formats, to rigorously recording every activity of each user. The Workflow (Business Process Management) segment represents the core of the platform, which enables the modelling, designing, executing, monitoring and optimising of business processes. Decision tools enable the simple and swift defining, without coding, of complex rules of processing different flows, actors and documentation, which form the basis for the automatic performing of confirmation, verification and approval processes. The Task service and the applying of software robots automate the executing of manual tasks (mass data entry, email campaigns, data validation in multiple systems) and provide a higher level of automation. The AIGO Digital Business Automation platform is a solution that makes hyperautomation possible, simple and purposeful. In addition to the fast development of applications without coding, cloud support, advanced capabilities of system integration and the application of artificial intelligence and machine learning, it shifts the focus from a classical IT solution to an all-encompassing business solution. Apart from enabling the sturdier and more efficient integration of IT with companies’ business functions, it shifts the role of the software engineer towards that of a business consultant and partner on the road to achieving higher levels of efficiency and productivity. 19

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We have technology, finally, that for the first time in human history allows people to really maintain rich connections with much larger numbers of people. Pierre Omidyar 20

TRADE | TOURISM | TELECOMMUNICATIONS 2021

BUSINESS

ANTONIO PASSARELLA, COUNTRY MANAGER, ERICSSON SERBIA

5G Can Boost

ECONOMIC GROWTH Ericsson is a world leader in 5G technology, with 136 commercial agreements and 83 live 5G networks in 41 countries. Ericsson is also a 5G technology leader in Serbia, as the first company to demonstrate the fastest internet connection via its pilot 5G network back in 2018

he recent pandemic has highlighted the critical role of fast, reliable, ubiquitous connectivity for our economy and for our lives, hence the strategic importance of further accelerating the deployment of 5G in Serbia. Why is 5G so important for Serbia? 5G is unfolding faster than any other mobile technology. In just two years, 153 operators in 64 countries have launched commercial 5G networks, and the number of commercially available 5G devices (smartphones, TV sets, laptops, robots, drones etc.) has exceeded 400! With its unique capabilities (speed, latency, capacity, security etc.), 5G is a highly flexible, open innovation platform that can accelerate digital transformation and economic growth. Most countries around the world consider 5G as being critical national infrastructure and they are racing for faster deployment across their territory. According to a 2021 22

report by Analysys Mason exploring the costs and benefits of 5G geographical coverage, Europe’s GDP can benefit by 250 billion euros with the full rollout of 5G.

Ericsson has the best performing 5G technology that can help Serbian operators make the smoothest transition to 5G 5G also has social and environmental benefits: it can accelerate rural connectivity, enhance Serbia’s public services (healthcare & hospitals, public safety, smart airports/ transport/public buildings/education etc.), and reduce environmental impacts. What is Ericsson’s role in 5G? With 136 commercial agreements and 83 live 5G networks in 41 countries, over six million 5G-ready radios delivered, and over 57,000 granted patents to date, Ericsson is

a world leader in 5G technology. We’ve been working, since 2015, with different industries across the world (factories, mines, airports, utilities, the health sector, public safety etc.), mobile operators and academic institutions on the development and validation of numerous 5G use cases. Ericsson is also a 5G technology leader in Serbia, as the first to demonstrate the fastest internet connection via our pilot 5G network back in 2018. 5G can boost Serbia’s economic growth by accelerating its digital transformation and the transition to an environmentally neutral, export-orientated economy. Ericsson has the best performing 5G technology that can help Serbian operators make the smoothest transition to 5G, and we are committed to leading this effort. How secure is 5G? 5G is the most secure mobile network generation, with security built-in from the start, as an integral part of the standardisation process. This is crucial, as 5G is becoming the “nervous system” of our society and critical national infrastructure enabling digitalisation, automation and connectivity between people, machines, robots, cars etc. With billions of connected objects around us and new types of applications, 5G networks need to be highly resilient, secure and able to protect an individual’s right to privacy. Ericsson is leading 5G network security through our Security Reliability Model (SRM).In order to fully safeguard end-user security over 5G networks, a holistic approach is needed that addresses all four pillars of network security: 1) Telecom standardisation; 2) Vendor product development; 3) Network configuration & deployment; and 4) Network operations.

TRADE | TOURISM | TELECOMMUNICATIONS 2021

BRANISLAV STAMATOVIĆ, COUNTRY MANAGER FOR SERBIA AND MONTENEGRO, R&M

BUSINESS

5G Remains

AN ESSENTIAL DRIVER R&M is a reliable partner that can be trusted by investors and contractors in the telecommunications sector – they can find quality solutions for FTTx, Data Center and LAN all in one place. It is well-known Swiss quality that makes R&M recognisable on the Serbian market a 25-year system warranty directly to the investor. The investment in cabling represents only 7% of the budget, but 50% of all network problems. Cabling is like a road. If the road is bad, you cannot drive safely and fast, no matter what type of car you have.

Fibre to the Home (FTTH) networks are expanding due to remote work. What are the challenges? There’s still not enough bandwidth. Furthermore, the infrastructure needs to be suitable for the type of data transport that end users are demanding – or it will simply collapse. Even the most advanced end devices will be severely compromised if they run on an outdated network. Bandwidth and latency performance can only be realised by bringing FTTx networks closer to the wireless connection point. This requires a dense optical backhaul network with antennas, integrated into fibre networks and connected to edge facilities.

How do you ensure the success of your clients’ projects? Our own production allows us to help customers with special requests and needs. In order to be as helpful to customers as possible, we are trying to get involved in projects from their first stage. We start with Qualified Partner Program (QPP) training, which informs designers and installation managers about our standards and solutions and helps them improve their knowledge. Following proper installation and test measuring, R&M gives

What are the latest technology trends in the telecom industry? The data growth in data centers is boosting demand for efficiencies in energy management and operational efficiencies. Migrations to 100, 200 and 400 Gbit/s will continue. This requires more cabling, Ultra-High-Density solutions, and Data Center Infrastructure Management (DCIM) to optimise the usage of capacity and space. New solutions and applications in the LAN sector are targeted towards new markets, which are scaling up enormously, e.g. smart buildings, building automation and the Internet of Things (IoT). In addition, the All-IP trend, which allows construction technology and building manage-

ew solutions and applications in the LAN sector are targeted towards new markets, which are scaling up enormously, explains R&M Country Manager for Serbia and Montenegro Branislav Stamatović, adding that growth in telecommunications will continue to be at a higherthan-average rate in 2021.

ment devices to communicate over Ethernet and IP, is set to continue. The development of fusion data network technology and building automation, which require numerous separate field bus systems, is also boosting demand. Power over Ethernet (PoE) will speed up the application of All-IP. In industrial automation,

Cabling is like a road. If the road is bad, you cannot drive safely and fast, no matter what type of car you have we predict the rapid implementation of Single Pair Ethernet (SPE), which provides high density for IP access, connection speed and ease of installation. Suppliers may therefore need to consider expanding their competencies in the area of industrial LAN applications. Could you outline the drivers of growth in the telecommunications sector this year? Growth in telecommunications will continue to be at a higher-than-average rate in 2021, while 5G remains an essential driver. Countless 5G antennas have to be connected with fibre optic networks, distributors and data centers - as the planned transmission performance can only be realised with Fibre to the Antenna (FTTA). 23

TRADE | TOURISM | TELECOMMUNICATIONS 2021

INTERVIEW

RENATA PINDŽO, ASSISTANT MINISTER OF TOURISM

Local Tourists Reveal

A DIFFERENT SERBIA Serbia can and must become a globally recognisable tourist destination. We are awaited by the rebranding of Serbia as a tourist destination, and in doing so we will utilise the experience of the pandemic, which taught us that we have a lot that is attractive and authentic to offer both our own citizens and international tourists 2021, which encompassed additional payments of 100% of the minimum wage for employees in tourism and hospitality, subsidies to support the work of the hotel industry, subsidising part of costs by securing travel guarantees for tourist agencies organising travel. We also shouldn’t forget the favourable liquidity loans of the Development Fund of the Republic of Serbia that are intended specifically for the tourism, hospitality and transport sectors, vouchers for holidays in Serbia, but also the Decree on Offers of

he year behind us was probably the most difficult ever for international tourism, with a 74% reduction in international arrivals compared to the same period of the previous year, while across Europe that decline amounted to 70%. Here in Serbia, despite data from January and February 2020 indicating that it could have been the best year for Serbian tourism, the COVID-19 pandemic caused a 50.7% decline in total tourist numbers. The Government of the Republic of Serbia is exerting exceptional efforts to compensate for the losses of the tourism and hospitality industry, and first and foremost to preserve employment in these sectors. Alongside general packages of assistance measures intended for the economy as a whole, the Government has also adopted separate sector-specific measures during 2020 and 24

In cooperation with the private sector and HORES, we will continue promoting the “Clean & Safe” label in accordance with the recommendations of the World Tourism and Travel Council, in order to send the international market a clear signal that Serbia is a safe and secure destination Alternative Travel, which at the time of its adoption meant the possibility of many tourist agencies and travel organisers surviving. With an awareness of the seriousness of the situation and the problems confronting the tourism and hospitality industry, the Ministry will continue striving, in cooperation with other departments, to undertake additional activities and measures aimed at overcoming what is, without a shadow of a doubt, a major crisis and huge losses in the tourism and hospitality sector. The 2020 tourist year was “carried” by domestic tourists.

Our tourism and hospitality workers have long been aware that they shouldn’t differentiate between domestic and foreign guests, because there can be no development of a tourist destination without the development of domestic tourism. This period saw the affirming of destinations that were previously researched insufficiently, from mountains, ethno villages, salaš farmsteads and lakes, especially in Eastern and Southern Serbia, but also in Šumadija and Vojvodina. A successful immunisation process gives us the right to consider and expect better tourist results in 2021. Of course, the success of implementing immunisation in our most important source markets is also important, and this year those markets are primarily the countries of the region. It will be crucial to establish predefined protocols and criteria for crossing borders. This time should be utilised for us to work, in cooperation with the private sector and academic circles, on analysing the needs and required investments in personnel, in order for us to be ready for the expected changes to the international tourism market in the post-COVID period. We must make significant advances in the management of destinations, at the national, regional and local levels, but also improve our promotion in line with the latest trends. We are also awaited by the rebranding of Serbia as a tourist destination which – as the experience of this epidemic has just taught us – has a lot that is both attractive and authentic to offer, primarily to our citizens, but also to international tourists.

TRADE | TOURISM | TELECOMMUNICATIONS 2021

JOVAN STOJIĆ, ASSISTANT MINISTER OF TRADE, TOURISM AND TELECOMMUNICATIONS

INTERVIEW

The Law Must Follow Life's

IMPOSED DEMANDS As part of the harmonising of domestic legislation with that of the EU, we are currently working on the Draft Umbrella Law on Services, which should provide the freedom for companies to establish businesses in other member states and the freedom to offer cross-border services in other member states without being obliged to establish a company, branch or affiliate there. aforementioned, the Ministry’s normative activities are numerous and varied. Normative activity implies close collaboration between all sectors within the Ministry, both on ex-ante and ex-post analysis, and on the formulation and harmonisation of provisions, as well as continuous cooperation and communication with other bodies and holders of public authority. During the process of preparing and adopting regulations, in addition to the

ormative activity is a demanding and complex procedure of preparing draft laws, other regulations and general acts, which is preceded by the process of monitoring the situation in the field of applying laws under the scope of the work of the Ministry and results in the proposing of appropriate solutions for amendments to regulations. The Ministry of Trade, Tourism and Telecommunications encompasses an extremely important and broad segment of the economic activity of the Republic of Serbia, and thus its participation in shaping the Government’s policy through normative activity is crucial to improving areas that fall within the scope of the Ministry’s work, from the perspectives of both the economy and citizens. Considering the

The circumstances imposed by the pandemic demand the swift identifying of a solution that will not come at the expense of quality and where the shaping of legislative solutions will take into account the interests of all groups prescribed procedure, the Ministry strives to further enable the participation of the public, the NGO sector and all stakeholders, considering numerous initiatives and proposals in order to identify an optimal solution, through normative activities, that will enable further development. The adoption of a certain general act isn’t an end in itself, but rather serves to establish a suitable base for the proper functioning and development of economic activity within the scope of the competences of this Ministry, and for the benefit of society as a whole. A comprehensive approach isn’t only essential when it comes to the preparing

of draft laws, but also when it comes to bylaws that more closely regulate certain narrower areas. When it comes to normative activity, a special challenge is represented by the process of integrating the Republic of Serbia into the EU, which requires the harmonising and aligning of the domestic legislative framework with the EU acquis. When it comes to harmonisation, one of many examples is the Draft Law on Services, which is currently in the process of being adopted and which represents an umbrella law that should enable the freedom of movement of services that implies the freedom to do business in other member states and freedom to provide services cross-border, i.e. occasional provisions of services in other member states, without being obliged to establish a company, branch or affiliate in that country. If normative activity is observed in the light of the newly emerged situation brought about by the novel coronavirus, it is clear that the challenges are more numerous and that the circumstances demand the swift identifying of a solution that will not come at the expense of quality and will take into account the interests of all groups. The Ministry is managing, through numerous normative activities, to identify adequate solutions to current issues arising in the scope of its work. The plan is for normative activities to further intensify the future, both in terms of harmonisation with EU law and in terms of improving the domestic legislative framework. 25

TRADE | TOURISM | TELECOMMUNICATIONS 2021

BUSINESS

IVAN BILIĆ-PRCIĆ., NAVAL ARCHITECT, INLAND NAVIGATION DIVISION MANAGER, CROATIAN REGISTER OF SHIPPING

World-Class Service for Inland

NAVIGATION VESSELS Ensuring the technical safety of inland navigation fleets is one of the foremost tasks of the CRS, which works through several offices. That enables them to provide their services to the entire Danube fleet and a part of the Rhine fleet

wners, operators and shipyards choose the Croatian Register of Shipping (CRS) on the basis of its more than 70 years of experience, but also with a view to the fact that the CRS has been operating in Central and Southeast Europe for a long time, providing high quality services and supervising hundreds of inland navigation vessels 26

Even amidst the COVID-19 pandemic, we never stopped our activities and were accessible the entire time, readily working on clients’ requests

Your priority is to ensure technical safety in transport. Can you explain what this term encompasses to us laypeople, who know nothing about navigation and ships, and what else CRS deals with? Everyone in inland navigation, including ship owners, insurers, management companies, and passengers, wants to feel safe with various types of vessels on lakes

TRADE | TOURISM | TELECOMMUNICATIONS 2021

and rivers. Ensuring the technical safety of inland navigation fleets is one of our foremost tasks. We do that through so-called classification and certification processes, which are actually surveys and inspections carried out by experienced professionals who control such vessels and verify their compliance with the highest internationally adopted standards of safety of life and property. These procedures also include protection of the inland waterway environment. CRS works through several offices, which enables us to provide our services to the entire Danube fleet and a part of the Rhine fleet. And we are very proud of that. You can boast of both being part of a long-standing tradition and possessing rich experience. How is that manifested in your work with clients? The eastern Adriatic coast has a centuries-old tradition of navigation, and CRS

supervising hundreds of inland navigation vessels. We cooperate with major transportation companies in the Danube region. CRS Danube, as a subsidiary of the Croatian Register of Shipping, was founded in 2018 in Belgrade and handles technical supervision activities in Serbia and throughout Southeast Europe. Why is that important for CRS? We are very happy to have an office in the heart of Middle Danube and to be present in Belgrade, because this enables us to provide our best support to vessel owners and management companies headquartered locally and operating throughout Europe. CRS began providing its services in the area in 2008, but having expanded our number of happy clients, we decided to open our Belgrade office – the CRS Danube – in 2018. The opening of the office has greatly strengthened our activities

The association IACS has only 12 member societies, and CRS is one of them. Together, we cover 90% of the world’s carrying tonnage draws its knowledge from this long local experience. Also, for nearly two centuries, there has been organised vessel classification on the eastern Adriatic coast: Austria established the third classification society in the world as early as in 1858, which was called Adriatic Veritas for a period of time. CRS was established in 1949, and it operated under the name of Yugoslav Register of Shipping (JR) until 1992. Today, CRS is one of 12 members of the International Association of Classification Societies (IACS), which is the largest such organisation of classification societies, covering 90% of the world’s carrying tonnage. CRS is also a classification society recognised by the European Union in terms of the rules and standards for ship inspection and survey organisations. Owners, operators, and shipyards choose CRS based on more than 70 years of experience in the field of inland navigation, also having in mind that CRS has been operating in Central and Southeast Europe for a long time, providing high quality services, and

in this part of Europe, meaning that our clients recognised our quicker response and closer cooperation. Even amidst the COVID-19 pandemic, we never stopped our activities and were accessible the entire time, readily working on clients’ requests. And clients know they can rely on us locally. Is your best recommendation the fact that you have a large number of clients and that you’re the first choice for most of them? One of our motivating slogans is ’continuous improvement’, and it is obvious that clients recognise such an aspiration. Among our key goals is also saving our clients’ time, by providing a quick response to any kind of request. Shipping companies and other clients are confident because they know they will get the highest level of service, and fast. In addition, our experienced field surveyors are available 24/7 to provide professional, timely, and on-site responses for all technical questions arising during design, construction, or fleet in service. Following our procedures, our staff helps owners undergo inspections

with minimal disruption to commerce and vessel operations. What does your membership in the International Association of Classification Societies (IACS) say about you and your work? The association IACS has only 12 member societies, and CRS is one of them. Together, we cover 90% of the world’s carrying tonnage. To become a member, one has to meet a number of criteria, thus demonstrating its professional integrity and high professional standards, which is verified by independent accredited certification bodies. IACS societies have a major role globally in providing classification, statutory certification, and services of maritime and inland waterway vessels. As a Recognised Organisation, we act on behalf of the socalled flag administration, which are the authorities of the country whose flag is carried by the vessel. The Inland Navigation Division of the Croatian Register of Shipping (CRS Inland) acts as a competent authority and inspection body. What are its authorised powers? Which ships can it control? CRS Inland works under the highest and most complex rules and standards that exist in the world, notably in Europe. Europe’s standards are currently the most demanding standards to comply with, and we have authorisations to conduct all inspections and surveys, and issue all documents that are required under those rules and standards. That means that CRS is authorised to carry out inspections and issue inland navigation certificates for all kinds of EU vessels and EU flags covered by the Directive 2016/1629 and the ES-TRIN standard. In addition, we are a recommended classification society for the so-called ADN certification, meaning that we are authorised to carry out classification and inspections of all types of tankers, including the most complex, such as gas carriers and chemical tankers. inland.crs.hr 27

TRADE | TOURISM | TELECOMMUNICATIONS 2021

INTERVIEW

VIŠNJA RAKIĆ, ASSISTANT MINISTER IN THE CONSUMER PROTECTION SECTOR

The Pandemic Has Changed

CONSUMER HABITS Prior to the pandemic, consumers were sceptical regarding online shopping, but they changed their attitudes during the crisis and adapted to technological progress. The Ministry is working on systemically educating consumers regarding E-commerce. goods or services online in the third quarter of 2020. Consciousness shifted in all segments of our lives during the pandemic, even when it comes to shopping. Prior to the pandemic, consumers were sceptical regarding online shopping, because goods “cannot be tried”, while questions were raised about online fraud. However, the crisis played its part in ensuring that older generations are also adopting technological

he Law on Consumer Protection, adopted in 2014, prescribes rules modelled on the European law that regulates, among other things, consumer rights when shopping online, as one form of remote trade. A dynamic business environment motivates retailers to fight constantly to retain existing consumers and attract new ones. In which way do they do it? By increasing their level of satisfaction. In that sense, shopping online is recognised as a very comfortable and safe way to shop. Online shopping has been rising constantly, only to experience mass expansion during the COVID-19 pandemic. According to data from the Statistical Office of the Republic of Serbia, 3.2 million people in Serbia used a computer every day or almost every day in 2020, while 36.1% of internet users bought 28

The Draft Law on Consumer Protection, which should eliminate challenges identified in the implementation of the 2014 law, will soon find itself in front of MPs progress that is inescapable. As priorities of the Consumer Protection Strategy for 2019-2024, consumer protection activities in online shopping have been cited. We believe that the systemic education of consumers is key to successful shopping through this form of trade, so plans include the initiating of consumer topics through the school system, in order to create a responsible attitude to shopping in the consumer society from an early age. With the 2014 adoption of the Law on Consumer Protection, EU directives regulating policy in the field of consumer protection were implemented. Certain challenges were identified during the implementation of this law, which led to a need to amend regulations, and it was in that sense that the

law on consumer protection was drafted, which will enter the legislative procedure in the coming period. Alongside the amending of regulations, we are also awaited by the continuous process of strengthening the administrative capacities of the bodies responsible for consumer protection and market oversight. Revised rules on eco-design and the energy efficiency of household appliances began being applied in the EU as of 1st March this year. Eco-design and energy efficiency are linked because they provide consumers with information that forms the basis to make rational decisions and gradually increase the market for more energy-efficient products. Regulations governing this matter stipulate deadlines within which manufacturers, importers or authorised retail representatives for these products must make certain spare parts available to authorised repair service providers in the period from, e.g., eight or ten years after the last unit of a given model is placed on the market. Conditions would thereby be created for products to be repaired and not discarded due to a lack of spare parts. Considering that our country has accepted the obligation to harmonise its regulations with those of the EU, changes to domestic regulations are expected in the coming period, which will have a dual benefit: in environmental terms, through energy savings and waste reduction, but also in terms of financial benefits for consumers.

TRADE | TOURISM | TELECOMMUNICATIONS 2021

UROŠ KANDIĆ, SECRETARY OF STATE AT THE MINISTRY OF TRADE, TOURISM AND TELECOMMUNICATIONS

INTERVIEW

Growth Continuing

DESPITE CHALLENGES Unlike many European countriesm where we saw images of empty shelves and shortages of products even at the start of the pandemic, the supply of the Serbian population has been continuous, orderly and timely, with price stability preserved. throughout the pandemic, alongside the preserving of price stability. Unlike many European countries, where we saw images of empty shelves and shortages of product even at the start of the pandemic, in Serbia there has been a wide range of goods on offer the whole time, especially consumer goods. I must emphasise that state support measures for the entire economy, thanks to which production and employment were

n contrast to numerous past economic crises during which the biggest challenge was to stimulate demand, the current pandemic has primarily brought problems on the supply side, because the burning issue is to maintain production under conditions of the limited movement of people. In that sense, the greatest threat to the retail sector, especially since the outbreak of the pandemic, was reflected in the danger of whether, and at what prices, retailers would be able to procure goods, given the huge shocks to global supply chains, and sell to consumers with limited movements due to health reasons. Despite all the challenges, Serbia’s retail sector has provided the population with continuous, orderly and timely supplies

Despite the great growth of online orders to retail chains, less than one per cent of total sales of consumer goods on the market are realised electronically. However, large retailers that sell clothing or appliances realise around 20 per cent of their sales revenue through online orders maintained, also contributed greatly to the stability of the retail market. Moreover, the turnover of retail trade increased by 4.3% in 2020, and a growth trend of three per cent compared to the same period of last year continued in the first two months of this year. Additionally, with 348,000 employees in the wholesale and retail trade sectors in 2020, levels of employment were preserved in this sector, which accounts for around 15 per cent of the total number of employees. Trade is certainly among the sectors not to be hit as hard by the crisis, a large

contribution to which was provided by shifting the focus from traditional channels to E-commerce, as a response to the limited operations of physical retail outlets. New trends will certainly also change consumer habits in the long run, while online sales are expected to continue growing. The number of e-transactions realised doubled last year, to 14 million, as did the value of e-transactions, which increased from 17 billion dinars in 2019 to 32 billion dinars last year. There were individual problems with online deliveries at the start of the crisis, due to the increased volume of work, but the delivery process stabilised quickly. However, with the expansion of E-commerce we have seen that retailers’ competitiveness will depend to a great extent on the logistics of delivery, which is very demanding both financially and organisationally. There will certainly be a lot of challenges in the period ahead that will impact on the speed of the recovery of the entire economy, and thus also on trends in the retail sector. We should particularly keep in mind the present uncertainty regarding the shifting world oil price, which is on the rise, and the rising price of food globally, which is also caused by increased demand due to the pandemic. The Government of Serbia will monitor the situation on the market and, if the need arises, react in a timely manner, within the scope of its legal competencies, with the aim of ensuring the orderly supplying of the market and the maintaining of price stability. 29

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DIGITALISATION IS A PRIORITY

No development

WITHOUT DIGITALISATION The global pandemic caused by the novel coronavirus has changed the world in which we live, and it has also changed us. While it has proved disastrous for some areas of life, such as tourism and hospitality, it has had a positive effect on others. COVID- 19 has, among other things, led to an expansion of E-commerce, digitalisation and telecommunications, spheres that will continue developing rapidly even when we leave this disease behind us

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ALL SETTLEMENTS IN SERBIA WILL GET A NETWORK BY 2025 “Digitalisation and the development of new generation networks are just as crucial to economic and social development as the raising of the level of digital skills is essential to addressing the future challenges of the labour market and the economy in general. Digitalisation is a priority of the Government of Serbia, which is why we launched the project to construct broadband infrastructure in rural areas where operators have no commercial interest in doing so,” said Minister of Trade, Tourism and Telecommunications Tatjana Matić, before noting that the aim is for all settlements in Serbia to get a network by 2025. Ambassador Jan Braathu, Head of the OSCE Mission to Serbia, confirmed that broadband infrastructure and 5G technology are the future, and that the OSCE Mission is working intensively in these fields, together with the implementing of projects to develop digital literacy and digital skills.

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EVER MORE GIRLS ENROLLING IN IT STUDIES IN SERBIA “The greater inclusion of girls and young ladies in technological domains is essential for combating the digital gender gap, but also for economic growth in the digital future,” said Serbian Trade, Tourism and Telecommunications Minister Tatjana Matić, speaking on the occasion of International Girls in ICT Day. Speaking during the formal opening ceremony for Hack#teen, a competition in developing technological solutions for girls of primary school age, Minister Matić stated that the percentage of girls enrolling in IT studies in our country increased from 25.7% in 2016 to 29.3% in 2020. Although Serbia is recording a higher participation of girls in ICT education than the European average, it is still necessary to continue working on overcoming prejudices that view this area as primarily a male field and to encourage girls to develop their interests and talents in the direction of professions that are not only the most sougth-after, but also the best paid.

INVESTING IN NETWORK DEVELOPMENT WILL REJUVENATE RURAL AREAS

Serbian Trade, Tourism and Telecommunications Minister Tatjana Matić and A1 Telekom Austria Group COO Alejandro Plater have discussed the importance of developing networks in the Republic of Serbia and investing in ICT. During the talks, Minister Matić stressed the importance of the Project to Construct Broadband Infrastructure in Rural Areas, which will impact on the overall economic growth of underdeveloped parts of the country. The Minister also reiterated that the implementation of the first phase of the project will secure ultra-fast broadband access for about 500 settlements, or approximately 80,000 households in rural areas. Matić expressed her expectation that works on the networks will begin in September this year and be completed by September 2022. COO Plater agreed that digitalisation and technological development are crucial, especially the development of infrastructure in rural areas, including investments in the network that his company is interested in making.

TRADE | TOURISM | TELECOMMUNICATIONS 2021

TOURISM AND E-BUSINESS PROJECTS CONSIDERED

The auction for operators for the introduction of the 5G network was postponed due to the pandemic and is expected to be conducted by the end of next year. Preparations are still continuing, because - according to the Ministry of Trade, Tourism and Telecommunications - it is necessary to adopt regulations on the use of the spectrum on a certain frequency and appropriate regulations. Interest in the auction among operators already exists, as there is interest from industry. It is interesting to note that the 5G network is primarily intended for industry, unlike the 4G network, which is used by consumers of mobile content. The 5G network will be used the most by the the automotive industry, agriculture and medicine, which already use 5G networks around the world. However, following the global economic crisis caused by the pandemic, the scale of which is not even perceptible, the industry withdrew from conducting assessments of whether investments in equipment for the 5G network are economically justified. Serbian Trade, Tourism and Telecommunications Minister Tatjana Matić expressed hope that the circumstances will be different during the course of 2021 and that the market around the whole world will stabilise.

Serbian Trade, Tourism and Telecommunications Minister Tatjana Matić, NALED Executive Director Violeta Jovanović, and Post of Serbia Executive Director Nebojša Marković have held discussions on projects in the field of tourism and e-business. Speaking on this occasion, Minister Matić announced the formation of the Council for the Development and Recovery of Tourism, while the meeting also included discussion of the importance of implementing the Law on Electronic Document, Electronic Identification and Trust Services in Electronic Business. Consideration was also given to the solution for issuing qualified electronic certificates for the signatures of foreign citizens, but also for domestic citizens who are resident abroad and are unable to come to Serbia or use available electronic services.

SERBIA HASN'T ABANDONED 5G NETWORK INTRODUCTION

TRADE | TOURISM | TELECOMMUNICATIONS 2021

OPINION

MARK ESPOSITO, A CO-FOUNDER OF NEXUS FRONTIERTECH, LANDRY SIGNÉ, PROFESSOR, NICHOLAS DAVIS, WEF/PROJECT SYNDICATE

The Digital Revolution

IS EATING ITS YOUNG We are facing an acute crisis of technological opportunity and access, owing to an invasive business model that has proven incapable of supporting equity and inclusion. The stakes are high, and the market won’t fix the problem.

s massive online platforms have given rise to numerous virtual marketplaces, a gap has opened between the real and the digital economy. And by driving more people than ever online in search of goods, services, and employment, the coronavirus pandemic is widening it. The risk now is that a new digital industrial complex will hamper market efficiency by imposing rents on real-economy 34

players whose daily operations depend on technology. Fourth Industrial Revolution (4IR) is that the tangible and intangible elements of today’s economy can coexist and create new productive synergies. The tangible side of the economy provides the infrastructure upon which automation, manufacturing, and complex trade networks rest, and intangibles – logistics, communication,

and other software and Big Data applications – allow for these processes to achieve optimal efficiency. More to the point, the tangible economy is a prerequisite for the intangible economy. Through digitalization, tangibles can become intangibles and then overcome traditional limitations on scale and value creation. While heavily transactional and capital-intensive, this process hitherto

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has been a positive mechanism for growth, providing some equity of opportunities for small and large countries alike. But this standard account of the 4IR omits the recent decoupling of the digital and real sectors of the economy. Digitally native companies that benefited from the suspension of traditional factors of production have been growing even faster than they did before COVID-19. By the beginning of September 2020, Facebook, Amazon, and Apple’s share prices had more than doubled since the start of the pandemic, with Apple becoming the first company ever to achieve a $2 trillion valuation. And while shares of Netflix and Alphabet (Google) – the other so-called FAANG firms – hadn’t quite doubled, they were nonetheless trading at or near alltime highs. Meanwhile, ExxonMobil, the S&P 500’s oldest member and a former icon of the tangible economy, was driven out of the index by Apple’s decision to split its stock. Those who own and run the tech giants are making ever more money while the rest of the world continues to experience economic devastation. With real-economy assets being positioned far below digital financial assets, a K-shaped corporate recovery has emerged. Digital firms can grow apparently without limit, whereas others’ growth remains circumscribed by the finite conditions under which they operate. This trend is not only challenging neoliberal assumptions about the creation of value; it is also pushing us toward a scenario in which government policies to redistribute value will no longer be plausible options. To be sure, governments and some within the private sector have proposed remedies, such as a tax on digital assets, while proponents of a laissez-faire approach continue to insist that any form of government inter-

It is time to start identifying appropriate areas for “digital protectionism.” Just as some countries use trade tariffs to support nascent local production, digital tariffs could be used to foster local innovation ecosystems vention will merely introduce more market distortions. But neither camp has offered enough evidence for its preferred policy. We suggest three other solutions. First, government grants and subsidies can be used to promote technological diffusion, and to close the technology gap between platforms and small and medium enterprises. Rather than expecting the market to provide equitable access to technologies like artificial intelligence, governments can fund programs that reach smaller firms directly, such as through tax write-offs or other measures (as already happens with incentives for consumers to buy environmentally friendly cars). While such outlays would increase public debt in the short term, these costs would be offset by the higher

productivity that would come with a more balanced distribution of economic power.2 Second, we should be working toward a more agile, multi-stakeholder model of innovation, so that concerns about inclusion and representation are addressed without curtailing the pace of technological advance. The goal, here, should be to reduce the tensions between winners and losers across the platform economy’s new value chains. Several existing cases have demonstrated that proper representation of stakeholder interests enables policymakers to mitigate the harms and adverse unintended consequences of new technologies without sacrificing speed or flexibility. Third, it is time to start identifying appropriate areas for “digital protectionism.” Just as some countries use trade tariffs to support nascent local production, digital tariffs could be used to foster local innovation ecosystems. This would not work everywhere. But in places that have reached some threshold of technological adoption and diffusion, such policies could encourage grassroots solutions, creating new community-based approaches to managing how technology is designed, deployed, and funded. 35

TRADE | TOURISM | TELECOMMUNICATIONS 2021