CorD special issue: USA - Partners

Partners

ISSN No. 2560-4465

SERBIA - USA

STRENGTH THROUGH COOPERATION

135 YEARS AND COUNTING...

CONTENT

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PEOPLE-TO-PEOPLE TIES BROADEN OUR RELATIONS

H.E. KYLE RANDOLPH SCOTT, US AMBASSADOR TO SERBIA

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EDITOR Ana Novčić a.novcic@aim.rs

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ON THE RIGHT SIDE OF HISTORY AT CRUCIAL MOMENTS

NIKOLA TESLA: THE GENIUS WHO ILLUMINATED THE WORLD

H.E. DJERDJ MATKOVIĆ, AMBASSADOR OF THE REPUBLIC OF SERBIA IN WASHINGTON

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A CATALYST OF ECONOMIC CHANGE

WE SUPPORT REFORMS

CAROLINA HIDEA, ECONOMIC COUNSELLOR OF THE U.S. EMBASSY IN BELGRADE

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EACH PROJECT PHASE SEEKS THE MOST EFFICIENT SOLUTION

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CREATING TECHNOLOGY TO MAKE LIFE EASIER PRIMOŽ POLAJNAR, MANAGING DIRECTOR, HP INC. ADRIATIC

SHAPING THE CUTTING EDGE FUTURE OF TOBACCO

FOCUS

SERBIA NEEDS SAFE BUSINESS ENVIRONMENT FOR INVESTMENT

VERA NIKOLIĆ DIMIĆ, EXECUTIVE DIRECTOR OF AMCHAM

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CHANGING THE WAY OF COMMUNICATIONS AND SECURITY

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US-SERBIAN RELATIONS: A SHORT HISTORICAL REVIEW

DRAGAN POPOVIĆ, DIRECTOR, AIGO BUSINESS SYSTEMS D.O.O.

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EXECUTIVE DIRECTOR Maja Vidaković m.vidakovic@aim.rs

LET THE SUNSHINE IN CULTURE: HAIR - 50th ANNIVERSARY

SECRET OF AMERICA’S MOST POPULAR SPORT

BASEBALL

HISTORY: IVAN VUJAČIĆ, AMBASSADOR TO THE UNITED STATES (2002-2009)

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FURTHER DEVELOP OF DEMOCRATIC GOVERNANCE INSTITUTIONS

AZZA EL-ABD, USAID’S MISSION DIRECTOR FOR SERBIA

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SUSTAINABLE BUSINESS AS COMMUNITY PARTNER

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CONNECTING PEOPLE TO PEOPLE

AMERICAN CORNERS

COMPLETE SERVICE IN ALL LAW BRANCHES

LAWYER DR NEMANJA ALEKSIĆ, HEAD OF THE ALEKSIĆ AND ASSOCIATES JOINT LAW OFFICE, NOVI SAD

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COMPANY REGISTER HOSTS OF ALL IMPORTANT EVENTS

ŽIVORAD VASIĆ, AREA GENERAL MANAGER, INTERCONTINENTAL GROUP

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FLEXIBILITY THROUGH DIVERSITY EDUCATION

STRENGTH THROUGH COOPERATION 135 YEARS AND COUNTING...

GENERAL MANAGER Ivan Novčić i.novcic@aim.rs PRINTING Rotografika d.o.o.

Segedinski put 72, Subotica, Srbija PARTNER STRENGTH THROUGH COOPERATION 135 YEARS AND COUNTING...

AMCHAM ACTIVITIES

DRAGAN LUPŠIĆ, ENVIRONMENTAL COMMITTEE PRESIDENT (AMCHAM), PUBLIC AFFAIRS, COMMUNICATIONS AND LEGAL MANAGER OF COCA-COLA HBC SERBIA

OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs

FINANCIAL MANAGER Dragana Skrobonja d.skrobonja@aim.rs

MILA MARČETA, GENERAL MANAGER, TELESIGN

READY FOR NEW CHALLENGES

COPY EDITOR Chris Farmer cbf@notapipe.biz

EDITORIAL MANAGER Neda Lukić n.lukic@aim.rs

JELENA PAVLOVIĆ, MANAGING DIRECTOR, PHILIP MORRIS INTERNATIONAL FOR SOUTH EAST EUROPE

FASTER REFORMS, MORE INVESTMENT

PHOTOS Zoran Petrović

PROJECT MANAGERS Biljana Dević b.devic@aim.rs Nataša Trifunović n.trifunovic@aim.rs Nevena Đurković n.djurkovic@aim.rs Vesna Vukajlović v.vukajlovic@aim.rs

MIA ZEČEVIĆ, DIRECTOR, NOVASTON

ZORAN PETROVIĆ, PRESIDENT OF THE BOARD OF GORVERNORS, AMCHAM SERBIA

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SERBIAN ROOTS ON AMERICAN SOIL

ART DIRECTOR Jasmina Laković j.lakovic@aim.rs

Published by: alliance international media Makenzijeva 67, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs www.aim.rs Nomber: 1 Year: 2017 ISSN No. 2560-4465

THIS PUBLICATION IS FREE OF CHARGE

STRENGTH THROUGH COOPERATION 135 YEARS AND COUNTING...

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COMMENT

People-to-People Ties Broaden Our Relations

Relations between the United States and Serbia today are wider and deeper than they have ever been in the 135 years since the U.S. first recognized the Kingdom of Serbia as a sovereign, independent nation

H.E. KYLE RANDOLPH SCOTT, US AMBASSADOR TO SERBIA

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of the Serbian people. President Wilson was ince 2001, U.S. businesses have intors, engineers, academics, artists of all kinds, so impressed that, in 1918, he encouraged all athletes -- the list of renowned Serbs in American vested almost $4 billion in Serbia, Americans to gather together in their places of and today more than 17,000 Serbian history is long and impressive. Those who are worship “for the purpose of giving expression not world-famous also strengthen these conworkers are employed by American to their sympathy” with the people of Serbia companies. Over the past 15 years, the United nections. Today, more than 20,000 Serbs visit and “to invoke the blessings of Almighty God the United States every year, and nearly 1,000 States has provided nearly $1 billion in asupon them.” In his famous “Fourteen Points,” sistance to Serbia, for programs to support Serbian students attend US universities. he also called for international guarantees of efforts to develop strong economic institutions, Our people-to-people ties have had a real Serbia’s political and economic independence impact on our broader relations. Every adult in including fair labour laws, effective inspections, and territorial integrity. a more effective judiciary, a reduction in the Serbia remembers how the wars and conflicts Only two decades later, the U.S. and Serbia grey economy, and legislation supporting of the 1990s tore the fabric of our relationship again faced common foes and triumphed, survivindividuals who are ready to put a spotlight and put our historical bonds to the ultimate test. on corruption and waste. At the same time, But many are less familiar with how our two ing the utter devastation of the Second World War. Americans will always be grateful to the our armed forces have developed close and countries supported one another through the vibrant ties. American and Serbian thousands of brave Serbian men and th women who risked their lives and the troops train together. We stand toThis July 4 , as the United States celebrates gether to combat ISIL terrorism and lives of their families to shelter U.S. 241 years of independence, we should not other violent extremists. We are both airmen who had been shot down by forget the century of ties that keep Serbia German forces. After the war, despite committed to global peacekeeping, and the U.S. moving forward together, with and we continue to expand our ability the political complexity of our bilata commitment to improving the lives eral relationship, US President Harry to work together. of both Serbs and Americans Truman saw that more than moral or All these joint efforts are intended to support reform in Serbia that lowpolitical support was necessary for ers unemployment, increases growth and raises the young nation of Yugoslavia. He therefore darkest days of the 20th century. For example, the standard of living, and improves the rule of 10,000 Serbian-Americans joined the Serbian asked Congress to provide the economic and law. All will make Serbia a more prosperous namilitary aid Yugoslavia so desperately needed Army as volunteers and fought at Thessaloniki tion, a more attractive place for foreign direct (Salonika), and American doctors and nurses at that time. Four decades of peace and relative investment, an even stronger partner to the U.S., volunteered to come and treat the wounds and prosperity followed. and a force for peace and stability in the region. illnesses wrought by that terrible war.

This July 4th, as the United States celebrates The richness of our current relations is not The horrors of the First World War will not 241 years of independence, we should not forget surprising in the context of the strong peoplesoon be forgotten. Nor will the bravery and the century of ties that keep Serbia and the U.S. to-people ties developed between our two persistence of the Serbian people in that epic moving forward together, with a commitment to countries over the past century. Serbs have struggle. Perhaps less well remembered is improving the lives of both Serbs and Americans. the inspiration US President Woodrow Wilson enriched American culture in virtually every Together we can make the coming century one field of human endeavour. Scientists, invenfelt as he witnessed the unbreakable spirit of peace and prosperity for all. 

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INTERVIEW

A Catalyst Of Economic Change ZORAN PETROVIĆ

PRESIDENT OF THE BOARD OF GORVERNORS, AMCHAM SERBIA AmCham Serbia is the leading independent business association in Serbia with almost 200 of the most successful US, international and local companies from 18 industry sectors. Over the past 15 years, AmCham has been a catalyst of inclusive economic change and a committed promoter of good governance principles in Serbia •••

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n the 15th anniversary of AmCham Serbia, we spoke with Mr. Zoran Petrović, President of the Board of Governors, about the association’s achievements in the past and plans for the future.

• What has made AmCham a vital and agile business association over the past 15 years?

- As a catalyst of inclusive economic change and a committed promoter of good governance principles in Serbia, the American Chamber of Commerce is always prepared to support our members’ needs and serve as a platform to help them achieve their business interests. Through various activities, formats, and events, we are always working on raising their voices on needed policy improvements, helping them expand valuable contact networks, and facilitating their professional development. Our promise is to constantly create value for our members, and our work on fulfilling that promise made us the leading business community we are today.

• How has AmCham’s mission changed with the growth of membership and changes to the Serbian economy?

- AmCham’s main goal has always remained the same – to established a business friendly regulatory framework in Serbia.

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The number of our members grew over the past 15 years, which concurrently expanded the scope of topics and areas of our engagement. As a result, the number of AmCham Committees has constantly grown over the years, and today we have more than 10 active Committees, Task Forces, and Working Groups.

They serve as effective platforms for dedicated professionals and experts to work regularly on proposing various policy improvements which will facilitate combating the grey economy, improving healthcare system, introducing e-government, further improving tax, and many other initiatives.

• How many companies are part of AmCham, what is their combined contribution to GDP and employment?

- Today, AmCham Serbia is our country’s leading independent business association. Our membership includes almost 200 of the most successful US, international, and local companies from 18 industry sectors. They have collectively invested over €14 billion and employ over 100,000 people. We are proud to say that the AmCham community keeps expanding and that in recent times we have welcomed new successful companies into our membership such as PepsiCo, Novartis, Gilead, MasterCard, GGE, Henkel, Atlantic Grupa, Transcom and Kreston MDM. Our

GOAL

DEDICATION

CHALLENGES

AmCham’s main goal has always remained the same – to established a business friendly regulatory framework in Serbia

The American Chamber of Commerce in Serbia will remain dedicated to facilitating economic reform for a better business environment

Decreasing the parafiscal burden, as well as increasing transparency, predictability and consistent implementation of tax regulations by the Tax Administration continue to be among the greatest challenges

members are dedicated to the Serbian economy and their investments positively impact our GDP and employment rate.

• How do you balance the interests of large and small members?

- Thanks to everyday communication with our members and through our annual member survey on regulatory issues, we always have our finger on the pulse of the business community.

We constantly work on providing opportunities for all members to voice their priorities, the most important topics of which become the foundations of our Committees’ agendas. Through joint activities and individual efforts, we are dedicated to addressing areas of common interest and establishing constructive dialogue with crucial decision makers.

• Which positive reform steps in Serbia would you single out as being influenced by AmCham the most?

- Over the past 15 years, AmCham has been an effective platform for achieving numerous successful initiatives and goals. In that way, 2016 was a challenging but quite successful year that brought tangible outcomes to our efforts.

After four years without access to innovative drugs for Serbian

• In which direction should AmCham’s activities develop in the future?

- In the period to come, the American Chamber of Commerce in Serbia will remain dedicated to facilitating economic reforms for better business environment. As before, we will continue to lead the fight against gray economy and persistently work on tax regulation predictability. This year, AmCham will also focus on the Digital Economy platform and e-Government, trade patients and after significant advocacy efforts from the AmCham Health Care ComThe American Chamber of Commerce is always prepared to mittee, 23 innovative medicines became part support our members’ needs and serve as a platform to help of the mandatory health insurance package. them achieve their business interests In line with our Tax and Finance Committee facilitation measures, the simplification of import and export suggestions, the appellate procedures on the rulings of the Tax administrative procedures, and the harmonization of environAdministration have been transferred to the Ministry of Finance, effective as of mid-2017. We hope that this move will improve the mental regulations. In addition, we have recently established the perception of impartiality and facilitate more predictability in the Energy & Infrastructure Subcommittee within our Real Estate implementation of binding opinions issued by the Ministry of Finance.

Committee and added regulatory framework improvement in A major achievement of our Combating the Grey Economy Comthe energy sector to our tasks list. mittee was the initiated specialization of prosecution and courts • In which ways does AmCham impact the improvement of the in four centers in Serbia for illicit trade performed in an organized business climate in Serbia? manner. Such specialization allows for targeted trainings and faster - Each AmCham Committee assembles the most experienced coordination with relevant inspection authorities, which, we hope, and active leaders from our member companies who pool their will produce a more efficient judicial outcome from 2018. expertise to set up the Committee agenda. They constantly work The other committees were successful in their efforts at on recommending the best policies and pointing out regulation improving the regulatory framework. The AmCham Real Estate that needs better implementation. Thanks to the dedicated work Working Group has actively worked in drafting regulation aimed of our Committee leadership, Serbia has conducted various sucat improving procedures for issuing construction permits. The result was the New Law on Construction Permitting. In addition, cessful reforms that have affected the business environment the Labor Law was adopted, incorporating more than 70% of and reaffirmed AmCham as a reliable partner for government out suggestions from our Labor Regulations Committee. These institutions and bodies.

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accomplishments give us confidence to continue to push our policy priorities to the forefront of the government’s agenda.

• Where do you see the greatest challenges to economic policy in the period ahead?

- Our annual survey results presented at the Lap Time Conference last year show the greatest challenges continue to be in decreasing of the parafiscal burden, as well as increasing transparency, predictability and consistent implementation of tax regulations by the Tax Administration. Almost three-fourths of our members see these issues as top priorities to be resolved in the period to come. In addition, for the first time, eGovernment, as one of the means to increase efficiency of state administration, is also among AmCham members’ priorities.

to bring best practice from our member companies and to be a helping hand for government in all those initiatives that are relevant for our membership.

AmCham participates in numerous government groups working on enacting new or amending existing Laws and regulations.

Our goal is to bring the best practices of our member companies, offer solutions that will make a positive impact on the business environment in Serbia, and to be a helping hand for the government in all the initiatives that are relevant for our membership.

• How would you evaluate the situation in the banking sector?

- The Serbian banking market is ‘overbanked’, and this is putting substantial pressure on profitability. We see that a process of long-awaited consolidation has started. This might represent the first step towards the industry’s downsizing over the midterm. Overall, the banking industry is among the best regulated, the most highly capitalized and liquid. With an improved macro picture, the loan supply started to grow since last year while non-performing loans finally abated.

• From a banker’s perspective, how would you assess changes in the economic sector?

- The investment climate has improved significantly over the past two or three years on the heels of the very tangible achievements that the government made in the public sector and economic reforms. Interest rates are at historical lows, as the exchange rate is facing very low volatility, both reflecting the confidence that the market gained with the government. What the government has done was to deliver unpopular measures, thanks to

• Considering such challenges, what do Our members are dedicated to the Serbian economy and their you consider as being the most important investments positively impact our GDP and employment rate steps for the government to take in the period ahead?

- First of all, it is very important to ensure that all proposals for which the budget deficit/GDP was cut from 6.6% in 2014 to 1.4% enacting and effecting changes in laws that impact the business in 2016, resulting in the public debt growth trajectory not only community are transparently and communicated in a timely manbeing stopped but reverting the trend downwards. Further, the government passed a number of various changes in legislation, ner to the general public. More importantly, in order to ensure creating a more market friendly environment. the proper economic and social impact of the reform initiatives Altogether, coupled with the acceleration of EU accession undertaken, the government should continue implementing all negotiations and the successful performance of the IMF prethose laws and by-laws that have been enacted.

Public-private dialogue would enable the business and acacautionary arrangement, this created a nice incentive for the market to revive, so investors could regain their trust and count demic communities to give feedback in an open and organized on more macro-economic stability over the mid-term. process of public debate. The continuation of open dialogue Consequently, we saw a healthy influx of FDI, which flowed into between the private sector and decision-makers is one of the tradable sectors supporting a new investment cycle in producmost important steps, leading to the improvement of the business climate and economic prosperity. tion capacity and adding an impetus to the lending revival as being partly financed via local banks. Also, FDI brought growth in employment. Hence, the business environment has improved • Which government initiatives are you engaged in? significantly, and we expect it will soon be reflected in further - We participate in numerous working groups that are in charge upgrades of the country rating. ■ of enacting new or amending existing regulations. We strive

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INTERVIEW

We Support Reforms CAROLINA HIDEA

ECONOMIC COUNSELLOR OF THE U.S. EMBASSY IN BELGRADE The United States is supporting the growth and development of the Serbian economy by engaging with the Serbian government and its private sector institutions to build a better and more transparent business environment. It is also active in identifying opportunities in the manufacturing, food and processing industries •••

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any US companies are already using opportunities that Serbia offers in the business sector. To date, they have invested almost $4 billion and created more than 17,000 jobs in the domestic economy. However, in order to attract more global players, the country has to work hard on boosting its potential.

One of the tasks is certainly related to creating a level

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playing field for all actors on the market, while equally important is to support domestic SMEs to interconnect, cooperate, and grow.

We spoke with Mrs. Carolina Hidea, Economic Counsellor of the U.S. Embassy in Belgrade, about American engagement in helping Serbia achieve significant progress in both of these areas. Mrs. Hidea emphasises that the U.S. Government wants to see a prosperous Serbia and is therefore committed to assisting its Serbian partners on their journey to building an advanced market economy. • What does the U.S. want to achieve in Serbia?

- The United States and Serbia have a strong manufacturing, food, wood and metal processing. The proficiency of SerWe want to see a strong and prosperous Serbia that is at bian engineers also means there are peace with its neighbours and looking to the future opportunities for technology-driven sectors. In services, Serbia has strong potential in the IT and tourism sectors. relationship and a partnership across a broad range of We have been engaged with the Serbian government issues, from economic development and investment and private sector institutions to improve the legal and to legal and defence cooperation. We want to see a regulatory environment for growth led by the private strong and prosperous Serbia that is at peace with its sector. We see great potential for growth when we work neighbours and looking to the future. with Serbian firms. It is important to remember that 99% • Where do you see potential for the growth and develof Serbian firms are small and medium-sized enterprises opment of the Serbian economy?

(SMEs). For these companies to truly catalyse the sort of - There are many areas of potential growth and developgrowth that can create jobs and spur sustainable economic ment in the Serbian economy. With regard to producdevelopment across Serbia, they need work more closely tion, I know studies have identified opportunities in together to achieve economies of scale and ensure they

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effective judiciary, steps to bring businesses out of the grey economy, and legislation supporting individuals who are ready to stand up and put a spotlight on corruption and waste.

We supported Serbia in its efforts to introduce electronic construction permits, which was a major factor in Serbia’s breakthrough into the top 50 countries on the World Bank’s “Doing Business” list last year.

Plenty remains to be done - economic and structural reforms, increasing private sector access to finance, public sector streamlining, healthcare and education reforms, further and more effective efforts to combat corruption, and building the civil society institutions that can produce quality, quantity, and asUS companies have invested almost $4 billion since 2000 sure continuity to meet the needs of and currently employ around 17,000 people. They are good the market, both here in Serbia and in partners and job creators, and the jobs they offer are some the wider region. They need to work of the most sought-after among Serbian workers with financial institutions to get the resources they need to grow. They need to work with research and development institutions to are the foundations of a strong and vibrant democracy. pilot and scale-up new products and processes so that If Serbia is committed to this path, I am confident that they can compete on the market. foreign investment, including investment by U.S. firms, We will continue to work with our Serbian partners will continue to grow. to strengthen connections between SMEs and service providers, as well as with financial and research and • What can Serbia do to attract further investment from development institutions, so they can improve their U.S. investors? cooperation and collaboration to take on the challenges - More than anything else, investors want a stable and Serbia faces in unlocking sustainable growth. predictable business environment. This means a strong rule of law that ensures investors that if they follow the rules • How would you assess the results of economic retheir operations will be able to run smoothly and profitably. forms in Serbia so far?

US companies already play an important role in Serbia.

- Serbia is already seeing more interest from American US companies have invested almost $4 billion since 2000 and international companies that are ready to invest and and currently employ around 17,000 people. American create jobs here. We believe that this process will gain companies are good partners and job creators, and the strength if Serbia continues on its successful reform path. jobs they offer are some of the most sought-after among We are proud to be Serbia’s partner as it implements Serbian workers. American businesses often bring new further economic reforms. The United States has provided technology, high labour and environmental standards, and nearly $1 billion in assistance to Serbia, a large portion of good corporate practises. The success of these companies which has been dedicated to supporting the government’s is important for Serbia’s future. Success stories and a efforts to develop strong economic institutions: flexible transparent and welcoming business environment are the and fair labour laws, effective inspection regimes, a more best marketing tools to attract more investors to Serbia. ■

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INTERVIEW

Further Develop Of Democratic Governance Institutions AZZA EL-ABD, USAID’S MISSION DIRECTOR FOR SERBIA USAID is committed to continue working with the Serbian government, businesses, and civil society to develop democratic governance institutions that are responsive to citizens’ needs and to expand economic opportunities for the people •••

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ince 2001, Serbia has made significant progress in transitioning its democracy and economy and expanding reforms. USAID’s assistance has focused on supporting Serbia’s priorities of building institutions and structures that promote good governance, the rule of law, and economic growth.

• USAID recently provided an additional $9 million to support Serbia’s EU accession efforts. Which specific goals have to be achieved?

- The additional funding is part of our overall assistance

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to support Serbia’s efforts to improve government operations, combat corruption, strengthen the rule of law, and increase economic growth. By partnering with Serbian public and private organizations to tackle these issues, we are also helping Serbia adopt and implement the reforms necessary for EU accession—such as those related to chapters 23 and 24 for the rule of law and fundamental rights, as well as meeting the Copenhagen Criteria for a functioning and competitive market economy.

• It is just a fraction of the $748 million that USAID committed to Serbia since 2001. Which programs were the most useful when it comes to democratic transition support to Serbia?

- Our early technical assistance to the National Bank of Serbia strengthened its role as a regulator that provides macro-economic stability and fosters sound economic governance.

At the municipal and community level, we worked with local governments to introduce budgeting practices that increased citizen involvement, to bolster public financial management, and to improve local administrative services. USAID programs helped establish citizen assistance centres in 32 municipalities, which serve as one-stop shops for people to quickly and easily obtain vital documents. We also supported greater citizen engagement in community decision-making by funding 5,000 community-identified improvement projects—which created 25,000 jobs in the initial years of the transition.

USAID has and continues to partner with the judiciary to improve the efficiency and professionalism of the judicial system. USAID’s investments in the misdemeanour court system have helped improve operations, update infrastructure, increase fine compliance, and decrease case backlogs. And our support for Serbia’s Whistleblower Protection Law has made it easier for Serbian citizens to report fraud and abuse of public resources. The law is working and just last week, the court issued its first verdict in favour of a whistleblower.

More recently, we have worked extensively with the government and the private sector to improve Serbia’s business-enabling environment and spur investments through reforms to the labour law, inspections regime and

Development. NALED has encouraged businesses, entrepreneurs, and government to embrace reforms that have improved the ease of doing business in Serbia.

Likewise, USAID supported the founding of the Center for Free Elections and Democracy, CeSID, and helped it develop the skills necessary to play a constructive oversight role in election monitoring in Serbia and in the region. Recently, our support for the

USAID programs helped establish citizen assistance centres in 32 municipalities, which serve as one-stop shops for people to quickly and easily obtain vital documents construction permitting. These reforms have improved Serbia’s business climate. The World Bank’s 2017 Doing Business Report ranked Serbia as one of the top ten reformers globally. The construction permitting reforms were a major factor in Serbia’s improved overall score.

Working with Serbian firms to access new markets and grow has also always been a major part of our assistance. Programs such as our previous agribusiness project supported Serbian businesses in securing $116 million in sales of Serbian food products, primarily for export. The success of these enterprises resulted in the creation of more 5,000 new jobs.

We have also provided assistance to foster a robust civil society and increase public-private dialogue. For example, USAID’s support led to the establishment of NALED, the National Alliance for Local Economic

Center for Independent Living has facilitated dialogue between Serbs with disabilities and legislators to ensure that issues of people with disabilities are addressed.

• What do you see as the most pressing issue when it comes to efficiency of the Serbian administration?

- Improving public administration is a continuous process. It requires constant improvements and innovations to promote efficiencies and increase effectiveness. The Government of Serbia is launching major initiatives to reform the public administration and introduce e-government. A good example is the electronic construction permitting that we are supporting through the business-enabling program. Additionally, we are working with the government to establish an e-inspector system to improve the coordination and efficiency of inspections.

• USAID was behind the Serbian government’s efforts to solve tough issues such as the construction permit-

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ting process. Is it going as fast as it could be today, or it can be even more efficient?

- We have worked closely with the Government of Serbia and the private sector to support changes to the law on planning and construction that have decreased the cost and time for issuing construction permits. The

USAID’s Business Enabling Project’s most recent business survey found that 62% of those companies surveyed do not use any external source of finance. That means they do not borrow from banks or even family and friends. This is a big barrier to economic growth since micro, small and medium businesses make up 99% of Serbian companies and 65% of private sector jobs.

Financial institutions could do more to lend to small businesses, and companies need more sophisticated financial management. Alternative financing channels to commercial banks, such as non-banking financial institutions, could help increase access to finance.

Increasing access to finance through the introduction of new financial products and support for regulatory reforms will remain a focus for us.

Additionally, through our recently launched Competitive Economy Project, we will promote greater innovation, value chain development, and research collaboration in Serbia’s food processing sector.

• You are also supporting Serbia in its EU accession process. Where do you see any backlogs that have to be solved with donor help?

- The EU accession process is complex and requires candidate countries to undertake a broad range of reforms.

Donors can provide experience and resources to support

time it takes to get a construction permit was reduced by 116 days. That USAID’s support led to the establishment of NALED, the is an incredible improvement that has National Alliance for Local Economic Development. NALED impacted the expansion of Serbia’s has encouraged businesses, entrepreneurs, and government construction sector. E-permitting and to embrace reforms that have improved the ease of other adjustments will enable further doing business in Serbia improvements in the process.

Another benefit of the new process Serbia in developing and implementing reforms. Another is the data it produces. It allows the government and important area that international donors can facilitate the public to measure the performance of different is the sharing of knowledge and lessons learned from municipalities. If a municipality is performing below the countries in the region and in Central Europe that have standard, the data provides the rationale for looking into joined the EU. the municipality’s operations and making improvements.

For instance, we recently partnered with the Government of Slovenia to provide training, which builds • What is your next main target when it comes to supthe capacity of Serbia’s public-sector accountants. port to economic reforms in Serbia?

Slovenia has good technical experience in this field, - Our economic growth assistance focuses on two key so we combined our efforts to provide assistance initiatives, strengthening the business enabling environto Serbia. This is a good example of three countries ment and increasing the competitiveness of Serbia’s (Serbia, Slovenia, and the United States) leveraging private sector. We’ll continue to collaborate with the resources and expertise to address a specific develgovernment and the private sector to support reforms opment issue. ■ they identify as a priority.

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INTERVIEW

On The Right Side Of History At Crucial Moments H.E. DJERDJ MATKOVIĆ

AMBASSADOR OF THE REPUBLIC OF SERBIA IN WASHINGTON The history of relations between Serbia and the U.S., which spans across three centuries, is predominantly marked by shared values during the critical junctions of the twentieth century •••

“D

a large number of joint training programs and exercises. These include standout projects such as the development of the Center for the training of units for multinational operations at the “Jug” (South) Base, humanitarian assistance projects and joint medical engagements of the Serbian Army and the Ohio National Guard in Angola, which will be implemented in December this year. In the process of modernizing and equipping the Army of Serbia, the U.S. is one of the leading donors of military equipment, which contributes to the essential development of its operational and functional capabilities.

As a particularly important segment of bilateral relations, I would emphasize the U.S.’s strong support of Serbia’s continuing European integration, support for preserving and advancing regional stability and security, as well as continuing internal reforms, which provide a positive basis for the further growth and development of Serbia and the entire Balkan region.

• This year marks the 135th anniversary of diplomatic relations between Serbia and the United States. What are those relations like today?

- Today we can speak about those relations as having a positive upward trend and of our trying to overcome differences in viewpoints that exist on certain issues through open partnership dialogue.

I would like to point out that cooperation in defense is mutually assessed as the best part of our overall bilateral relations. It is reflected in the implementation of joint military exercises, training and education for members of the two armies, Serbia’s contribution to the fight against ISIL and the Serbian Army’s participation in multinational peacekeeping operations.

As one of the most developed forms of cooperation, I would single out the State Partnership Program with the Federal State of Ohio, under the auspices of which members of our armed forces implement

• Your term began during the time of President Barack Obama and continues with the new administration of President Donald Trump.

Do you see any change in the attitude towards Serbia?

- Every change of the administration in Washington implies a transitional period during which there is a handing over of responsibilities and new appointments, and, of course, certain foreign policy adjustments. I am convinced, however, that appointments of the U.S. regarding Serbia will not lead to major changes and that Washington’s support for our European integration will continue to be strong, as well as for our policy of reconciliation and constructive cooperation in the region, the continuation of the dialogue with Pristina and comprehensive reforms in the country.

Regardless, however, of the extent to which this region will be in the focus of this administration, our primary goal will be to continue the positive trends in bilateral relations, with the intensification of visits and communication at all levels.

uring crucial moments of global conflicts, Serbia and the United States have always been together on the right side of history. That’s why I always stress that our relations have a strong foundation and have endured much longer than the decade of the 1990s, the consequences of which, unfortunately, we can still feel with individual issues in our bilateral relations,” says Serbian Ambassador to America Đerđ Matković.

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STRENGTH THROUGH COOPERATION 135 YEARS AND COUNTING...

• The Serbian Foreign Ministry recently announced that it is working busily on an initiative to strengthen contacts with the White House and President Trump, via the Serbian caucus in the U.S. Congress. What can the 26 members of the caucus realistically achieve?

- In order to properly understand the positions and activities of the Serbian congressional caucus it is necessary to consider that its members do not constitute lobbyists for Serbian interests, rather elected representatives of individual districts and federal states in the highest legislative body of the United States, who use membership in this group to express their interest and readiness to contribute to improving bilateral relations between Serbia and the United States.

Members of the Caucus are primarily willing to support issues that are of importance for Serbia and are in line with US interests. This particularly applies to the European integration process, as well as activities aimed at ensuring the full stability of the Western Balkans. On these lines, the US administration has repeatedly been sent letters by groups and individual members of the Caucus, as well as other congressmen, which pointed out the importance of continuing US support for Serbia’s reform process and European integration path, as well as the sensitivity of certain issues such as the request for the membership of the so-called “Kosova” in UNESCO. Co-Chairman of Serbian Caucus,Ted Poe, has repeatedly used the plenary sessions of the U.S. House of Representatives to give presentations on the topic of the traditionally close relations between the two nations, the contributions of the Serbian Diaspora and Americans of Serbian origin to the culture and development of the United States, the historical alliance between Serbia and the U.S. through the two world wars, the efforts Serbia exerts today in the area of regional reconciliation and the strengthening of regional stability, and Serbia’s role as a responsible and reliable partner in resolving the problems of the migrant crisis.

The Serbian Embassy inWashington is in continuous working contact with the offices of the Co-Chairs of the Serbian Caucus, within the framework of which we elaborate the possibilities of further strengthening the composi-

• How significant to American foreign policy are the Western Balkans and Serbia? Political and security analyses in recent months have mentioned the region as a possible new flash point and zone in the conflict over influence between the U.S. and Russia.

- It is true that, after the migrant crisis that hit Europe and Serbia during last year and the year before, the Western Balkan region has again to some extent come under the spotlight of international media and expert circles.

I consider that such assessments should primarily be considered in the context of the current state of relations between the United States and the Russian Federation, but also the messages that are sent at various levels. First, to the new US administration – that it is necessary to devote additional attention to our region, which has achieved real progress in relation to the period of the ‘90s, but in which there are still inherent challenges and potential sources of instability. The migrant crisis was an obvious example of the significance of the Western Balkans to European

AMBASSADOR MATKOVIĆ and Congressman EMANUEL CLEAVER, Co-Chair of the Serbian Caucus

stability and security. That message gains even more importance when one considers the fact Every change of the administration in Washington implies that the EU itself, even though it remains the a transitional period during which there is a handing main engine of growth and transformation, over of responsibilities and new appointments, and, of course, is currently undergoing a series of internal certain foreign policy adjustments. I am convinced, however, political challenges. The assessments you that appointments of the U.S. regarding Serbia will noted also represent an indirect message to not lead to major changes all of us in the region that, instead of raising tensions and occasionally sharpening rhetoric, we should resolve outstanding issues through dialogue and in a spirit of tion and activities of the Caucus, with which this segment of cooperation reconciliation to the benefit of all citizens. would be strengthened and impetus would be given to the US administration In this sense, we should be aware that neither Serbia nor the Balkans to improve the quality of relations between the two countries. Moreover, are included in what represents the primary focus of US foreign policy. the programs of senior Serbian officials during their visits to Washington That was also the case with earlier administrations and represents include, as a rule, numerous meetings in the US Congress with, among the result of the progress of the region and its European perspective. others, congressmen and senators who deal with foreign policy issues, as well as regular meetings with representatives of the Caucus.

• How would you assess the level of economic cooperation with the U.S.?

In the period ahead, we expect the realization of visits to Serbia of -Over the last ten years or so, bilateral economic cooperation – both in Caucus Co-Chairs Ted Poe and Emanuel Cleaver, with the possibility of terms of the volume of trade and in terms of investment – has showed this delegation being joined by representatives of business circles from positive trends. From less than $180 million in trade, following the crisis Texas and Missouri, with the aim of considering tangible possibilities in 2009, that figure has more than doubled in recent years. To date, the for strengthening cooperation with Serbian companies, particularly in record year with 2013, with trade exchanges worth over $600 million, the fields of energy and agriculture.

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while 2016 estimates range to in excess of $440 million. This has all been helped greatly by the successful export of the Kragujevac-produced FIAT 500L to the United States.

Noting this positive trend, I consider that there is certainly scope to further improve cooperation. The U.S. is not among Serbia’s top ten import-export partners, while some European countries that are similar to Serbia in performance terms, and even less, achieve up to two to three times more trade with the United States. That’s why I point out that in the field of the trade exchange the potential exists for improvement, especially in terms of increasing the volume, but also diversification.

Serbia operates with the United States within the framework of

Former president OBAMA and DJERDJ MATKOVIĆ

the General System of Preferences, but has interests in the prospects of raising relations to an even higher level, with the concluding of bilateral agreements on the avoidance of double taxation and the protection and incentivizing of investments.

• How would you assess the effect of re-establishing regular direct flights between Belgrade and New York?

- The greatest factual and symbolic importance of the reopening this route after a 24-year break lies in the defining of Belgrade and Serbia as a regional center and a hub in the field of air transport and transport in general, which consequently opens up an array of other opportunities, primarily in the area of increasing bilateral economic cooperation and especially tourism. We believe that tourism has great potential and represents an increasingly important economic sector, because our country is still an under-discovered tourist destination for American tourists.

Also, the fact that Air Serbia was recognized as a partner that was able, in a short period and with initially modest resources, to implement such an ambitious project sends an encouraging message and represents an example of how our companies, not only in the field of aviation, can, with

Serbia generally offers very favorable conditions for doing business and investing: a high-quality workforce, competitive conditions and costs, institutional support and financial incentives, as well as an excellent geographic location

• According to your counterpart, US Ambassador Kyle Scott, American companies employ around 16,000 people in Serbia. Which areas do you see as being most favorable for new U.S. investments?

- Depending on the statistical methods, data on direct U.S. investments in Serbia vary considerably, from around $270 million – if calculated in terms of direct investment in the 2000 to 2012 period - to estimates that exceed $2.1 billion – if calculated in terms of investments of US companies via their European subsidiaries.

Regardless of the statistical methods, however, what is the most important thing in practice is that numerous American companies are present in the Serbian market as significant investors, such as NCR, KKR, Philip Morris, Ball Packaging, Coca-Cola, PepsiCo, Cooper Tires, Darby Fund, Van Drunen Farms. We are very pleased that the American company -AMETEK-, which already operates in Serbia, will open a new factory that will employ around 500 workers.

We single out the IT sector as particularly promising in terms of further development and investment. Let me remind you that one of Microsoft’s development centers is located in our country, while NCR

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also announced the opening of one of its regional hubs in Belgrade.

Serbia generally offers very favorable conditions for doing business and investing: a high-quality workforce, competitive conditions and costs, institutional support and financial incentives, as well as an excellent geographic location.

At the same time, we should be aware that Serbia has a network of trade agreements and arrangements that allow free access to the markets of third countries, which represent more than a billion people.

As such, we believe that in the period ahead we should strive for investments that will raise relations between Serbia and the U.S. to a higher level. More specifically, we should strive for cooperation in strategic sectors such as technology and particularly IT, the auto industry, energy and mining, which in new conditions for both sides can bring multiple benefits.

appropriate investment and, even more importantly, with appropriate partnerships, become competitive at the regional level and beyond.

• Turning to the anniversary of diplomatic relations, do you plan to commemorate it in a particular way and could it provide an occasion for officials of the two countries at the highest level to meet?

- During this year, through the activities of the Serbian Embassy in Washington, we have already provided reminders of the important segments of cooperation: in the presence of representatives of the Ohio National Guard, the Pentagon and the State Department, we marked the anniversary of the military operation “Halyard” and the alliance during World War II, while for the general public a lecture was held on the history of bilateral economic relations. The plan is that during this year, in cooperation with the US Library of Congress, we will screen a film about Serbia during World War I, marking our second big alliance. Of course, as ambassador, I would be most satisfied if the 135th anniversary of our diplomatic relations were marked by bilateral meetings at the highest level. ■

STRENGTH THROUGH COOPERATION 135 YEARS AND COUNTING...

JELENA PAVLOVIĆ, MANAGING DIRECTOR, PHILIP MORRIS INTERNATIONAL FOR SOUTH EAST EUROPE

CORPORATE

Shaping The Cutting Edge Future Of Tobacco

IQOS - and the smoke free future it brings with it – seems to be a great shift in the history of the tobacco industry

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udging by the reactions thus far, this product appears to be appreciated by smokers and non-smokers alike. While the first group enjoys the taste of real tobacco without any of the side-effects: the ash, the fire, the smell, the second group appreciates not being exposed to tobacco smoke.

consumers opportunity to enjoy the real taste of tobacco and the nicotine they seek while eliminating the smoke, ash, smell and exposure to many harmful substances. That is why more than two million people worldwide have already replaced cigarettes with IQOS. All those benefits, coupled with its modern design, are the reason why IQOS has been well received by adult smokers in Serbia too.

cigarette producer, you could be surprised. But today we are so much more than that. We are a dynamic and modern company undergoing the transformation of a lifetime, determined to replace all cigarettes one day by our innovative products. Since innovations of this type go hand in hand with science, it is clear that investments in our own science as well as our support to the local scientific community really make sense.

• Phillip Morris is a leader in the production of conventional cigarettes both in Serbia and worldwide. Why would the company then • Does this indicate the closing down of the • Since 2009, Phillip Morris has invested invest more than three billion dollars in reold business and Phillip Morris’s withdrawplenty of money into “Start Up for Business”, search and development to make a product al from the conventional cigarette market? your flagship CSR program, and has helped that is an alternative to smoking – create more than 600 businessan electrical device called IQOS? es along the way. Will the compaWe are now inviting all adult smokers to - It is simple – we are addressing the ny still be engaged in that area? switch as soon as possible to these new need of our consumers. Smokers - We are particularly proud of this products and join us in the quest for our all over the world have long been program because it has helped vision – the smoke-free future searching for tobacco products that generate around 2,000 new jobs could have the potential to reduce throughout Serbia, helping small health risks, while allowing them to continue - The cigarettes produced by Phillip Morris and family businesses get off the ground and to enjoy the true taste of tobacco. It is for this are the choice of around 150 million smokers stay in business for years. Every business we reason that we have invested considerable worldwide. For those who want to continue helped start is still operating. Such tangible amounts of time, money, human resources, and enjoying tobacco, we will continue producresults are reason enough to continue the great efforts to research and develop IQOS ing cigarettes until we are able to persuade program, but in the future you can expect and other potentially reduced-risk products. every one of them to turn to potentially less to see some changes. We will support enWe are now inviting all adult smokers to switch harmful tobacco products. trepreneurship through supporting those as soon as possible to these new products businesses that are on the cutting edge, and join us in the quest for our vision – the • The company’s new direction, its transforthat are charting a new course by embracsmoke-free future. mation, can also be seen in the different aping innovation, by shedding the norms of proach you have taken to the Corporate Sotheir industries and being true disruptors • More than two million people in twenty councial Responsibility programs for which you in whatever field they may occupy. This is tries are already using iQOS. You launched IQOS are well known in Serbia. Wouldn’t you say the future to which Philip Morris is looking, in Serbia in April. What have been the reactions that “Start Up for Science” is not a typical and this is the future that we want to help of smokers around the world, and in Serbia? program conducted by a tobacco company? shape – a future that celebrates the brave, the - IQOS is a revolutionary product. It provides - If you see Phillip Morris as only a traditional agile, the courageous and the innovative. ■

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FOCUS

Faster Reforms, More Investment Serbia has progressed significantly in many areas, but there is still plenty of room for improvement in order for more foreign investors to be attracted to the country. Adopting laws too quickly and their commonly inconsistent implementation, as well as a lack of personnel, are the main problems on route to a stable business environment

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ore than a decade and a half after its establishment in Serbia, the American Chamber of Commerce is a respected and reliable partner of the Government of Serbia. Not only does it convey the best American business experience, but its suggestions, proposals and support are responsible for the adopting of many high quality laws in Serbia.

Here the members of the AmCham Board speak to CorD about where progress has been made and what it is that discourages potential US investors, despite their continuous interest, from investing in Serbia. ■

Representing The Voice Of American Business  How satisfied are you with cooperation between the Chamber, the US Embassy to Serbia and Washington DC?

S JELENA PAVLOVIĆ

AMCHAM FIRST VICE PRESIDENT AND PMI SERVICES MANAGING DIRECTOR FOR SOUTHEAST EUROPE

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AmChams throughout Europe and around the world. ince its establishment, the American Chamber We are part of the network of European AmChams, of Commerce in Serbia has achieved very succewhich consists of 45 chambers, and which is licensed ssful long-term cooperation with the US Embassy. by the Chamber of Commerce in Washington and AmCham, as a business association that, among represents the voice of the American business comother things, brings together the most successful munity. In synergy American compawith our internatinies operating on the AmCham is a reliable partner to onal and local parSerbian market, fothe Serbian Government in the decisiontners, we are able sters partnership remaking process and in improving Serbia’s to present a wide lations and an open position as an attractive destination range of topics that dialogue with the US for investments are of interest to Embassy. Thus we our members, and constantly strive to to be a reliable partner to the Government in the present the best American practices, which are a decision-making process and in improving Serbia’s result of the expertise of our member companies, position as an attractive destination for investments. but also the experiences that AmCham Serbia becomes familiar with through cooperation with other

STRENGTH THROUGH COOPERATION 135 YEARS AND COUNTING...

Promoting Serbia As An Investment Destination

Still Many Challenges In Tax Law Area

 To what extent are American IT companies satisfied with their investments in Serbia to date, and how much more space for investment exists in this field?

 What does the Chamber do in response to Serbia’s unclear tax regulations and the commonly inconsistent approach of the Tax Administration, which causes major problems for investors?

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he potential for the development of the IT industry, as a dynamic field that records constant growth in the global VLADAN ŽIVANOVIĆ context, certainly exists, and it could be AMCHAM SECOND said that information and communication VICE PRESIDENT AND GENERAL MANAGER technologies are of great importance for OF NCR the future of the Serbian economy. As a comparative advantage of Serbia compared to other markets, companies - including those operating in the IT sector - recognize the excellence of their employees. At the same time, the lack of individual staff profiles is evident. The results of the latest annual survey of AmCham members regarding their level of satisfaction with the business climate in Serbia shows that the members of the American

Education reform will be one of AmCham’s priorities in the period ahead, because of a lack of individual staff profiles is evident Chamber of Commerce in Serbia are aware of this problem, and as such we are pleased that education reform will be one of AmCham’s priorities in the period ahead. In addition to advocating for essential changes in the education system, AmCham also aims to contribute to the development of the information society and the promotion of Serbia as an investment destination through the activities of our Digital Platform. The focus is both on work on securing legal regulations in the field of electronic operations, as well as encouraging youth entrepreneurship through cooperation with ICT Hub and the Startit Center.

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or more than two-thirds of the members of the American Chamber IGOR LONČAREVIĆ of Commerce in Serbia, increasing the AMCHAM SECRETARY predictability of amendments to tax TREASURER AND PARTNER AND HEAD OF laws, reducing changes to tax laws, but TAX & LEGAL OF KPMG also reforming the Tax Administration, represent a priority, according to our annual survey on the level of satisfaction among AmCham members. In the previous period, partial progress was achieved in this domain, through the improved handling of the Tax Administration and the enabling of tax returns to be submitted electronically. Nevertheless, there are still many challenges in this area, and therefore also room

Despite partial progress when it comes to tax regulations, there are still many challenges and room for improvement for improvement. One of them was certainly the adoption of certain laws through urgent procedure, without public debate or the involvement of the business community. This is why the AmCham Finance and Tax Committee encourages the development of an open dialogue and the establishing of interaction between business and relevant state institutions, and advocates for mandatory public debates for financial laws.

Likewise, in the period ahead AmCham will continue to propose solutions that would, if implemented, contribute significantly to the acceleration of further parafiscal reform, and lead to a unifying of the Tax Administration’s approach.

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Encouraging Partnership Within The Business Community  How is the Chamber’s cooperation with the Serbian authorities when it comes to improving environmental regulations and what does the circular economy concept imply?

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he concept of a circular economy, which is strongly supported by Coca-Cola HBC, is a concept according to which manufacturers consider the entire life cycle of their products, striving to minimize their negative impact on the DRAGAN LUPŠIĆ environment. The adaptation of legislation through the AMCHAM UNTITLED implementation of measures for the transition from a linear GOVERNOR AND PUBLIC AFFAIRS, to a circular economy, which are defined by the European COMMUNICATIONS AND LEGAL MANAGER OF Union Circular Economy Package, is a very challenging task.

COCA-COLA HBC SERBIA AmCham encourages partnership relations between the business community, the Government and other stakeholders, with the aim of reaching the best solutions and the quickest possible switch to

Adapting legislation through the implementation of measures for the transition from a linear to a circular economy is a very challenging task such a business model. Our Environmental Committee has so far given several proposals for improving the regulatory framework in the field of the environment, primarily in the area of waste management, and highlighted the benefits of the concept of the extended liability of producers of packaging waste, as well as electronic, electrical and other specific waste streams, which would in this way be responsible for their products after their use.

Contributing To The IT Sector’s Further Development

BRANKO MITROVIĆ

AMCHAM UNTITLED GOVERNOR AND CHIEF CORPORATE AFFAIRS OFFICER AT TELENOR

 How does the Chamber help with individual investments, in terms of overcoming the different levels of development of the two markets, and in which areas is that most pronounced?

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f we are speaking from the perspective of large investors, which includes Telenor, whose investments are estimated at around two billion euros, all conditions for a fair and transparent market competition have not yet been made

Improving Business Environment Reforms  How much do changes in the US administration impact on the level of interest to invest in Serbia among potential American investors?

A

lthough it is too early to give a definitive annecessary to improve the business environment in Serbia, with the aim of increasing its predictability; swer to that question, we can highlight that from reducing the gray economy to better regulating the continuous interest of US investors to enter the fiscal charges. According to forecasts, in the next five Serbian market is noticeable. American companies years, the greatest interest of US investors can be employ more than 16,000 people in Serbia. The key expected in the so-called shared services industry, conditions for making an investment decision, in where Trizma is also an active company. This will addition to analysis of the market, are its stability, contribute to many transparency and, young people finding in particular, local It is forecast that in the next five employment after human potential. years American investors will be most completing their stuDue to all of this, it interested in the so-called shared is important to contidies, and thus reduce services industry the “brain drain”. nue with the reforms

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STRENGTH THROUGH COOPERATION 135 YEARS AND COUNTING...

BORIS VUJIČIĆ

AMCHAM UNTITLED GOVERNOR AND CO-FOUNDER AND CHAIRMAN OF TRIZMA

Striving For Innovative Solutions And Fair Business  The American Chamber of Commerce in Serbia represents more than 190 American, international and local companies that have invested a combined total of €14 billion in Serbia. How much responsibility does the Chamber have when it comes to presenting Serbia to potential investors as a safe country for investment?

I possible. Successful companies recognize that it is necessary to support the startup community, and it is essential that the state does so too. Thus, AmCham, through its Digital Platform, offers proposals for

Successful companies recognize that it is necessary to support the startup community, and it is essential that the state does so too regulatory amendments and at the same time provides practical mentoring support through various projects, contributing to the further development of the IT society and entrepreneurship.

n the focus of the work and activities of AmCham, as the leading independent business association in the country, are certainly our member companies, whose needs we constantly DIANA GLIGORIJEVIĆ monitor and whose work and investment in the development AMCHAM UNTITLED of the Serbian economy make us proud. AmCham provides GOVERNOR AND CHIEF OFFICER MARKETING & constant support to the operations of its members, and through SALES OF TELEGROUP constructive dialogue and partnership with the Government of the Republic of Serbia we influence the creation of strategies, laws and policies that will significantly improve the regulatory framework of business and make the Serbian market and entrepreneurship more transparent, freer and more competitive. Through the work of our committees, but also through the actions of other

AmCham strives for innovative solutions, best practices and the removal of all barriers to successful and fair business platforms for connections and exchanges, as well as the professional development of our members, we strive for innovative solutions, best practices and the removal of all barriers to successful and fair business. In this way, AmCham creates conditions for the growth of the operations of members, and their business and their successes are the best reference for all companies to plan investments in Serbia. Commitment to our companies results in a more transparent and improved business climate and, thanks to that, a greater number of investments.

Restitution Process Still To Be Completed  To what extent does the (dis)order of the Serbian real estate market represent a barrier blocking the arrival of more direct investments from the U.S.?

T MILA MARČETA

AMCHAM UNTITLED GOVERNOR AND DIRECTOR AND GM OF TELESIGN

efficient and predictable framework has been he complexity of legislation in the field of established in that area. In the period ahead it is urban planning and the procedure for issuiextremely important for consistent application ng construction permits have long been obstacles to follow. The success achieved must be an inhindering the entry of new investors. However, the situation has changed greatly and, with the centive for further progress, for the continuation active partnership of AmCham in Serbia, signiof work on improving this sector, and thus also the creating of opportunities for new direct ficant progress has been made in that domain. investments. In this regard, the restitution proAmCham’s proposals contributed substantially to the public debacess remains to be completed, but te process and the In the period ahead it is extremely also the enabling final draft of the important for consistent implementation of online access B u i l d i n g Pe r m i t of the Law on Construction Permitting to cadastral data.

Act, with which an

STRENGTH THROUGH COOPERATION 135 YEARS AND COUNTING...

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INTERVIEW

Serbia Needs Safe Business Environment For Investment VERA NIKOLIĆ DIMIĆ

EXECUTIVE DIRECTOR OF AMCHAM

Back in 2001, AmCham Serbia was founded by ten companies with a clear vision and devotion to lead positive change for a better society in Serbia. Our founding members were committed to advocating a level playing field, the rule of law, and introducing the best American and European practices in order to enable a predictable and transparent business environment for every enterprise in Serbia •••

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ast forwarding to the present, AmCham has become the leading independent business hub and the common voice of key US, international and domestic players on the Serbian market.

Year after year, we have been spearheading various long-delayed reform initiatives that have been in the focus of our members and underlined in our Annual Survey. Some of the most impactful outcomes on which we we worked actively are the New Law on Construction Permitting, aimed at simplifying and shortening the procedure for issuing construction permits, as well as

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STRENGTH THROUGH COOPERATION 135 YEARS AND COUNTING...

the Labor Law reform which led to new employment and increased competitiveness, says Vera Nikolić Dimić, Executive Director of AmCham.

• One of AmCham’s primary missions is to promote the best American business experiences. To what extent are such solutions applicable in Serbia (especially given the different financial possibilities); and where have you noted that they need still to be adopted?

- One of our main tasks is to promote American business values such as competition, transparency and free

enterprise. Regardless of the significantly different circumstances between the US and Serbian economies, we feel these are excellent guiding principles that should facilitate the development and growth of our economy in order to reach its full potential.

• AmCham member companies employ more than 100,000 citizens of Serbia and have to date invested more than €14 billion. To what extent do these statistics serve as a recommendation for others to firstly get interested and then come and invest?

- These figures together with success stories from businesses which already operate in Serbia are the best recommendation for all potential investors interested in our market. We are constantly looking for ways to promote positive examples from our members, which are some of the most prosperous companies in Serbia, throughout the international AmCham network.

• AmCham collaborates with the Government of Serbia and represents the healthy part of Serbian economy.

The dialogue between these parties last year resulted in moderate improvement in the health system and tax regulations, while the fight against the grey economy yielded even better results. What would it now be good to place in the focus of activities?

• During the more than a decade and a half of its existence, how much have the opinions of AmCham member companies changed when it comes to conditions for investing in Serbia?

- We will continue to focus on shaping public policy regarding several priority issues. One of the priorities for our members is increasing predictability of law changes that have a clear impact on business, as well as avoiding enactment of laws through urgent procedures without any feedback from the private sector. Furthermore, we would also like to see improvement on reduction of the parafiscal burden, tax reform and state administration reform aimed at reducing bureaucracy. We have positive exactions regarding greater transparency through digital transformation, as well as continuing the combat against grey economy. There are also other priority areas that have potential for improvement and positive impact on the business environment, such as bridging the gap between formal education and the labor market, environment and energy regulation improvement and removing trade barriers, to name a few. Subsequently, we must not forget about previous reforms, so we are constantly monitoring implementation of the new regu-

We are constantly looking for ways to promote positive examples from our members, which are some of the most prosperous companies in Serbia, throughout the international AmCham network - During the last five years, AmCham Serbia has been conducting an annual survey that serves as a barometer of the business climate - it clearly shows areas with progress, but more importantly, it highlights reform areas that need urgent action and change. The most recent survey results indicated that more than two thirds of our members were moderately satisfied with the business environment and expected improvements in the following four years. Although most of them clearly indicated the need to show improvement in various regulatory areas, the general sentiment and future outlook is positive - around half of our members believe that their industries and individual companies will expand in the upcoming period, and thus have a need for raising the number of employees.

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lations important for further economic development, such as Law on Construction Permitting, Labor Law and Law on Inspection Oversight.

• How much does AmCham engage and succeed in giving more weight to the voice of the private sector in Serbia?

- One of AmCham’s core roles is serving as an efficient platform for voicing the needs and concerns of the private

committed to improving the educational system, supporting talented individuals and institutions and connecting academia with the business sector. We are proud to say that this year’s AmCham Hero annual Award was presented to Dr. Magdalena Đorđević from the Institute of Physics, in recognition of her efforts aimed at advancing and promoting science. This award recognizes those who have shown determination in executing their vision into reality and thus making a positive impact on society. Some of the previous winners of AmCham Hero Award include the Mathematical Grammar School, for overall achievements in 2016, as well as Nordeus, for innovative approach in innovative technologies in 2014. In addition, four years ago we created our annual educational program - AmChamps, which opened doors for cooperation between the University of Belgrade and AmCham companies.

This program is an excellent example of private and academic sector synergy, as it enables exchange of knowledge between talented young leaders from AmCham member companies, most perspective students and expert lecturers with extensive experience from everyday practice. So far, our AmChamps program has engaged more than 160 students and young managers who participated in discussions and lectures on key business topics, skill-improvement workshops, teambuildings and much more.

sector to the decision makers. Behind our every proposal, stands the intention Around half of our members believe that their industries and to improve the economic environment individual companies will expand in the upcoming period and and remove obstacles for healthy growth thus have a need for increasing the number of employees of business which brings higher employment and tax income for the State. There • AmCham brings together almost 200 American, inare many different AmCham formats, programs and events ternational, and local companies. Does the increasing intended to streamline our advocacy efforts. However, the number of members serve to prove that AmCham’s mismost important platform for the private sector to discuss sion - to further cooperation and friendship between high-level issues and set priorities with key representatives the U.S. and Serbia in trade, investment and economic of the Government is our Lap Time Conference. development - is being met to the satisfaction of all?

- Many important and valuable investors that operate • Through projects and workshops, AmCham devotes in Serbia come from the U.S. We feel that there is enorgreat attention to education, linking the economy with mous potential in further expanding our two countries’ universities and schools. Testifying to this are the wineconomic cooperation, and we are active promoters of ners to date of the AmCham Hero Award. Does the acaSerbia as a proven investment destination. Also, we are demic community in Serbia properly utilize the opporvery interested and proud to follow the development of tunities for cooperation with large, international, Ama new wave of Serbian IT companies, which are achieving Cham member companies? global success, opening offices in the U.S. and are creating - Education plays a crucial role in development of the new opportunities for similar start-ups in the future. ■ Serbian society and the economy. That is why AmCham is

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STRENGTH THROUGH COOPERATION 135 YEARS AND COUNTING...

CORPORATE

DRAGAN LUPŠIĆ, ENVIRONMENTAL COMMITTEE PRESIDENT (AMCHAM), PUBLIC AFFAIRS, COMMUNICATIONS AND LEGAL MANAGER OF COCA-COLA HBC SERBIA

Sustainable Business As Community Partner

For Coca-Cola, as a leader in the area of soft beverages production, a favourable business environment is one of the prerequisites for growth

es and recycle while reducing water consumption, greenhouse effect and packaging by 2020. How will the execution of these plans reflect on Coca-Cola HBC’s business operations? oca-Cola recently published a study - The fact is that our commitment to the which provides a general overview reduction of energy consumption and enviof the total economic impact of Coca-Cola on the Serbian economy, ronmental footprint requires a lot of effort, pointing to a huge direct contribution to energy and funds. The results we achieve the economic growth, from employment to from year to year are very good, owing to a revenues, to taxes and contributions. strategic decision to set sustainability as a parameter of our business success. In other words, our growth model includes steps that • Which study results would you emphadevelop our business but are also favourable sise in particular? for the environment.

- The study clearly shows that we create EUR It means that with the latest 225 million of value added in the lotechnologies, innovative solucal economy, or 0.7 per cent of GDP. The fact is that our commitment to the It means that each euro we create tions, and the commitment of reduction of energy consumption and relates to seven euros of value our people, we will continue to environmental footprint requires a lot of efadded for the Serbian economy invest in the improvement of the fort, energy, and funds. The results we achieve in the form of employee salaries, life of the community where we from year to year are very good, owing to a company profits and taxes paid by operate. In 2016 only, we invested strategic decision to set sustainability as the Coca-Cola system and the comRSD 38 million in community a parameter of our business success development, and our employees panies with which we cooperate. spent 500 mentor hours, sharIn addition to 1,000 employees and important steps, which sends a posiin the Coca-Cola system, our business operaing their experience and know-how. We increased the share of recycled materials in tions support another 10,700 jobs across the tive signal. However, we don’t stop at that. production to 8 per cent, while recycling 97 entire value chain, or 11,700 jobs in total, acRecently, our general manager, Aleksandar per cent of production waste. We reduced Ružević, was elected Chairman of the NALED counting for 0.6 per cent of the labour force in water use per litre of product by as much Board of Directors, and we are certain that Serbia. We contribute to Serbia’s budget with as 52 per cent in the period 2007-2016. All many changes of the business and general a total of EUR 9 million in direct tax revenue of these are the results we have recently environment are ahead of us. and support as much as EUR 139 million in tax presented in the 4th Sustainability Report, revenue throughout the value chain. which attracts increasingly strong atten• One of key priorities of Coca-Cola HBC Serbia is environmental protection, as you • Where do you see room for improvetion of our partners and the public from plan to increase renewable energy sourcyear to year. ■ ment of cooperation with the state in or-

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der to make an even stronger impact of Coca-Cola on economic trends in Serbia?

- Business predictability is vital for all our steps and decisions, but we are also aware of the significance of reform of the parafiscal measures and reduction of grey economy, which largely lowers both the local budget and standard of living of the population. In that regard, within NALED and other relevant business associations, we initiated numerous changes and shared our experience from numerous countries where Coca-Cola HBC operates. Specific significant steps have already been made, and we see that the government is determined to take concrete

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AMERICAN CORNERS

Connecting People To People The American Corner program in Serbia is a partnership between the US Embassy and local institutions, through which we work together to build bridges between Serbs and Americans, increasing mutual understanding, collaboration, and friendship

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here are eight American Corners in Serbia – in Subotica, Novi Sad, Belgrade, Kragujevac, Novi Pazar, Nis, Vranje, and Bujanovac – and they serve as places to learn more about the United States and to meet Americans and engage in dialogue with them. Our Corners offer visitors access to accurate information about the United States and programs that include policy discussions, English language learning, advising on study in the USA and test preparations, and much more.

There are close to 500 American Corners all over the world today.

The first Corners in Serbia were opened in Nis and in Belgrade in 2003. Residing in public libraries and cultural centres, American Corners provide an inspiring environment, trained staff, and modern technologies enabling Serbs and Americans to connect, both in person and virtually. The programmes address topics such as community engagement, democracy and civil society, environmental issues, diversity and human rights, volunteerism, entrepreneurship and job creation, women’s empowerment,

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education, health issues, sports and culture, and many others.

Close to 250,000 people visit the American Corners in Serbia annually, and more than 100,000 participate in 4,400 different programs they offer every year. The Corners also circulate more than 50,000 books every year – Corners are the only places in Serbia where you can check out Kindles with hundreds of e-books. The Corners currently have 40,000 members of all ages, but mostly high schoolers, students, and young professionals. Membership is free, by the way.

More important than those statistics, though, is the active role each of our Corners plays in its community. Each Corner in Serbia designs its programs to respond to the needs and interests of the local community and it citizens. Thus, for example, the Bujanovac Corner is particularly popular among school children and students in their multi-ethnic community where Albanian, Roma, and Serbian kids gather at the Corner to play and learn together.

STRENGTH THROUGH COOPERATION 135 YEARS AND COUNTING...

The Corner in Vranje is popular for its English language classes.

There are several groups of learners at different levels, so there are over 100 people learning English at the Corner at any one time. As part of its outreach program, the Corner also organizes English courses for citizens in Surdulica (a town 40 km away).

In Kragujavac, the Corner has established excellent cooperation with local NGOs and schools. To mark Women’s History Month, they worked together with representatives of the city government to raise awareness of women’s issues. Young people of all ages come to the Corner for creative workshops, English classes, and other activities.

The Nis Corner offers TED Talk programs, Maker Space and entrepreneurship workshops, and specialized English language courses, all very popular with local residents.

The Corner in Novi Pazar is particularly popular among students. Thanks to two English Teaching Assistants – the only American citizens in town – the Corner can offer different levels of English language classes and Conversation Hours. The Corner also attracts visitors from other towns in the region, like Raška, Sjenica, Tutin, Priboj, and Prijepolje, and even from Montenegro.

The Belgrade Corner is known for its Business Skills workshops, computer literacy for senior citizen programs, school outreach programs, and theatre plays organized with school drama clubs, as well as programs with notable American guests such as poet Charles Simic, NASA astronaut Marsha Ivins, novelist Erica Jong, basketball player Rick Mahorn, American former world champion track and field athlete Marion Jones, and many more.

The Subotica Corner offers popular e-banking literacy

past several years the staff and volunteers have set up a mini American Corner at the annual Exit Festival; staffed an “open air” American Corner at Novi Sad’s Strand beach during the summer; initiated a multi-module Business English workshop for the unemployed; and offered a book delivery service to the elderly and housebound. The Corner also launched the first authorized TOEFL testing centre in Novi Sad. When tens of thousands of migrants began to enter Serbia on their journey to a better life in northern Europe in 2015, the Corner organized a donation drive to benefit the refugees. The drive collected over 800 pounds of clothing, food, and hygiene items. The Corner staff and volunteers then transported all of the donations to the Red Cross in Belgrade, where they

volunteered with sorting clothes and distributing the food.

In the coming months, Corners are planning digital creation and editing workshops, more Business English classes, entrepreneurship workshops, TOEFL preparations courses, Education USA presentations, engagement programs with American specialists and diplomats, live video conferences and webinars, financial literacy workshops for citizens, and much more. Corner programming will continue to be driven by the needs and interests of members.

Ultimately, what the Corners are doing is enabling members to explore and be inspired by new ideas, skills, and opportunities that have the power to bring positive change to individual lives, to local communities, and to global challenges. Our hope is that conversations and dialogue started in the Corners will spread and continue long after the initial engagement. This is when we can say that they are successfully fulfilling their mission of “Connecting People to People.” ■

Close to 250,000 people visit the American Corners in Serbia annually, and more than 100,000 participate in 4,400 different programs they offer every year. The Corners also circulate more than 50,000 books every year and cyber-security workshops, as well as MakerSpace workshops for children and the unemployed.

Last but certainly not least, the Corner in Novi Sad engages visitors with a range of programs that encourage media literacy, critical thinking skills, as well as entrepreneurship. The intensity of the programming at the Novi Sad Corner and the commitment of its staff and volunteers make it a role model for American Corners in Serbia and throughout the region.

With a thriving social media presence, over 100 volunteers, and an average of 50 programs on offer each month, the Corner has become an integral part of the Novi Sad community and continues to find new and innovative ways to engage with local citizens.

In addition to all of its traditional Corner programming, for the

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CORPORATE

LAWYER DR NEMANJA ALEKSIĆ, HEAD OF THE ALEKSIĆ AND ASSOCIATES JOINT LAW OFFICE, NOVI SAD

Complete Service In All Law Branches Most inquiries are in areas of corporate law. Foreign investment, public-private partnership and investments in energy and infrastructure facilities are becoming increasingly important

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he Aleksić and Associates Joint Law Office represents large companies: foreign investors, banks, insurance companies etc. Most inquiries are in the field of corporate law, where this office stands out in terms of counselling and representation in the process of establishing and managing companies, banks, insurance companies, leasing companies, factoring societies, including in the mergers and acquisitions of companies, says Nemanja Aleksić, head of this law firm.

- A significant number of questions also relate to copyright law and industrial property (protection of trademarks, patents), then to public procurement procedures and the privatization of large state-owned economic systems, including consultation and representation before state authorities.

One segment that’s gaining ever more importance is the area of foreign investment and public-private partnership, particularly investments in energy and infrastructure

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facilities. Also noteworthy among the particularly complex areas in which we’ve worked are: the transfer of non-performing loans to SDR (Special Drawing Rights) and all necessary analyzes and drafting of all acts and assessments, particularly from the aspect of classification and risk management in the sense of a Decision on the Classification of Balance Sheet and Off-Balance Sheet Items of the Bank and a Decision on Managing Bank risks, as well as tax and other regulations, also including SDR representation in courts and in other proceedings, legal due diligence reviews – preliminary verification of the legal and financial status of domestic banks owned by shareholders from the EU, harmonization of all contracts and the General Terms of Business of large domestic banks within the composition of banking groups from the EU, with amendments to the Law on the Protection of Financial Services Users and the Law on Payment Services. The scope of the Office’s engagement is, of course, proportional to the legal shortcomings, or problems in the application of laws, which are characteristic for particular legal areas.

STRENGTH THROUGH COOPERATION 135 YEARS AND COUNTING...

• Your Office is particularly well known for representing banks in collecting receivables.

What is the advantage of your law office?

-The advantage of the office is that it can offer clients a complete package of services, as well as legal support at all stages of the collection process, and all other areas of law. Many years of experience in the successful representation of clients in extra-judicial and judicial procedures and consulting and legal opinions has resulted in cooperation with the majority of leading banks and financial institutions.

What also sets us apart is our possession of the latest technical, technological, security and software solutions, which is essential for us to be able to keep pace with all clients.

• When it comes to consulting services, what causes the most confusion among foreign investors?

- Foreign investors have the most dilemmas in areas that relate to public-private partnership and concessions, investments in energy and infrastructure facilities, the process of establishing and managing companies, corporate mergers and acquisitions, followed by the privatization of large state-owned

enterprises , tax law and customs, also including the optimization of tax liabilities and reducing tax risks etc.

• Serbia still lacks the political will to settle the issue of restitution. How much of a problem is this for your clients?

- Serbia will soon have a new law on restitution. A procedure is underway to amend two regulations on restitution and the return of agricultural land. To date nearly 200,000 hectares of arable land have been returned.

The new law should primarily solve the issue of returning agricultural land, which is progressing pretty slowly. When it comes to the return of construction land, the basic idea is that, in addition to unconstructed, they will also return those formally classed as built, but which in reality are not.We represent numerous clients in restitution procedures for confiscated property, and the basic problem of our clients is the slowness of these procedures.

and liquidation reorganization and bankruptcy, including procedures in the sale of bankrupt debtors as a legal entity and privatization in bankruptcy. The legal amendments of 2014 limit the rights of persons related to the bankruptcy debtor, in order to prevent abuse in the selection and decision-making of the board of the creditor, as well as during voting on plans for reorganizing the

tion, as well as advertising and media, all of which are handled by our office.

On the basis of our practice, we see further important steps in regulating the legal framework related to cooperation with foreign investors in the continuation of harmonization with EU law in areas such as the free movement of goods, workers and capital, the right to establish operations and freely provide services, public procurement, competition policy, financial services, energy, taxes, the customs union, as well as financial control. In the aforementioned areas it is necessary to ease investors’ access to the domestic market and the investment of capital, including in the acquisition of rights on immovable property, primarily agricultural land and facilities, with the guaranteeing of the legal certainty of their investments and the provision of swift and effective legal protection in proceedings before the courts and state administration bodies.

Testifying to the positive changes in the business environment is the news that foreign companies will soon be able to participate in the Serbian defense industry, up to 49%, thanks to legal amendments prepared by the Ministry of Defense. Likewise, it is necessary to implement more quickly the idea of a regional economic market, the process of overall stabilization of the region and progress in the European integration process.

• Are your foreign clients satisfied with the business environment in Serbia, in terms of predictability, transparency, conditions for doing business etc.? And to what extent do the problems of domestic and foreign investors differ?

- The level of satisfaction among foreign clients regarding the business environment in Serbia is increasing day by day, in line with the positive changes in the legislative framework and the continuing reform The result of the Aleksić Law Office’s • The Aleksić and Associates process. One of the shortcomings of many years of successful experience is Joint Law Office is an AmCham our legal system is frequent changes cooperation with the majority of the Member Company, but also to regulations, especially in the field leading banks and financial institutions a member of regional assoof commercial law, which is underciations and the chambers standable on the one hand – given of other countries. What makes AmCham bankruptcy debtor, and at the expense that the country is in the accelerated process membership specific? of other bankruptcy creditors, primarily of reforming and harmonizing all areas of - AmCham is one of the leading business domestic and foreign banks. private and public law with EU regulations associations in the country, with a large By the end of 2016, legal amendments – while on the other it creates problems for number of members. Particularly significant had resulted in the achieving of significant companies, courts and other state bodies in is its exceptionally high activity, as well as harmonization of the laws of the Republic the interpretation of new laws. the support it provides members in the form of Serbia with EU legislation in the fields of A particularly dynamic area is bankof organizing various panel discussions and company law, intellectual property rights, ruptcy law - the collection of receivables roundtables, seminars, informative meettelecommunications rights, copyright and from corporate debtors in consensual ings and promotions of new investments. ■ related rights, accounting, public informafinancial restructuring, pre-bankruptcy

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CORPORATE

MIA ZEČEVIĆ, DIRECTOR, NOVASTON

Each Project Phase Seeks The Most Efficient Solution

The advantage of Novaston Asset Management, which was created as an independent real estate platform, lies in the fact that, at the request of the client, it offers a complete service in the area of asset and property management

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he Serbian market is interesting for foreign investors, because it is still underdeveloped compared to other markets of the region, such as those of Romania, Bulgaria and Croatia. Because of this there is great potential that should be exploited.

• It is stated in your enviable portfolio that you offer a complete service in the sector of real estate management in the Balkans.

Which projects are the most efficient on the market today and what do your clients most commonly seek?

- When it comes to this business, it should be noted that there is no single ‘most effective solution’ that could be applied in all situations, but rather projects must be designed and shaped according to the demands of the market for which they are intended. It is precisely this approach – to address each client and each project carefully and with unique analysis and a custom made proposal – that sets us apart and represents what our clients expect from us: that in every project phase (from initial concept through development and implementation to management itself) we apply the best solutions that will utilize the full potential of the market for which the project is intended.

While in larger cities we work on the development of shopping malls, it has been shown that in medium-sized cities the retail park concept is more applicable. It is important to emphasize that we have taken the retail park concept, which is taken from the West, and changed is significantly according to the

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demands of the local market, so in many respects can say that they are actually open-air shopping malls. The basic idea we started with is that, in addition to just buying, our consumers want a place where they can spend time – visiting cafés and restaurants, playrooms for children, a modern movie theater and everything else that can ordinarily be found in shopping malls in big cities.

• How much do the legal regulations, standards and procedures in this sector contribute to attracting new domestic and foreign investors in the construction sector?

- It is very important that the legislation, standards and procedures improve in such a way that they do not pose an obstacle to the utilization of this potential, which is already slowly happening and changing. With a good and stable legal framework, investment risks are directly reduced and interest in developing new projects grows among both foreign and domestic investors. We are witnesses to the recent genuine “boom” happening on the domestic market, which confirms that the situation is changing for the better. As for our country and shopping malls, just in Belgrade alone we recently saw the opening of the Big Plaza Shopping Center, the Rajićeva Shopping Center and Ada Mall are under construction, while there are plans to build the Big Fashion mall in Vidikovac. By the end of 2019, there will be over 210,000m2 just in Belgrade, with the Belgrade Waterfront alone adding 92,000m2 of gross leasable area (GLA). The other Serbian regions will be also affected taking into account that Promenada Shopping Center in

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Novi Sad with 50,000 m2 GLA is to be finalized by end of Q4, 2018.

There is a similar situation in so-called secondary cities when it comes to investments and construction, though these cities are more interesting to investors with the retail park concept. Since 2014 to this day, over 90,000m2 of GLA has been opened in our country, while in the next two years an additional 96,000m2 of GLA is expected in retail parks. We can note that investors like Immofinanz, Nepi, GTC, Ikea, Poseidon (Capitol Park projects) and BIG CEE/ Plaza, have significantly activated and accelerated their projects recently. Such a situation will also certainly activate and encourage other potential investors.

• What are your plans for the period ahead?

- Further development and expansion of the company in the areas of real estate and asset management; appearing on other markets, as well as expanding the projects we are currently working on. We are already working hard on acquisitions and due diligence processes, and have already formed teams for marketing, PR, facility and project management, as well as a team for assessments and feasibility studies in all areas of real estate, with which we have rounded off the operational field and completed the services that we offer to clients. Our teams comprise experienced professionals with international experience who have already proved many times on the most significant projects in Serbia and the region. We are proud of the fact that in less than four years we managed to set standards that our international clients already implement in other markets. ■

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CORPORATE

PRIMOŽ POLAJNAR, MANAGING DIRECTOR, HP INC. ADRIATIC

Creating Technology To Make Life Easier HP offers a very versatile range of products that fit into any budget and business needs. As a leading provider to the small and medium enterprises (SME) market, HP continues to empower its customers with the latest technology and highly secure business computers and printers

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• Which HP products will be in the forefront for corporate users in 2017?

- What we are experiencing is a convergence between business and private usage – that’s why we have new categories that combine both worlds. A good example is the HP EliteBook x360, which is a reversible device that can be used both as a tablet and as a classic notebook. Devices like this are pushing us into the future. In business terms, it’s the • Here’s a recap of the turnaround efforts un• How do you assess the regional infrastrucHP Elite X2 and HP Pro X2 2-in-1 devices - a dertaken by both companies since Novemture for the use of high technology, and how notebook and a tablet in one. Also, there is a much does it affect HP’s sales potential? ber 2015. Nearly two years ago, HP’s regionglobal trend around security as a burning isal organization in the Western Balsue. It’s no longer enough to build kans was restructured. What is the security on and around devices.

Mobile products, such as smartphones, reason for these changes and what Breaches involving compromised tablets and notebooks are driving today’s was achieved? devices have more than doubled business and private environments.

- Two years ago, HP went through a in the last six years. HP is adOur position at HP is that we serve our massive split, which today is considdressing this with PCs that are customers in all markets with all devices ered one of the biggest IT breakups secure by design with powerful (desktops, notebooks, smartphones, in history. The idea of separate comlayers of protection for the de2-in-1 devices) whenever and wherever panies driving their core businesses vice, data, and user identities. there is a need for them was a strategic and well thought out And security is also becoming a manoeuvre, resulting in HP’s being huge topic on the printing side. more competitive, agile and growing in the - The region’s infrastructure is gradually While many IT departments apply rigorous markets we cover. growing, but this differs from country to security standards for PCs, tablets and other country. More developed countries pay more connected devices, they often overlook the attention to the use of their infrastructure • At the same time, there have been generaprinter. A recent study found up to 60,000 while others lag behind. Investments into tional technological changes. Classic desktop printer models could easily be vulnerable to new infrastructure are usually motivated by computers have begun to lose ground to lapcyberattack. HP is addressing this by engiforeign investments (such as EU funds and tops. Where is HP’s position in the regional neering printers that are secure by design, the like), and countries that have access to market when it comes to selling both types with powerful layers of protection for the these use them wisely. of computers? device, data, and documents. ■ t has been over a year since HP (Hewlett Packard) split into two separate entities.

The split led to the creation of two companies, HP Inc. (HPQ), which focuses on the computer and printer business covering all segments of the market including consumer, SMB and Enterprise segments, and Hewlett Packard Enterprise (HPE), which focuses on enterprise-facing hardware and cloud business.

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- These changes have been going on for some time now and it’s not new. Mobile products, such as smartphones, tablets and notebooks are driving today’s business and private environments. Our position at HP is that we serve our customers in all markets with all devices (desktops, notebooks, smartphones, 2-in-1 devices) whenever and wherever there is a need for them.

STRENGTH THROUGH COOPERATION 135 YEARS AND COUNTING...

MILA MARČETA, GENERAL MANAGER, TELESIGN

CORPORATE

Changing The Way Of Communications And Security Since TeleSign’s founding in 2005, the communications platform has handled business critical traffic for 20 of the 25 largest brands in the world, helping secure billions of end-user accounts

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ith TeleSign’s transition into the CPaaS market, the company has now opened up a new platform to all developers, as they continue to change the way businesses communicate with their customers.

differentiates us in the market and creates greater value for us as a company. TeleSign has built a very attractive business, and we chose a company where we could augment our growth strategy, remain independent (we will continue to operate as TeleSign), increase our geographical reach, retain our brand and diversify our customer base.

web and mobile accounts. Although imperfect, passwords are here to stay for the foreseeable future. To counteract fraud and address the problem of account vulnerability, companies are adding multiple layers of authentication to augment password security. Technologies like two-factor authentication are seeing a rise in adoption as companies seek an additional layer of protection beyond passwords.

Even if a hacker is in possession of a user’s correct account credentials, two-factor authentication (2FA) can prevent unauthorized account access and activity. Because of this, we continue to innovate to protect users’ accounts and personal information better, and we work on efforts like www.turnon2fa.com to empower consumers to take security into their own hands.

• As a leader in account security that helps secure billions of accounts worldwide, what • TeleSign has already made two major anare your predictions and expectations with nouncements in 2017: 1) the company enregard to hacker attacks that seem to be tered the $8 billion Communications Platmore frequent today? Is there a way to stop, form as a Service market; 2) it was subseprevent or at least reduce them? quently acquired by BICS. What prompted - In 2016, more than 1,000 data breaches octhese developments?

- The need for cloud communications is on the rise, specifically the need TeleSign has built a very attractive of businesses to add real-time combusiness and we chose a company where • What are your experiences from munications to apps and websites in we could augment our growth strategy, Serbia; who are the likely victims of order to engage customers and keep remain independent (we will continue online fraud and how can TeleSign accounts secure. In fact, our internal to operate as TeleSign), increase our help prevent and reduce this trend? research shows that 91 per cent of degeographical reach, retain our brand - When it comes to online fraud, cyber velopers today plan to embed commuand diversify our customer base criminals make no distinction on who nications APIs or SDKs into their apps they take their money from. Online within the next year. TeleSign enables security tips are generally the same worldwide: app developers to easily access TeleSign APIs curred in the U.S., exposing nearly 900 million 1) Start with complex passwords – Letters, numand add communications and security to their records worldwide (ID Theft Resource Center). web and mobile applications in minutes. With Compromised passwords were the point bers, symbols, phrases that are easy for you to this, TeleSign’s data-driven, cloud communicaof entry for many of these attacks, in large remember but hard for others to guess; 2) Turn part because consumers frequently reuse on two-factor authentication where available tions platform is changing the way businesses passwords on multiple sites, making these www.turnon2fa.com; 3) Don’t fall for “phishing” engage with customers and preventing fraud. accounts particularly susceptible. attacks. Be very careful before clicking on a Regarding our acquisition by BICS, we Cybercrime is an ever-present and growing link asking you to log in, change your password couldn’t be more pleased. This deal accelerconcern for companies that provide consumer or provide any other personal information. ■ ates our strategy to declare CPaaS leadership,

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CORPORATE

DRAGAN POPOVIĆ, DIRECTOR, AIGO BUSINESS SYSTEMS D.O.O.

Ready For New Challenges The business policy of AIGO Business Systems is based on the principles of the dedication, professionalism and expertise of employees, as well as the trust and needs of customers and users

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consider it as being very important to believe in your dreams.

Without a vision and belief in what we do, there is no success. We have already achieved some of these dreams, as evidenced by the results achieved in the past 10 years,” says Dragan Popović, director of AIGO Business Systems.

have been with our company since its founding, which also says a lot.

Trust, as one of the key values, is shown in us by more than 2,000 customers and nearly 10 vendors, with whom we have cooperated for a decade, and we have good professional, and in many

These are things of which every AIGO BS employee is proud.

• Printers have come a long way from Vinča letters to the 3D printer. AIGO BS is unrivalled in this region when it comes to the printing business. How do you harmonise the complex solutions you have in We want to use our example to influence your offer with the proacthe future development of the industry tive approach on which you • AIGO Business Systems in which we operate in a positive way, and base your business? has for years been one of the to be recognized as a company that creates - The solutions are complex, most serious companies withinnovative and a modern approach to dynamic and flexible, but the in the IT sector on the Serbidoing business in Serbia role of AIGO BS is for the an market. What is critical to process of office printing and success: vision, professionthe flows of documents to be simplial staff, cooperation with the world’s cases even friendly, relations.

CSR is also part of our mission. We fied to the level of understanding of an largest manufacturers etc.?

- Our employees are our greatest are a company that has for years tried “average housewife”. We jest, but the strength and we really try to invest to support the community. We help vul- AIGO BS approach is such that there is in their professional development, nerable sections of the population and a need to translate into an understand language for four key subgroups in each through various educational pro- athletes. We were the initial launchers grammes and seminars. Many of them of the Battle for Babies Foundation. firm: general users, IT services, finance

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and management. Each group has its own priorities, accelerates the growth of the organisation and improves the system in its own way.

Printing is not a complicated process, so we often lead potential users through an analytical approach, in order for us to jointly come up with the most effective solutions for their organisation. There are few sectors where there is so much space for immediate savings as is the case in office printing and flows of printed and electronic documents.

challenge in our business is how to be a better and more efficient. We want to use our example to influence the future development of the industry in which we operate in a positive way, and to be recognized as a company that creates innovative and a modern approach to doing business in Serbia.

annually in the period until 2022. We are ready for new challenges!

• In the ten years of your existence • The government has recognized the you have secured a position on the importance of the IT sector in recent domestic and regional markets, as years. How much does that help you well as establishing cooperation with in your work, and where is there room large international companies such to further ease doing business? as HP, Dell, Xerox, Epson, Lenovo, - We are pleased that the etc. What is the goal for the state and the Serbian govnext 10 years?

“You’re never too old to set a new goal ernment have recognized the - We are proud of the fact that or dream a new dream” importance of the IT sector some of the largest compafor the development of Sernies in the IT industry have Given that we have secured a leading bia, given that IT is one of the sectors recognized us as a credible partner for Serbia and the region. Vendors view position in the printing business and with the greatest potential for the economic development of the country. our employees as equal members of that we represent a serious market The predictability of the regulatory competitor in the hardware sector, the their teams. next step is aimed at also developing environment and tax policy, along with As contemporaries of the digital revolution, we are aware that change offers for software solutions. It is political and macroeconomic stability, is inevitable and that we have to keep envisioned that the global software are of essential importance to the sucengineering market will grow by 12.4% cess of operations. As a responsible pace with new technologies. A constant company, we try to improve the business environment and, in cooperation with the American Chamber of Commerce, we participate in committees that are aimed at ensuring the professional advice of the economy reaches the decision-makers in the Serbian Government.

We also expect the state to be more committed and to support the growth of entrepreneurship and the development of domestic companies, because these segments represent an important part of economic development in the long run. ■

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HISTORY

US-Serbian Relations: A Short Historical Review

The Congress of Berlin (13 June – 13 July 1878) was a meeting of the representatives of six Great powers of the time (Russia, Great Britain, France, Austria-Hungary, Italy and Germany), the Ottoman Empire and four Balkan states (Greece, Serbia, Romania and Montenegro)

B y I VA N V U J A Č I Ć

Ambassador To The United States (2002-2009)

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Diplomatic relations between Serbia and the United States were established 135 years ago, highlighting the obvious fact that the importance of these relations was recognized by both parties so long ago. For Serbia, for the first contacts and interactions to have begun through representatives of the United States even before the Congress of Berlin, in whose aftermath Serbia became a fully sovereign nation, were a sign that she would soon get full recognition from a large and distant nation which would enhance her stature among other sovereign nations. As for the United States, the argument that was used to promote the establishment of diplomatic relations was framed in terms of economic interests and the potential expansion of US exports

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I

n spite of the establishment of diplomatic relations, the interaction between the two countries was not very intense.

As was the case for others, Serbs, both from Serbia and the territories of what was to become Yugoslavia, emigrated to the United States during the period before WWI, including such renowned scientists such as Nikola Tesla and Mihajlo Pupin.

The relationship deepened during WWI, with Serbia widely supported by the general public in the U.S. and was seen as a heroic country and a victim of aggression by Austro-Hungary.

With the U.S. entering the war in 1917, the countries became allies. With Woodrow Wilson’s Fourteen Points and the Treaty of Versailles, Yugoslavia was formed and recognized by the United States. It must be noted that this left a deep, historical mark and that the U.S. was seen as an important if not decisive factor in the creation of this new state.

The withdrawal of the United States into isolationism after failing to ratify membership in the League of Nations led to less intense relations. Given what was going on in Europe in the days before the outbreak of WWII, it should come as no surprise that the Yugoslav envoy to the United States, Konstantin Fotić, in his own words, saw his appointment to Washington in 1935 as an attempt by the political circles in Belgrade to keep him side-tracked from his work on more important diplomatic issues relating to the dangers facing the continent. Obviously, his mission took on vast importance with the entry of the U.S. into the war. During the war, the U.S. basically followed the British policy in the Balkans, including Yugoslavia, but was opposed to an allied invasion of Yugoslavia, constrained by the schedule for the invasion of France.

The radical change came in 1948 with Tito’s break with Stalin.

While at first suspicious of the credibility of the conflict in what had been a monolithic communist bloc, the U.S. swiftly came to the aid of the Yugloslav government, which, in turn, suspended its aid to the Greek communists and prepared to face a Soviet threat. During the 1950s, the Balkan Pact was signed between Yugoslavia, Greece, and Turkey, in which the sides declared that they would come to each others’ aid in case of an invasion by a third party. This was later misinterpreted as a roundabout entrance into NATO – it was not, but it certainly

TITO and President KENNEDY

did send a message in the face of potential Soviet threats. The Balkan Pact was never ratified and soon fell by the wayside because of deteriorating Greek-Turkish relations. Be that as it may, the West, led by the U.S., provided massive aid to Yugoslavia with US aid in the form of grants amounting to around 1.7 billion dollars, or about 2% of GDP during that period, over the next decade and into the mid-1960s.

Although these times in the relations are seen by many as a “golden age”, there were issues that burdened the relationship. On the American side, the anti-communist hysteria in the 1950s was reflected in the Congress, which questioned and sometimes became an impediment to the policy of the US government to provide aid to Yugoslavia.

This led to the resignation of George Kennan, the father of

The radical change came in 1948 with Tito’s break with Stalin. While at first suspicious of the credibility of the conflict in what had been a monolithic communist bloc, the U.S. swiftly came to the aid of the Yugloslav government, which, in turn, suspended its aid to the Greek communists and prepared to face a Soviet threat After the end of WWII, with Tito’s communists solidly in power in Yugolavia and the beginning of the Cold War, relations became tense. This was due to the fact that Yugoslavia disputed the status of Trieste, seeing it as potentially a part of Yugoslavia. Worse still, the Yugoslav government was actively providing aid to communist guerrillas in Greece where a bloody civil war was raging. Furthermore, several US military planes were shot down as they crossed Yugoslav airspace, which led to a further deterioration of the relations between the two countries.

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The shift in relations came with the fall of the Berlin Wall and internal feuding among the political elites of post-Tito Yugoslavia that led to hostilities and, in due course, to the wars of its breakup. At that point, the visit

by Secretary of State James Baker came as an effort to mitigate the potential conflict and underlined his support to the sovereignty and territorial integrity of Yugoslavia.

In spite of this, after hostilities broke out, the U.S. ceded its leadership to the European Union, only to come back firmly by recognizing the independence of Bosnia and Herzegovina in 1992 under the illusion that this would prevent further conflict. The U.S. became more and more involved in the wars of the breakup.

Finally, it led to the NATO intervention against the Federal Republic of Yugoslavia, consisting of Serbia and Montenegro. Naturally, this led to a breaking of diplomatic relations.

After the Democratic Revolution of 2000, relations were restored, and Serbia began its somewhat difficult road toward reintegrating into the major international political and financial bodies. The relationship with the United States began on a high note, especially given that there were new governments in both countries that were not burdened by being involved in the confrontations of the 1990s. Still, I can attest US Ambassador KYLE SCOTT and former Prime Minister ALEKSANDAR VUČIĆ that for various reasons it was not always an the Containment Doctrine, from his post as US Ambassador to Yugoslavia in the early 1960s. On the other hand, Yugoslavia had moved to a soft rapprochement with the Soviets after the death of Stalin. Furthermore, it shifted its foreign policy towards non-alignment, a move that was incorrectly seen by American governments as anti-Western. Tensions over this came to a head during the First Conference of the Non-Aligned Nations in Belgrade in 1961. Furthermore, attempts on Tito’s security seen as an assassination attempt by radical nationalist

groups in the Diaspora The shift in relations came with the fall of the Berlin Wall while visiting the U.S., and internal feuding among the political elites of certainly did not inspire post-Tito Yugoslavia that led to hostilities and, in due course, or augment trust. to the wars of its breakup In spite of all this, and against the background easy process, much of which was the result of complicated of the cold war, the U.S. stood firmly in support of the procedures to undo various sanctions imposed on Serbia Yugoslav government and the territorial integrity of in the preceding period. In the first couple of years, private Yugoslavia. This was strengthened after the invasion and sovereign assets were unfrozen, a large part of the of Czechoslovakia in 1968 by the Warsaw Pact. Even the debt owed to the U.S. was written of in the Paris Club and non-aligned policy came to be seen as productive, with Normal Trading Relations were restored. Soon thereafter, Yugoslavia being perceived as a bulwark against Cuban the country was included in the General System of Preferefforts to assume the leadership of the movement and shift it closer to a pro-Soviet position. In other words, ences, which brought US customs rates on 4,000 potential political and economic support continued in spite of issues export products to zero. Simultaneously, US companies of disagreement that arose on occasion. Suffice to say became the largest investor in Serbia in the early 2000s. All that there were high-level summits that included visits of this benefited Serbia economically, as well as benefiting

by Tito to the U.S. for meetings with Presidents Kennedy citizens of Serbia who travelled to the U.S. with the change and Nixon. Likewise, there were visits to Yugoslavia by in the visa regimes of the two countries.

Presidents Nixon, Ford and Carter after Tito’s death.

Not everything was smooth during this time. Con-

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ditionality concerning aid remained and was linked by the US Congress to cooperation with the Hague Tribunal.

There were impediments concerning military cooperation, as Serbia had still not been admitted as member in the Partnership for Peace. The conditions were dropped after the arrest and transfer to the Hague of the last individuals on the wanted list. Also, Serbia was admitted to the Partnership for Peace in late 2006. Various military training programs were established, the most important of which being the partnership between the Serbian Army and the Ohio National Guard in 2007.

Early on, there was a tenacious effort to overcome the negative image of Serbia that was held by the public at large in the U.S., due to the legacy of the 1990s. Sister City programs were established between various Serbian and American cities, the most significant being between the cities of Belgrade and Chicago after tenacious lobbying efforts. A Sister State relationship was also signed between Serbia and the state of Illinois. Opening Serbian consulates in Chicago and New York further contributed to a wider presence of Serbia in the U.S. During this period, various educational and cultural exchanges were re-established, all aimed at achieving a deeper understanding of Serbia by the American public.

An important aspect of relations between the U.S. and Serbia is that the recovery of cooperation on important issues has not been jeopardized. In other words, the recovery of good and strong relations has not been reversed. All the various programs that were set up as well as links to the US government including the US Congress as a branch of that government are still in place and continue to be filled with new substance. This is a sound basis for enhancing the relations between the U.S. and Serbia.

One should bear in mind that the US has, up to now, had

a long-term vision of Europe out of which a strategy has emerged that has been in place for a quarter century now. It basically consists of the encouragement of states on their paths toward EU accession.

This includes support for their efforts in the transition to a market economy, the peaceful settlement of disputes and establishing full-fledged democracies. As long as governments in the region are committed to these goals, in deed and not just in words, they will have a sound basis for support and an the upgrading of the relations with the U.S. This offers an opportunity if there is political will to continue down the path of EU integration, a goal that has been declared to be the priority of governments in the region. Each Serbian government since 2000 has reiterated its commitment to this effort. This should provide for a good and constructive relationship between the U.S. and Serbia in the future. â–

All the various programs that were set up as well as links to the US government including the US Congress as a branch of that government are still in place and continue to be filled with new substance. This is a sound basis for enhancing the relations between the U.S. and Serbia Building a relationship in Congress was one of the top priorities and was enabled not only by deepening relationships with US Congressmen and staffers on an individual basis and the organization of their visits, but by establishing a Serbian Caucus in the US Congress (2004), that is still in existence today.

Relations had a downturn during the negotiations over the status of Kosovo and after the diplomatic recognition of Kosovo by the U.S. following the unilateral declaration of independence of the Serbian province. After Serbia joined in backing an EU-sponsored resolution in the UN concerning Kosovo in 2010, relations slowly began recovering with fundamental differences over this issue remaining.

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AmCham ACTIVITIES June 3, 2017

January 25, 2017

Touchdown! Family Day With American Football

In partnership with the Serbian Association of American Football, AmCham organized a family gathering at FC Zemun Stadium, during which attendees had the opportunity to learn the basic rules of American football from professional players.

Family Day attracted around one hundred participants who learned the basic moves from football professionals, tried on football gear, enjoyed warm up drill, played flag-football - a recreational variant of the game designed for all generations, and finally networked and cheered over some tasty burgers and hot dogs provided by Crowne Plaza hotel, soft drinks by Nectar and water by Gala.

For participating youngsters, it was no longer a mystery how to score by reaching the final yards for a touchdown!

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AmChamps 2017 Launched!

The fourth cycle of the educational program “AmChamps - Young Leaders of Change,� which involves the most promising students of the University of Belgrade and outstanding young managers of AmCham member companies, was opened on January 25.

During the last three years, 63 mentor-mentee pairs participated in the AmChamps program. After completion of AmChamps, the students were given the opportunity of an internship in AmCham member companies, and improve through practice what they learned.

The fourth generation of the program consists of 22 carefully selected students and 22 young managers from the most successful companies in Serbia. The program is competitive, and the best students will receive valuable prizes such as scholarships for MBA and Master studies at the University of Sheffield.

February 21, 2017

AmCham General Assembly Meeting And HERO Award Ceremony

At the General Assembly meeting, the 2016 results were presented and representatives of AmCham member companies elected four new Board of Governors members. Dr. Magdalena Đorđević was awarded the AmCham HERO annual prize for 2017.

At the meeting, Magdalena Đorđević was announced the winner of the AmCham HERO Award for 2017. This award was introduced four years ago and represents Amcham’s long-term commitment to improve business practices in Serbia. The award recognizes organizational core values and principles based on leading change and acknowledging individual, organizations or institution that are and should be perceived in Serbian society as role models, giving remarkable contributions to progress in their area of expertise and/or provided the valuable impact to overall society regardless their professional capacity.

December 23, 2016

"Way Out Of The Grey Economy" Conference

Following three working panel discussions, a joint press conference with the Government of Serbia, AmCham and the National Alliance for Local Economic Development (NALED) emphasized that the Government of Serbia has made progress in 2016 in the creation of conditions for effectively combating the grey economy.

Two sets of recommendations were presented to decision-makers on the panel on priority measures to combat the grey economy with the participation of Minister of Construction, Transport and Infrastructure Zorana Mihajlović, Minister of State Administration and Local Self Government (now Prime Minister) Ana Brnabić, and Minister of Justice Nela Kuburović.

President Aleksandar Vučić concluded the conference by pointing out that the reduction of the grey zone is one of the priorities of the Government and announced accordingly that 2017 and 2018 will be years of combating the grey economy.

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November 22, 2016

US Ambassador To Serbia Guest @ AmCham Business Breakfast

Over 140 representatives of AmCham member companies, the diplomatic corps and media joined a Business Breakfast and Panel Discussion with H.E. Kyle R. Scott, US Ambassador to the Republic of Serbia.

On this occasion Ambassador Scott emphasized that the U. S. supports Serbia on its path to integration into the European Union and that in this process the role of AmCham would be of utmost importance, primarily in the further improvement of the business environment in Serbia.

Ambassador Scott welcomed the efforts of AmCham and its members through their constant open dialogue with the government, establishing a good regulatory framework for doing business. He stressed that these achievements prove that changes based on competitiveness, transparency, and free enterprise are the key business values for which AmCham stands.

November 11, 2016

Thanksgiving Dinner

Members of the AmCham community and their family members gathered together to mark a tradition of expressing gratitude and reverence for all the goods we are blessed with.

The host of the evening was Kurt Donnelly, Deputy Chief of Mission at the US Embassy, who briefly addressed the audience and cut the first slice of turkey, marking the beginning of a feast shared in fellowship among business friends and families.

To honour this special holiday, a charity moment was introduced and guests were invited to donate funds for the SOS DeÄ?ija sela Srbija (SOS Children`s Villages Serbia). Over RSD 60,000 were raised.

The AmCham Thanksgiving Dinner was organized in partnership with Hyatt Regency Belgrade.

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October 20, 2016

Fifteen Years Of Leading Change In Serbia

September 20, 2016

The Fourth Lap Time: Engage for Change Conference

Celebrating the fifteenth anniversary of AmCham at the Crowne Plaza hotel, a gala dinner was organized for member companies and government representatives, the diplomatic corps, the media and partners who support the continuing work of AmCham in promoting competition, transparency and free enterprise as key business values. The ceremony was attended by US Ambassador to Serbia Kyle Scott, Minister of Public Administration and Local Self-Government Ana Brnabić, Minister of Mining and Energy Aleksandar Antić, state secretaries, partner organizations and the media.

AmCham has once again unequivocally confirmed its commitment to improving the educational system as one of the most important preconditions for further development of Serbian society and the economy. Marking the fifteenth anniversary of its establishment, the AmCham Board announced the donation of a symbolic sum of US $15,000 to the Mathematical Grammar School to enable the most talented students and future leaders to travel to the most prestigious world competitions.

At an AmCham traditional landmark event - The Fourth Lap Time: Engage for Change Conference with the Government of Serbia - a survey of the business climate and investor confidence was presented, following a panel discussion with key government officials on how to include the expectations and needs of the business community in the government’s agenda Reforming and improving the efficiency of state administration, the predictability of changes in tax law, reduction of para-fiscal levies, and reform of the tax administration, health care and the education system are the key themes and goals that businesses expect from the new Government of Serbia, according to a survey of the business climate and investor confidence conducted this summer among the member companies of AmCham.

The study also points out the need for measures to facilitate foreign trade and a stable environmental policy, further reduction of the grey economy and the establishment of equal conditions for all businesses, plus a greater focus on e-government to improve the efficiency of the administration.

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EDUCATION

Flexibility Through Diversity

T

he American education system offers a rich field of choices for international students. There is such a wide array of schools, programs and locations that the choices may overwhelm students, even those from the U.S. As you begin your school search, it’s important to familiarize yourself with the American education system. Understanding the system will help you narrow your choices and develop your education plan.

Prior to higher education, American students attend primary and secondary school for a combined total of 12 years. These years are referred to as the first through twelfth grades.

Around age six, U.S. children begin primary school, which is most commonly called “elementary school.” They attend five or six years and then go onto secondary school.

Secondary school consists of two programs: the first is “middle school” or “junior high” and the second program is “high school.”

A diploma or certificate is awarded upon graduation from high school. After graduating high school (12th grade), US students may go on to college or university. College or university study is known as “higher education.”

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One of the most attractive features of the US higher education system is the flexibility it provides through the number and diversity of institution types it encompasses GRADING SYSTEM Just like American students, you will have to submit your academic transcripts as part of your application for admission to university or college. Academic transcripts are official copies of your academic work. In the U.S., this includes your “grades” and “grade point average” (GPA), which are measurements of your academic performance. Courses are commonly graded using percentages, which are converted into letter grades.

The grading system and GPA in the U.S. can be confusing, especially for international students. The interpretation of grades has a lot of variation.

For example, two students who attended different schools both submit their transcripts to the same university. They both have 3.5 GPAs, but one student attended an average high school, while the other attended a prestigious school that was academically challenging. The university might interpret their GPAs differently because the two schools have dramatically different standards.

Therefore, there are some crucial things to keep in mind:

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○ You should find out the U.S. equivalent of the last level of education you completed in your home country. ○ Pay close attention to the admission requirements of each university and college, as well as individual degree programs, which may have different requirements than the university. ○ Regularly meet with an educational advisor or guidance counsellor to make sure you are meeting the requirements. ○ Your educational advisor or guidance counsellor will be able to advise you on whether or not you must spend an extra year or two preparing for US university admission. If an international student entered a US university or college prior to being eligible to attend university in their own country, some countries’ governments and employers may not recognize the students’ US education.

Your first two years of study you will generally be required to take a wide variety of classes in different subjects, commonly known as prerequisite courses: literature, science, the social sciences, the arts, history, and so forth. This is so you achieve a level of general knowledge, a foundation, in a variety of subjects prior to focusing on a specific field of study.

Many students choose to study at a community college in order to complete the first two years of prerequisite courses.

They will earn an Associate of Arts (AA) transfer degree and then transfer to a four-year university or college.

A “major” is the specific field of study in which your degree is focused. For example, if someone’s major is journalism, they will earn a Bachelor of Arts in Journalism. You will be required to take a certain number of courses in this field in order to meet the degree requirements of your major. You must choose your

ACADEMIC YEAR The school calendar usually begins in August or September and continues through May or June. The majority of new students begin in autumn, so it is a good idea for international students to begin their US university studies at this time also. There is a lot of excitement at the beginning of the school year and students form many great friendships during this time, as they are all adjusting to a new phase of academic life. Additionally, many courses are designed for students to take in sequence, starting in autumn and continuing through the year.

The academic year at many schools is composed of two terms called “semesters.” Some schools use a three-term calendar known as the “trimester” system. Still, others further divide the year into the quarterly system of four terms, including an optional summer session. Basically, if you exclude the summer session, the academic year is either comprised of two semesters or three quarter terms.

THE US HIGHER EDUCATION SYSTEM First Level: Undergraduate A student who is attending a college or university and has not yet earned a bachelor’s degree is studying at the undergraduate level. It typically takes about four years to earn a bachelor’s degree. You can either begin your studies in pursuit of a bachelor’s degree at a community college or a four-year university or college.

major by the beginning of your third year of school.

A very unique characteristic of the American higher education system is that you can change your major multiple times if you choose. It is extremely common for American students to switch majors at some point in their undergraduate studies.

Often, students discover a different field that they excel in or enjoy. The American education system is very flexible. Keep in mind though that switching majors may result in more courses, which means more time and money.

Second Level: Graduate in Pursuit of a Master’s Degree A college or university graduate with a bachelor’s degree may want to seriously think about graduate studies in order to enter certain professions or advance their career. This degree is usually mandatory for higher-level positions in library science, engineering, behavioural health and education.

Furthermore, international students from some countries

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are only permitted to study abroad at a graduate level. You should inquire about the credentials needed to get a job in your country before you apply to a postgraduate university in the U.S. A graduate program is usually a division of a university or college. To gain admission, you will need to take the GRE (graduate record examination). Certain master’s programs require specific tests, such as the LSAT for law school, the GRE or GMAT for business school, and the MCAT for medical school.

Graduate programs in pursuit of a master’s degree typically take one to two years to complete. For example, the MBA (master of business administration) is an extremely popular degree program that takes about two years. Other master’s programs, such as journalism, only take one year.

length of time “in residence,” to pass a qualifying examination that officially admits candidates to the PhD program, and to pass an oral examination on the same topic as the dissertation.

CLASSROOM ENVIRONMENT Classes range from large lectures with several hundred students to smaller classes and seminars (discussion classes) with only a few students. The American university classroom atmosphere is very dynamic. You will be expected to share your opinion, argue your point, participate in class discussions and give presentations. International students find this one of the most surprising aspects of the American education system.

Each week, professors usually assign textbook and other readings.

You will be expected to keep up-to-date with the required readings and homework so you can participate in class discussions and understand the lectures. Certain degree programs also require students to spend time in the laboratory.

Professors issue grades for each student enrolled in the course. Grades are usually based upon a set of standard crtieria: ○ Each professor will have a unique set of class participation requirements, but students are expected to participate in class discussions, especially in seminar classes.

This is often a very important factor in determining a student’s grade. ○ A midterm examination is usually given during class time. ○ One or more research or term papers, or laboUNIVERSITY CAMPUS ratory reports, must be submitted for evaluation.

The majority of a master’s program is spent in classroom study ○ Possible short exams or quizzes are given. Sometimes and a graduate student must prepare a long research paper called professors will give an unannounced “pop quiz.” This doesn’t a “master’s thesis” or complete a “master’s project.” count heavily toward the grade, but is intended to inspire Third Level: Graduate in Pursuit of a Doctorate Degree students to keep up with their assignments and attendance.

Many graduate schools consider the attainment of a master’s A final examination will be held after the final class meeting. degree as the first step towards earning a PhD (doctorate). But at other schools, students may prepare directly for a doctorate CREDITS without also earning a master’s degree. It may take three years Each course is worth a certain number of credits or credit or more to earn a PhD. For international students, it may take hours. This number is roughly the same as the number of hours as long as five or six years. a student spends in class for that course each week. A course For the first two years of the program, most doctoral candidates is typically worth three to five credits. enrol in classes and seminars. At least another year is spent conA full-time program at most schools is 12 or 15 credit hours ducting first-hand research and writing a thesis or dissertation. (four or five courses per term) and a certain number of credits This paper must contain views, designs, or research that have not must be fulfilled in order to graduate. International students been previously published. are expected to enrol in a full-time program during each term.

A doctoral dissertation is a discussion and summary of the current scholarship on a given topic. Most US universities TRANSFERS awarding doctorates also require their candidates to have a If a student enrols at a new university before finishing a reading knowledge of two foreign languages, to spend a required degree, generally most credits earned at the first school can

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VLATKO SEKULOVIĆ, LAWYER

CORPORATE

be used to complete a degree at the new university. This means a student can transfer to another university and still graduate within a reasonable time.

TYPES OF US HIGHER EDUCATION State College or University A state school is supported and run by a state or local government. Each of the 50 US states operates at least one state university and possibly several state colleges. Many of these public universities schools have the name of the state, or the actual word “State” in their names: for example, Washington State University and the University of Michigan.

Private College or University These schools are privately run as opposed to being run by a branch of the government. Tuition will usually be higher than state schools. Often, private US universities and colleges are smaller in size than state schools.

Religious affiliated universities and colleges are private schools.

Nearly all these schools welcome students of all religions and beliefs. Yet there are a percentage of schools that prefer to admit students who hold similar religious beliefs as those in which the school was founded.

Community College Community colleges are two-year colleges that award associate’s degrees (transferable), as well as certifications.

There are many types of associate degrees, but the most important distinguishing factor is whether or not the degree is transferable. Usually, there will be two primary degree tracks: one for academic transfer and the other prepares students to enter the workforce straightaway. University transfer degrees are generally associate of arts or associate of science. Not likely to be transferrable are the associate of applied science degrees and certificates of completion.

Community college graduates most commonly transfer to four-year colleges or universities to complete their degree.

Because they can transfer the credits they earned while attending community college, they can complete their bachelor’s degree program in two or more additional years. Many also offer ESL or intensive English language programs, which will prepare students for university-level courses.

If you do not plan to earn a higher degree than the associate’s, you should find out if an associate’s degree will qualify you for a job in your home country.

Institute of Technology An institute of technology is a school that provides at least four years of study in science and technology. Some have graduate programs, while others offer short-term courses. ■

Main Challenges

S

erbia has experienced significant changes in its legal framework over the last decades. The main driving factor was and still is the EU integration process. The objective to harmonize norms with European standards is the cornerstone of every reform that has been implemented since 2001 until today. Thus comprehensive activities have been implemented in the reform of the laws that regulate the activities of companies in Serbia, starting from corporate law issues, incorporation of companies, tax reform, labour law, litigation law, etc.

In parallel to this process further integration in the world market has also been achieved primarily through the CEFTA 2006 Agreement and the modifications of the Law on Foreign Trade, which has liberalized the foreign trade regime. If we look back to the previous seventeen years, we can conclude that Serbia was steadily, sometimes maybe more slowly than expected, advancing in the modernization of its legal system. This process was followed with the reform of the judiciary system, so the litigation procedures today in Serbia, as far as companies are concerned, are quite different than just a couple of years ago. The framework for the procedure is set at its beginning, with an upfront defined number of hearings and proofs to be presented in the trial. This reform has shortened the average time of disputes and made it more transparent.

It is important to recognize that USAID had a significant contribution in the reform of the judiciary system related to commercial disputes.

However, further development of the Serbian legal system is needed.

Particularly in respect of various by-laws and regulations. If laws are in focus, then the same cannot be claimed for various pieces of legislation that are implementing those laws. The Serbian legislative system has layers of rulebooks, technical standards, and other red tape that have been deposited in the last forty to fifty years. Therefore, it would be of the utmost importance to eliminate those rules that are obsolete and to introduce new ones in accordance with the contemporary technical standards. This effort would align Serbia even more with modern and efficient states that are perceived as a service to the citizens, including corporate ones, i.e. companies. ■

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NIKOLA TESLA

THE GENIUS WHO ILLUMINATED THE WORLD

Serbian Roots On American Soil Nikola Tesla symbolizes a unifying force and inspiration for all nations, in the name of peace and science.

A true visionary who was far ahead of his contemporaries in the field of scientific development, New York State, along with many other states in the USA, have proclaimed July 10th, Tesla’s birthday, as Nikola Tesla Day

N

ikola Tesla was born on July 10th, 1856 in Smiljan, Lika, which was then part of the Austo-Hungarian Empire.

His father, Milutin Tesla, was a Serbian Orthodox Priest and his mother, Djuka Mandic, was an inventor of household appliances in her own right. Tesla studied at the Realschule, Karlstadt in 1873, followed by the Polytechnic Institute in Graz, Austria, and the University of Prague. He initially intended to specialize in physics and mathematics, but soon became fascinated with electricity. He began his career as an electrical engineer with a telephone company in Budapest in 1881. It was there, as Tesla was walking with a friend through the city park, that the elusive solution to the rotating magnetic field flashed through his mind. With a stick, he drew a diagram in the sand explaining to his friend the principle of the induction motor. Before going to America, Tesla joined the Continental Edison Company in Paris, where

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he designed dynamos. While in Strasbourg in 1883, he privately built a prototype of the induction motor and ran it successfully.

Unable to interest anyone in Europe in promoting this radical device, Tesla accepted an offer to work for Thomas Edison in New York. His childhood dream was to travel to America and harness the power of Niagara Falls.

The young Nikola Tesla arrived in the United States in 1884, with an introduction letter from Charles Batchelor to Thomas Edison: “I know two great men,” wrote Batchelor, “one is you and the other is this young man.” Tesla spent the next 59 years of his productive life living in New York. He set about improving Edison’s line of dynamos while working at Edison’s lab in New Jersey, and it was here that his divergence of opinion with Edison, over direct current versus alternating current, began. This disagreement climaxed in the war of the currents, as Edison fought a losing battle to protect

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his investment in direct current equipment and facilities.

Tesla pointed out the inefficiency of Edison’s direct current electrical powerhouses that had been built up and down the Atlantic seaboard. The secret, he felt, lay in the use of alternating current, because to him all energies were cyclical. Why not build generators that would send electrical energy along distribution lines first one way, than another, in multiple waves, using the polyphase principle?

Tesla developed polyphase alternating current system of generators, motors and transformers and held 40 basic U.S. patents on the system, which George Westinghouse bought with the intention of supplying America with the Tesla system.

Edison did not want to lose his DC empire, and a bitter war ensued. This was the war of the currents between AC and DC. Tesla-Westinghouse ultimately emerged the victor, because AC was a superior technology. It was a war won for the progress of both America and the world.

Tesla introduced his motors and electrical systems in a classic paper entitled “A New System of Alternating Current Motors and Transformers”, which he delivered before the American Institute of Electrical Engineers in 1888. One of the most impressed was industrialist and inventor George Westinghouse, who visited Tesla’s laboratory one day and was amazed by what he saw.

Tesla had constructed a model polyphase system consisting of an alternating current dynamo, step-up and step-down transformers and an AC motor at the other end. The perfect partnership between Tesla and Westinghouse for the nationwide use of electricity in America had begun.

In February 1882, Tesla discovered the rotating magnetic field, a fundamental principle in physics and the basis of nearly all

Nikola of Montenegro conferred upon him the Order of Danilo.

Tesla was a pioneer in many fields. The Tesla coil, which he invented in 1891, is still widely used today in radio and television sets and other electronic equipment. That year also marked the date of Tesla gaining United States citizenship. His alternating current induction motor is considered one of the ten greatest discoveries of all time. Among his discoveries are the fluorescent light, laser beam, wireless communications, wireless transmission of electrical energy, remote control, robotics, Tesla turbines

and vertical takeoff aircraft. Tesla is the father of radio and modern electrical transmissions systems.

He registered over 700 patents worldwide, while his vision included the exploration of solar energy and the power of the sea. He foresaw interplanetary communications and satellites.

Century Magazine published Tesla’s principles of telegraphy without wires, popularizing scientific lectures given at the Franklin Institute in February 1893. In 1896, the Electrical Review published X-rays of a man, made by Tesla, with X-ray tubes of his own design. They appeared at the same time as Roentgen announced his discovery of X-rays. Tesla never attempted to proclaim primacy.

The breadth of his inventions is demonstrated by his patents for a bladeless steam turbine based on a spiral flow principle. Tesla also patented a pump design to operate at extremely high temperatures.

The young Nikola Tesla arrived in the United States in 1884, with an introduction letter from Charles Batchelor to Thomas Edison: “I know two great men,” wrote Batchelor, “one is you and the other is this young man.” devices that use alternating current. Tesla brilliantly adapted the principle of rotating magnetic fields for the construction of an alternating current induction motor and the polyphase system for the generation, transmission, distribution and use of electrical power.

Tesla astounded the world by demonstrating the wonders of alternating current electricity at the World Columbian Exposition in Chicago in 1893. Alternating current became standard power in the 20th Century. This accomplishment changed the world. He designed the first hydroelectric power plant at Niagara Falls in 1895, which represented the final victory for alternating current. This achievement gained worldwide press coverage and and Tesla was praised as a global hero. King

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Tesla patented the basic system of radio in 1896, with his published schematic diagrams describing all the basic elements of the radio transmitter later used by Marconi.

In 1896, Tesla constructed an instrument to receive radio waves. He experimented with this device and transmitted radio waves from his laboratory on South 5th Avenue to the Gerlach Hotel in Manhattan’s 27th Street. The device had a magnet which emitted intense magnetic fields up to 20,000 lines per centimeter. The radio device clearly established him as the

Franklin Institute in Philadelphia in 1893. The four circuits, used in two pairs, still form a fundamental part of all radio and television equipment.

In 1943, the United States Supreme Court judged Marconi’s most important patent as being invalid, recognizing instead Tesla’s more significant contribution as the inventor of radio technology.

Tesla built an experimental station in Colorado Springs, Colorado, in 1899, to experiment with high voltage, high frequency electricity and other phenomena.

When the Colorado Springs Tesla Coil magnifying transmitter was energized, it created sparks 30 feet long. From the exterior antenna, these sparks could be seen from a distance of 16 kilometers. From this laboratory, Tesla generated and omitted wireless waves which mediated energy, without wires, for miles.

In Colorado Springs, where he resided from May 1899 until 1900, Tesla made what he regarded as his most important discovery – terrestrial stationary waves. With this discovery he proved that the Earth could be used as a conductor and would be as responsive as a tuning fork to electrical vibrations of a certain frequency. He also lit 200 streetlamps without wires from a distance of 40 kilometers and created man-made lightning.

The old Waldorf Astoria Hotel was the residence of Nikola Tesla for many years. He lived there when he was at the peak of his financial and intellectual power. Tesla organized elaborate dinners, inviting famous people who later witnessed spectacular electrical experiments in his laboratory.

Financially supported by J.P. Morgan, Tesla built the Wardenclyffe laboratory and its famous transmitting tower in Shoreham, Long Island, between 1901 and 1905. This huge landmark was

pioneer in the discovery of radio.

Tesla was a pioneer in many fields. The Tesla coil, which he The shipboard quench-spark invented in 1891, is still widely used today in radio and transmitter produced by the television sets and other electronic equipment. That year also Lowenstein Radio Company marked the date of Tesla gaining United States citizenship and licensed under Nikola Tesla Company patents was installed on U.S. Naval vessels prior to World War I. 58 meters tall, capped by a 22-meter high copper dome that In December 1901, Marconi established wireless comhoused the magnifying transmitter. It was planned to be the first broadcast system, transmitting both signals and power munication between Britain and Newfoundland, Canada, without wires to any point on the globe. The huge magnifying earning him the Nobel Prize in 1909. But much of Marconi’s transmitter, discharging high frequency electricity, would turn work was not original: James Maxwell theorized electromagthe earth into a gigantic dynamo that would project its electricnetic waves in 1864, while Heinrich Hertz proved Maxwell’s theories in 1887. Later, Sir Oliver Logde extended the Hertz ity in unlimited amounts anywhere in the world. prototype system, while the Brandley coherer increased the Tesla’s concept of wireless electricity was used to power distance messages could be transmitted. The coherer was ocean liners, destroy warships, run industry and transporperfected by Marconi. tation, and send communications instantaneously all over However, the heart of radio transmission is based upon four the globe. To stimulate the public’s imagination, Tesla tuned circuits for transmitting and receiving. That is Tesla’s suggested that this wireless power could even be used for original concept, demonstrated in his famous lecture at the interplanetary communication.

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Due to a dispute between Morgan and Tesla regarding the final use of the tower, Morgan withdrew his funds. The erected but incomplete tower was demolished in 1917, for wartime security reasons.

Tesla was one of the most celebrated personalities in the American press during this century. According to Life Magazine’s special issue of September 1997, Tesla is among the 100 most famous people of the last 1,000 years. He is one of those great men who divert the stream of human history. Tesla’s celebrity was at its peak during the turn of the century. His discoveries, inventions and vision gained widespread acceptance among the public, the scientific community and the American press. He was a superstar.

Tesla wrote many autobiographical articles for prominent journal Electrical Experimenter, collected in the book ‘My Inventions’. He was gifted with intense powers of visualization and exceptional memory from his early youth. He was able to fully construct, develop and perfect his inventions completely in his mind before committing them to paper.

According to Hugo Gernsback, Tesla possessed a striking physical appearance, over 1.9 meters tall, with deep set eyes and a stately manner. His impressions of Tesla were of a man endowed with remarkable physical and mental freshness, ready to surprise the world with more and more inventions as he grew older. A lifelong bachelor, he led a somewhat isolated existence, devoting his full energies to science.

In 1894, he received honorary doctoral degrees from Columbia and Yale universities, as well as the Elliot Cresson Medal of the Franklin Institute. In 1934 the city of Philadelphia awarded him the John Scott Medal for his polyphase power system. He was

cover of Time Magazine. On this occasion, Tesla received congratulatory letters from more than 70 pioneers of science and engineering, including Albert Einstein. These letters were mounted and presented to Tesla in the form of a testimonial volume.

Tesla died on January 7th, 1943, in the Hotel New Yorker, where he had lived for the last ten years of his life. He occupied the suite in room 3327 on the hotel’s 33rd floor.

A state funeral was held at St. John the Divine Cathedral

MUSEUM OF NIKOLA TESLA IN BELGRADE

in New York City. Over 2,000 people attended, including several Nobel Laureates. He was cremated in Ardsley on the Hudson, New York. His ashes were interned in a golden sphere, Tesla’s favorite shape, which is now on permanent display at the Tesla Museum in Belgrade, along with his death mask.

In his speech presenting Tesla with the Edison medal, Vice President Behrend of the Institute of Electrical Engineers stated eloquently: “Were we to seize and eliminate from our industrial world the result of Mr. Tesla’s work, the wheels of industry would cease to turn, our electric cars and trains would stop, our towns would be dark and our mills would be idle and dead. His name marks an epoch in the advance of electrical science.” He ended his speech by paraphrasing Pope’s lines on Newton: “Nature and nature’s laws lay hid by night. God said ‘Let Tesla be’ and all was light.”. ■

Tesla died on January 7th, 1943. Over 2,000 people attended, including several Nobel Laureates. He was cremated in Ardsley on the Hudson, New York. His ashes were interned in a golden sphere, Tesla’s favorite shape, which is now on permanent display at the Tesla Museum in Belgrade an honorary member of the National Electric Light Association and a fellow of the American Association for the Advancement of Science. On one occasion, he turned down an invitation from Kaiser Wilhelm II to come to Germany to demonstrate his experiments and receive a high decoration.

In 1915, a New York Times article announced that Tesla and Edison were to share the Nobel Prize for physics. Oddly, neither man ultimately received the prize, though the reason was unclear. It was rumored that Tesla refused the prize because he would not share it with Edison, and because Marconi had already received his.

On his 75th birthday, in 1931, the inventor appeared on the

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CULTURE

HAIR - 50th ANNIVERSARY

Let The Sunshine In

In the late 1960s and early 1970s, the musical Hair influenced a generation as no other musical before or after. Hair was more than just another musical in a city that is renowned for its Broadway musicals. It held out the promise of a new era, an era characterised by peace, love and harmony

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henever you see a TV documentary on the 1960s, or the hippies, or the anti-war movement, you are likely to hear the song “Aquarius”. Hair was launched on September 17, 1967. Its authors, James Rado and Gerome Ragni, had worked on it for roughly two years, until they discovered

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former South African composer Galt McDermot, who “was trying to communicate elements of freedom” in his songs.

Their grand narrative was an exploration of the new “hippie” zeitgeist. ‘Hippiedom’ had made a profound impact on American culture in the previous two years.

The term was first coined by Michael Fallon in the San

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Francisco Chronicle on September 5, 1965. Following the publication of this first essay on the hippie zeitgeist, teams of researchers went into the Haight-Ashbury district of San Francisco, and the East Village in New York, to describe what was understood to be the second generation of ‘Beats’.

Rado and Ragni also conducted fieldwork amongst the hippies, later using it as raw material for the musical. A consensus emerged that hippiedom was a counterculture comprising the children of the affluent middle class who lived in rejection of their parents’ values. Its members were first of all characterised by a general anti-establishment attitude, and visually by their long hair.

Hippies embraced all people of colour and were generally anti-racist. Most of them also displayed a liberal sexual behaviour, a drop-out attitude and commonly smoked marijuana. The main theme, however, was the protest against the war in Vietnam with anti-racism ranked a close second. At one stage Hud, a black tribe member, asked: “why do white men send black men away to kill yellow men to defend a country which they stole from the red men?”

Theatre in the 1960s was vibrant on both sides of the Atlantic. Experiments were the order of the day. An entirely new theatrical scene developed in New York in the early 1960s, designated as “off Broadway”, in Soho, Greenwich Village and the Bowery, with enterprises such as

accepted by Joe Papp for a limited eight-week run at his Public Theatre, a deal was quickly struck.

Joe Papp did not show sufficient interest to sell his production to any of the Broadway houses, and so it seemed as if the musical was finished. But then, a second miracle occurred. Michael Butler, the youthful scion of the exceedingly wealthy Butler dynasty of Chicago, saw one of the last shows at the Public Theatre. He secured the rights for a Broadway performance, which he himself produced. As artistic director, he hired Bertrand Castelli, a writer-producer with a first class reputation, who had worked with Jean Cocteau, Picasso and Raoul Dufy, to name but three. Castelli was then the director of a ballet

HAIR, ACT 1

company and was able to bring in a number of experimentalists, including Andy Warhol and Tom O’Horgan to “inject vitality into the precious, static, obsolete world of ballet.”

In the winter of 1967-68, the “tribe” staged the show as it had been prepared for the premiere at the run-down “Cheetah” discotheque on 45th Street, while at the same time rehearsing for the opening at the Biltmore Theatre on Broadway, which then happened on April 29, 1968.

September 1967’s world premiere at the Public Theatre did not take New York by storm. This had more to do with the timing of the show than its inherent quality. In 1967 the country was still behind the Johnson Administration when it came to the war in Vietnam, while the hippie

A consensus emerged that hippiedom was a counterculture comprising the children of the affluent middle class that lived in rejection of their parents’ values. Its members were first of all characterised by a general anti-establishment attitude, and visually by their long hair the legendary “La Mama” theatre, the “Living Theatre” and the “La MaMa Experimental Theatre Company”. One such “concept musical” was launched off Broadway in September 1966 and its title was Viet Rock. This prototype owed much to Joe Papp, the creator of the New York “Public Theatre” (1965) and the annual “Shakespeare in the Park” festival, which is still an important feature of New York’s theatrical summer culture. When the two authors, Rado and Ragni, were rejected by Broadway and one producer after another, and then miraculously

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counterculture – so lovingly portrayed in Hair - was viewed with suspicion. But on April 29, 1968 came the Broadway launch in the Biltmore Theatre, where it started a run of 1,750 performances. Only seven months had passed since the world premiere at Joe Papp’s venue, but these were months of great political change. American TV viewers were stunned to find that an enemy that had been described as practically defeated by their government was able to launch an offensive throughout South Vietnam.

On April 2, the first Democratic primary since TET was

fact it has been made into the frankest show in town.”

There were also negative reviews. David Merrick, a traditionalist show producer, said, “I don’t know what the hell this is. I don’t know why people like it.” John Chapman (Daily News) denounced it as “… vulgar, perverted, tasteless, cheap, cynical, offensive, and generally lousy, and everybody connected with it should be washed in strong soap and hung up to dry in the sun.”

However, after the first two weeks, the show was sold out for months in advance. Critics wrote that, with Hair, a new age, the Age of Aquarius, had dawned. This was to be an age of peace and harmony, of communal love, an age that would abolish war and racial discrimination, aggression, and crime. The values of competitive individualism would be replaced by values of joyful sharing and collectivism: hence the importance of the term “tribe” instead of “cast”. This message is very well communicated in the well-known song, “Aquarius”. It is worth noting that at the start of the number, a morning is musically evoked, with the members of the tribe gradually awakening and forming a chorus that begins to chant the key words of the new Age. What is Hair about? The plot is threadbare and less important than the messages of the individual songs combined.

We follow a group of politically active Hippies of the “Age of Aquarius” who fight THATS-ME against conscription into the Vietnam

held in Wisconsin, in which the The London show ran for 1,997 nights, longer than hitherto largely unknown peace the Broadway show, and when it came to a halt in 1974 it was advocate Eugene McCarthy only because the theatre had a leaking roof that received only 300 votes fewer needed structural repair than incumbent president Lyndon B. Johnson. Thus the antiWar while living a bohemian lifestyle together in a New war message of Hair found a highly receptive audience.

York loft. Claude is the nominal group leader. Berger an irreverent free spirit. Sheila is a New York University HAIR CONTROVERSY film student in love with both of them. Woof is a bisexual There were other factors of success. Its refreshingly gentle soul. Jeanie is in love with Claude but pregnant by outspoken references to sex, dope and nudity turned another man. Hud is a Black Panther, and Crissy, Dionne the show into an instant commercial success. Critics and others struggle to balance their young lives and were at first divided between traditionalists (who hated loves with their resistance to the Vietnam War and the the formlessness of Hair and its anti-establishment conservative ideology of their society. messages) and more progressive reviewers. Clive The original New York tribe included both writers Barnes, the New York Times’ critic, wrote in his review, Rado and Ragni, as well as Diane Keaton. The show’s “Hair is now a musical with a theme, not a story. In

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greatest notoriety was a scene at the end of Act One in which the whole cast appears nude on stage, symbolically signifying that the tribe have nothing to hide. Diane Keaton, however, included a clause in the contract that allowed her not to appear nude in that finale. She left the “tribe” after only a few months.

But that nude scene caused a lot of problems for the musical’s producer and authors. Not so much in New York, where Butler had made discreet inquiries about how the NYPD would react to the nudity, finding that it would be quietly tolerated, but only 500 kilometres further north there was trouble in a city that is otherwise renowned for its liberality and tolerance: Boston.

Hair made legal history. In March 1969, the show in Boston was closed down after only one performance, because a local district attorney thought it violated laws pertaining to obscenity. Seven judges had attended it, and after the viewing, their verdict was to ban it in toto. The judges suggested that the actors put on some discreet underwear for the end of Act One and that the American flag during the song “don’t put it down” should not touch the ground.

In a TV documentary on Hair, Butler explains that opposition both to him and members of the tribe was no joke. He received a number of death threats over the phone, which, he claims, the FBI traced back to the reactionary John Birch society,

America, but Hair also resulted in hippie culture’s leaving the domain of the United States and going global.

As a musical, Hair spread faster and further than any other musical before or since. Within just a year, there were 14 productions across the U.S. and one in London, at the venerable Shaftesbury Theatre. After a year of generally sold-out performances, the Broadway tribe held a free open-air performance in Central Park (New York City), to an audience of 10,000. By then, the show had netted profits of $2 million. Within two years, there were productions

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in London, Paris, Copenhagen, Amsterdam, Helsinki, Munich, Rome, Stockholm, Bergen, Rio de Janeiro, Buenos Aires, Tel Aviv, Tokyo, Sydney, and Belgrade.

Like the Beatles, Hair had become a global phenomenon.

Many more productions followed in the early 1970s.

The movie Hair, directed by Milos Forman, was launched in 1979, but did not have the approval of the original authors, who felt that it was too neat and mainstream to do justice to the original show’s irreverence. In 1988, for the 10th anniversary, there was a reunion of the original Broadway tribe and a one-night gala performance in the Grand Assembly Hall of the United Nations. The show’s patrons were former UN Secretary General Perez de Cuellar, Nancy Reagan, and Barbara Walters, who introduced it to the audience. Ticket prices ranged

The Belgrade show (directors Zoran Ratković and Mira Trailović, July 1979) was attended by President Jozip Broz Tito, who warmly applauded the cast without taking legal action against them. Real tragedy struck in 1970 in Cleveland, when the hotel where virtually the entire tribe and their families were staying was torched. The police concluded that the fire’s cause was arson. Four people died in the blaze.

HAIR SPREADS ACROSS EUROPE Hair was, without any doubt, a milestone in the history of the Broadway musical, as it was a milestone regarding art and society in Europe. It was the first rock musical on Broadway and thus a trendsetter. It brought hippie culture to the attention of mainstream

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dimmed while they presented themselves naked. In Bergen, a group of “concerned citizens” unsuccessfully tried to stop the premiere by blocking access to the theatre. In Copenhagen, which was then considered the “sex capital” of Europe, the actors thought the nudity was the central message of the play, and that Broadway had been far too modest. The Belgrade show (directors Zoran Ratković and Mira Trailović, July 1979) was attended by President Jozip Broz Tito, who warmly applauded the cast. This warm welcome did not apply to the Mexican production at Acapulco, launched in 1969.

The whole cast were arrested at 7 am after the opening night and hauled off to jail. There they were given a stark choice: either leave the country immediately or face criminal charges. The cast thought it wiser to start packing.

The wildest episode concerns the Munich production. First of all, when Rado and Ragni arrived and checked into the hotel Amba, Harald Süßmeier, the proprietor, refused to give them rooms on account of their long hair. A few days before the opening show, the police approached the German producer and threatened to arrest the actors if they appeared nude on the stage.

One thing that all non-American productions had in common, and to which Butler later made some objection, was that their general tone was far more critical of America. The original production did not have that intention, he complained.

JAMES RADO AND GEROME RAGNI Another commonality: the songs and dialogues were always translated into the local language. pleted its American run, in the mid-1970s, it had earned As Butler explained, not to have the local language was $80 million. The amount earned from overseas productantamount to cultural imperialism. tions probably exceeds that $80 million, while the show Despite its poor ranking in the list of longest runs, Hair and its recordings continue to make millions of dollars is often described as “far and away the most important each year. There are currently 19 revivals in the U.S. and musical offering... of the era.” No other musical in the hisat least 15 other countries worldwide. tory of Broadway and London’s West End has had such a As it conquered Europe, Hair created its own local profound impact on the local zeitgeist as Hair. headlines. In London, for instance, where the office of The most infectious song is its last one, which has the the official censor was abolished just before the show curious double title of “The Flesh’s Failures” or “Let the opened, the authorities did not make any fuss about the Sunshine In.” The song should really be a song of mourning nudity, but some of the cast refused to strip to their for the death of Claude in Vietnam, but then it turns into birthday suits. The London show ran for 1,997 nights, a joyful celebration of the “life goes on” idea. If life goes longer than the Broadway show, and when it came to on, so does the cultural influence of Hair. a halt in 1974, it was only because the theatre had a It continues to captivate us not only with its musical leaking roof that needed structural repair. score, but also with its underlying values of brotherIn Paris the nudity was fervently embraced, with the hood, peace and harmony. • actors actually insisting that the lights should not be from $500 to $5000, while the proceeds went towards the U.S. AIDS foundation. As a result of the UN revival, the 1990s saw a spate of revivals, not only in America but all across the globe. In 1991, there were 13 separate recordings, while in 2007 there were 36 albums, including Austrian, Israeli, and Icelandic albums.

All told they have sold millions of copies. Forbes magazine reported that no fewer than four million people saw the show within the first two years, and that it earned a total of $22 million during that time. By the time it com-

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BASEBALL

By SAŠA MARIĆ

Secret Of America’s Most Popular Sport Once long ago, on the site of today’s National Library in the Vračar neighborhood, was a sports field that was mostly used by students of the Faculty of Sport and Physical Education. In the immediate vicinity was a building where US Embassy personnel lived, and from time to time they also used this grassy area for recreation

T

base) and the third baseman. There are three outfielders: The he game they played was usually baseball, which the left fielder, center fielder and right fielder. local children followed with interest, but few of them There are nine innings in professional baseball games (someunderstood why the Americans ran in circles so much, times fewer at lower levels), and each inning is divided in half. At what the aim of the game was, how points were scored... the top of an inning, the visiting team hits and the home team Serbia was a sporting nation even back then, but baseball plays defense. At the bottom of the inning, the roles are reversed, never found its place among the favorite sports. And to this with home team hitting and the visiting team defending. day, baseball, the most popular sport in the U.S., is still a great Each team gets three outs in each half of an inning. enigma for most people in Serbia.

Each team has nine players in its batting order, and they must So, let’s try to explain. stick to that order throughout the game (players may substitute There’s no doubt that baseball is a complex game that’s tough for other players). A play begins with a batter waiting to hit a for a person to learn if they haven’t followed it their entire life. pitch from the pitcher. If the batter hits the ball into the field of Here’s a simple rundown of the rules, so that a novice can underplay, the batter runs to first base and can run to as many bases stand the game without getting too bogged down in the details. as he thinks he can without getting out.

A baseball game is played by two teams, who alternate between offense and defense.

A batter gets three strikes (a swing and a miss or a ball over There are nine players on each side. The goal is to score more the plate in what’s deemed to be the “strike zone” (by an umpire)) runs than the opponent, which is achieved by making a circuit before he is out. If there are four balls (a pitch that is not in the strike of four bases that are placed in a diamond shape. zone), the batter is automatically allowed to progress to first base.

The defense wears leather baseball gloves that fit on the hand. These gloves are used to Each team has nine players in its batting order, and they must catch the ball. A baseball is a hard white ball stick to that order throughout the game measuring roughly 7.5cm in diameter, with red stitching along its seams.

The offense uses a bat that is made of wood in the professional When a batter begins running, he is then referred to as a runranks, and aluminum or a metal composite at amateur levels. ner. Runners attempt to reach a base, where they are safe, and The part of the field closest to the bases is called the infield, can remain at the base until the next hitter reaches that base. while the grassy area beyond is called the outfield.

Defensive players attempt to prevent this by putting the runners The bases are 29 meters apart on the diamond. Field areas out using the ball; runners who are ‘out’ must leave the field. may differ in a few ways, including in terms of the outfield A batter gets a hit when he reaches a base without getting out, fences or the amount of “foul” territory, which borders the or by forcing another runner to get out (and without the defense field between long white lines that connect first base to home making an error). Runs are scored when a player completes a plate and third base to home plate. circuit of the diamond before there are three outs in the inning.

The pitcher stands in the middle of the infield and initiates If a player hits the ball over the outfield fence in fair terthe action by throwing the ball toward home plate. The catcher ritory (between the foul lines), a home run is declared, and catches the ball if it’s not hit. The infielders are the first basethe batter can circle all four bases. man, second baseman, shortstop (between second and third Simple, isn’t it? ■

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AmCham Members, July 2017

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AmCham Patron Members

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ŽIVORAD VASIĆ, AREA GENERAL MANAGER, INTERCONTINENTAL GROUP

Hosts Of All Important Events

In the first half of the year, the hotel’s occupancy was at 84 per cent capacity! We have constant growth in the number of corporate clients

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hree and a half years after it formally opened, the management of Crowne Plaza Hotel can be more than satisfied.

Not only because it has strengthened its position in the domestic market, but also because it is one of the most successful European hotels in the “InterContinental Hotels Group”.

Here the man who heads the Crowne Plaza Belgrade, Živorad Vasić, underlines the progress made and announces plans for the period ahead: - Crowne Plaza Belgrade completed the first six months of operations with occupancy at as high as 84 per cent. At the beginning of our fourth year of operations, we are achieving exceptional results. We have hosted all significant social, cultural and sporting events. Growth in the number of corporate clients is constant.

This is a good opportunity to announce that we are planning a new hotel investment: in the second quarter of next year we are preparing to launch construction of a hotel in Knez Mihailova Street. This will be the Indigo Hotel Belgrade, which also one of the InterContinental Group’s brands. A four star boutique hotel, we believe strongly that such a hotel will bring tourists closer to our city.

• What are your plans like for operations in the region?

- Our major project is certainly the opening of the InterContinental in Ljubljana, in less than 45 days. We are proud that this is the first five star hotel in Ljubljana, the first international brand in this city, and the tallest building in Ljubljana. It has a restaurant with a Michelin star chef, a ballroom, a large conference hall and five smaller halls with a capacity of 50 to 500 people, three restaurants and 165 rooms, each covering at least 42m2 and with a bathroom of 9m2. This is a luxury hotel that will start working as early as 15th August. And that’s not the end of our hotel plans... ■