Issuu

FDI Foreign Direct Investment

USA - Serbian

Business Synergy 2013

Working Together For A Healthier World

Pfizer HCP Corporation, Representative office Belgrade Tresnjinog Cveta 1, Belgrade Tel: 381.11.3630 000; Fax: 381. 11. 3630 033 e-mail: office@pfizer.co.rs

contents 4

ncouraging E Growth and Stability

H.E. MR. MICHAEL KIRBY, U.S. Ambassador in Serbia

P hilip Morris in Serbia – A Decade of a Journey Together

Philip Morris 24

G rowth Despite Crisis

onvergence of C Two Markets

ŽELJKO SERTIĆ, President of Serbian Chamber of Commerce 11

n Agency on A the Move romising P Outlook

N othing Jumps Like a Deere

Change

Miloš Đurković, AmCham President

Corresponding to the Global Crisis

A Serbian Law Firm Applying American Standards

Turbulent

GENERAL MANAGER Ivan Novčić, i.novcic@cma.rs

History of Cooperation between Large and Small

Alliance One Tobacco

FINANCIAL DIRECTOR Ana Besedić, a.besedic@aim.rs EDITORIAL MANAGER Tanja Banković, t.bankovic@aim.rs office manager Nataša Nešić, n.nesic@aim.rs

Symbols of

PRINTING Rotografika d.o.o. Segedinski put 72, Subotica

Culture

"USA - Serbian Business Synergy" published by: alliance international media

American Popular Culture

Makenzijeva 67, 11000 Belgrade, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2013

Steady Growth A Tradition of Success

TRANSLATORS Snežana Bjelotomić

EXECUTIVE DIRECTOR Ruža Ristanović, r.ristanovic@aim.rs

Investment 31

PHOTOS Zoran Petrović

Trade exchange between Serbia and the U.S.

Nko Law Office (Belgrade, Serbia) & Mcguirewoods Llp (Richmond, Virginia)

Affordable

Partnership for Faster Reforms

Fluctuations

Serbia - United States relations

Drugs Must Be

Constructive

ART DIRECTOR Ilija Petrović, i.petrovic@aim.rs

PROJECT MANAGERS Biljana Dević, b.devic@aim.rs Svetlana Okanović, s.okanovic@aim.rs Sandra Bandović, s.bandovic@aim.rs

Pavle Marjanović, Director of Actavis Serbia 20

EDITOR Jovana Gligorijević, j.gligorijevic@aim.rs

lecture Christen Bradley Farmer, c.farmer@aim.rs

Edward Tonchew, General Manager of John Deere Dealership in Serbia

Winds of

ngoing Support O Susan K. Fritz, Usaid Mission Director

That Improves Your Business

C aring for Your Health

Mark Crandall, General Manager Continental Wind Serbia 16

2013

Dejan Zarić Director of Dekel doo Belgrade

2 5 Years in Serbia

MUSFIK KARADOGAN, General Manager Pfizer Serbia

Bradley Harker, Senior Commercial Officer, Us Embassy in Serbia 14

Technology

Tomasz Rogacz, Market Manager Mcdonald’s Serbia

Communis 12

USA - Serbian Business Synergy

MRG

DAVID BANJAI Plant Manager At Ball Packaging Europe 24

B ringing American Security Companies to Serbia

company

This issue is audited by ABC Serbia

USA - Serbian Business Synergy | 3

interview

H.E. Mr. Michael Kirby, U.S. Ambassador in Serbia

Encouraging Growth and Stability More can be done to improve the business climate. I would encourage the Serbian government to continue efforts to improve conditions for U.S. and other investors by, for example, strengthening protections for intellectual property rights, streamlining the construction permitting process, implementing needed reforms to ensure clear property rights, addressing rigidities in the labour markets, and easing the burden of numerous state inspections on business

merican investments in Serbia started early in the transition and continue to be important for the development of the Serbian economy. In order to provide an investment-friendly environment, the government’s efforts in the areas of reducing bureaucracy and taking steps to reinforce the Rule of Law have had a positive effect thus far, but, according to H.E. Mr. Michael Kirby, U.S. Ambassador to Serbia, more can still be done. In an exclusive interview for CorD, Ambassador Kirby speaks about the continuing need to push the reform process forward. This will be vital in discussions and negotiations with the EU, WTO, and other international institutions, while simultaneously strengthen-

ing the Serbian economy and its competitiveness. Creating a stable, transparent, and predictable environment for investment and economic growth is not something which can be achieved overnight. Striving for that goal is the work of every country, and it is an ongoing exercise. The ambassador cites

Serbia offers many advantages to foreign investors – a strategic location, a highly skilled and multilingual labour force, and free trade agreements with important markets like the EU, CEFTA member countries, Russia, and Turkey

4 | USA - Serbian Business Synergy

many examples of areas in which he believes that important work has been done as well as points out further areas which could use more attention. ■ In terms of the foreign investment environment, do you think that this Serbian government has been doing enough

to improve the business climate? - Serbia's future economic growth will depend on new investments, both foreign and domestic. Private sector investment is the key to economic development, job creation, and Serbia's future growth and prosperity. To a great extent, Serbia's economic future will depend upon the implementation of economic reforms and improvements in the business climate to attract new investments. This includes clearing away unnecessary and excessive bureaucracy, enhancing the rule of law, fighting corruption, and strengthening democratic institutions. The Serbian government's work in some areas is producing results. For instance, last fall the government rescinded 138 unnecessarily burdensome and much-criticized parafiscal fees and charges paid by businesses. I know that eliminating these fees was a leading AmCham priority to improve the business climate, and I am pleased that USAID was instrumental in the effort to elimi-

Economy

Investors

Mission

Serbia's future economic growth will depend on new investments, both foreign and domestic.

Investors need confidence in the stability and predictability of the market, but also of the region.

Prime Minister Dačić and I will lead a trade and investment mission focused on the IT industry to the US in May.

nate them. Equally important, the government curbed the ability of public institutions to enact new charges. This is just one example of tangible, cost-saving benefits to private businesses, both foreign and domestic, that strengthen Serbia’s competitiveness and attractiveness as a destination for foreign direct investment. ■ Regional cooperation and stability are definitely some of the more important prerequisites for creating a favourable environment for new investments. However, not a single regional country can say that they have been very successful in attracting foreign investors. Since the United States is one of the biggest foreign investors in the world, could you tell us how the ex-Yugoslav republics can improve their business environment? - I’m not in a position to give advice to the other former republics – I’m much more knowledgeable about the situation here in Serbia. But you hit the nail on the head as far as regional cooperation and stability are concerned. Investors need confidence in the stability and predictability of the market, but also of the region. Regional cooperation should reduce barriers to trade, grow the market for goods and services, and encourage investors to view the region as one great opportunity rather than a puzzle of small markets with frustrating and unnecessary barriers to prosperity. ■ What else needs to be improved in order for this area to become even more attractive to U.S. investors? - More can be done to improve

the business climate. I would encourage the Serbian government to continue efforts to improve conditions for U.S. and other investors by, for example, strengthening protections for intellectual property rights, streamlining the construction permitting process, implementing needed reforms to

fore it can join the European Union – but WTO accession is of critical importance to Serbia in its own right. WTO membership is vital for any country, but especially so for a country, such as Serbia, that seeks to modernize and develop its economy by boosting exports and expanding its trading links to world markets. WTO membership would strengthen investor confidence in Serbia and can provide a critical edge in persuading investors to come here. It would send a strong signal about the stability and predictability of Serbia's economic system. ■ In that respect, what are Serbia’s advantages compared to other regional countries? - Serbia offers many advantages to foreign investors – a strategic location, a highly skilled and multilingual labour force, and free trade agreements with important

PayPal’s entry into Serbia in April is an excellent example of our bilateral efforts in this regard. The Commercial Section of the Embassy worked with PayPal and the Serbian Ministry of Trade, Telecommunications and Information Society over the past year to put in place the necessary legal framework for PayPal to operate in Serbia ensure clear property rights, addressing rigidities in the labour markets, and easing the burden of numerous state inspections on business. All of these steps will also help reduce corruption, which remains an impediment to investment. Serbia's competitiveness depends on its integration into global institutions, including the World Trade Organization. Yes, membership in the WTO is important for Serbia's EU aspirations – Serbia will have to accede to the WTO be-

markets like the EU, CEFTA member countries, Russia, and Turkey. Serbia has a bright and well-educated work force that can compete with costlier neighbours. However, Serbia's economic future depends on implementing reforms, eliminating bureaucratic red tape, enhancing the rule of law, fighting corruption, and strengthening democratic institutions. We can help – for instance, USAID has helped the Ministry of Finance and Economy identify and eliminate many burdensome

USA - Serbian Business Synergy | 5

parafiscal charges and is assisting with improvements in the construction permitting process and state inspections system. Our assistance and cooperation with the Serbian government in these areas will cut red tape and ease life for businesspeople. But the real change must come from within. ■ You said recently that Serbia should be doing more to attract more small investors and not insist on having only the big ones. Why is the first approach better? - A healthy small and medium enterprise (SME) sector is critical to any economy. While large corporations are attractive in many respects, in most countries the smaller companies serve as the backbone of the economy and have the potential to generate a very large number of new jobs. Serbia, with its highly educated workforce, especially in the fields of IT and telecommunications, could be an attractive destination for many start-up and venture capital-financed firms. These companies typically are very small but have the capacity to grow very quickly. I was glad to read of the Ministry of Finance and Economy’s initiative to support SMEs in the IT sector in Serbia, but I believe that the Serbian government could do more to promote the country’s advantages in IT, services, and software development. Obstacles to investment hit smaller firms much harder than they do large firms, making their investments particularly dependent on a welcoming environment. ■ What segments of the Serbian economy could be of interest to US investors? - I am proud that so many American companies have invested in Serbia, and I am committed to working with the Serbian government to attract even more U.S.

6 | USA - Serbian Business Synergy

investors. U.S. companies alone have invested nearly $3 billion in Serbia and directly employ thousands of Serbian citizens. Many leading American blue chip firms, such as Ball Packaging, Pepsi, Coca-Cola, Philip Morris, Cooper Tire, Eaton, Johnson Controls, NCR, and Microsoft, have already invested in Serbia. Over the last

ernance, they set a high standard of ethical corporate conduct for others to follow. U.S. investors tell me positive stories of their experiences in Serbia. They routinely praise Serbia's highly educated, multi-lingual, hard-working labour force as a major benefit of investing here. I believe American investors are becoming more and more aware of the opportunities in Serbia, and I plan to do all I can as ambassador to spread the message, to the benefit of Serbia and America. And to spread the message, Prime Minister Dačić and I will lead a trade and investment mission focused on the IT industry to the United States in May. I expect American software development companies, particularly from Silicon Valley, to show great interest in learning more about the opportunities that Serbia offers in these cutting-edge industries.

I am proud that so many American companies have invested in Serbia, and I am committed to working with the Serbian government to attract even more U.S. investors. U.S. companies alone have invested nearly $3 billion in Serbia and directly employ thousands of Serbian citizens few years, American IT and service companies have rapidly built their presence in Serbia, and their investments continue to expand. There is also growing American investor interest in key industrial sectors, including the automotive industry and mining. I am a great believer in the benefits of investment by American companies in Serbia. By introducing technological and managerial know-how, they sharpen Serbia's competitiveness. Through their educational and community programs, they improve the quality of life for many Serbian citizens. And by standing for integrity, environmental protection, and good gov-

■ Who should take the credit for the United States being one of the biggest investors in Serbia – the U.S. Embassy, the American Chamber of Commerce, or other factors? - Speaking frankly, I am not worried about who gets the credit for attracting investors, or who gets credit for building our economic ties – I’m only worried that the work gets done, that businesses see the potential here that will enrich the United States and Serbia mutually, and that Serbia become thoroughly and completely integrated into the fabric of Europe, in all its prosperity and peacefulness.

■ What activities have been carried out to boost SerbianAmerican economic cooperation? - One of my highest priorities as ambassador is to strengthen the bilateral economic and business ties between our two countries. We have worked hard, and successfully, with the Serbian government over the last several years to improve our economic and commercial ties, with impressive results. We have cooperated to resolve all outstanding investment disputes, to open up new avenues of U.S. government support for American investments, including through the Overseas Private Investment Corporation, to attract major new U.S. investment projects to Serbia, and to boost our bilateral trade. While the United States-Serbia trade relationship is growing, I believe that there is significant room for growth. In accordance with President Obama’s National Export Initiative, the Embassy is working to increase American exports to Serbia, and we welcome more Serbian exports to the United States. Thousands of Serbian products qualify for duty-free treatment under the U.S. Generalized System of Preferences program, which I encourage any company interested in exporting to the United States to explore. But we can only open the door – Serbian businesses need to step through it. ■ What projects on developing the cooperation between the two countries are going to be implemented soon? - To deepen and expand our bilateral trade and investment ties, I look forward to travelling with Prime Minister Dačić and other Serbian officials to the United States – to Seattle, San Jose, and Washington D.C. – in May as part of a U.S.-Serbia Trade Mission fo-

cused on the information/communication technology sector. The "rebranding" of Serbia as a destination for IT and software development is an important part of this trade mission. PayPal’s entry into Serbia in April is an excellent example of our bilateral efforts in this regard. The Commercial Section of

most importance for the country. As we interview, negotiations are ongoing, so I can’t make predictions today that will still be timely when you go to press. But the bigger picture, that EU negotiations will provide structure for continuing the political and economic reforms that will make Serbia a stronger country, guided by rule of law and democratic principles, will remain true. EU membership will further strengthen the economic ties between Serbia and its trading partners in the EU, and it will be a strong signal of stability for investors – including American investors – considering doing business in Serbia. ■ How much do political stability and the overall political situation in Serbia influence U.S. investors in their decision to invest here? - Political stability is important. The Rule of Law – a guiding light

Economically, the Rule of Law is critical: businesses and investors must have confidence that rules and regulations apply evenly, and without prejudice, to all market participants the Embassy worked with PayPal and the Serbian Ministry of Trade, Telecommunications and Information Society over the past year to put in place the necessary legal framework for PayPal to operate in Serbia. I believe our joint collaboration to help simplify the construction permitting process and the labour law could also produce additional positive outcomes like PayPal in the coming year. ■ How important is the likelihood of Serbia obtaining the date of the beginning of the EU accession negotiations to U.S. investors? - We believe Serbia's future is in the EU, and thus attaining a start date for negotiations is of the ut-

of democracies – is equally important. Remember that there are politically stable countries without the Rule of Law, and those countries struggle to attract investors. Economically, the Rule of Law is critical: businesses and investors must have confidence that rules and regulations apply evenly, and without prejudice, to all market participants. When they do not have that confidence, they choose to invest elsewhere. That results in less investment in Serbia, greater unemployment here, and more opportunities for Serbia’s brightest minds to follow that investment and emigrate abroad, perhaps never to return. The economic aspect of the Rule of Law is critically important. ■

USA - Serbian Business Synergy | 7

interview

Željko Sertić, President of serbian chamber of commerce

Convergence of Two Markets

PHOTO: Zoran BOLDORAC

Experience has shown that the US market has been interested in buying more goods of Serbian origin, providing that our companies are able to supply large quantities in the long run and that their design and standards are tailored to the demands of the US market

and the US is satisfactory considering Serbia's export potential and the absorptive capacity of the US market? - The current economic cooperation can be most definitely improved since it lags behind the realistic capacities of both sides, namely the production and export potential of the Serbian economy and the absorptive capacity of the US market. There are many reasons for this: market size, insufficient capacity for steady export to the US market, and transport costs due to geo-

rade between Serbia and the US has always been lively. Since 2001, the first noteworthy Serbian export to the US was in 2005 following the US administration's relaxing its trade policy towards Serbia by reinstating most favoured nation status for Serbia. The biggest export, amounting to over $81 million, was recorded in 2007 thanks to the higher quality of Serbian products and many investments. In 2009 and 2010, Serbia exported $68 million worth of goods to the US, a slight increase from 2008. If we compare November 2011 to November 2012, we can see that Serbian exports and imports went up by 21% and 17% respectively.

The Serbian Chamber of Commerce has had a good cooperation with the American Chamber of Commerce in Serbia

■ Do you think that economic cooperation between Serbia

8 | USA - Serbian Business Synergy

graphical distance which makes Serbian products in the US less price-competitive. Of course, there is the global economic downturn which did cause a drop in trade with the US. Regardless of the accumulated deficit, the US remains an important trade partner to Serbia. ■ How can we improve the cooperation? - Improving the economic coop-

eration with the United States of America should be done through promoting investment opportunities in Serbia and increasing the quantity of goods that Serbia exports to the US. Also, we could boost cooperation by initiating contact between Serbian and US companies, and the US side can do the same, on top of implementing the American export/import norms and procedures. We also need to intensify and improve the services we offer to domestic business entities and their associations in an effort to enable them to export to the US market. Additionally, we need to establish better relations with the people who would lobby for the Serbian economy, organize promotional events and any other activities from which the Serbian economy could benefit. Experience has shown that the US market has been interested in buying more goods of Serbian origin, providing that our companies are able to supply large quantities in the long run and that their design and standards are tailored to the demands of the US market. The products that the US market is interested in are tractors, car parts, machine parts, machine tools, hand tools, enamel cookware,

crystal, furniture, food products (especially those labeled "healthy food"), textiles, clothing, footwear, ferrous and non-ferrous metallurgical products, and so on. In order to export more, we need good marketing. We also need to set up a national distribution centre and connect with the companies that operate big supermarket chains. As you know, the first real formal step toward boosting trade between the two countries, particularly our exports, happened on July 1, 2005 when the US granted the Generalized System of Preferences (GSP) trade benefits to Serbia for a total of 4,650 products. The overall cooperation largely depends on the development of the industrial cooperation, specifically in the hi-tech segment, or the transfer of high technologies with the aim of re-structuring Serbian industry to suit the current demands of the global market. The economy segments that have a good cooperation potential are banking, energy, telecommunications, tourist, and industrial cooperation, in particular hi-tech. Serbian products like organic food, mineral water and textiles could find their way to US consumers. Also, we could export large quantities of metal processing, machine building and food prodcuts, as well as the products of the defense industry, to a certain extent. ■ What activities has the Serbian Chamber of Commerce (PKS) been carrying out in an effort to improve the cooperation between the Serbian and the American companies? - Through its activities, the Serbian Chamber of Commerce has been fully contributing to the convergence between the US market and the Serbian economy, including educating Serbian business community on easier

ways to export to America. This is corroborated by the fact that the list of customs tariff preferences can be obtained from the Committee on International Economic Relations of the Serbian Chamber of Commerce. We should also underline that the trade preferences, granted through the GSP, could be used to a greater extent, and that, in

There have been indications that US companies are interested in investing, primarily in IT, energy and mining the following period, we should insist in boosting our exports to the US. If we look at how much Serbian businesses have been using the GSP, and based on the PKS statistical data, we can see that, as of November 2012, GSP export goods made up 11.61% of the overall Serbian export. In numbers, this amounted to $8.82 million out of $76 million, which is the value of the total Serbian exports to the US in the observed period. ■ What is your cooperation with the American Chamber of Commerce in Serbia like?

- Unlike in Europe, the American Chamber of Commerce in Serbia operates in line with the AngloSaxon chamber format. This is the biggest business association in the world which represents over three million companies of different sizes, different sectors and regions, including federal and local chambers and industrial associations. The American

Chamber of Commerce's network is made of 112 individual chambers of commerce which operate in 99 countries. Belgrade is the home to a regional American Chamber of Commerce (AmCham) which covers both Serbia and Montenegro. The Serbian Chamber of Commerce has a good cooperation with its American counterparts. We have organized many activities with AmCham members participating in activities of the Serbian Chamber of Commerce and regularly exchanging information. AmCham is a member of the Foreign Pool at our Chamber. I would also like to point out that, apart from AmCham, the Serbian Chamber of Commerce has had a good cooperation with the US Embassy's Economic Affairs Section.

USA - Serbian Business Synergy | 9

■ What are the most important agreements that facilitate development of trade ties between Serbia and the USA? - There are only a handful of economic and trade intergovernmental treaties still in force – the Agreement between the United States of America and Serbia and

Montenegro on Economic, Technical and Related Assistance (signed and ratified on March 6, 2004 – this agreement sets out the formats and ways in which the US provides economic, technical and related assistance to Serbia and Montenegro) and the Agreement between the United States of America and the Federal Republic of Yugoslavia on Investment Incentives (December 12, 2001). In the following period, the two countries plan to negotiate about two agreements which are of exceptional importance to the further development of the economic relations between them. They are: the Agreement on the Reciprocal Promotion and Protection of

Investments and the Double Taxation Agreement. ■ Following his official visit to the US in November, the First Deputy Prime Minister Aleksandar Vučić announced a notable increase in US investments. Has there been any

Considering how demanding and competitive the US market is, achieving prominence and selling Serbian products there is a great success for Serbia and its economy

10 | USA - Serbian Business Synergy

concrete progress in relation to this announcement? - There have been indications that US companies are interested in investing, primarily in IT, energy and mining, so we can expect to see these initiatives materializing in the following period. ■ Could you single out some US companies in Serbia which are examples of good investors, good employers and contributors to the wider community? - Philip Morris, US Steel, CocaCola, Pepsi Co, Ball Corporation

and Microsoft are the biggest US investors in our country. Also, there are several large American co-operations that have been successfully operating in our country – Cooper Tire, Van Drunen Farms and Alltech. The second biggest global can producer, Ball Corporation, has built a modern facility in Zemun and hired over a hundred of domestic experts. The company exports its products to many regional and European countries. Although Microsoft opening a development centre in Belgrade in 2005 is not considered a substantial investment, it does have a great symbolic significance for Serbia since, at that time, Microsoft had only three such centres in the world. ■ Could you also single out some Serbian companies which have managed to enter the US market? - Considering how demanding and competitive the US market is, achieving prominence and selling Serbian products there is a great success for Serbia and its economy. There are only few Serbian companies that have branch offices in the US. Most of the Serbian products are sold in smaller retail facilities with the target consumers being Serbs living in America who are already familiar with these products. In any case, our biggest exporters to the US are: Prvi partizan a.d. from Užice, Metalac Posuđe, Foodland, Valjaonica Bakra Sevojno a.d. from Sevojno, Mitas d.o.o. from Ruma (the former Rumaguma), Van Drunen Farms Europe, Agena Technology d.o.o. from Šimanovci, Alltech Serbia a.d. from Senta, and Swisslion from Takovo. Apart from these “big players,” there are quite a few SMEs that have found their way to the American consumers like Mikroelektronik, RB Global and several others. ■

An Agency on the Move We can enjoy our work together with our clients. Sometimes we can forget which ones are our clients and which are our friends. The firsts become the seconds and vice versa. It is just the way we are. We are what we are, experts in public relations, but also experts in human relations. We make a lot of fuss, we are excellent in writing, have amazing public appearances, always in a hurry on million different ways, have endless meetings and in the evening go home satisfied with the job well done

Danijela Popović Jurić Head of PR Department

Srđan Bosnić Photographer

Ismar Gluhalić

Graphic Designer

Marija Malović PR Executive

Gordana Šoštarić PR Executive

he Agency operates at the territories of Serbia, Montenegro, Bosnia and Herzegovina, Kosovo, Romania, Bulgaria, and Albania. It inherited the company Saatchi & Saatchi. The PR department is composed of 13 professionals, experts in various fields of communication and has the absolute support of agency’s other sectors- BTL, Digital, ATL, Copyright, Design and Production. Many experts in the agency are members of various professionals associations: IAA –International Advertising Association, AmCham, Association of Managers (Ivan Stanković, President), Public Relations Society of Serbia, International Public Relations Associations, European Association of Communication Directors (Danijela Popović Jurić, Director of PR Department), GMA – Marketing Agencies Association, Art Directors Club of Serbia, UEPS (Marija Jeličić, New Business Director is a member of Board of Directors). And now a little something about us. We are good at our jobs. We can imagine new possibilities and make them real. We are very sensitive to originality and uniqueness (that’s how we are in real life). We can reach the point where the work becomes a game and the game becomes work. That’s where we are the best. All you need is to see us then. And let us work. We will surprise you. Sometimes we surprise ourselves! We can enjoy our work together with our clients. Sometimes we can forget which ones are our clients and which are our friends. The firsts become the seconds and vice versa. It is just the way we are. We are what we are, experts in public relations, but also experts in human relations. We make a lot of fuss, we are excellent in writing, have amazing public appearances, always in a hurry on million different ways, have endless meetings and in the evening go home satisfied with the job well done. Because we know that our clients are satisfied with us and sleep tight knowing we are there just beside them. So, that’s what we are. We have been recognized with more than 45 professional awards (New York Festivals, Golden Dum, Ad Eaters, UEPS, etc). And new ones are before us waiting!

Miloš Nikolić PR Executive

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Senior PR Manager

Tamara Nikolić PR Executive

Aleksa Čokić PR Manager

Tijana Stojanović PR Manager

Aleksandra Joksimović

Senior PR Manager

Tijana Ćurčić PR Manager

Nevena Cvetić

Executive Director of PR Department

USA - Serbian Business Synergy | 11

interview

Bradley Harker, Senior Commercial Officer, US Embassy in Serbia

Promising Outlook Companies that started with just a few workers but with big ideas have grown to employ tens of thousands since their establishment. That is why I believe Serbia’s IT sector holds so much promise

s an investment destination, Serbia appears to have a lot of untapped potential. Although there have already been numerous US investments in the country, Mr. Bradley Harker, Senior Commercial Officer at the US Embassy in Serbia, underlines the potential for much more growth and development. Speaking with CorD, he cautions however about the need for further structural and administrative reforms which will enable US investors to view the prospect of investing here with greater confidence. ■ The US is one of the biggest investors in Serbia. What kind

12 | USA - Serbian Business Synergy

of steps has the Embassy's Commercial Section been taking to promote Serbia as an investment destination? - To deepen and expand our bilateral trade and investment ties, we are focusing on sectorspecific, targeted opportunities in industries that we consider to be ‘best prospects,’ both in terms of US export potential but also in how they relate to Serbia as an investment destination. In this respect, we are primarily focused on ICT (Information and Communication Technologies), Mining, Energy, Medical-Pharmaceutical, and Franchising –

Ambassador Kirby has repeatedly emphasized the importance of "rebranding" Serbia as a destination for IT and software development, and Prime Minister Dačić and we have organized this trip with that in mind. Representatives from some successful American IT firms will participate, too, and I expect they will get some very detailed inquiries from American software development companies about their experiences and opportunities in Serbia. ■ Ambassador Kirby has said recently that Serbia should

I believe that Serbia has a real opportunity to continue to implement structural reforms that will create conditions for expanded investments in manufacturing, agriculture, information technology, and other industries areas where we can help expand our trading and investment relationship. We look forward to travelling with senior representatives in the Serbian government to the United States in May as part of a US-Serbia Trade Mission focused on the information/communication-technology sector.

be attracting more small investors rather than aiming only at big ones. What kind of advantage can such an approach bring to a market like Serbia's? - A healthy SME sector is critical to the growth of any nation’s economy. As such, it is important for national govern-

ments to take proactive steps to spur the innovation and development of SMEs in their country. The explosive growth of companies in America’s IT market, for example, is an example of how small firms with big ideas can grow to become global leaders in their niches. Companies that started with just a few workers but with big ideas (think Facebook or Google), have grown to employ tens of thousands since their establishment. That is why I believe Serbia’s IT sector holds so much promise: the seed ingredients for success, like having a highly educated, motivated workforce, are already in place. ■ How can we further advance economic relations between Serbia and the US? - To a great extent, the future of US-Serbian economic relations depends upon Serbia’s implementation of economic reforms and improvements in the business climate. This includes clearing away unnecessary and excessive bureaucracy, enhancing the rule of law, fighting corruption, and strengthening democratic institutions. I believe that Serbia has a real opportunity to continue to implement structural reforms that will create conditions for expanded investments in manufacturing, agriculture, information technology, and other industries. The path to EU accession provides Serbia with a framework for implementing needed reforms. ■ Do you think that the Serbian government has been moving in the right direction in terms of legal, tax and administrative reforms? - There is cause for optimism. The embassy's work with our partners in the Serbian govern-

ment and the business community is producing results. For example, USAID’s Business Enabling Project created a detailed

American investors? - Serbia has a lot to offer to US companies, both as a destination for US exports but also for

To a great extent, the future of US-Serbian economic relations depends upon Serbia’s implementation of economic reforms and improvements in the business climate investment. The image of Serbia in the United States, however, is still tied to the difficult period of the 1990s. Few American companies are aware of the changes that have occurred here since 2000. Serbia should focus heavily on rebranding the country in international markets, including the United States, with a targeted campaign that leverages and expands upon the numerous advantages that Serbia affords to the international marketplace. ■ If Serbia obtains a date for the beginning of the EU accession negotiations, is the country going to become more attractive to American investors?

Serbia has a lot to offer to US companies, both as a destination for US exports but also for investment. The image of Serbia in the United States, however, is still tied to the difficult period of the 1990s inventory and analysis of the many parafiscal fees and charges paid by businesses, and provided it to the government for action. Eliminating those fees was a leading AmCham priority to improve the business climate, and the Serbian government rescinded 138 of them last year. That is definite movement in the right direction, but more work remains ahead. ■ What should Serbia do in order to improve its investment climate and attract more

- A start date for Serbia would provide a strong signal to foreign investors that Serbia is on the right path toward EU integration and that it conforms to EU laws and regulations. This should, in turn, build confidence and trust among potential investors coming to Serbia. I would hope that Serbia will take advantage of the start date to begin an aggressive global branding campaign to showcase the many advantages that Serbia offers foreign investors. ■

USA - Serbian Business Synergy | 13

interview

Mark Crandall, General Manager Continental Wind Serbia

Winds of Change Serbia has been going through some very difficult periods, and the government was juggling several things at the same time – regional cooperation, Kosovo issue, general FDI attraction, global financial crisis. Overall, we are satisfied and the fact that we have relocated our company’s headquarters from London to Belgrade in September 2012 says enough of our belief in Serbia motivated, but they often lack human resources to take them where they strategically want to be. That is why Continental Wind early on joined National Alliance for Local Economic Development (NALED) as an organization which strives to advance local governments across Serbia and brings together investors, such as us, and local governments, such as Kovin, to fight together for a better future.

ver since we entered the Serbian market in 2009, we’ve had an excellent relationship with the local community. The municipality of Kovin has been very engaged with our project, and we see them as our friends and partners. The same is with the villages of Mramorak and Dolovo – where our wind project will actually be situated. ■ Your company uses a very direct business format: find a new market, make an early entry and cooperate with local partners and community. Were you able to implement this format in Serbia too? - As of this year, we are expanding relationship to the local community of Vladimirovac. Wherever there is any impact on the local community, we want to be present early on to speak with citizens, understand their needs, and become a part of that community. This is essential for any business to succeed and Continental Wind believes strongly in this logic. That is why we also have a profit sharing agreement with communities in which we work and an annual Social Investment Plan to help local initiatives. I have to say that local governments in Serbia are driven and

■ What are the advantages of early market entry? - Continental Wind is known as a company which carefully researches the markets and is an early entrant to those which have considerable

Wherever there is any impact on the local community, we want to be present early on to speak with citizens, understand their needs, and become a part of that community

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potential. The best example is certainly Romania where we started developing our Fantanele project when the country had only 14 MW of wind capacities installed. Last year, we completed our 600 MW project which is now the biggest on-shore wind farm in Europe, and Romania today has wind farms with a total capacity of close to 2 GW. We have the same approach in Poland, Bulgaria, Serbia, and we are currently also looking at Croatia. Being an early

entrant means you have less competition, more opportunities to position yourself well in the country and local community, have a better and more geographically diverse choice of locations. However, it also means that you have a higher risk of whether your investment will ever come true, less predictability, and you have to work more than other developers on the legislative framework of countries – a job that not many companies in this business have to do. In Serbia, for example, in 2010, along with several other investors, we established the Serbian Wind Energy Association (SEWEA) to partner with the government to adapt and adopt a whole set of laws in order to make investments into wind farms possible. This is a very complicated task – we’ve been working on it since 2009 and the job is not yet done, although we can now see the light at the end of the tunnel. Finally, the good news for any country where Continental Wind is present is that other companies will follow – which means new investments and a better reputation in FDI circles. ■ Your plan is to invest €450 million in building the first 300 MW wind farm in Serbia, in Dolovo near Kovin. How far are you with implementing this project? - We’ve come a long way with phase one of this project, which is approximately 145 MW “Čibuk 1” wind

farm, which will cost about €300 million to build even though it is only half of the final project we want to complete. The way I see it, there are five phases in these kind of projects in emerging markets: (1) development – everything from land acquisition to construction permitting for the entire project, including wind farm, overhead power line, roads, cabling, etc; (2) legislation – making sure that the legislative environment is such that international financial institutions or commercial banks will support you; (3) procurement – procurement of turbines and tendering process for construction; (4) financing – attracting equity investors and debt investors/creditors; and (5) construction – which is the very end of the process. I’d say that we finished three fourths of phases 1, 2 and 3 (development, legislation, and procurement), and we are deep into phase 4 (financing). Nevertheless, financing depends heavily on the remaining part of development and legislation. One important milestone we have to achieve, together with the Ministry of Energy, is adoption of a Power Purchasing Agreement (PPA) which will be acceptable to banks. Without it, all that we’ve done so far can turn out to be in vain. That’s the unpredictability of an emerging market, but we believe that we are on the right path to getting this resolved as the current Ministry showed a great deal of efficiency and willingness to find compromise. As for the second phase of the project, we will see how the market develops because the cap on wind is currently set on 500 MW which is insufficient to accept all the projects currently being developed, let alone new ones. ■ Considering the value of the investment, the wind farm project is one of the most important projects in the renewable energy sources segment in Serbia. Following the construction, how long does it usually take a wind farm to reach 300 MW in power, and how many house-

holds would be getting the power from it? - The deadline set by the Energy Law is to finish the construction two years from obtaining the Preliminary Privileged Power Producer (PPP) status. So, if everything goes as planned, we should finish the construction of “Čibik 1” project in the spring of 2015. With the commissioning procedure and the time to obtain Energy Licence and

full PPP status, I think that about

and frustrating journey. The Energy Law was changed in 2011 to provide a framework for renewable energy investments. There have been some changes to the Law on Planning and Construction to enable construction of wind farms. We waited for more than a year for decrees which would govern the new Energy Law, and this Ministry adopted them in January this year. We are now working on the PPA model and, once that is done, I’d say that Serbia is ready for inflow of major investments in this sector. ■ How satisfied are you with your cooperation with the state and local authorities? - As I mentioned before, the cooperation with local authorities has been amazing. They are less burdened with everyday politics and see direct benefits of this investment. On the other hand, the cooperation with state authorities has often been very inefficient. That’s understandable as Serbia has been going through some very difficult periods, and the government was juggling several things at the same time – regional cooperation, Kosovo issue, general FDI attraction, global financial crisis. Overall, we are satisfied and the fact that we have relocated our company’s headquarters from London to Belgrade in September 2012 says enough of our belief in Serbia. Now in addition to our Serbia team, we run all of our other European activities, like financing and procurement, from Belgrade.

One 40,000 households will have their first kilowatts from this wind farm extremely As I said, this is going to be important and inthe2015. first phase of what we want to do beneficial in Serbia. Hopefully, in the meantime, we will start with the “Čibuk quality of 2” project which is going to be anwind farms other investment of about €300 is that 70% million. One extremely important and beneficial quality of wind farms of their is that 70% of their production is in production is the winter, when Serbia imports the energy and at very high prices. in the winter, most Wind farms will help Serbia become when Serbia more energy independent. imports ■ Despite substantial interest ■ How large is Serbia’s potenthe most shown by investors, Serbia still tial in using wind as an energy energy and hasn’t produced a single “green” source, and does the country due to slow administra- have enough suitable locations at very high kilowatt tion and inefficient regulation. for wind farms? prices. Wind You are also waiting for relevant - We estimate that Serbia can probylaws, which would enable you duce up to 10% of its energy needs farms will to proceed with the project, to be from wind in the next six or seven help Serbia adopted. What progress has been years. There are suitable locations made in changing this regulation? and the conditions are good – much become In the past four or five years so better than in many other countries more energy -much has been done. It has been an in the region. So, we all have to do interesting and often highly stressful our bit to make this into reality. ■ independent USA - Serbian Business Synergy | 15

interview

Susan K. Fritz, USAID Mission Director

Ongoing Support The significant progress that Serbia has made is clearly visible: obtaining EU candidacy status last year is confirmation of that. And certainly, from the USAID perspective, we are working to put ourselves out of a job! We will be very happy to see a stronger, more independent Serbia, one that will be an aid donor country, rather than a recipient, one day

round the world, USAID is working with individuals, governments, and other organizations. USAID supports sustainable development: economic and social growth that does not exhaust local resources; that does not damage the economic, cultural, or natural environment; that permanently increases the cohesion and productive capacity of the society; and that builds local institutions that involve and empower the citizenry. USAID has been present in Serbia for over ten years now, and USAID Mission Director Susan Fritz points out for us many of the areas in which the organization has and continues to support the process of strengthening democratic institutions and helping to improve the lives of the whole country.

during that time? - USAID enjoyed great success during its first decade in Serbia through its partnership with the Serbian people, their government, private sector businesses, and civic organizations. For example, in the beginning, USAID’s Community Revitalization through Democrat-

USAID/Serbia has actually developed a new Country Development Strategy for Serbia, for the period covering 20132018. The draft is currently under review in Washington. The primary objective of this new strategy is to advance Serbia's stability and Euro-Atlantic integration

■ Last year, the USAID mission

celebrated a decade of its presence in Serbia. How would you describe these past 10 years in light of the changes in Serbia

16 | USA - Serbian Business Synergy

ic Action program was extremely successful in promoting citizen participation, improving local conditions and jump-starting the economy. USAID completed more than 5,000 small infrastructure projects directly benefitting the residents of more than 600 communities. Over time, USAID assistance

evolved to meet the changing situation and needs in Serbia, always in partnership with our Serbian beneficiaries. For example, USAID's Municipal Economic Growth Activity helped more than 30 municipalities to become business friendly, attract more than €1.6 billion in investments, create over 18,000 new jobs and support 500 new businesses. USAID's support for improved international standards and certification, branding and marketing, visual identity, and participation in trade missions and business fairs resulted in $128 million in increased sales and almost 8,000 new jobs in the agribusiness sector. Our judicial strengthening programs have helped courts to reduce backlogs, improve efficiency and increase transparency. Our support to Serbia's media, civil society, and governmental institutions, including all three branches of government, has demonstrated our commitment to Serbian reform processes.

Since 2001, the US government has spent $843 million to benefit the people and institutions of Serbia, $689.4 million through USAID assistance programs. ■ USAID is currently implementing the Country Strategic Plan for Serbia 2011-2015. What are the main goals and priorities of this plan for the following period? - USAID/Serbia has actually developed a new Country Development Strategy for Serbia, for the period covering 2013-2018. The draft is currently under review in Washington. The primary objective of this new strategy is to advance Serbia's stability and Euro-Atlantic integration. From a governance perspective, our main goal is to strengthen the accountability of Serbia's democratic institutions. We plan to do this by improving judicial oversight and the rule of law; helping the parliament and local councils become more responsive to citizen priorities; and strengthening civil society's engagement and influence in public life. On the economic side, a key objective is creating jobs and increasing investment in Serbia by improving the overall business environment, advancing regional economic development, and helping companies to become more competitive. ■ USAID’s programs are mainly

focused on two components – growth of economy and democracy. What priorities should Serbia have relative to these two components? - Strengthening the accountability of Serbian institutions to its citizenry is a priority for USAID. Obviously, strengthening the rule of law and promoting governmental integrity and transparency are key items on Serbia's European Union (EU) accession agenda, which is one of the focal points for USAID

and the entire U.S. Mission. Improving the environment for all businesses is another USAID priority and one of many of our Serbian government counterparts. Improving the legal framework for construction permitting, for example, will remove a critical barrier to domestic and foreign investments. Streamlining the system of inspections to make them more predict-

Our goals in Serbia remain unchanged. We will continue to strengthen democratic institutions and processes, improve Serbia's economy, and assist Serbia as it moves toward Euro-Atlantic integration able, transparent and efficient, will protect consumers, and will enable companies to spend more time and effort expanding their businesses. It is also important to help companies to improve their competitiveness and expand into new markets in Serbia and beyond. Increasing exports is in the interests of the companies and their employees, and all of Serbia, since companies that export products are often better equipped to withstand market fluctuations. ■ The global economic down-

turn has led to cutbacks in donor funds. Does this apply to the USAID Mission in Serbia too? - USAID/Serbia's budget has been cut by nearly 50 percent over the

past two years from $35.2 million in fiscal year (FY) 2011 to $16.8 million in FY 2013. We expect our budget will continue to be reduced as the US government grapples with spending cutbacks, austerity measures, and changes in its domestic and international priorities. However, our goals in Serbia remain unchanged. We will con-

tinue to strengthen democratic institutions and processes, improve Serbia's economy, and assist Serbia as it moves toward Euro-Atlantic integration. ■ Donors and donor agencies

in Serbia and the former Yugoslavia, which played an important role during and after Milošević’s reign, have been slowly retreating. Do you think that this is a sign of Serbia getting stronger and more independent? - The significant progress that Serbia has made is clearly visible: obtaining EU candidacy status last year is confirmation of that. And certainly, from the USAID perspective, we are working to put ourselves out of a job! We will be very happy to see a stronger, more independent Serbia, one that will be an aid donor country, rather than a recipient, one day. The donors that remain in Serbia are very committed to Serbia's development. Certainly there are a number of areas that we, and

USA - Serbian Business Synergy | 17

other donors, believe are still important, such as strengthening Serbia's competitiveness, building accountable, democratic institutions, and encouraging civil society. We are renewing and sharpening our commitment to those areas through our new strategy. Please note that the global economic crisis has affected donor agencies and their budgets just as it has affected governments, businesses, and ordinary citizens around the world. The downturn in the global economy, along with Serbia's growing stability and progress, may be the best explanations for reduced donor assistance.

Germany. We also helped companies in the same industries – such as shoes, jeans, and halal food – join forces in business clusters to reduce the costs and risks of entering new markets. As a result, we helped growth-oriented companies and young entrepreneurs to grow and create over 1,500 jobs, while many other compa-

■ Considering the current un-

employment rate, a crisis in industry, an underdeveloped agricultural sector and other economic problems, do you think that Serbia has really reached the maximum of its capacity? - Absolutely not. Serbia's private sector has incredible potential to grow, especially if business regulations are streamlined to make it easier for companies to operate and grow.

The global economic crisis has affected donor agencies and their budgets. The ■ Speaking about Serbia’s dedownturn in the global economy, along with velopment, we have to mention the uneven regional de- Serbia's growing stability and progress, velopment in the country. In may be the best explanations for reduced which way do USAID programs contribute to development of donor assistance the underdeveloped parts of Serbia? - In addition to improving the business environment, which will benefit all companies in Serbia, USAID has devoted substantial resources to helping companies in southern Serbia grow. For example, our Economic Security program, which just ended, helped companies to improve their products and operations in order to enter new markets, in particular in Russia, Poland, and

18 | USA - Serbian Business Synergy

nies in the same sectors shrank. Through our Sustainable Local Development Project, USAID is working on economic development in eight regions around the country on priority projects that will create jobs by expanding the private sector. ■ An independent media is one

of the main forces in developed democracies. Serbia is about to enact a new set of media laws. How independent is the

media in Serbia, and where does their strength lie at the moment? - Serbian independent media is making progress and enjoys greater civil liberties, but there is still much room for improvement. Reporters Without Borders' 2013 review states legislative reforms have brought improvements but obstacles remain. Similarly, IREX's 2013 Media Sustainability Index states Serbia has made gains, but its media have no clear pathway to sustainability and lack some freedoms. Freedom House currently rates Serbia's press as "partly free." When discussing media independence, it is important to note that Serbia's media reforms are just one factor in the equation. Serbia's economic crisis has hit the media as hard – perhaps harder – than other sectors of the economy. In addition, Serbia's media (and media worldwide) are adopting new technologies that are transforming established business models and creating an unsettled environment for them to navigate. USAID has supported Serbia's independent media for more than 15 years. Even though our budget is significantly smaller than in the past, we are still working to find ways to partner with media support organizations, or coalitions of organizations, on important issues like media literacy. I believe the strength of Serbia's independent media lies in their tremendous experience, energy and talent; their commitment to democratic values and the public interest; and their sizable potential to work collectively to move Serbia forward. At the same time, it is imperative that Serbian journalists maintain the highest professional and ethical standards, especially since opinion polls state public trust for the media remains quite low. ■

interview

Pavle Marjanović, Director of Actavis Serbia

Drugs Must Be Affordable The pharmaceutical industry of the 21st century has to be socially responsible, in other words, to provide enough drugs regardless of the economic situation. Serbia is no exception – the problems with healthcare funds are global

espite the declining pharmaceutical market in Serbia, the pharmaceutical company Actavis Serbia has recorded growth both in 2011 and 2012. Director of Actavis Serbia, Pavle Marjanović, comments on the reasons for the decline and says that they are many, including the history of illiquidity, the bankruptcy of the biggest drug wholesalers and pharmaceutical companies not being able to settle their claims from those wholesalers. “We have managed to settle our claims, and I do believe that financial health is at the root of success of any company,” Marjanović says, and he adds: “On one hand, you need to be a magician to maintain a constant supply of drugs to pharmacies. You cannot say that you are mad at the state for having an unfavourable dinar/euro exchange rate and refuse to deliver drugs. You need to maintain the supply. On the other hand, your products have to be paid for, and you have to have a sound cash flow because this is something from which our branch and our factory, which has 450 employees, live. We have managed to find a balance between the two priorities – making Actavis’ drugs available to all pharmacies in the country and being paid for our supply. We have stabilized our distribution by choosing reliable distribution partners, regardless of their size.”

■ One of Actavis’ goals is to become the key partner to medical community through developing and supplying quality generic drugs of the latest generation. How have you managed to reach those goals? - Actavis is one of the leading companies on Serbia’s pharmaceutical market so one of our priorities is to launch high quality generic drugs of the latest generation at affordable prices. This is important also because of the situation that the Republic Health Insurance Fund (RFZO) is in. It is also important for doctors, and even more so far patients, to have the latest generation drugs at their disposal. In many cases, Serbia has obsolete therapeutic categories, and the reasons for this are drugs that are too expensive or some drugs are on

Our mission is to develop classes of drugs that are lacking or are not available in Serbia and to do that by educating doctors and pharmacists the “positive” list, but are, due to many limitations, available to only a handful of patients, or they are not even on the list. Our mission is to develop classes of drugs that are lacking or are not available in Serbia and to do that by educating doctors and pharmacists. I would like to underline that we have been doing all of this at very affordable prices since that is the only way for us to be successful.

■ Actavis is the third biggest generic pharmaceutical company in the world. What part does Actavis Serbia play in that? How important was the merger for Actavis Leskovac? - The merger with the US company Watson Pharmaceutical was completed in October and a new Actavis emerged. Globally speaking, we have very ambitious plans. We do not think that what has been happening in Serbia is an exception to the rule – the problems with healthcare funds are global. The crisis is global. The recipe for overcoming this crisis, if we are talking about the pharmaceutical sector, is to become a contemporary generic company. In regard to our factory, this is a great opportunity for us, since the factory has been completely modernized and its operations harmonized with the latest standards of the Danish Medicines Agency. ■ In which way do you think can the pharmaceutical industry reconcile the interests of healthcare, science and business in the best possible way? - The pharmaceutical industry of the 21st century has to be socially responsible, in other words, to provide enough drugs regardless of the economic situation. Social responsibility is crucial for long-term development and survival. Through partnering with relevant authorities, we need to find ways to create a sustainable business format both for the RFZO and pharmaceutical companies. ■

USA - Serbian Business Synergy | 19

interview

Miloš Đurković, AmCham President

Constructive Partnership for Faster Reforms Some of the recommendations that AmCham gave in this period have become a major factor in economic reforms and development. Still, we cannot help but notice that the pace at which the reforms have been conducted is much slower than the business sector would have liked have indicated to us, so our goal is to minimize these obstacles and exert influence in improving the conditions for doing business.”

he American Chamber of Commerce (AmCham) has been present in Serbia for 12 years. During this period, AmCham has been adjusting to changes in the country and has been adapting the main focus of its activities to suit the prevalent economic, social or political environment. According to the President of AmCham Serbia, Miloš Đurković, AmCham's task, and the task of all participants in Serbia’s economic process, is completing structural reforms and improving the investment climate in Serbia. “Our goal is to be a constructive partner to the Serbian government and the voice of over 175 of the largest domestic and foreign investors. Prior to the formation of this government, AmCham proposed eight priorities in the areas of fiscal policy and structural reform. Many of these reforms have already been implemented, and we shall continue to give our contribution in order for the remaining reforms to be implemented as soon as possible. Apart from that, we are engaged in promoting Serbia as an attractive business destination, and this will remain our priority in the future too. Still, there are many obstacles that investors

■ What is the single biggest success that AmCham has achieved in the last 12 years of its operations in Serbia? - When the American Chamber of Commerce was founded in Serbia in 2001, one of our priorities was facilitating a constant and constructive dialogue as the foundation for cooperation between the public and the private sectors. Today, we are pleased to say that we have accomplished that goal, and that during the last eleven and a half years, AmCham

If, in 2013, we are consistent in implementing the required reforms, we can expect to see the bold projections coming to life

20 | USA - Serbian Business Synergy

has become a constructive partner to the Serbian government, as well as an impartial evaluator of the success of economic reform. To this day, AmCham has given over 100 legislative proposals and more than 200 constructive suggestions and comments with a view to improve economy-related laws and bylaws. The legislative changes would facilitate the business operations of both foreign and domestic investors. Some of the recom-

mendations that AmCham gave in this period have become a major factor in economic reforms and development. Still, we cannot help but notice that the pace at which the reforms have been conducted is much slower than the business sector would have liked. We would like to see a much faster reform process. ■ In a way, you have managed to institutionalize the collaboration with the Serbian government. Governments have changed, but the collaboration persisted. How satisfied are you with your communication with this government? - The current government is willing to conduct structural reforms, which is good. Practically speaking, we are encouraged by the promise given by the prime minister at our conference “The First Lap Time – 100 Days of the Government,” which was dedicated to the amendments to the Labour Law that are supposed to be implemented by the end of 2013, as confirmed by the line minister a month ago. There has been progress in the legislation covering the conversion of the right of use into that of an ownership right, but, at present, the most important thing is to fulfil the promise that the Planning and Construction Law will have undergone the parliamentary procedure by the

mid-2013. Finally, another thing on which we have been insisting is not only passing laws but implementing them too. If the legislative amendments, that we have suggested and that the government has embarked upon, are carried out, we can expect to see better conditions for doing business which, in turn, will increase Serbia’s competitiveness. ■ Through a series of committees and task forces, AmCham has been trying to influence the passing of laws that would spur economic development. Have your proposals been accepted? - The dialogue that we have been having with the state authorities about many the avenues of our collaboration has yielded results. Specifically, in the last four and a half years, suggestions made by the American Chamber of Commerce have resulted in amendments to over 50 regulations, while a substantial number of laws have yet to be formally enacted. Still, we believe progress is possible if the adopted legal measures are consistently implemented. If they are not implemented at all or in an inconsistent manner, there will be a risk of undermining the investment climate. ■ Speaking from AmCham’s perspective, what are the projections for Serbian economy in 2013? - We are optimistic, and we hope for better. If, in 2013, we are consistent in implementing the required reforms, we can expect to see the bold projections made by the World Bank about the Balkans coming to life. According to their projection, Serbian GDP could grow by up to 2% which would be the highest GDP growth in the region of Southeast Europe. ■ Which economic areas and branches carry the biggest potential in terms of the cooperation between the US and Serbian businesses? The American Chamber of Commerce supports any expansion of the

economic cooperation between Serbia and the US and new opportunities for making investments in Serbia. AmCham also sees Serbia as a reliable location for US investments. If Serbia additionally improves its business environment, it will become even more attractive to US investors. Still, one of the branches of the Serbian economy which carries a huge potential is the IT industry. In 2012, Serbia exported €240 million worth of software, while this economic branch currently employs 6,500 people. In order to promote the potential of the Serbian IT industry, the US Embassy and the

government, with the help of The dialogue Serbian the American Chamber of Commerce that we have in Serbia, have arranged for a high delegation from Serbia to visit been having level the US to participate in the Serbia-U.S. with the state Government & IT Technologies Trade authorities Mission with the aim of promoting investment potential to US about many Serbia's investors. The delegation, led by Serbian Prime Minister Ivica Dačić and avenues US Ambassador to Serbia Mr. Michael of our Kirby, will also include AmCham's collaboration management, directors of the biggest operating in Serbia, has yielded ITandcompanies several representatives of the line results ministries. As a part of this program, AmCham will hold an IT investment conference under the working title of “Why Believe in Serbia?” at which we are going to gather US IT companies and do our best to convince them to invest in Serbia. This conference is a rather unique event and could be a once in a lifetime chance to promote Serbia as a country with exceptional potential for the development of the software industry, which, in turn,

will improve the country’s position as an investment destination. ■ In terms of structural reforms in the economy, do you think that Serbia has done enough in that respect and what should we improve as a priority? - The American Chamber of Commerce has identified three areas that we believe can be reformed during the first year of the government’s term in the office, and, if this is done, the conditions for doing business in Serbia will improve. Primarily we are talking about labour laws, construction and planning and parafiscal charges. In terms of labour laws, several groups of problems have surfaced. The first key problem is excessive administration, and the second one is the necessity of having flexible employment contracts that will facilitate the employment of as many people as possible. The second area that needs to be reformed is construction and urban planning. We are basically referring to expediting the process of issuing construction permits and reforming the process of the conversion of a right to use land into that of an ownership right. We expect this field to be reformed in the very near future. With regard to parafiscal charges, the implementation of measures pertaining to their regulation and reduction is going really well, while the amendments to the Budget System Law, which talks about devising a transparent and predictable format of determining parafiscal charges, are very important. That means no more hidden fees. In this way, potential foreign investors will know in advance what kind of costs they will encounter. Finally, the public acquisition system needs to be improved, mainly by increasing the transparency and efficiency of tender procedures, limiting the amount of closed-door bargaining, posting public acquisitions on a specialized web portal, publicly releasing annual public acquisition plans and reducing paperwork. ■

USA - Serbian Business Synergy | 21

corporate

Philip Morris

Philip Morris in Serbia – A Decade of a Journey Together Philip Morris cooperates with over 500 domestic suppliers, over 600 registered farmers, as well as 14,000 retailers with over 22,500 outlets across the country. This not only influences the development of local economy and employment of a large number of people, but also on spreading best practices and standards throughout the whole tobacco industry supply chain

hilip Morris in Serbia is the largest domestic cigarette manufacturer. It is a part of the large multinational family of Philip Morris International, the leading tobacco company in the world. In 2013, the company celebrates 10 years of successful business operations in Serbia. Philip Morris to date is the largest US investor in Serbia with over USD 800 million invested in modernization of the production facility, products and people. Philip Morris is very proud of the committed and efficient organization it has built in Serbia in the past decade. The company directly employs over 1,000 people across Serbia and their dedicated effort and energy are the key component of company’s success. It is the organizational efficiency and technological upgrade of the production facility that secured not only the sustainability of production in Serbia and success in the local market, but also the export of products labeled “Made in Serbia“ worldwide. Responsible business practices and the introduction of the highest international standards are definitely what multinational companies such as Philip Morris bring to the local market to make it more competitive on a global level. Philip Morris cooperates with over 500 domestic suppliers, over 600 registered

farmers, as well as 14,000 retailers with over 22,500 outlets across the country. This not only influences the development of local economy and employment of a large number of people, but also on spreading best practices and standards throughout the whole tobacco industry supply chain. The company continuously works on capacity building of its suppliers and business partners to help them develop their business in the best possible way. As one of the largest foreign investors in Serbia, Philip Morris actively contributes to economic development also by supporting the government in attracting new in-

Philip Morris to date is the largest US investor in Serbia with over USD 800 million invested in modernization of the production facility, products and people vestments through sharing its positive experience in Serbia with new and potential investors. Philip Morris also invests considerable funds and energy in the realization of projects aimed at resolving some of the key societal issues. In the past 10 years, the company has invested USD 14 million into over 100 community development initiatives. There are two strategic areas on which Philip Morris focuses. The

first is support to entrepreneurship through the program “Start Up for your business” (www.pokrenisezaposao.rs). The main goal of this project is to boost job creation by providing support for starting small and family businesses across Serbia. In the past three years, this program has helped start 160 small businesses which employ over 600 people. All of these businesses still work successfully and will be joined by an additional 110 small businesses which will open in 2013 thanks to this program. The second priority is support to education in order to provide young people an opportunity to develop into future community leaders, but also to motivate them to stay in the country and actively contribute to its development. This program is called “Start up for your future” and thanks to it, Philip Morris has recognized and rewarded over 1000 students in the past 9 years, either with scholarships or project grants for the realization of community beneficial projects. Looking back at the past ten years, Philip Morris has a lot to be proud of – people, production facility, business practices and projects that changed the face of the community. And this is only the beginning, as we continue our journey together in Serbia. ■

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corporate David Banjai Plant Manager at Ball Packaging Europe

Growth Despite Crisis Predicting growth in the region, we doubled our production capacity in 2011 which brought us thus far the best business results in 2012

ast year, Ball Packaging Serbia accomplished a great business success relative to the year before. According to the company’s general manager, David Banjai, the can industry did not manage to avoid the crisis, but it did demonstrate exceptional resistance to it. According to new figures released by Beverage Can Makers Europe (BCME), more than 59 billion cans were produced in Europe in 2012 which is a 3.7% increase from last year. “This is especially noticeable in Eastern Europe where the growth was 5.7%, with Hungary, for instance, increasing sales nearly 28%. Predicting growth in the region, we doubled our production capacity in 2011 which brought us thus far the best business results in 2012.”

We export to Poland, the Netherlands, France, and Germany. Libya is a new market for us. It will be very challenging, and we are excited since this is an opportunity for Serbian exports to increase ■ This year, your plan is to produce the biggest quantity yet – 1.5 billion cans, as well as export to the Libyan market for the first time ever. What are your most important export markets? - We are naturally inclined towards Southeast Europe. We are a part of BPE’s European system – our capacity is available to our central planning department when an immediate increase in supply demands so. We export to Poland, the Netherlands, France, and Germany. Libya is a new market for us. It will be very challenging, and we are excited since this is an opportunity for Serbian exports to increase. ■ Ball Packaging has been constantly upgrading its capacities and applying new technological solutions. Where do you find the money for investing in new capacities – a bank loan or company’s current revenue? - The money for investments usually comes from our current revenues, although we have used financial market sources. We are currently working on reducing the weight of our tin while keeping all the same properties that our clients find important. This will reduce our material consumption and CO2 rate in the supply chain. ■ In which way has Ball Packaging been raising awareness about importance of recycling in Serbia? - A non-profit youth education organization called the ReCan Foundation is our biggest recycling project. Together with primary schools and youth organizations, we have been promoting the importance of primary waste selection and recycling. ■

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corporate Tomasz Rogacz Market Manager McDonald’s Serbia

25 Years in Serbia We will be opening three new restaurants in Belgrade and Novi Sad in 2013, and our goal from 2014 onward is to open at least two new restaurants a year

quarter of a century of presence on the Serbian market is no small feat. Describing the first quarter of a century in Serbia, Tomasz Rogacz Market Manager of McDonald’s Serbia says that McDonald’s has always stood for consistent quality: “You always know that you will get exactly the thing you ordered and that it will taste and look the same no matter whether you are in Belgrade, Novi Sad or Nis. But, we have also been open to change. We have adapted in accordance with the expectations of the local market - of our customers. We strive to

We have been a trusted and reliable partner for many local suppliers anticipate and fulfil our customers’ needs with new offers such as the McBreakfast menu, McWraps, new desserts – the list is almost endless. Such was the case with our McCafe concept. On the other hand, we have been a trusted and reliable partner for many local suppliers, who have grown alongside our company and who fulfil our strict standards of food safety and, most importantly, quality.” ■ What new things can we expect this year in terms of opening of new facilities and new consumer products? - We have already introduced quite a few new items, McWraps being the biggest addition to our standard menu - and they are soon to be upgraded with new varieties. Also, we now offer freshly baked pastries as a part of our breakfast menu. In terms of new facilities, we will be opening three new restaurants in Belgrade and Novi Sad in 2013, and our goal from 2014 onward is to open at least two new restaurants a year. ■ Serbia is becoming more open to fast food chains. Have you felt that in your line of work, and how do you deal with the competition? - People in Serbia like eating outside. There is a developed IOE market, and our biggest competitors are traditional bakeries. Our way of dealing with competition is simple - offer quality products that the customers cannot get anywhere else. ■

interview

Musfik Karadogan, General Manager Pfizer Serbia

Caring for Your Health We support Serbian healthcare professionals and their professional associations with constant educational efforts aimed at providing the most updated medical knowledge and skills, which in turn helps Serbian doctors to treat Serbian patients better of course, there is a well known Pfizer brand for erectile dysfunction.

■ Pfizer Global Research and De-

ne of the most important parts of the pharmaceutical industry lies in the development of new therapies. Pfizer, as a leader in innovative drugs, takes its role in this area very seriously, not only providing expertise and high quality products, but also giving back to the local communities in which they are present. In this interview with Musfik Karadogan, General Manager, Pfizer Serbia, we learn a little about what that means.

■ In which ways does Pfizer take care of people's health and what are your most important products? - We make medicines and vaccines that are designed to help people when they are sick and help prevent them from getting sick in the first place. Our primary goal is to develop therapies that significantly improve patients’ lives. Furthermore, we perform other activities that ultimately have a positive impact on people’s health and society overall - like improving patient access to medications and providing educational, professional support and expertise to patients, caregivers, healthcare professionals, supporting organizations and authorities. We have a broad range of medicines in almost all therapeutic areas. Maybe the best known Pfizer medicines in Serbia are for conditions affecting larger populations of patients, such as cardiovascular diseases, neurological disorders, glaucoma, and,

We have a broad range of medicines in almost all therapeutic areas. Maybe the best known Pfizer medicines in Serbia are for conditions affecting larger populations of patients

26 | USA - Serbian Business Synergy

velopment is the biggest pharmaceutical research organization. On what sort of research does the organization focus? - You’re right. Historically, we have invested more than $7 billion a year toward developing safe and effective medicines. Collaboration is fundamental to our research and development strategy. Pfizer works with more than 250 partners in academia and industry. We are committed to the safety of patients who take part in our trials, and uphold the highest ethical standards in all of our research initiatives. In our research efforts, we focus on disease areas where the societal burden is already high and expected to increase, due to increased life-expectancy: Neuroscience, Cardiovascular medicines, Oncology, Vaccines and Inflammation/Immunology.

■ What are the main activities and goals of Pfizer Serbia? - The goals and activities of the Pfizer team in Serbia are the same as the company’s mission and values worldwide. That means Pfizer Serbia employees are obliged to perform to the same highest level of professionalism and ethical standards as Pfizer employees in the US, the rest of Europe and elsewhere. Firstly, we oversee the regular supply of our medications to hospitals and pharmacies. We demonstrate our corporate social respon-

sibility and, for example, have even supplied oncology medicines where other manufacturers have not been able, ensuring that Serbian patients had access to sufficient quantities of these important treatments. As the global leader of the industry, we have a very extensive, innovative portfolio. With this innovative portfolio, we either save the lives of patients or prolong their lives, while also increasing their quality of lives as well. This mission makes us proud and engaged. In order to understand our contribution to Serbian society, we roughly estimated last year that we served almost 1,000,000 patients in Serbia, and in addition to this, we saved approximately 10,000 lives. This very significant value for the society makes our job very meaningful.

■ Pfizer is known as a company that has received many international awards for employee relations and social responsibility. What is the company's policy about these two areas? - Pfizer has been a consistent leader in corporate philanthropic giving, and our commitment to corporate citizenship and community involvement dates back to our founding in 1849. For us to be a trusted and responsible member of the communities in which we work and live is to go beyond the business of discovering and developing medicines to give back to our communities through urban revitalization, school partnerships and support for local civic and cultural institutions. ■

interview

Edward Tonchew, General Manager of John Deere DealERSHIP in Serbia

Nothing Jumps Like a Deere When we say “technology,” we mean agricultural machinery in which John Deere implements the latest technological solutions connected with its maintenance as well as supply of the original spare parts. Farmers using this technology can count on significant savings

ohn Deere, one of the most admired global businesses has reported record year in 2012, despite the slow pace of worldwide recession recovery. Its net sales and revenues exceeded $36 billion and Mr. Edward Tonchew, General Manager of John Deere dealership in Serbia, explains reasons behind this success and everlasting devotion to enable growth of its customers.

In our Training and Service ■ Which preconditions have Centre, been met in order to achieve located in such a success? Titel on over - Among the core achievements, John Deere delivered its highest-ever sales 7,500 sqm, and income, made substantial invest- we provide ments to expand its worldwide footprint, and continued its aggressive constant launch of advanced new products. education not As a result, the company remains only to our well-positioned to earn solid profits even in a fragile global economy and, customers in the long run, to benefit from broad but also to all trends that John Deere management other interest believes to hold great promise. groups within ■ Res Trade has been an official John Deere dealership in Serbia agricultural since 2001. As an official rep- sector

resentative, importer, distributor and service provider of John Deere, how do you cope with responsibility of managing such a global brand? - Doing business with such a famous trademark as John Deere, as you pointed out, represents an honour but at the same time, confers a significant amount of responsibility. We perform our activities according to strict dealership standard policies, procedures, and guidelines. This is the reason why we have invested significantly in organization and infrastructure. ■ It is well known that John Deere actually sells technology instead of agricultural machinery. How does it work in practice? - We are responsible for the entire product portfolio of John Deere technology in Serbia. When we say “technology,” we mean agricultural machinery in which John Deere implements the latest technological solutions connected with its maintenance as well as supply of the original spare parts. Farmers using this technology can count on significant savings. However, in order to use this technology, farmers must be educated, and this is the second pillar of our strategic development. ■ Res Trade is well known for creating synergy between education and agriculture. How is this synergy supporting development of agricultural industry in Serbia? - In order to transfer this knowledge to customers, we heavily utilise the education component of business. In our

Training and Service Centre, located in Titel on over 7,500 sq/m, we provide constant education not only to our customers but also to all other interest groups within the agricultural sector. We possess a unique venue for the intersection of theoretical and practical knowledge, and we believe that appropriate education is fundamental to any sort of a success. Farmers are more than happy to learn not only about how to operate the latest models of John Deere tractors and combines, but also to learn about other developments in industry which will make their business more profitable. Irrigation is one of the topics to which we pay particular attention due to the fact that last year agriculture in our country was heavily hit by drought. ■ How do further plans for development of Res Trade Group look like? - First of all, there are further strategic development plans related to John Deere and the increase of its portfolio and product groups. Apart from tractors and combines, there is the Turf program. Furthermore, following the vision set by owner of the Group, Mr. Milenko Popovic, we will further strive in preserving synergy between agriculture and education. Development of our agricultural complex, with its arable land, live stock farms and slaughter house, is also related to the further utilization of resources. Quality is not anymore a competitive advantage; it is a standard, especially in our business. Our customers are used to it and we will compromise neither their expectations nor John Deere brand. ■

USA - Serbian Business Synergy | 27

corporate

NKO Law office (belgrade, serbia) & McGuireWoods LLP (Richmond, Virginia)

A Serbian Law Firm Applying American Standards The largest international law firms, including US based law firms, have recently changed their strategy regarding the establishment of offices in central, eastern and southern Europe. Firms such as Linklaters, Clifford Chance and DLA Piper now find partnering with local ‘best friend’ law firms much more beneficial than having their own ‘satellite’ offices. These local partner firms have developed the skills and expertise to provide services in accordance with some of the best international practices Djordje Nikolić djnikolic@nko-law.com

Petar Orlić porlic@mcguirewoods.com

ne such partnership is that between NKO Law office headquartered in Belgrade and McGuireWoods LLP, headquartered in Richmond, Virginia. In an interview with Djordje Nikolic, partner of NKO in Belgrade, and Petar Orlic, Senior Counsel in McGuireWoods’ London office, we discuss how US investors deal with various legal challenges when doing business in Serbia and how the two firms cooperate to overcome these challenges and aim to make investing in the region as straight-forward as possible.

actively participates in programs sponsored by the US government and its non-governmental institutions. These relate to the improvement of the Serbian legislative framework and its harmonization with international standards. We are also active members of the American Chamber

American investors face the same legal problems in Serbia as investors from other countries, but the adoption of a double taxation treaty between the two countries would certainly improve the position of US based companies investing in Serbia

■ What experience does NKO law office have regarding US based institutions, companies and law firms? - There are several ways in which we cooperate with US entities and organizations. First of all, we represent a number of US-based companies in Serbia and Montenegro. NKO also

28 | USA - Serbian Business Synergy

of Commerce (AmCham) and its advocacy working groups. Finally, we cooperate closely with the US law firm McGuireWoods, with whom we have successfully worked together on a number of projects. ■ Which US companies have you come across during your profes-

sional career and how would you describe cooperation with them? - We work with a number of US based clients, such as News Cooperation, Fox International Channels, Sitel, Bank of America, Chemonics International, Pepsico, Boston Consulting Group, CB Richard Ellis and Monad Financial. Not only do they expect their lawyers to be thorough and detailed but also to present their findings in a pragmatic and concise manner. Furthermore, they want their lawyers to understand the wider, commercial implications of any deal. They demand an impeccable service of the highest level and it is always a pleasure working with them as they have clear expectations from their business partners and service providers. ■ What kind of legal services do US clients/investors usually request? - It depends on the particular indus-

try in which the client is involved. Our work primarily relates to dayto-day corporate issues, employment, litigation, real estate, antitrust, commercial, banking and finance and tax advice. We have also represented US clients in large M&A transactions and assets acquisitions as well as in high profile litigations. ■ Does NKO provide services to US citizens as well? - We specialize in commercial law; hence most of our clients are legal entities such as companies or institutional investors. However, from time to time we receive queries from individuals that relate to certain ‘private client’ related issues and we try to help when we have adequate expertise for a particular matter. For example, when the recent Restitution Law was adopted in Serbia, we made a presentation to the US Embassy regarding the key legal issues. The aim was to inform US citizens on the restitution procedure and advise them of the documents needed to file restitutional claims. The feedback received was that the presentation was very helpful as it focused on the issues that are specifically applicable to US citizens. ■ You said NKO participated in the programs for improvement of the legislative framework that are sponsored by the US government. Can you tell us something about these programs? - We have participated in a number of ‘working sessions’ organized by USAID's Business Enabling Project, an organization formed to help the government of Serbia improve its business and legal environment. The sessions included discussions with Serbian government officials on improving the legislative framework relating to the status of land, conversion of land rights and construction permits. Through our membership in other professional organizations, we also advise on existing laws and provide input to proposed draft legis-

lation in relation to, for example, corporate, mining, media, telecommunication, labour, wholesale and retail. NKO also recently participated in the EBRD-sponsored program for reform of the telecommunication legislative framework in the region, including Serbia, Montenegro and Bosnia. ■ What changes can be made in order to improve the legal position of US companies at the local level?

Both NKO and McGuireWoods are members of LNI. LNI is a network of independent law firms covering over 50 countries worldwide - I think both McGuireWoods and NKO agree that US investors face the same type of problems in Serbia as investors from all over the world. These are primarily as follows: the unpredictability of the legislative framework; the ‘red tape’ and bureaucracy within administrative and court systems; and a discrepancy between the laws which need to be harmonized. Beyond these general observations, we believe that US investors would also very much benefit from the implementation of a Double Tax Treaty with Serbia. ■ Petar, can you tell us something more about McGuireWoods and its activities in the region? - McGuireWoods is still developing its market presence in CEE. We

are an international law firm with more than 900 lawyers in 19 offices around the world. We cross borders, practices and industries in the US, UK and Belgium as well as collaborating with ‘best friend firms’ in locations where we are not present such as Australia and New Zealand, Canada, Central and Eastern Europe, China and Hong Kong, Far East, France, the Indian Sub-Continent, Israel, Japan, Latin America, the Middle East and North Africa, Nordic and Baltic countries, Russia and the CIS, Sub-Saharan, Southern and East Africa and Western and Southern Europe. We also have a number of unique cooperation agreements with a number of law firms, and our international practice is further enhanced by our participation in global legal networks such as, Lex Mundi and LNI. ■ What is the relationship between NKO and McGuireWoods? - Djordje and I met seven years ago when I was seconded to Merrill Lynch in Belgrade, where we worked together on several projects. I recognized not only his excellence as a lawyer, but also his commercial awareness and ‘solutions-driven’ attitude. Going forward and working closely with Djordje and NKO, McGuireWoods began to develop an excellent network of clients and contacts in the region which have led to representing a number of private and institutional US investors throughout the whole of the former Yugoslavia. Real Estate, Energy and Media are just some of practice areas in which McGuireWoods & NKO have advised on together in the region. Furthermore, both NKO and McGuireWoods are members of LNI. LNI is a network of independent law firms covering over 50 countries worldwide. It offers its member firms and their clients’ access to high calibre legal services all over the world. McGuireWoods is a founding member and a number of its partners are on the Steering Committee. ■

USA - Serbian Business Synergy | 29

investment

Steady Growth The level of commercial interest has been steadily growing thanks to the active promotion of America’s commercial activities in Serbia. U.S. investments in Serbia have been boosting the economy by creating new jobs. U.S. companies in Serbia employ 8,000 people and they have been supporting many other commercial endeavours as business partners, suppliers or end users

lthough the National Bank of Serbia’s official January-November 2012 report says that the United States of America is the tenth biggest investor in Serbia, in reality, the country’s investments here are much higher. Some U.S. companies have been investing via their branches usually located in the Netherlands and in other European countries. During the aforementioned period, the U.S. invested a total of €25.5 million. The 2011 data shows that the U.S. invested €25.6 million net in cash. Several leading American corporations have been successfully operating in our country, with two of them standing out. The second biggest can producer in the world – Ball Corporation – has built a mod-

ern production facility in Zemun which employs over a hundred domestic experts. The company’s products are exported to a number of regional and European countries. Although the actual investment is not that substantial, Microsoft’s opening a development centre in Belgrade in 2005 had a great symbolic importance for Serbia. In 2005, the U.S. IT giant had only

Even during the economic crisis, in 2009, American investors in Serbia continued investing but to a somewhat lesser extent three such facilities in the world. The level of commercial interest has been steadily growing thanks to the active promotion of America’s commercial activities in

Leading SITC segments in exporting to the U.S.

Serbia. U.S. investments in Serbia have been boosting the economy by creating new jobs. U.S. companies in Serbia employ 8,000 people and they have been supporting many other commercial endeavours as business partners, suppliers or end users. Such investments also benefit bilateral trade by creating new opportunities both for U.S. exporters and local businesses. The biggest American investments in Serbia include Philip Morris Corporation acquiring the Niš Tobacco Industry (DIN) in August 2003 by winning in a privatization tender. The corporation has invested €636 million so far and has hired over 1,150 workers. Also in 2003, U.S. Steel acquired Serbian steel producer SARTID with the total investment amounting to

Leading SITC segments in importing from the U.S. Chemical substances and products, not mentioned elsewhere

Various finished products, not mentioned elsewhere

15%

13%

3% 3% 16%

50%

Non-ferrous metals Coffee, tea and spices Various food products Other

30 | USA - Serbian Business Synergy

52%

Power machines and devices

6% 7%

Medical and pharmaceutical products Scientific and control instruments

9% 11%

14%

Road vehicles Crude oil and petroleum products Other

over $300 million. The company now has 5,000 employees. Ball Corporation from Colorado has realized the biggest greenfield investment in Serbia so far, worth $75 million, by opening an aluminium can production facility. In February 2005, Coca-Cola bought a Export to import ratio, in % 30

26.56

25.93

21.94

27.36 22.88

20 15

17.56

16.79 13.53

10 5 0

2005

2006

2007

2008 2009 2010 2011

2012

Even during the economic crisis, in 2009, American investors in Serbia continued investing but to a somewhat lesser extent. In this period, U.S. Steel made a substantial investment in new environmental equipment in Smederevo worth almost €60 million. In 2011, Ball Corporation spent €35 million on proTrade exchange between Serbia and the U.S., in USD millions duction expansion while creating 40 new jobs. Although, their 600 investments are not that high, the 400 following call centre companies 200 should be singled out. They are 0 National Cash Register (NCR) and -200 Sitel. They have decided to launch -400 investment projects in Serbia that -600 2005 2006 2007 2008 2009 2010 2011 2012 will result in creation of 200 and Export in USD Import in USD Balance in USD 500 new jobs respectively. ■

bottled water producer Vlasnika for €2.1 million. In January 2008, Merrill Lynch acquired a 25% share in real estate company MPC Properties which has built the Ušće Shopping Mall in New Belgrade. In August 2008, PepsiCo spent over $200 million on acquiring the Marbo Company.

ALLIANCE ONE TOBACCO

A Tradition of Success Alliance One Tobacco is working on the implementation of good agriculture practice in all stages of the production cycle

mrg

Bringing American Security Companies to Serbia Trusted by customers for more than 20 years

lliance One, Inc., a leading independent leaf tobacco merchant, is steeped in decades of the successful traditions of its predecessors: DIMON Incorporated and Standard Commercial Corporation, when two companies merged in 2005, bringing together 200 years of combined experience and expertise. Alliance One Tobacco’s main business activities in Serbia are based on direct partnerships with local producers. The annual “Golden Tobacco Leaf” award that will be presented for the seventh time this year at the 80th agricultural fair in Novi Sad will therefore serves as a means of recognizing individual tobacco cultivators for their dedication and contribution towards improving the quality of domestic tobacco. Since it was initially founded, Alliance One Tobacco has developed a partnership network with local farmers all over the country, and this reward serves as an incentive on the way to making this relationship even stronger. Alliance One Tobacco is working on implementation of good agriculture practice at all stages of the production cycle; agronomy experts from the company provide technical assistance aimed at improving the quality and yield as well as awareness of environment protection. Besides serving as an accolade, the award also contributes to further development of tobacco production, increased competitiveness, as well as better working conditions within the tobacco industry in Serbia.

re you looking for a worldwide known producer of forensic products? The world’s most famous Conducted Electrical Weapons? State-of-the art explosives and drug detection devices? Possibilities for police officers to detect speeding? Internationally known alcotesters? Installing an in-car-video-and-audio surveillance system? We are able to offer state-of-the-art products from Sirchie Finger Print Laboratories, Taser International Inc., Morpho, Laser Atlana LLC, Intoximeters Inc. Digital Ally Inc. and several other companies. For more than 20 years our customers and partners have trusted us. Tell us your needs, and we will find the right solution! Check out our website for more information:

www.mrg.rs USA - Serbian Business Synergy | 31

Interview Dejan Zarić Director of Dekel DOO Belgrade

Technology That Improves Your Business We have been getting very positive feedback from the market about the quality of our equipment and our customer support

e can positively say that Pitney Bowes equipment saves time and reduces costs in the long run,” says Dejan Zarić, director of Dekel Company, the exclusive distributor for Pitney Bowes Company in Serbia and the region. Over the past 20 years, which is how long Dekel has been operating in Serbia, the company has managed to generate an impressive list of clients and earn a reputation as a reliable partner. ■ Your company is in the document processing business. What are the most important innovations that you use in your services? - The experience of our US manufacturer is far bigger than the competition's thanks to constant application of new solutions in this segment. One of the more interesting innovations is certainly IntelliJet Printing System which is the next level in high-quality inkjet roll-fed print and automatic document inserting. ■ Printing and sending bills, statements and notices demand quality and precision. Pitney Bowes systems have a special place in your offer. - Pitney Bowes is the global leader in production of document and mail management equipment and software. The company does have a wide range of products and I would like to single out the document folding and inserting equipment that is very popular in Serbia at the moment. Pitney Bowes solutions for inserting documents in envelopes are both time and cost-effective and improve your productivity. We have been getting very positive feedback from the market about the quality of our equipment and our customer support. ■ What kind of demands do your clients have, and are you able to meet them? - Pitney Bowes equipment is adapted to client's needs. When inserting personalized material into an envelope, customer data will be printed on it to ensure an even more precise sorting process and allow for additional personalized materials, notices, statements or promo vouchers to be inserted too. This is very important in creating direct mail campaigns to suit certain criteria and target customer segments. ■

32 | USA - Serbian Business Synergy

Trade exchange between Serbia and the U.S.

Fluctuations Corresponding to the Global Crisis The current trade exchange between Serbia and the United States is not satisfactory since it falls so much behind the realistic potential of the two sides, or rather the production and export potential of the Serbian economy and the absorption capacity of the large American market

he trade exchange between Serbia and the United States has always been characterized by deficit. Until 2011, the first notable increase in Serbian exports to the U.S. was recorded in 2005 due to the relaxation of the U.S. trade policy towards Serbia. The same year, Serbia regained its Most Favoured Nation status, which is considered one of the most important World Trade Organization (WTO) parameters. The biggest Serbian export (to the U.S.) in the amount of over $81 million was recorded in 2007 due to improvements in Serbian production, many investments made and Serbia’s focusing

more on the U.S. market. In 2009 and 2010, exports did not fall too much behind the previous years – it stood at approximately $68 million which was a slight increase relative to 2008. If we compare 2011 and 2012, Serbian exports

Despite the huge deficit, the U.S. is still an important trade partner to Serbia

34 | USA - Serbian Business Synergy

went up by 21% while imports increased by 17%. The current trade exchange between Serbia and the United States is not satisfactory since it falls so much behind the realistic potential of the two sides, or rather the production and export potential of the Serbian economy

and the absorption capacity of the large American market. There are many reasons for this – the market size, shortage of appropriate capacities, inability to maintain export quantities, and transport costs which diminish the price competitiveness of Serbian products in the U.S. Also, the global economic downturn has certainly contributed to the smaller trade exchange between the two countries. Despite the huge deficit, the U.S. is still an important trade partner to Serbia. An important formal contribution to increasing trade and, above all, Serbian exports took place on July 1, 2005, when Serbia’s trade exchange with the U.S. was achieved under the Generalized System of Preferences (GSP) which gave Serbia trade benefits for a preferential duty-free entry for 4,650 products. This duty-free regime applies to 4,650 products

and includes most industrial and agricultural products. Exceptions to the GSP include most textile products, clothing, footwear, watches, travel accessories, working gloves, leather garments, steel and steel products, glass and glass products and electronics. Goods must also satisfy the appropriate criteria of origin – at least 35% of their value must have been added in Serbia and they must be delivered directly from Serbia. On January 4, 2011, President Obama signed the Food Safety Modernization Act (FSMA) which introduced the biggest changes to the U.S. food imports since 1938. The Act has been in force since July 3, 2011. The aim of this act is to ensure food safety by exercising tougher control of food production facilities and standardizing production, transport and food imports. Essentially, the law also requires food importers to verify that they meet U.S. food safety standards, it imposes strict requirements for obtaining relevant permits, and it sets out food facility registration requirements. This also entails shifting the focus from U.S. Customs to the FDA (U.S. Food and Drug Administration), and it orders stricter control of production and transport of the food sold on the U.S. market. The act also introduces changes to 30 different procedures. Serbia and the United States have signed only a handful of intergovernmental trade agreements which is understandable since the U.S. has been upholding the so-called `outer wall' of sanctions against Federal Republic of Yugoslavia practically since 2000. The first agreement that was signed (and ratified) between the U.S and Serbian governments on March 6, 2001 was for the provision of technical, economic and related assistance which defines the form and the manner of U.S. economic, technical and related

assistance to Serbia and Montenegro. Following that, the Yugoslav federal government and the U.S. government concluded the Investment Incentive Agreement (which came into force on December 12, 2011 and is practically limited to the protection of U.S. investments in our country). According to the latest indicators from December 2012, out

Serbia has mostly exported various finished products, machinery, transport devices, non-ferrous metals, fruits & vegetables and food supplements to the U.S

of 164 countries that Serbia has been exporting to, the U.S. takes 24th place (a total of 0.85% of Serbian exports ended up in the U.S.), with exports amounting to $98 million. Out of 204 countries from which Serbia imported, the U.S. takes 17th place (2.02% of the to-

tal Serbian imports came from the U.S.), with imports valued at $368 million. According to the Serbian Chamber of Commerce, the trade deficit stands at $270 million, similar to last year. If we compare the 2011 to 2012 data, Serbian exports (to the U.S.) went up by 21% and the imports by 17%. The export/import ratio in trading with the U.S. fell between 2006 and 2008. In 2009 and 2010, the ratio went up significantly, but the global economic crisis led to a smaller trade exchange between the two countries. At the end of 2010, the export/import ratio was 27.4%, and in 2011, it was 23.7%. In 2012, this indicator grew slightly by 3.68%. To date, Serbia has mostly exported various finished products, machinery, transport devices, nonferrous metals, fruits and vegetables and food supplements to the U.S. The companies that exported the most to the U.S. in 2012 are: Prvi partizan AD Užice, Agena Technology DOO Šimanovci, Valjaonica bakra Sevojno AD, Zastava Oružje AD Kragujevac, Albon Šimanovci, Van Drunen Farms Evropa DOO Banatsko Karađorđevo, Mitas Ruma (Ruma Guma), AllTech Serbia AD Senta, Falc East DOO Knjaževac and Zadrugar Ljubovija. In terms of import, Serbia mostly imported chemical products, machinery, transport devices, medical and pharmaceutical products, mineral fuel, vehicles and vehicle lubricants, and crude oil and related products from the U.S. The companies that imported the most from the U.S. in 2012 are: NIS Novi Sad, JAT Tehnika DOO Belgrade, PharmaSwiss Belgrade, Magna Farmacija Belgrade, Delta Motors DOO Belgrade, Holcim Belgrade, HIP-Petrohemija Pančevo, Adok DOO Belgrade, Makler Belgrade and Inpharm SO DOO Belgrade. ■

USA - Serbian Business Synergy | 35

Serbia-United States relations

Turbulent History of Cooperation between Large and Small A short overview of just over 130 years of the diplomatic relations between Serbia and the United States reveals something very interesting – the history of the relations between a superpower and a small country is actually the reflection of the entire history of the world, during its most vulnerable and brightest moments

merica is a powerful country, both on dry land and the sea. It belongs among the biggest and the most powerful countries. It has concluded contracts with France, England, Germany and others. So, whatever America could have gained from these countries, it had gained, and whatever these other powers could have gained from it, they had. So, is it safe to presume, dear sirs, that we, the small and weak Serbia, could get more from America than what these other powers had got?” This is how a young Serbian MP, Nikola Pašić, addressed the Serbian National Assembly in February 1882, while debating whether Serbia should conclude a trade agreement and a consular convention with America and establish diplomatic relations. The preconditions

for all of this were created the year before – in 1881. This year is also considered the year in which the US and Serbia officially established diplomatic relations. On December 23, 1880, the Ambassador of the Principality of Serbia in Vienna, Filip Hristic, notified US Consul Kasson that the Serbian government would welcome the arrival

During the Cold War, Yugoslavia was a protected and sometimes even pampered child of American and Western diplomacy

36 | USA - Serbian Business Synergy

of a US diplomatic representative to Belgrade. On February 1, 1881, Kasson wrote back to Hristic that his “government had accepted his proposal with great pleasure as a sign of friendship of the Serbian government and its wish to have a US representative in Belgrade.”

Kasson also wrote that US Secretary of State Evarts would forward the proposal to the president and the congress. In February 1882, during the parliamentary debate about the ratification of the said agreements, Serbian MPs, who were branded either Russophiles or Austrophiles, engaged in a heated discussion on whether the trade agreement was unfair to Serbia. The acrimonious debate aside, the National Assembly ratified both the trade agreement and the convention on February 3, 1882. In July of the same year, the agreements were also ratified by the US Senate. Diplomatic relations between the two countries could now officially start. A US diplomat, Eugene Schuyler, who had been commissioned as Consul General to Romania, Serbia and Greece, was granted an audience with Prince Milan to present his Letters of Credence.

These agreements remained in force even when Serbia became a part of the Kingdom of Serbs, Croats and Slovenes, and later of the Kingdom of Yugoslavia, the Democratic Federal Yugoslavia, the Federal People's Republic of Yugoslavia, the Socialist Federal Republic of Yugoslavia and, ultimately, the Federal Republic of Yugoslavia. Since the arrival of the first US diplomat in Belgrade until World War I, Serbian-American relations boiled down to the issues like exporting prunes or Nikola Tesla’s scientific discoveries. High politics “took the stage” only in November 1917 when the US sent Serbia a million dollars worth of aid. After that, a Serbian delegation departed for the US with the mission of obtaining America’s help on the Macedonian front and support for the unification of a South Slavic state. One of the 14 points in President Wilson’s post-war statement explicitly said that occupied Serbian territories should be restored and that Serbia should be accorded free and secure access to the sea. In the late 1930s, the Kingdom of Yugoslavia started to steer more toward the right-wing, resulting in a rather surprising alliance with Germany. Following the Kingdom of Yugoslavia’s signing of the Tripartite Pact, US President Franklin Delano Roosevelt sent an urgent diplomatic note to Belgrade citing his deep regret about Yugoslavia’s decision. Only a few days later, Yugoslavia changed its decision and, soon after, was occupied by Nazi Germany and its allies. In late 1941, the US officially entered World War II and, by 1944, was supporting the royal Yugoslav government in London, as well as Draza Mihailovic’s Chetnik movement. After the end of World War II, the US and Soviet Union became the two dominant and opposing

world powers. Contrary to the ideological dominance of communism, and after its brief participation in the Eastern Bloc, Yugoslavia became the enfant terrible of communism. Thanks to Josip Broz Tito’s ability to juggle the interests of the East and the West and the aptness of Yugoslav diplomacy, the country managed to escape the horrors of the ‘Iron Curtain’. Despite the risks, Tito refused to submit to Stalin in 1948. Up until that point, Yugoslavia had been totally attached to Eastern Bloc

slavia was a protected and sometimes even pampered child of American and Western diplomacy,” said Warren Zimmermann, US Ambassador to Serbia in the late 1980s. This statement is corroborated by numbers – between 1951 and 1971, Yugoslavia received US $1.56 billion in economic aid and close to US $80 million in military aid. Although, in 1947, Yugoslavia refused to participate in the Marshall Plan and the funds that it could have received through the Plan, after ‘turning its back’

U.S. President Woodrow Wilson giving his famous speech in 1917 which defined world politics of the early 20th century. In Section 11, he directly mentioned Serbia: "...the evacuation of Romania, Serbia and Montenegro, and free access to the sea for Serbia."

On September 13, 2004, for the first time since the reestablishment of the diplomatic relations with the US, the Congressional Serbian Caucus was established in the United States House of Representatives countries. Now, Yugoslavia had to look for help on the other side, and Tito knew all too well that without US support Yugoslavia should not have been able to respond to an intervention by the countries of the Eastern Bloc. When, in the early 1950s, it became evident that there would be no intervention, Tito launched an initiative for Yugoslavia to establish closer relations to the US. The latter recognized the initiative’s importance and potential and responded favourably to Tito and Yugoslavia. “During the Cold War, Yugo-

on the Soviet Union, the country began to receive huge financial assistance - military, economic and direct. In the following few years, Yugoslavia received financial aid far greater than that envisaged by the Marshall Plan. The United States and other Western allies were very generous. The relations between Yugoslavia and the USA deteriorated during the so-called Trieste crisis, when the Yugoslav Air Force brought down two American fighter jets over Slovenia, thus killing four American pilots. However, this hostility dissipated soon after. The pinnacle of the relations between the two countries was Koca Popovic’s official visit to Washington D.C. and the signing of the Mutual Defence Assistance Program (MDAP), a sort of prelude to the Partnership for Peace,

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this period, America was very aware of the risk of conventional war erupting with the Soviet Union. In confidential NATO documents from that period (which have now been made public after being treated as classified for 50 years), Yugoslavia was cited as a country that would side with the West, in the event of a war. From 1961 until the establishment of the Non-Aligned Movement, Yugoslavia’s foreign policy was very complex and, in certain matters, very different from official US policy. For instance, Yugosla-

as explained by Bojan Dimitrijevic, the author of a book “From Stalin to the North Atlantic Treaty – the Army in Foreign Policy of Tito’s Yugoslavia 1945-1958”. The world has changed a lot since those days, since, back then, the only non-NATO countries that joined the programme were South Korea, Iran and Taiwan, apart from Yugoslavia. At that time, the US Army Mission to Belgrade amounted to 50 people, while, on an operational level, Yugoslavia’s defence was totally synchronized with NATO plans.

Eugene Schuyler

After the Secretary General of the Soviet Communist Party Nikita Khrushchev publicly denounced Stalin in 1956, there was a thaw in the relations between Moscow and Belgrade. A year later, in 1957, Yugoslavia unilaterally renounced the US military assistance which it had been receiving since the early 1950s. The reasons for such a decision were mostly political. Tito estimated that there was no danger of the Soviet military intervention any longer and that further solidification of ties with the US and NATO would bring liberalization which would, in turn, jeopardize the power of the Communist Party. Still, it is worth mentioning that, during

John A. Kasson

In the last decade of the 20th century, relations between the US and Serbia should be viewed in respect to the fact that, at that time, NATO was undergoing an existential crisis

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via sided with the Palestinians against the Israelis, and was openly supporting Arabic countries while, at the same time, staying true to its non-aligned policy. The US was sympathetic to such Yugoslav policy, and Tito’s personal ties to certain African and Asian leaders, to a certain extent. This is also the time when the finishing touches were made on the Helsinki Accords, the final act of the

Conference on Security and Cooperation in Europe in 1975, in which Yugoslav diplomacy played an important role. Apart from the military, political and economic segment, the document also had the so-called 'third basket' which contained pledges to uphold freedom of movement of ideas, people and capital. The Soviet Union approved of the first two ‘baskets’, but it was the third one that actually destroyed the monolithic and autocratic system in the Eastern Bloc in the long run. It came as no surprise that America was supportive of Yugoslav foreign policy. At the time when the Cold War regime started to disintegrate, the Socialist Federal Republic of Yugoslavia (SFRJ) was thought to have a much better starting position than any other East European country in terms of getting through the transition and reaching Europe. As it turned out, the fall of the Berlin Wall also meant the disintegration of the border with Eastern Europe and the Iron Curtain. It seemed that the ruins of the Berlin Wall fell right on top of Yugoslavia which embarked on the darkest and bloodiest period in its history that would result in its final collapse. This is something from which no Yugoslav republic has managed to fully recover to this day. In the beginning, America was very reserved. However, with the first hint that Slovenia and Croatia might break away, Washington voiced its opposition to the secession while warning the federal government not to resort to violence in order to keep the country intact. "We will neither encourage nor reward those who want to break the unity of the country", the then US President George Bush (Sr.) was quoted as saying. In June 1991, only four days before Ljubljana and Zagreb declared independence, US Secretary of State

James Baker arrived in Belgrade, stating that “the United States would not support unilateral secession” and that it “continued to support the unity of Yugoslavia.” When it became apparent that the Socialist Federal Republic of Yugoslavia was not what it was made out to be and that the Yugoslavs did not want to live together any longer, the US changed its stance. In the first half of July, George Bush hinted that the US would recognize the independence of the breakaway republics. At that time, the Desert Storm operation in Iraq was drawing to its successful conclusion, and the debates about the future of the Transatlantic Alliance and its purpose in changed circumstances ensued. Even the very existence of NATO was brought into question. In the last decade of the 20th century, relations between the US and Serbia should be viewed in respect to the fact that, at that time, NATO was undergoing an existential crisis. If the Alliance could not deal with the conflict in Yugoslavia, should it even exist after the Cold War? The Yugoslav crisis, which was about to evolve into a full-blown war, answered that question. The war in Yugoslavia ended in Dayton, Ohio on November 21, 1995. Western shuttle diplomacy, instigated by Richard Holbrooke and his team under the auspices of the US administration, culminated in the Dayton Peace Accord. The “shuttle” process consisted of diplomatic mediation between the warring parties. Simply put, the shuttle diplomacy contact group played the role of messenger and facilitator who forwarded and moderated the demands from warring sides. Washington counted the fall of Slobodan Milosevic’s regime and the October 5, 2000, democratic upheaval in Serbia and the former Federal Republic of Yugoslavia as

its success too. On November 17, 2000, the United States re-established a diplomatic presence in Belgrade. The US played crucial role in the faster reintegration of Yugoslavia into international organizations like the United Nations, the International Monetary Fund, and the World Bank. With the help of Washington, two thirds of Yugo-

Nikola Tesla

In terms of military collaboration, the greatest headway in bilateral relations was made in 2006 when the US administration decided to support Serbia’s admission to the Partnership for Peace

Nikola Pašić

slavia’s foreign debt was written off following the negotiations with the Paris Club (of creditors). On September 13, 2004, for the first time since the reestablishment of the diplomatic relations with the US, the Congressional Serbian Caucus was estab-

lished in the United States House of Representatives. The Serbian Caucus is dedicated to bringing the Serbian issues to the forefront not only with Congress but also with a broader political audience in America. At present, the Caucus includes 29 members of the House of Representatives and three senators. In terms of military collaboration, the greatest headway in bilateral relations was made in 2006 when the US administration decided to support Serbia’s admission to the Partnership for Peace, as well as the signing of military agreements and establishing cooperation with the Ohio National Guard, which began following the signing of the Status-of-Forces Agreement in September 2006. On March 19, 2007, US President George Bush (Jr.) signed the decision approving the delivery of defence weapons and services to Serbia. The US Office of Defence Cooperation was opened in Belgrade on June 7, 2007. The remaining sanctions on Serbia were lifted in April 2005, five years after the democratic upheaval. There were still three obstacles to the complete normalization of relations between the two countries –full cooperation with the Hague Tribunal, the extradition of Hague Tribunal indictee Ratko Mladic and regulating the relations with Kosovo. Serbia has fulfilled the first two conditions. Although negotiations with Kosovo have not ended in an agreement as this issue goes to press, the solution seems at hand. A short overview of just over 130 years of diplomatic relations between Serbia and the United States reveals something very interesting – the history of relations between a superpower and a small country is actually a reflection of the entire history of the world, during its most vulnerable and brightest moments. ■

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culture

Symbols of American Popular Culture Pop or mass culture are usually the terms we use when we actually mean US culture. This topic can hardly be covered by a single text. It requires a much longer study, even an encyclopedia entry, or a scientific paper, or historical research

till, if we go through a few of the important symbols and figures of this culture, we can gain a great inisight into just how widespread and influential they have been. Uncle Sam

cle Sam was portrayed looking like Benjamin Franklin, while the same magazine depicted Brother Jonathan more like today’s version of Uncle Sam. The modern version of Uncle Sam – an elderly man with sideburns and goatee, wearing a top hat in the colours of the American flag dressed in red and white striped trousers - was created by graphic designer James Montgomery Flagg. In 1917, Flagg's image of Uncle Sam appeared on a poster urging young Americans to join the US army and participate in World War I. Uncle Sam is pointing his finger at the viewer, declaring "I Want You for US Army“. Interestingly, Flagg modelled Uncle Sam after a somewhat older version of himself with sideburns. Elvis Presley

Uncle Sam, with initials U.S., is actually a personification of the U.S. government. According to legend, this metaphor came into the use during the War of 1812. Apparently, the inspiration behind it was Samuel Wilson (1766-1854), a butcher from the state of New York, who supplied meat to the US army during the war. At that time, the meat distributors had to label their packages with their initials. Wilson labelled his E.A. – U.S. When asked what the label stood for, Wilson replied: “Elbert Anderson (his contractor) and Uncle Sam,” referring to his name, though it actually stood for the United States. In the beginning, Uncle Sam had a competitor by the name of Brother Jonathan. However, “Brother Jonathan” symbolized the country itself while Uncle Sam has always been the symbol of the government. One of the first depictions of Uncle Sam was made in 1860 in Harper’s Weekly magazine where Un-

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The King of Rock 'n' Roll, or simply The King. In fact, Elvis Presley is not only one of the biggest icons of 20th century music and pop culture, but one of the greats of the entire era, a figure who is emblematically inseparable from his time. Born in Tupelo, Mississippi, Elvis Presley moved to Memphis, Tennessee with his family when he was only 13. He started his music

career in 1954 when he was noticed by Sam Phillips, owner of Sun Records, who wanted to bring Afro-American music to a wider audience. Elvis soon became the biggest promoter of rockabilly, a mix of country music and rhythm & blues. He signed his first record deal with RCA Victor thanks to his manager Colonel Tom Parker, who went on to manage Elvis for over two decades. His first single “Heartbreak Hotel” was released in January 1956 and soon became a number-one hit on radio. Shortly after that, Elvis became the leading figure of a new musical genre – rock and roll. His success was meteoric, and his energetic interpretations of songs (many already previously recorded by African-American musicians) made him extraordinarily popular. His style was worshipped by the audience and despised by prudes. In 1958, Elvis was drafted into the US Army and re-launched his career two years later with a greatest hits album. In the early 1960s, he staged a few concerts, but under Parker's guidance, started to make Hollywood movies, most of them slated by the critics. Following his seven-year hiatus from music, he made his comeback with a TV special simply called “Elvis,” which led to an extended Las Vegas concert residency and many profitable tours. In 1973, Presley staged an event, groundbreaking both for music and TV, when he held his famous Aloha from Hawaii concert which was the first concert to be globally broadcasted via satellite. Presley's fans agree that the Hawaii concert was one of the best concerts that Elvis ever staged. It was also his “swan song.” Addicted to pain medication, alcohol, his being overweight, and various narcotics left

Elvis in a state that was painfully visible at the Hawaii concert. Ultimately, they led to his early death in 1977, at the age of 42. But the King continues to defy death. He is still the best selling singer in the history of pop music and the best that America had to offer. Marilyn Monroe

finally received a Golden Globe for her performance in Some Like It Hot. The screenplay for Marilyn's last film, The Misfits (1961), with Clark Gable as her co-star - was written by her then husband and famous playwright Arthur Miller. In the last few years of her life, she suffered from mental and emotional problems. She was called “unreliable” and “difficult to work with.” On the night of August 5, 1962, she was found dead at her home in Los Angeles. She was 36. The post-mortem showed that she overdosed on barbiturates resulting in “probable suicide.” On that night, Marilyn Monroe became immortal and one of the biggest icons of modern times.

ning up to an uninterrupted 250 minutes in length. But, Springsteen, just as the US, is much more than a formal description. He is a musician and poet of America, with many more virtues and flaws. No one knows better how to sing about love without being too sentimental or about old age without being pessimistic, or about a home town which no longer exists without being pathetic. Homer Simpson

Bruce Springsteen

Actress, model, singer, icon. This is the answer to the question who is Marilyn Monroe. However, this doesn't come close to describing who she really was. A sex symbol? Yes, the biggest ever. She was enchanting, beautiful, talented and miserable. Her misfortunes started early on when she spent most of her childhood in foster homes. She began her career as a model, but was soon spotted by film agents which led to her first film contract in 1946 with Twentieth Century-Fox. In the very beginning of her film career, she had small roles but she went on to draw major attention in movies that we all remember her by – The Asphalt Jungle and All About Eve (both made in 1950). In 1952, she was given her first leading role in Don't Bother to Knock. Success came with Niagara, a melodramatic film noir that played on her seductiveness. Her dumb blonde persona was used to comic effect in films like Gentlemen Prefer Blondes (1953), How to Marry a Millionaire (1953) and The Seven Year Itch (1955). In the latter, Marilyn had the iconic scene with her standing on a subway grate as her white dress was blown by a train. The second most vivid association of Marilyn is Andy Warhol's The Marilyn Diptych which he painted during the weeks after her death. Tired of dumb blonde roles, in the mid1950s, she took acting classes to broaden her thespian range. She won over critics and got a Golden Globe nomination with her performance in Bus Stop (1956). Soon after, she set up her own production company – Marilyn Monroe Productions – which released The Prince and the Showgirl and for which she won a David di Donatello award. In 1959, she

At a recent war veteran gathering in Belgrade, one of the people present briefly commented: “Whatever we have to say about war, Bruce Springsteen has already said it on his ‘Born in the USA’ album.” The most American critic of America and a patriot who loves his country even when he is highly critical of it, Bruce Frederick Joseph Springsteen, nicknamed 'The Boss', is a mix of the best America has to offer. His songs and lyrics echo American life. He music is uncompromised rock, country at its best, blues of the former African-American slaves, the cry of war veterans, children from poor neighbourhoods, recession losers and weary cashiers in supermarkets, the sound of wrecking balls demolishing a building where someone had spent their childhood, dusty highways with cars speeding off to nowhere. The formal description of Bruce Springsteen is brief - an American singer-songwriter and multi-instrumentalist who records and tours with the E Street Band. Springsteen, widely known for his brand of heartland rock, poetic lyrics, Americana sentiments, centred on his native New Jersey and his lengthy and energetic stage performances, with concerts from the 1970s to the present decade run-

His full name is Homer Jay Simpson, he is married and a father of three children. He works at a nuclear power plant, and leads an unassuming life in a lovely little town of Springfield. Homer Jay Simpson is the main character in an animated TV show called The Simpsons and the head of the colourful Simpson family. He has been voiced by actor Dan Castellaneta from the first episode which aired on April 19, 1987. Homer was created and designed by cartoonist Matt Groening while he was waiting in the lobby of producer James L. Brooks' office. Groening had been called to talk about a cartoon that was supposed to be based on his comic strip Life in Hell, but instead decided to create the Simpson family. Homer Simpson was named after his father, Homer Groening. After appearing for three seasons on The Tracey Ullman Show, the Simpson family got their own series on Fox network which debuted on December 17, 1989. Homer and his wife Marge have three children - Bart, Lisa, and Maggie. As the family's sole provider, he works at the Springfield Nuclear Power Plant. Homer represents several horrible American working class stereotypes he is rude, overweight, incompetent, clumsy, lazy, a heavy drinker, and ignorant. However, he is essentially a decent man who is very devoted to his family. Despite representing the suburban blue-collar workers, during his life, he has had many unbelievable experiences. He even met the Dalai Lama. In early episodes in the late 1980s, Castel-

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laneta voiced Homer to sound like actor Walter Matthau. However, during the second and third seasons, Homer's voice became more coarse and robust, which allowed him to express a wider range of emotions. His famous catchphrase - "Duh!“- was included in The New Oxford Dictionary of English in 1998 and the Oxford English Dictionary in 2001. Homer Simpson is one of the most influential fictional characters on television. The British newspaper The Sunday Times described him as "the greatest comic creation of [modern] times". Entertainment Weekly called him the greatest fictional character of the last 20 years, while TV Guide ranked him the second greatest cartoon character behind Bugs Bunny. Channel 4 viewers chose Homer Simpson as the greatest television character of all time. Dan Castellaneta won four Emmy Awards and an Annie Award for giving his voice to Homer. Homer and his family were given a star on the Hollywood Walk of Fame.

Gatsby” and “Tender is the Night.” His fifth and unfinished novel – “The Love of the Last Tycoon” – was published posthumously. He also wrote many short stories whose main themes were youth and promise, along with despair and the age in which his characters live. “The Great Gatsby” is a moving story of first love and a lost generation which has served as an inspiration to filmmakers for over 90 years. The book was adapted into a movie five times: 1929, 1949, 1974 (a legendary version with Robert Redford in a leading role) and the latest version that is due to come out this year. One of the most beautiful big screen tributes to Fitzgerald has been made in the Woody Allen film Midnight in Paris, where the main character, while travelling through time, meets Fitzgerald and falls in love with his legendary wife, Zelda. Paul Auster

Francis Scott Key Fitzgerald

To choose just one writer in a vast and prolific area that is American literature is no small feat. Still, we have chosen F. Scott Fitzgerald for several reasons - he is an icon of an entire movement within the American culture, and the influence of his novels and characters goes beyond literature and into fashion and lifestyle. Undoubtedly, Fitzgerald is one of the greatest American writers of the 20th century. In his short life (1896-1940), he wrote novels and short stories, and his body of work is a paradigm of so-called Jazz Age, a term he conceived. He was considered a member of the “Lost Generation” of the 1920s. Jazz music, economic depression, and racial segregation are all synonyms for the time in which the Lost Generation lived. Other writers that were members of the Lost Generation were Hemingway, T.S. Elliot, Gertrude Stein... Fitzgerald wrote only four novels – “This Side of Paradise,” “The Beautiful and Damned”, his most famous work “The Great

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Paul Auster is one of the most important contemporary American novelists. He was born in Newark, New Jersey, in 1947. By his own admission, he decided that he wanted to be a writer at the tender age of eight. In addition to becoming a writer, he has also worked as a translator, a journalist, a screenplay writer, and, in his early days, a sailor on a Mexican oil tanker. His first book of fiction and a collection of essays "The Invention of Solitude" came out in 1982. Since then, he's been one of the most prolific authors, producing eighteen novels, three books of poetry, five screenplays and eight memoirs. He writes only with a fountain pen in ordinary notebooks (he prefers the ones with quadrille lines). After that, he transcribes the text onto the typewriter, while constantly fearing that typewriter ribbons will go out of production and that he will have to jump into the 21st century and use a computer. Auster's writing blends absurdism, existentialism and the search for identity and personal meaning in works such as "The New York Trilogy"

(1987), "Moon Palace" (1989), "The Music of Chance" (1990), "The Book of Illusions" (2002), and "The Brooklyn Follies" (2005). Andy Warhol

He was a leading figure in the visual art movement known as pop-art. His works explore the relationship between artistic expression, celebrity culture and advertisement that flourished by the 1960s. After a successful career as a commercial illustrator, Warhol became a renowned and sometimes controversial artist. The Andy Warhol Museum in his native city, Pittsburgh, Pennsylvania, holds an extensive permanent collection of art and archives. It is the largest museum in the United States dedicated to a single artist. Warhol's art encompassed many forms of media, including hand drawing, painting, printmaking, photography, silk screening, sculpture, film, and music. He was also a pioneer in computer-generated art using Amiga computers that were introduced in 1984, two years before his death. He founded Interview Magazine and was the author of numerous books, including The Philosophy of Andy Warhol and Popism: The Warhol Sixties. He is also notable as a gay man who lived openly as such before the gay liberation movement. His studio, The Factory, was a famous gathering place that brought together distinguished intellectuals, drag queens, playwrights, Bohemian street people, Hollywood celebrities, and wealthy patrons. Warhol has been the subject of numerous retrospective exhibitions, books, and feature and documentary films. He coined the widely used expression "15 minutes of fame". Many of his creations are very collectible and highly valuable. The highest price ever paid for a Warhol painting is US$100 million for a 1963 canvas titled Eight Elvises. The private transaction was reported in a 2009 article in The Economist, which described Warhol as the "bellwether of the art market". Warhol's works include some of the most expensive paintings ever sold. ■

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Ramon Weidinger, Director Batajnicki drum 14-16 11080 Zemun Tel: +381 11 3073100 pr.rs@cchellenic.com www.coca-colahellenic.rs Colliers international Luke Dawson, Director Bul.Mihaila Pupina 115d 11070 New Belgrade Tel:+381 11 3139955 serbia@colliers.com www.colliers.com CONSULTEAM Olga Svoboda, Director Prote Mateje 52 11000 Beograd Tel: +381 11 2443 980 www.consulteam.rs office@consulteam.rs Continental Wind Serbia Ana Brnabić, direktor Đure Jakšića 6/5, Beograd +381 7580 100 serbia @continentalwind.com www.continentalwind.rs Deloitte d.o.o. Milos Macura, Director Terazije 8, 11000 Belgrade Tel:+381 11 3812100 www.deloitte.com DELTA SPORT Goran Karic,Director Milentija Popovica 7/v 11070 Belgrade Tel:+381 11 2012800 www.deltasport.com Diners Club International Belgrade Ltd. Obrad Sikimic, Director Njegoseva 72 11000 Belgrade Tel: +381 11 3441865 info@diners.rs www.diners.rs Ecolab Hygiene d.o.o Marianne Vukovic Pal, Deputy Gen. Manager Milana Tankosica 8 11000 Belgrade Tel: +381 11 2084344 www.ecolab.com ERNST & YOUNG DOO BEOGRAD Stephen James Fish, Director Španskih boraca 3 11070 Belgrade Tel: +381 11 2095 800 www.ey.com ERSTE BANKA Slavko Caric, predsednik IO Bul. Oslobođenja 5 21000 Novi Sad Tel: +381 21 4809402 www.erstebank.rs EUROBANK EFG Filippos Karamanolis, predsednik IO Vuka Karadzica 10 11000 Belgrade Tel: +381 11 2023353 www.eurobankefg.rs Eki transfers - Western Union Mirjana Zecevic, Director Kosovska 1/V 11000 Belgrade Tel: +381 11 3300301 info@wu.rs www.wu.co.rs FIRST DATA SCG d.o.o. Olja Dakic, Director Kopernikova 8 11000 Belgrade Tel:+381 11 2071100 www.firstdata.rs FRESENIUS MEDICAL CARE SRBIJA Rajko Hrvacevic , Director Belgradeksi put bb 26300 VrSac Tel:+381 13 802502

www.fmc-srbija.com Forever Living Products Branislav Rajic, Director Kumodraska 162 11000 Belgrade Tel: +381 11 3970127 www.flpseeu.com Grand Motors - Ford Motor Stanko Radic, Director Milutina Milankovica 21 11070 New Belgrade Tel:+381 11 2090672 office@ford.rs www.ford.rs GLOBEX ENGINEERING & CONSTRUCTION Aca Jovanovic, Director Bul. Arsenija Carnojevica 64 11070 Beograd Tel: +381 11 269-6860 info-globex@open.telekom.rs www.globexcorp.com Hewlett Packard Milos Djurkovic, Director Omladinskih brigada 90b 11070 New Belgrade Tel: +381 11 2055800 www.hp.rs Honeywell Julian Hedera, Director Vladimira Popovica 40 11070 New Belgrade Tel: +381 11 559191 www.honeywell.com HRG Serbia&Montenegro Predrag Spanjevic, Director Cubrina 4/19 11000 Belgrade Tel: +381 11 3036016 office@rs.hrgworldwide.com www.hrgworldwide.com/rs Hyatt Regency Hotel Hom Parviz, Director Milentija Popovica 5 11070 New Belgrade Tel: +381 11 3011234 belgrade.regency@hyatt.com http://belgrade.regency.hyatt.com IBM International Business Machines d.o.o Željko Vujinović , Generalni director Mihajla Pupina 6/20 11070 New Belgrade Tel: +381 11 2013500 www.ibm.com IKEA SRBIJA DOO Dragan Skalušević - Direktor Autoput 22 11080 Belgrade Tel: +381 11 2098802 www.ikea.com MOL Serbia Bianca Elena Vasilescu, Director Omladinskih brigada 88/V 11070 Beograd Tel: +381 11 2096900 www.intermol.rsč www.mol.hu JANKOVIC, POPOVIC, MITIC a.o.d. Vladimira Popovica 6, NBGP Apartments 11000 Belgrade Tel: +381 11 2076850 office@jpm.rs; www.jpm.rs KARANOVIC - NIKOLIC Resavska 23 11000 Belgrade Tel:+381 11 3094200 knserbia@karanovic-nikolic.com www.karanovic-nikolic.com KONSING GROUP Zdenko Lekan,Director Surcinski put 13 11070 New Belgrade Tel: +381 11 7195871 office@konsing.com www.konsing.com KOVING (ALPINE) Zoran Jankovic, Director Pariske komune 24

11000 Belgrade Tel: +381 11 3193408 www.koving.rs Kraft Foods Philip Eastwood Dickinson, Director Omladinskih brigada 88b 11000 Belgrade Tel: +381 11 35 30 873 araskovic@krafteurope.com www.kraft.com Lexmark International RS Ivan Stankovic, Director Prote Mateje 11 11000 Beograd Tel: +381 11 2445110 lxkrs@lexmark.com office@lexmark.rs www.lexmark.rs Leo Burnett d.o.o. Sonja Dragojevic Danila Lekica 31 11070 New Belgrade Tel: +381 11 2090200 sonja.dragojevic@leoburnett.rs www.leoburnett.rs L'OREAL Brigitte Streller Bul. Zorana Djindjica 64 a 11070 Belgrade Tel: +381 11 2205900 www.loreal.com McCann-Erickson Group Zdenka Milanovic, direktor Terazije 7-9 11000 Belgrade Tel: +381 11 3283257 Fax: +381 11 2022200 info@mccann.co.rs www.mccann.co.rs McDonald’s DL Bul. Mihaila Pupina 85a 11070 New Belgrade Tel: +381 11 711 95 66 www.mcdonalds.rs MERIT SOLUTIONS William Burke, Director Ruziceva 2/7 11000 Belgrade Tel: +381 11 3674321 www.meritsolutions.com Microsoft Software d.o.o. Dragan Tomic, Director Španskih boraca 3/III 11070 Beograd Tel: +381 11 330 66 00 mktg-srb@microsoft.com www.microsoft.com/rs Millennium Film & Video d.o.o. Zoran Savic, Director Milana Rakica 64 11160 Belgrade Tel: +381 11 38 20 383 office@millennium-film.com Nikolić Kokanović Otašević Law office Njegoševa 11 Beograd, Đorđe Nikolić (partner) +381 7150 513

djnikolic@nko-law.com www.nko-law.com Oracle Serbia and Montenegro Klod Kolaro, Director Bul. Zorana Đinđica 64a (GTC house) 11070 New Belgrade Tel: +381 11 20 16 800 office_yu@oracle.com www.oracle.com OTP BANKA Imre Bertalan, Director Bul. oslobodjenja 80 21000 Novi Sad Tel: +381 21 48 000 01 office@otpbanka.rs www.otpbanka.rs PREDSTAVNIŠTVO PFIZER H.C.P. CORPORATION Sevket Musfik Karadogan, Director Tresnjinog cveta 1/VI 110070 Belgrade Tel: +381 11 363-0000 pfizer@bitsyu.net www.pfizer.com PFIZER ANIMAL HEALTH SA PREDSTAVNIŠTVO Nenad Todorovic, zastupnik Tresnjinog cveta 1/VI 110070 Belgrade Tel: +381 11 363-0000 www.pfizer.com Philip Morris d.o.o Stejsi Kenedi, Director Zorana Đinđica 64 a 11070 New Belgrade Tel:+381 11 2010824 maja.sotra@pmintl.com www.pmintl.com PriceWaterhouseCoopers d.o.o. Emmanuel Koenig, Country Managing Partner Omladinskih brigada 88a 11000 New Belgrade Tel: +381 11 3302100 rs-office@rs.pwc.com www.pwc.rs RES TRADE Edward Tonchew,Director Bul.Vojvode Stepe 24 21000 Novi Sad Tel: +381 21 480 33 33 www.res-trade.rs info@res-trade.rs SCHNEIDER ELECTRIC Dragoljub Damljanovic , Director Vladimira Popovica 38-40 11070 New Belgrade Tel: +381 11 377 31 00 podrska.klijentima@rs.schneiderelectric.com www.schneider-electric.rs PREDSTAVNIŠTVO SMALL ENTERPRISE ASSISTANCE FUNDS Nikola Stefanovic, zastupnik Bul. Zorana Đinđica 67/2 11000 New Belgrade Tel: +381 11 2129524

www.seaf.co.rs SERBIAN BUSINESS SYSTEM Nenad Draskovic Beogradska 39 11000 Belgrade Tel: +381 11 3302500 www.sbs.co.rs SIEMENS Tihomir Rajlic, Director Omladinskih brigada 21 11070 New Belgrade Tel: +381 11 2096005 www.siemens.co.rs TELENOR Ove Fredheim, Director Omladinskih brigada 90 11070 Belgrade www.telenor.rs TRS SWISS PRODUCTION Snezana Vukovic Rade Koncara 1 21131 Petrovaradin Tel: +381 21 439900 www.trs.rs TITAN CEMENTARA KOSJERIC Miroslav Gligorijevic, director Zivojina Misica b.b 31260 Kosjeric Tel: +381 31 5903200 www.titan.rs VAN DRUNEN FARMS EVROPA Lazar Kobilarov, Director Njegoseva bb, Ban. Karađorđevo Tel: +381 23 835018 www.vandrunenfarms.com VERANO AUTO Radomir Zivanic, Director Vojvode Stepe 352 11000 Belgrade Tel: +381 11 3094500 www.verano.rs WEST PHARMACEUTICAL SERVICES Dejan Milutinovic, director Rimski Jarak bb, 26220 Kovin Tel:+381 13 741744 www.westpharma.com WIENER STADTISCHE Branko Krstonosic , generalni direktor Tresnjinog cveta br.1 11070 Belgrade Tel: +381 11 2209800 www.wiener.co.rs XPRO d.o.o. Claude Istria, Director Baja Pivljanina 53a 11040 Belgrade Tel: +381 11 36 30 200 office@xpro.rs; www.xpro.rs LUNA/TBWA Bojan Joksimovic, Director Milovana Marinkovica 3 11000 Belgrade Tel:+381 11 3980343 office@lunatbwa.rs www.lunatbwa.rs

USA - Serbian Business Synergy | 43

A Dynamic Leader in the Global Pharmaceutical Marketplace Today, our Global Generics business holds leadership positions in a number of markets, including the U.S. and throughout Europe and Asia/Pacific. Our Global Brands business is a leader in Women’s Health and Urology in the U.S., has expanded into Canada and Latin America and is pursuing opportunities to bring distinctive brand products to markets outside the Americas. Our third-party business, the result of the combination of Watson’s Specifar and Actavis’ Medis, creates an even stronger provider of pharmaceutical development services and products to more than 100 countries. We are also aggressively pursuing the development of biosimilars through our Eden Biodesign business and our collaboration with Amgen. The combination of Watson and Actavis creates an even stronger, global pharmaceutical company with a world of opportunities.

www.actavis.rs

17.000

employees

global R&D centers

Commercial and Operational footprint in

60 countries

3 largest

manufacturing facilities

unit capacity Expanded presence

global generics company

(OTC)