Issuu

Sharing Past & Future

H.E. MR. KYLE RANDOLPH SCOTT, Ambassador of USA ■ JELENA PAVLOVIĆ, President of the AmCham Board of Governors, President of the Board of Directors of Philip Morris International for Southeast Europe ■ MIA ZEČEVIĆ, Director, Novaston Asset Management ■ CAROLINA HIDEA, Economic Counsellor of the U.S. Embassy in Belgrade ■ AZZA EL-ABD, USAID’s Mission Director for Serbia ■ FACILITATING PROGRESS IN THE BUSINESS ENVIRONMENT, AmCHAM Committees ■ AMALIJA PAVIĆ, AmCHAM Deputy Executive Director ■ CONTINUE TO INSPIRE, EMPOWER & CONNECT PEOPLE, American Corners in Serbia ■ FRESH SUMMER SPREAD STRAIGHT FROM THE GARDENS OF LOCAL PRODUCERS ■ BRANISLAV SAVIĆ PLANT MANAGER, Ball Packaging Europe ■ DELL EMC CLOUD TRANSFORMING BUSINESS ■ ARTUR TUREMKA, General Director Mastercard Balkans ■ VLADIMIR KNEŽEVIĆ, Country Managing Director, Serbia & Montenegro ■ VLADIMIR ČUPIĆ, Director of the Atlantic Grupa representative office for Serbia ■ IOSIF VANGELATOS, General Manager Inos Balkan ■ ZORAN NAUMOVIĆ, Attorney At Law, Naumović & Partners Law Office ■ ŽIVORAD VASIĆ, IHG Area Manager, InterContinental Ljubljana, Crowne Plaza Belgrade ■ ČEDOMIR JANJIĆ, Mayor of the City of Zrenjanin ■ A STRATEGY OF SUCCESS, HR Centar ■ SANDRA MARINKOVIĆ, External Affairs Lead, Merck Sharpe & Dohme

CONTENT

SHARING PAST & FUTURE

H.E. MR. KYLE RANDOLPH SCOTT, AMBASSADOR OF USA

HELPING SERBIAN BUSINESSES TO THRIVE

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

32 34

EDITOR Ana Novčić a.novcic@aim.rs

SAFELY ALONG THE PATH OF DIGITALIZATION

VLADIMIR KNEŽEVIĆ, COUNTRY MANAGING DIRECTOR ORACLE SERBIA & MONTENEGRO

REALISTIC & AMBITIOUS PLANS

VLADIMIR ČUPIĆ, DIRECTOR OF THE ATLANTIC GRUPA REPRESENTATIVE OFFICE FOR SERBIA

WE ARE READY FOR THE NEW ERA

UNBURDEN COURTS

IOSIF VANGELATOS, GENERAL MANAGER INOS BALKAN

STRONGER INSTITUTIONS AT THE CORE OF REFORM PROGRESS

JELENA PAVLOVIĆ, PRESIDENT OF THE AMCHAM BOARD OF GOVERNORS, PRESIDENT OF THE BOARD OF DIRECTORS OF PHILIP MORRIS INTERNATIONAL FOR SOUTHEAST EUROPE

19 20

BRANISLAV SAVIĆ, PLANT MANAGER, BALL PACKAGING EUROPE

DELL EMC CLOUD TRANSFORMING BUSINESS

CORPORATE

WE’LL BRING NEW INVESTORS

MIA ZEČEVIĆ, DIRECTOR, NOVASTON ASSET MANAGEMENT

WE STRONGLY SUPPORT SERBIA’S PATH TOWARD THE EU

GOOD DIALOGUE MOVES MOUNTAINS

29 30

CASH IS THE PAST

AMALIJA PAVIĆ, AMCHAM DEPUTY EXECUTIVE DIRECTOR

FRESH SUMMER SPREAD STRAIGHT FROM THE GARDENS OF LOCAL PRODUCERS

REMEMBERING THE PAST, BUILDING THE FUTURE

INTERNATIONAL CONFERENCE “PARTNERSHIP BETWEEN THE USA & SERBIA”

WE’LL BUILD THE DELTA CENTRE

ŽIVORAD VASIĆ, IHG AREA MANAGER, INTERCONTINENTAL LJUBLJANA, CROWNE PLAZA BELGRADE

WE’RE EXPANDING INDUSTRIAL ZONES

41 42

A STRATEGY OF SUCCESS

ČEDOMIR JANJIĆ, MAYOR OF THE CITY OF ZRENJANIN

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

UNDERSTANDING AMERICANS

ARTUR TUREMKA, GENERAL DIRECTOR MASTERCARD BALKANS

NETWORK OF TODAY’S & FUTURE LEADERS

AMCHAMPS

4 | SHARING PAST & FUTURE

PHOTOS Zoran Petrović COPY EDITOR Chris Farmer cbf@notapipe.biz PROJECT MANAGERS Biljana Dević b.devic@aim.rs Nataša Trifunović n.trifunovic@aim.rs Vesna Vukajlović v.vukajlovic@aim.rs OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs EDITORIAL MANAGER Neda Lukić n.lukic@aim.rs

YEARS OF SUCCESSFUL BUSINESS OPERATIONS IN SERBIA

AMCHAM COMMITTEES

KNOW WHO YOU’RE BUYING FROM

HOW AMERICANS SEE THEMSELVES

U.S. IT INDUSTRY: TRENDS TO WATCH FOR 2018

ZORAN NAUMOVIĆ, ATTORNEY AT LAW, NAUMOVIĆ & PARTNERS LAW OFFICE

FACILITATING PROGRESS IN THE BUSINESS ENVIRONMENT

11 12

U.S. TECHNOLOGY SPENDING WILL TOP $4.8 TRILLION

DESIGN Jasmina Laković j.lakovic@aim.rs

100TH ANNIVERSARY OF THE FIRST U.S. INTERVENTION IN SERBIA

WHEN SERBIAN FLAG FLEW ABOVE THE WHITE HOUSE

56 58

CONTINUE TO INSPIRE, EMPOWER & CONNECT PEOPLE

AMERICAN CORNERS IN SERBIA

THE MOST RECOGNIZABLE PAINTING TH IN 20 CENTURY

AMERICAN GOTHIC: GRANT WOOD, PAINTER

HOW AN AMERICAN & A SERB CHANGED WORLD BASKETBALL

AMERICAN-SERBIAN RELATIONS IN BASKETBALL

HR CENTAR

FINANCE: Ajilon Solutions m.damjanovic@aim.rs EXECUTIVE DIRECTOR Maja Vidaković m.vidakovic@aim.rs GENERAL MANAGER Ivan Novčić i.novcic@aim.rs PRINTING Rotografika d.o.o. Segedinski put 72, Subotica, Srbija PARTNER SHARING PAST & FUTURE Published by: alliance international media Makenzijeva 67, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs www.aim.rs Nomber: 2; Year: 2018 ISSN No. 2560-4465

WE ARE BRINGING NEW HOPE FOR CANCER PATIENTS

The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media

SANDRA MARINKOVIĆ, EXTERNAL AFFAIRS LEAD, MERCK SHARPE & DOHME

THIS PUBLICATION IS FREE OF CHARGE

AWARD

THE AMCHAM EU YOUTH ENTREPRENEURSHIP

GALA 2018: 55TH ANNIVERSARY OF AMCHAM EU

SHARING PAST & FUTURE | 5

COMMENT

Sharing Past & Future I’m delighted to have the opportunity to contribute to CorD’s publication recognizing the close ties and productive partnership between Serbia and the United States of America. Our two countries share a historical alliance, benefit from today’s productive collaboration, and I look forward to even closer ties in the future

H.E. MR. KYLE RANDOLPH SCOTT, AMBASSADOR OF USA

6 | SHARING PAST & FUTURE

his summer, Serbia and the United States dollars annually to support rule of law and law will celebrate the 100th anniversary of enforcement reforms, military training, ecoSerbia Day in the United States, when nomic development, border securitization, and the Serbian flag flew over the White capacity-building for civil society. U.S. developHouse and President Woodrow Wilson encour- ment assistance to Serbia has been substantial, aged Americans to keep our Serbian allies in totaling almost $1 billion since 2001. their thoughts and American comprayers. panies increasThe United States and Serbia are working We are proud of ingly see Serbia as together every day to move Serbia closer our shared past of a good place to do to its goal of joining the European Union and to build a Balkans region that course. Perhaps even business. Serbia’s is peaceful and prosperous more important for high-quality, multiSerbia’s future are lingual workforce the things we are doing together today. We agree attracts private investment. We enjoy a strong with President Vucic: Serbia’s future lies in the economic partnership, with roughly $4 billion in European Union. Serbia is making considerable U.S. investments and almost 20,000 Serbians strides toward membership. As it implements employed by U.S.-owned companies. And that the reforms necessary to join, Serbia will benefit number grows every day. from the peace, stability, prosperity, and rising The United States and Serbia are working living standards that are the hallmarks of strong together every day to move Serbia closer to its European democracies. goal of joining the European Union and to build a The people of the United States continue Balkans region that is peaceful and prosperous. to support Serbia in achieving its goal of EU We will continue that work in the coming year, membership, including by providing millions of and we expect our joint successes to continue. 

SHARING PAST & FUTURE | 7

INTERVIEW

Stronger Institutions At The Core Of Reform Progress JELENA PAVLOVIĆ,

PRESIDENT OF THE AMCHAM BOARD OF GOVERNORS, PRESIDENT OF THE BOARD OF DIRECTORS OF PHILIP MORRIS INTERNATIONAL FOR SOUTHEAST EUROPE

To move forward with the reform agenda in an effective and sustainable manner, we need to strengthen the competence and efficiency of Serbian institutions. AmCham is ready and willing to partner the state in this endeavour •••

erbia is awaited in June for fresh talks with the IMF on its support for further reforms. Jelena Pavlović, President of the AmCham Board of Governors and President of the Board of Directors of Philip Morris International for Southeast Europe, made the ideal interlocutor to speak about the topic.

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• On the basis of feedback from your members, what are the key areas in which it is necessary to accelerate reforms, and how will AmCham contribute to that? - AmCham members point out the grey economy, an ineffective judiciary, and corruption as the key obstacles to new investments and the most concerning issues in the overall business environment in Serbia. These challenges share the same root cause: weak institutions. To move forward our reform agenda in an effective and sustainable manner, we need to strengthen the competence and efficiency of Serbian institutions. AmCham is ready and willing to partner the state in this endeavour. Since AmCham is a business association of over 200 companies, representing 17 industries and sectors, we have

PRIORITIES

DIALOGUE

GOAL

AmCham members point out the grey economy, an ineffective judiciary, and corruption as the key obstacles to new investments and the most striking issues in overall business environment in Serbia

Dialogue, mutual understanding, and cooperation between the government and the business sector are at the core of making Serbia a better place to work and live

The continued improvement of the business environment remains a prerequisite for new investment, particularly for domestic private investments

established nine subject-specific committees in order to structure our work and ensure readiness to provide tangible support to the state. They have just updated the annual agenda, elected new leadership, and are ready to interact with key policy makers and enforcement authorities to pursue our common goal – reforming Serbia and improving its business environment.

- Our network represents the most successful private companies operating in Serbia, both domestic and international. By leveraging our scope, our rich collective experience, our knowledge and skill-sets, the state can have access to global best practices

• Business associations are working increasingly with the government on the improvement of public policies that contribute to improving the business climate. How would you assess the scope of this cooperation, and how evident are the tangible steps towards improving regulations and practises? - Dialogue, mutual understanding, and cooperation between the government and business sector are at the core of creating a better place to work and live in Serbia. Significant progress in this domain has been achieved, supported and welcomed by the business sector, predominantly in the stabilization of public finances, e-permitting, labour legislation reform, and the initial stages of e-government. Still, there are certain areas with little or no improvement, such as healthcare, public procurement, state-owned companies, and education. AmCham is looking forward to a continued open dialogue with government, aimed at optimizing public policies and

We provide constructive feedback on laws and regulations and share real life experiences, which can help the state to address enforcement gaps or trigger necessary changes regulatory framework and ensuring full compliance. We put forward our resources, our expertise, and vast international and domestic experience. • Following your election, you announced that the focus of AmCham’s activities this year would be on tax system reform and improving the efficiency of the Tax Administration, furthering the fight against the grey economy, encouraging e-government, and improving regulations in the fields of health and environmental protection. In which ways do you utilise the resources of members to address these issues?

and updates and enjoy comprehensive and accurate impact assessments, to strengthen quality of its decisions.

• Last year’s annual survey of AmCham members saw them highlight significant improvements in the stabilisation of public finances, administrative progress related to the issuance of building permits, the reform of labour legislation, and the launch of e-government. From the perspective of your members, how much have these improvements effectively influenced their decisions to invest further and expand activities in Serbia? - The business community warmly welcomes all these improvements, and they are certainly reflected in our business plans. Let me remind you that our members have invested 14 billion euros in Serbia so far, while our ongoing contribu-

SHARING PAST & FUTURE | 9

tion to the state budget remains strong: in 2016 we paid a total of EUR 3.7 billion in excise and value added tax, which, together with other taxes, is more than half of the total budget revenue of Serbia. The continued improvement of the business environment remains a prerequisite for new investment, particularly for domestic private investments, which made up only 9% of GDP last year.

professional development programme for empowering and training students for the jobs of the future, AmChamps, was launched in early 2014. The program provides mentoring for students and access to real business environments, and today it has become a showcase on how academia and the corporate sector should work together. This platform served as a role model for the capacity building programs within the state administration and will became a standard part of the National Academy for Public Servants. Furthermore, we run the Women in Tech Mentoring Program, a top-flight interpersonal skills development and networking platform that connects successful women from the business and start-up communities, willing to shatter glass ceilings all over the tech and digital industry.

• One of the key topics discussed among expert and economic circles is the acceleration of economic growth. Which changes would you single out in the overall environment – and not just the business environment – as being key to the accelerating of economic growth? - In my view, to accelerate growth but also to ensure its sustainability, Ser• The number of AmCham members in bia has to enable its private sector to Serbia has grown constantly over the develop and grow. years and currently totals around 200. • Education stands out among the arWhat is it like to manage such a large eas in which AmCham members have and complex group? seen room for improvement. In this - I am very proud to have been elected context, how do you view the introducthe President of the Board of Governors tion of dual education and the incluand honoured with the opportunity to sion of ICT in the primary school currepresent and coordinate activities of riculum as contributions to educating the most successful private companies future digital citizens? What’s lacking? in Serbia. We are a diverse and dynamic - Dual education can help students to group, which make my job exciting. We acquire, improve and develop compehave immense joint strength and the tencies in accordance with the needs of the labour market, and also enable employers to develop qualified workforce To boost entrepreneur confidence, Serbia’s utmost priority is according to their own requirements. to strengthen the competence and efficiency of its institutions We have to work more on promoting and consistently adhere to the rule of law start-up initiatives, digital education starting in elementary schools, and professional ability to make an impact and improve environment for development of women engaged in digital industries. our businesses and Serbia to prosper. This makes my job highly rewarding. • AmCham itself invests heavily in education. What would you single out in particular as the association’s contribu• What do you consider as AmCham’s most important area tion in this area? of know-how that enables it not only to entice new mem- Education plays a crucial role in the development of Serbian society and the economy. We have realized that there bers but also to retain existing ones? is a big gap between academia and the realm of market - As an association, AmCham unites the voices of the largneed, the need to enlarge the number of capable innovative est part of Serbian private business. In everything we do, managers, efficient and effective public administration as we strive to add value to our members and make Serbia a well as a special focus on underrepresented groups. That is better place to live, do business and invest. We are open why we decided to launch a few programs that have a comto new members, and we invite anyone interested to get in touch, join, and grow with us. ■ mon goal – to bridge and close these gaps. Our landmark

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MIA ZEČEVIĆ, DIRECTOR, NOVASTON ASSET MANAGEMENT CORPORATE

We'll Bring New Investors

“I

n just two years, we have participated in transactions with a value exceeding a billion euros, while we are currently with foreign and domestic investors on the development of new attractive projects in all former Yugoslav republics.”

Real estate management is the basic area of activity and expertise of Novaston Asset Management, which also provides additional consulting services for major purchases. Thanks to their cooperation with large companies and investment funds, the real estate market in Serbia is again experiencing its own golden years a very lively real estate market. Is it profitable to build new retail parks and shopping centres in Serbia? - We are favoured by the fact that other markets in the region are saturated, so major investors are shifting their focus to Serbia. Three new shopping centres have been built in Sofia since 2013, with 177,000 square metres of leasable space, while in Romania in 2015 there was more

By year’s end we will see the opening of the new ‘Promenada’ shopping centre in Novi Sad, which will have 50,000 square metres of space available to lease. Investors are also interested in smaller cities, though there they want to build retail parks. When this period of expansion passes, there will be a calming of the market in order to absorb everything that’s on offer.

• In just five years, Novaston Asset Management has succeeded in setting new standards on the commercial real estate market. Are you satisfied and what are your further plans? • Which cities and locations are - We can’t help but be satisfied, generating the greatest interbecause we have excellent coUnder the Novaston brand we have est among investors? Does that operation with almost all of the established and developed new platforms coincide with the demands of important investors on the Balkan for marketing, project management and tenants? market, both when it comes to facility management. Clients already - New Belgrade is again experiretail parks and shopping centres, recognise and value them, due to the encing its own golden years, due but also office and residential to the large number of residents, buildings ranging from 10,000 quality of the services we provide the fact that it is home to the to 15,000m2. Based on complete headquarters of many companies insight into the state of the marand its orderly infrastructure, while we than 200,000 square metres of total space ket, we consider that we should create a believe that interest in Belgrade’s Old Town available to lease and Croatia has had more unique real estate platform, and alongside and Dorćol neighbourhood will increase than 400,000 square metres of space that we are currently working on developing among investors in a couple of years. available to lease since 2012. new attractive projects with foreign and Tenants usually want the best locations In our city there is currently growing domestic investors in Serbia, Montenegro, and the best possible commercial condidemand for high-quality business premises, Croatia, Bosnia-Herzegovina, Macedonia tions, but they also accept high leasing and the construction of two large shopping and Slovenia. With this we will cover absocosts. On the other hand, investors strive centres is underway - BW Gallery and Ada lutely every part of the former Yugoslavia. to have a hundred per cent of their capacity Mall Shopping Centre - which will bring filled and long-term leasing costs fixed at 130,000 square metres of new luxurious • Despite the purchasing power of Sera high level. ■ retail space to Belgrade by the end of 2020. bian citizens being low, the country has

SHARING PAST & FUTURE | 11

INTERVIEW

We Strongly Support Serbia’s Path Toward The EU CAROLINA HIDEA

ECONOMIC COUNSELLOR OF THE U.S. EMBASSY IN BELGRADE We believe that Serbia's best economic future lies with the European Union and the West. Therefore we strongly support Serbia's strategic goal of joining the EU, and we work closely with the government to help Serbia achieve its goal •••

bout 100 US companies have already invested nearly $4 billion in the major sectors of the Serbian economy. While Serbia proves to be attractive for U.S. investors, domestic producers are still finding their way to the highly competitive US market. We spoke with Carolina Hidea, Economic Counsellor of the U.S. Embassy in Belgrade, about the opportunities that lie ahead. • Why have the possibilities granted to Serbia by the Generalized System of Preferences (GSP) not been fully realised?

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- Serbia benefits considerably from trade with the United States under the GSP, which allows duty free exports to the United States from over 130 countries, including Serbia. Serbia is eligible for duty-free treatment for nearly 3,500 product groups under GSP. Some of Serbia’s key exports to the United States – from electric motors to frozen berries and more – benefit from the GSP program. But you’re right that Serbia still has a lot of potential to increase its exports to the United States under GSP. Part of the reason may be that some Serbian exporters are unaware of the GSP program. We try to get the word out, and we appreciate the hard work of the Serbian Chamber of Commerce and other business groups to inform their members of the opportunities that GSP provides. • From which examples drawn from similar countries we can learn to be more successful exporters for the US market? - It’s difficult to point to a single country as a success story to follow, because so much depends on individual companies being proactive and putting in the work on market research and product development.

ADVICE

OPPORTUNITY

POTENTIAL

Serbia needs to increase its competitiveness to withstand the pressures of the EU single market

We see the organic market as an area of high export potential for Serbian producers

Serbia has well-educated, wellqualified, multi-lingual professionals who can compete anywhere

About 1.6% of Serbia’s exports go to the United States, which we think could be improved. Most of Serbia’s EU neighbors send perhaps 2-4% of their exports to the United States, while America can account for 8-9% of exports in European countries like Germany or Italy, with advanced industrial sectors and more value-added products.

efficient and competitive in line with the EU accession driven reform changes in Serbia? - We strongly support Serbia’s strategic goal of joining the European Union, because it is the goal Serbia has chosen for itself and because we agree that the process of joining the EU will be beneficial for the people of Serbia. We work closely

• Bearing in mind that the US gave particular support to promising Serbian exporters of organic food, which success stories could you share with us? - Indeed, we have worked for more than ten years with Serbian partners to build an ecosystem for organic food production. Together, we introduced standardized quality standards for the sector, trained thousands of Serbian farmers in organic food production, supported participation in specialized trade fairs and also developed a vocational school curriculum in organic production, in partnership with the Ministries of Education and Agriculture. One of our early partners, Suncokret, was one of Serbia’s first organic exporters, and won a prestigious British award for its organic walnut butter in 2009. We are continuing this collaboration through two of our new activities. Through the Competitive Economy project, we continue our long cooperation with Serbia Organica, as a key partner in our efforts to work with the Serbian public and private sectors with the government to help Serbia achieve its goal. The reforms required to reach its goal of joining the European Union will greatly benefit Serbia’s private sector and its economy. For example, the rule of law reforms Serbia has undertaken as part of its accession process will improve the predictability of the judicial process, which is critical to increasing investor confidence in Serbia. Ultimately, increased investment and private sector expansion will help Serbia achieve increased prosperity for all of its citizens.

Building US exports may become easier as Serbia continues integrating into Western supply chains – a process that is progressing year by year to increase the value added by Serbian fruit and vegetable exports. We continue to see the organic market as an area of high export potential for Serbian producers. Over the past few months alone, we have assisted organic producers in exhibiting at a leading German organic product fair, which has resulted in 15 new contracts already signed, and many others still in negotiation. As a part of our Public-Private Dialogue for Growth project, we have also partnered with Agro-cluster from Novi Sad to engage public and private stakeholders to improve the regulatory environment for organic food production. • How is US support for Serbia to make its economy more

• What is the current size of the investment portfolio of the U.S. in Serbia? - There are approximately 100 US companies of many sizes that have operations in all the major sectors of the Serbian economy. These companies now employ some 19,000 people altogether, including everything from large companies with

SHARING PAST & FUTURE | 13

thousands of workers to some very small enterprises with just a few people. Altogether, these companies have invested nearly $4 billion in the Serbian economy. • What does US industrial experience mean for the recovery of Serbian industrial capacities? - The US economy is very resilient. The United States recovered more quickly than most countries from the economic crisis that gripped the world ten years ago. There are many factors behind this, but one is surely our reliance on the private sector to drive the economy. Private companies can generally make decisions and take corrective action much faster than state-run enterprises, which often make decisions based on factors not directly related to business concerns. This may save some economic pain in the short run, for example by supporting workplaces that a private company could not profitably justify, but short-term thinking and postponing difficult decisions can cause economic pain in the long run, as problems for these companies mount and become ever more difficult to resolve. This is why we agree with the IMF, the World Bank, and other institutions that emphasize how important it is for Serbia to implement the structural reform required to enter the next phase of its development and achieve faster economic growth.

- The professional network in the Serbian IT sector is strong, and I am confident the sector will continue to grow in size and sophistication in the years to come. Serbian ITprofessionals work hard to stay current with international trends and developments. We are very glad to see that Serbian educational institutions are responding to employment opportunities for qualified Serbs by modernizing and improving IT education in Serbia. There are countless examples of smaller Serbian IT companies selling their software internationally, including in the United States. Their products are sophisticated and often cutting-edge, and they do very well. There are also US investors that actively work to develop Serbian IT startups. • What is the role of fellowships given by the US to Serbian young professionals in building national expertise in the sciences, economy, and media? - The United States has a number of exchange programs that support economic development, while at the same time increasing mutual understanding between the people of our two countries. The Fulbright Program enables graduate students and young professionals to research and study in the United States for one year at US universities or other appropriate institutions. The program also provides grants to Serbian scholars to conduct post-doctoral research at US institutions, research that can last from an academic semester to a full academic year. The Humphrey Fellowship Program brings accomplished mid-level professionals to the U.S. for 10 months of combined aca-

• Recently, several US companies from the service sector have established a presence in Serbia. What is the driving force behind these new types of investors? We want Serbia to be a success, because it is the goal Serbia - The service sector is a perfect place for has chosen for itself and because we agree that the process of investors to benefit from Serbia’s greatest joining the EU will be beneficial for the people of Serbia resource – its people. Serbia has well-educated, well-qualified, multi-lingual professionals demic and professional work, while the International Visitor who can compete anywhere. Serbia’s proud engineering tradition Leadership Program arranges short-term visits to the United remains strong today, and there is a new generation of IT professionals and programmers who are ready to perform globally. States, where leaders in a variety of fields experience the When foreign investors come to Serbia and create good U.S. first-hand and cultivate lasting relationships with their jobs, these professionals can stay here in Serbia. Many people American counterparts. are concerned about a “brain drain” from Serbia. Investments in In addition to those exchange programs, the U.S. Embassy in Belgrade also works with partners all over Serbia on the service sector help talented Serbs stay here in the country, projects designed to promote economic development and to contributing to Serbia’s success. support high-quality, independent journalism. One program, for example, connected US experts in entrepreneurship and • How do you assess the scope and size of formal and informal networks between US ICT companies, their Serbian science, technology, engineering, and math (“STEM”) education counterparts, and individuals specialised in these services? with Serbian educators across the country. ■

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FRESH SUMMER SPREAD STRAIGHT FROM THE GARDENS OF LOCAL PRODUCERS CORPORATE

Know Who You’re Buying From Fresh fruit and vegetables are an integral part of every spread on the table during hot summer days. Although it is advisable – due to your body’s needs – to increase your consumption of fruit and vegetables during summer, you should be cautious when buying such produce and carefully check the source of the foods you buy, because you can’t always be sure that the fruits and vegetables on offer meet all quality standards

from the very beginning to the final stage 2,500km from point of origin to point ith the precise goal of enabling – harvesting and distribution. of sale. That same statistic is certainly all customers to base their If you want to be sure about the quality less alarming in Serbia than in the U.S., nutritional intake on the best of your nutrition this summer, you must and with the precise intention of offer quality foods – with proven oriknow who you are buying from. Thus, customers the freshest fruits and veggin and cultivation under strictly controlled Maxi’s apples, plums and cabbages come etables – straight from the garden, Maxi conditions, Maxi supermarkets have been from the estate of Nestorović family, carsupermarkets have developed a network gathering together the best local producers rots are sourced from Marko from different parts of Serbia for Čarnić, while Bosko Rajković years. The Filipović family from The benefits of food that comes produces cherry tomatoes of Boljevac, the Nestorović brothers directly from the gardens of local proven quality. Marko Batoćanin from Preljina, Čarnić from Begeč, producers to your plate lie in the fact that has for years produced, along Rajković from Dobrinci, Batoćanin local products and cultivation processes with his family, the best qualfrom Trstenik – these are just are controlled from the very beginning ity lettuce on his estate in the some of the families with many to the final stage – harvesting and Trstenik area, while the Filipović years of experience in the cultidistribution family grows hot peppers under vation of fruits and vegetables strictly controlled conditions in whose products can be found in their greenhouses. And that’s not all! These of local producers, in order to improve the all of Maxi’s retail units. are just some of the fifty-plus families quality of everyday nutrition and offer Best testifying to the significance that produce fruits and vegetables for proven quality as the only choice. The of local food producers is the fact that Maxi supermarkets. Now you know who benefits of food that comes directly from this issue is recognised globally as being you are buying from, and have you ever the gardens of local producers to your extremely important to general health. wondered how many times to date you plate lie in the fact that local products One world statistic is that food in the haven’t known? ■ and cultivation processes are controlled United States travels an average of 2,000-

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INTERVIEW

Helping Serbian Businesses To Thrive AZZA EL-ABD, USAID’S MISSION DIRECTOR FOR SERBIA USAID assistance during the past five years has helped Serbia adopt and implement regulations that make it easier for businesses to operate and prosper in Serbia. We intend to continue promoting this kind of initiative •••

e spoke with USAID Mission Director for Serbia Azza El-Abd about USAID support to reforms in Serbia.

came to obtaining construction permits. USAID has also worked with Serbian institutions to support and strengthen small and medium enterprises (SMEs). This assistance has helped businesses expand and resulted in the creation of 487 full-time and 159 part-time jobs in 12 municipalities in these regions during the period of 2013-2018. Opportunity Bank of Serbia, which USAID helped to capitalize, has provided over €472 million since 2007 in loans to micro-enterprises, small agricultural producers, and others who cannot access loans otherwise.

• Which areas of intervention were addressed, and what achievements have been made during the five-year cooperation cycle that ended in 2017? - Working with the government of Serbia, the private sector and civil society, USAID supported reforms that made it easier for businesses to obtain construction permits, hire the employees they need, and comply with business inspections. It also made these processes more transparent. This has resulted in increased construction activity and construction-related jobs; it has moved companies out of the shadow economy, decreased opportunities for corruption, and, according to the World Bank’s 2018 Doing Business Report, made Serbia the tenth best country in the world for ease of obtaining a construction permit. Prior to these reforms, Serbia was ranked 186th on the Doing Business Report when it

• How much is this progress visible to the ordinary citizen? - Since 2001, the United States has provided nearly $1 billion in assistance to Serbia. Recently, we launched an interactive map on the Embassy website that shows how widespread our assistance has been. There are more than 1,850 points on this map. Each point represents an activity that U.S. assistance supported — from renovating schools, to paving roads, or to restoring places of cultural significance. I encourage the Serbian public to visit the site to see how U.S. assistance has benefited their communities and their country. The map captures only that infrastructure which we’ve supported. Other programs have provided technical assistance to governmental, private sector and civil society institutions to advance reforms that boost the economy and strengthen the

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rule of law for the benefit of Serbia’s citizens. For instance, our rule of law support has helped the Serbian government adopt and implement its first Whistleblower Protection Law, making it safer for individuals to report corruption and fraud. As part of our support, USAID set up a hotline by which people can safely report abuse of public resources, and we have also trained more than 1,200 judges and judicial staff on how to adjudicate whistleblowing

sector to increase the competitiveness of the food processing industry, particularly the fruit and vegetable sectors by connecting producers to finance, marketing, and research and development institutions that can help them increase the value of their products and successfully expand to new markets.

• For seven consecutive years, the USAID Business Enabling Project (BEP) has surveyed Serbian businesses to determine their views about the qualiI encourage the Serbian public to visit the Embassy website ty of the business environment. What prowith an interactive map representing activities that U.S. gress if any have you noticed over the years? assistance supported - USAID BEP’s annual survey steadily grew into a nationally recognized tool for mapping the key challenges to Serbia’s economic development and establishing cases. Four court decisions have already been rendered in favour priorities for economic reform. More importantly, it has become a of whistleblowers — often providing financial compensation and tool to assist policymakers in resolving key obstacles to sustainable restoring their positions, thus proving that the law is already growth in the Serbian economy. The seventh edition published in protecting whistleblowers. More than 25 whistleblowers have October 2017 was no exception. been provided temporary protection as their cases move forward. The effects of recent economic reforms on Serbia’s private sector are evident. The companies taking part in the survey say • What is your focus today now that the new cycle of support to they spend three times less money and time on paperwork than the Serbian economy has started? they did in 2011. In last year’s survey, we saw that more than half of - Currently, USAID is helping to strengthen Serbia’s economy businesses believed their earnings would be higher next year, and through programmes that bolster the competitiveness of the nearly one third of them planned to hire more workers. private sector. We are working with the Serbian public and private

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Furthermore, we see the positive impact that the Law on Inspection Oversight, developed with USAID assistance, is having on Serbian businesses.

operations through case management systems and electronic registries. We intend to continue promoting similar initiatives as part of our efforts to support Serbia’s public administration reforms.

• Public administration reform is one of the key areas in EU accession negotiations. What does the Grey Book of Public Services says about the most pressing challenges that have to be addressed? - Recently, USAID supported the European Movement in Serbia in developing the Gray Book of Public Services, which contains research findings about Serbia’s public services and recommendations for improving their quality, efficiency, and accessibility. The

• Speaking of digital, the ICT Hub was launched as part of a public-private partnership with USAID in 2014 as a one-of-a-kind incubator for Serbia’s technology entrepreneurs. When you think of that initiative today, how would you assess its major accomplishments? - USAID has worked extensively to support the development of Serbia’s IT sector through projects in Belgrade, Nis and Novi Sad. As you mention, we provided initial support to establish the ICT Hub in 2014. We have been very impressed to note the ICT Hub’s impact in helping young, highly-skilled individuals, and talented software developers to grow as technology entrepreneurs and project managers. USAID renewed its partnership with the ICT Hub in March 2018 and will continue to support young technology entrepreneurs. • A joint Balkan Media Assistance Program launched this year has to help journalists regain their positions in society. How can the program help them to sustain media freedom in digital times? - Globally, USAID has seen that as digital media has replaced more traditional communication methods, media outlets need to adjust their business models to survive. Our assistance here in Serbia and in the region is helping interested outlets develop viable financial models, ensuring that Serbs can access quality, professional journalism on digital platforms.

goal is to improve the responsiveness and accountability of the Serbian government and the quality of services in three specific areas: health, education, and the administration of personal documents.

As a result of USAID supported reforms, over two thirds of Serbian businesses now claim inspectors are well trained and polite

• In terms of promoting better administration, which are the areas of support that Serbia can count on? Much of your intervention in the past, both at the national and local levels, evolved from digitalisation. Would this be an area of future engagement? - As already mentioned, in the area of business regulation, we found that automating procedures in construction permitting and business inspections increased the transparency of these processes. Similarly, an e-inspector system is being developed, which will further standardize processes so that businesses know what to expect. Furthermore, the changes to the inspections regime provide incentives for Serbian businesses to exit the shadow economy and legally register. For more than a decade, USAID worked to improve access to justice, case management, and court efficiency. In partnership with the Serbian government, USAID assistance has helped renovate misdemeanour courts throughout Serbia and improved court

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In 2017, USAID launched a joint Balkan Media Assistance Program that works in five countries in the Balkan region to help develop online media. It will provide outlets and media partners with more substantial and stable resources to operate as viable enterprises, engage wider audiences, and expand their reach within the region. • Past interventions also were directed toward communities affected by the migration crisis… - Since 2016, USAID provided $2 million to Serbian communities affected by the migrant crisis. This assistance has helped municipalities improve social and health services, positioning them to respond to the crisis and improve services to all their citizens. This support included a new reservoir in Preševo to provide a reliable source of potable water to residents, a new emergency care centre at the Bosilegrad health clinic, medical equipment in Subotica, and new school facilities in Kikinda, as well as other upgrades. ■

BRANISLAV SAVIĆ PLANT MANAGER, BALL PACKAGING EUROPE CORPORATE

Years Of Successful Business Operations In Serbia Rising from a 200-dollar loan to the largest beverage can producer, it has been 138 years since the Ball brothers’ founded Ball Corporation, and in that period the company has grown into a global leader, operating on four continents and employing more than 18,000 people

he history of the company’s success also includes Ball Beverage Packaging Europe in Belgrade. It has been operating in Serbia since 2005, and today it has more than 200 employees and produces five different can sizes at two production lines for more than 20 markets.

• You have been operating in Serbia for years. When the factory was opened in 2005, it was the largest greenfield investment in Serbia. The investment in the factory reached EUR 70 million and 120 new jobs were created. When you sum up the period behind us, what are your impressions about operating in our market? - “Operations in Serbia have fully met expectations, primarily owing to the committed, educated people that encounter everyday business challenges with amazing passion within Ball

internal auditing. Thus the GBS in Belgrade follows and creates global business trends.”

• Ball has also done a lot in the area of recycling in Serbia. You often point out the significance of recycling and sustainable development... - “We are a factory that produces alu-packaging, and cans are fully recyclable. On the other hand, Ball has been completely committed • Branislav Savić is at the helm of the Belto environmental protection in all business grade factory. Mr Savić, first of all, congratsegments globally for many years. By estabulations to you and your team! Ball Packaglishing the Recan non-profit foundation in ing Belgrade has won the title of the best Serbia as well, we have executed factory in Europe among 22 educational programs engaging can and cap factories operating We plan to grow our business and aim to 2.5 million people, 264 schools, 30 within Ball Beverage Packaging employ more excellent people in Serbia, kindergartens, 5 faculties and more Europe (BBPE). To what do you than 40 companies. Both globally owe this prestigious award? maximize production and, owing to the growth and locally, we strive to create a - “The most relevant selecof Ball Beverage Packaging in Belgrade, responsible future for ourselves, tion category was operating contribute to Serbia’s economic development, for our children and for the generawithout work-related injuries. bearing in mind the share in the export balance tions to come. We do this together Another category for the judgof the country where we operate with our employees, the best and ing was the low number of most active promoters of recycling. customer complaints. Other assessment criteria included efficiency and Beverage Packaging Europe in Belgrade. We • You have years of successful business opspoilage reduction in the production process. produce exclusively some of Ball’s innovative erations behind you. Since constant progress The Belgrade team has won this significant products like the BRE cap, enabling closing of and advancement are top priorities in the award for achieving the best results in all a can until further consumption. Not only do company, how do you plan to improve furthose areas. Some other parameters inwe have 200 employees in the factory, but also ther these excellent results? cluded innovation, for which the factory in around 100 more working at the Global Business - “We plan to grow our business and aim to emBelgrade is renowned. What places us at the Service Center (GBS), and this confirms that ploy more excellent people in Serbia, maximize top is the selfless sharing of best practices. we have an excellent team that does a great production and, owing to the growth of Ball This award confirms the commitment and job in Serbia. The centre in Belgrade provides Beverage Packaging in Belgrade, contribute efforts of our employees, who constantly various services and manages some parts to Serbia’s economic development, bearing improve our operations. For all of us, this of the corporation’s operations in Europe, in mind the share in the export balance of the award will represent an additional incentive Asia, Africa and the Middle East in the area country where we operate.” ■ for achieving even greater results.” of finance, planning, HR management and

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AMCHAM COMMITTEES

Facilitating Progress In The Business Environment ••••• The expertise of the AmCham committees has contributed to efficient, transparent and consistent implementation of changes in the legal framework and inspired changes in public policies, which propelled Serbia’s image as a forerunner in the EU accession process. The key to this success has been a constant, open, and fruitful dialogue with Serbian institutions that recognized AmCham as a valuable partner in reform endeavours

mCham has eight committees that are the driving force behind the association’s expertise in advocating improvement for the Serbian business environment. AmCham’s goals in supporting the reform efforts of the government are driven by a two-year agenda, based on the results of a survey conducted among AmCham members, and focus on issues that affect membership. The committees’ work is dedicated to the most important areas of needed intervention such as the grey economy, healthcare system, e-government, and regulations for tax, labor, and business. Grounded in evidence-based research and practices that AmCham members have garnered across the globe, the committees summarize their standpoints in position papers, suggesting processes, rules, and regulations to represent a platform for dialogue between AmCham and key decision- and policy-makers as well as the implementing authorities. Such an approach has led to many policy interventions, of which many were game-changers, bolstering Serbia’s reform accomplishments and winning the recognition of both actual and prospective investors and the national business community. Furthermore, the work done by AmCham committees has helped Serbia in aligning its domestic regulations with EU acquis and allowed for smooth implementation and better enforcement in practice. Apart from the improvement of the regulatory framework and practices, AmCham have committees advocated and inspired capacity building in those institutions that are in the front row when it comes to the enforcement of the rule of law. The key to the success has been a constant, open, and fruitful dialogue with the Serbian government, institutions and public administration that recognized AmCham as a valuable partner in its reform endeavours.

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Business And Corporate Law Committee VLADIMIR VESOVIĆ, CHAIRPERSON Head of Late Workout Department, Raiffeisen Bank What we aim at is a predictable business environment. We work towards further development of corporate and commercial legislation and business practice in Serbia and wish to contribute to efficient, transparent and consistent implementation of the relevant legal framework. We are in constant dialogue with state authorities to secure consistent interpretation and implementation of laws in our sphere of interest. Some of the Committee’s greatest accomplishments include more effective regulatory framework for the efficient collection of claims through Amendments to the Law on Insolvency and Amendments to the Law on Enforcement and Security, improvement of the Bankruptcy Law, Law on Investments and the Law on Advertising. Also, through Amendments to the Law on Personal Data Protection we aim to ease administration for businesses and harmonize it with EU rules.

FOCUS

• Initiation and working on the amendments to the Law on Enforcement and Security, Law on Protection

of Competition, Public Procurement Law; • Monitoring of the adoption of delivered suggestions to the Law on Personal Data Protection, as well as implementation of this Law in accordance with the EU standards; • Monitoring and adoption of the comments given upon Company Law; • Organization of the roundtable on implementation of the Insolvency Law and Enforcement Law.

Combating Grey Economy Committee DRAGANA VUJKO, CHAIRPERSON Manager Government Affairs SEE, Philip Morris Services We play an important role in reducing grey economy and introducing fair market conditions. The Committee strives to assist the Government of Serbia in significant reduction of illicit trade, thus creating level playing field and diminishing competition of black and grey market to law abiding businesses. We have focused our efforts towards improvement of both regulatory frame and capacity building of the inspections for efficient implementation of the Law on Inspection. The Committee advocated for specialization of prosecutors and judges for grey economy cases through Analysis of Public Prosecutor`s Office, implemented in the Law on the Organization and Jurisdiction of Government Authorities in Combating Organized Crime, Terrorism and Corruption. We have also participated in drafting the Government’s Action Plan for Fighting Grey Economy, with proposals aimed at more efficient prosecution of grey economy cases and inspections oversight.

FOCUS • Scan of regulations for introducing missing competencies of supervisory authorities Trainings for Tax Admin and Trade Inspectorate in cooperation with Ministry of Interior and Prosecutor for HTC • Draft sequence of procedures for illicit trade over internet (including IPR infringements • Grey Econ Conference 2018 – keeping the fight against illicit trade in the top priorities of GoS and putting focus on the internet as an expanding channel • Presentation of international Illicit Trade Index (The Economist Intelligence Unit)

Environmental Committee ANDREA RADONJIĆ, CHAIRPERSON Public & Regulatory Affairs Manager, Coca-Cola Hellenic It is our goal to raise awareness on key environmental issues and improve regulatory impediments related to waste management, circular economy and other pressing environment policy issues aimed at aligning domestic regulations with EU acquis and allowing smooth implementation and better enforcement in practice. In partnership with the Government and other stakeholders, we want to promote best environmental practices from AmCham business community and improve regulatory framework. This will support sustainable development of businesses and help reduce their environmental footprint. One of the greatest accomplishments is the establishment of the Ministry for Environmental Protection. It has been in the focus of Environmental Committee`s advocating efforts, along with the need to raise Ministry`s administrative capacities, to achieve better inspection supervision and consistent collaboration with the private sector. We are also proud of the highly successful this year’s Conference we organized on Environmental Protection - Waste Management, which raised attention about the most burning issues in packaging waste and special waste streams management.

FOCUS

• Improvement of the existing packaging waste management system, with further dialogue development with the Ministry of Environmental Protection, Serbian Environmental Protection Agency and other partners aimed at empowering local self-government in this area. • Introduction of extended producer responsibility (EPR) scheme for special waste flows, via dialogue with the relevant ministry, aimed at regulating this area, reducing corruption and increasing transparency, all in the best interest of the industry; • Distribution of food surplus – as Serbia does not have a law regulating this area, the Committee’s initiative may contribute to regulating distribution of more than 250 000 tons of food surplus annually; • Eco-taxes – continuation of the Committee’s efforts for increasing transparency in this area;

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• Further positioning of the Committee as a body which represents the industry’s interests in environmental protection.

Healthcare Committee SANDRA MARINKOVIĆ, CHAIRPERSON External Affairs Lead, Merck Sharpe & Dohme More efficient and transparent healthcare system in Serbia is the reason this Committee is formed. With established constructive dialogue with the Ministry of Health and related institutions, we aim to promote and develop private sector contributions to improvements in the healthcare related legislation, take part in healthcare reform through improving transparency of the regulatory environment and enhancing market access under fair and competitive grounds, advocate for harmonization with EU regulations and secure suitable transposition of EU rules and practice. The Committee endeavors to promote ethical conduct of all individuals involved, i.e. healthcare professionals and employees of the undertakings in healthcare sector. We have organized a series of round tables on public procurement processes, as well as annual Conferences on the Development of Health Care Policies in Serbia. I wish to highlight that after years without access to innovative drugs for Serbian patients and significant advocacy of AmCham Health Care. Committee, 23 innovative medicines were introduced in 2016. The joint study by AmCham and the Ministry of Health on the possibilities for synergy between the public and private sectors aimed at improving healthcare efficiency resulted in a Study on the Possible Directions to Increase the Efficiency of the Health System in Serbia. Also, based on our efforts, there are certain improvements of the regulatory framework related to medicines, medical devices and health insurance.

FOCUS

• Accelerated access to new drugs and health technologies - Based on the evidence that new health technologies in a long run improve population life expectancy and productivity, and reduce overall healthcare costs, advocate for increase in drug budget and dedicated

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resources for innovation in order to reduce growing gap in access to innovation compared to EU countries. • Public-Private Partnership in providing health care services - Improving synergy between public and private health care sector that should result in better quality of services provided to patients without additional investments. By maximizing the opportunities arising with the introduction of DRG (Diagnostic Related Groups) financing for health care services, patients should be allowed the opportunity to choose healthcare provider from public or private sector, and to contribute to difference in costs (directly or through private health insurance). • Optimization of public procurement processes in healthcare - In order to assure best value for money, maximize competition and provide high quality services, procurement processes in health care should be based on “value” and MEAT (most economically advantageous tender) as default award criteria, which in addition to optimizing stock management in healthcare institutions should result in decreased expenses for provided services.

Labour Regulations Committee JELENA DANILOVIĆ, CHAIRPERSON Attorney at Law, Karanović Nikolić Law Office This Committee aims to improve labor related regulations in order to increase competitiveness of Serbia as an investment destination, thus facilitating economic development and sustainable increase in employment, through an ongoing cooperation with policy makers to improve labor related regulations and removing hurdles in their efficient implementation. The most significant accomplishment of this Committee is Amendments to the Labor low adoption with over 70% of Committee’s comments incorporated, as well as by amending the Law on Employment of Foreigners. Also, we worked on improving the Law on Foreigners and the Law on Employment of Foreigners and have successfully monitored the implementation of labor regulation.

FOCUS

• Close supervision of the Staff Leasing Law adoption

process and other engagements in that regard, • Close supervision of the implementation of the new Law on Foreigners; • Preparing for the upcoming amendments of the Labor Law; • Continuous cooperation with labor authorities and other decision makers; • Continuous monitoring of existing regulations, changes in the practice etc.

Real Estate And Energy Committee IVAN PETROVIĆ, CHAIRPERSON Senior Associate, Janković, Popović, Mitić The Committee advocates for changes of real estate and energy regulations and its harmonization with other relevant laws, aimed at diminishing obstacles for both green and brown field investments, as well as ensuring better enforcement of adopted regulations in practice. We are a constructive partner to the Serbian Government and other state institutions in improving overall real estate and energy regulatory framework, with the aim of further developing real estate and energy industry and creating conditions for investment friendly business environment. Some of the Committee`s greatest accomplishments include setting up a more efficient and predictable framework for obtaining construction permits by amending the Law on Planning and Construction, clearly defining the ownership of land and reforming the compensation for development of construction land. Also, Committee actively worked to provide comments and support the adoption of the Law on the Conversion of Right to Use Land into Ownership Right, as one of the last outstanding important issues in the area of real estate.

REAL ESTATE STREAM:

• Monitoring the implementation of the Law on Planning and Construction, with focus on the procedure for issuance of construction permits within unified procedure; • Amending the Law on Conversion of the Right of Use Land into the Ownership right with Compensation,

resolving the issue of conversion proceedings in case of restitution claim; • Monitoring regulatory developments and the implementation of restitution procedures; • Improving the issues and deficiencies in real estate cadaster procedures; • Resolving practical issues noted within Public Notary Chamber procedures;

ENERGY & INFRASTRUCTURE STREAM:

• Improving the regulatory environment in the energy sector, as well as its implementation; • Improving framework for efficient cooperation between private and public sector in energy field; • Improving implementation of specific regulations in the area of renewable energy; • Supporting the development of novel energy businesses

Tax And Finance Committee SLAVKO CARIĆ, CHAIRPERSON CEO, Erste Bank The Finance & Tax Committee strives to fine-tune financial and tax regulations and their implementation with the view of increasing their business-friendly approach, transparency and efficiency. The Committee fosters interaction between business community and the relevant state authorities with the aim to develop a dialogue in drafting the finance and tax legislation sharing world best practices in their implementation. Some of the greatest achievements of this Committee include continuation of the long-awaited reform of parafiscal charges with adopted amendments of the Law on Administrative Taxes, and publishing for proper public discussion Draft Law on Compensations for the Use of Public Goods; amendments to the Law on Tax Procedure and Tax Administration, which shifted the competences for conducting appellate procedures from Tax Administration to the Ministry of Finance and improvements in the regula-

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tory framework for the liquidity of businesses by providing comments to the Law on Enforcement and Security and addressing the problem of NPLs, improvements of the predictability of the tax and non–tax burden by amending to the Decree regulating the compensation of business travel expenses for civil servants and also to the practice of the tax administration through electronic tax filing, while uniformity of practice and the predictability of the tax laws remains arguable.

FOCUS

• Advocating for transparency and predictability in the adoption and application of tax regulations; • Modification and precision of the principle “substance above form”; • Predictability and continuity in tax audits and respecting the rights of taxpayers; • Systematization of parafiscal charges, including the publication of a parafiscal charges register. • Improvement of foreign exchange operations - essential change of the regulatory framework and the outdated solutions; • Monitoring and advocating for innovative ways of digital payments, essential and non-restrictive access to services provided by foreign electronic money and payment institutions from third countries to the business community and citizens, in line with EU directives; • Supporting general financial inclusion of materially and socially deprived categories of citizens (right to a basic payment account regardless of a person’s place of residence or financial situation)

Trade Facilitation Committee MIRJANA JOVAŠEVIĆ, CHAIRPERSON Corporate Communications & Sustainability Director, Delhaize Trade Facilitation Committee aims to assist the Government of Serbia in streamlining procedures and controls governing movement of goods across national borders, with the view of reduction of associated cost burdens and maximizing efficiency, while safeguarding legitimate regulatory objectives and assuring

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transparent and uniform application of rules. Key goals are to encompass establishment and maintenance of a constructive dialogue with all relevant state institutions tasked with import and export controls, improvement of regulatory framework (including implementing regulations) and institutional mechanisms for their effective coordination. Establishment of the National Coordination Body for Trade Facilitation, that gathers all relevant state institutions and private sector representatives, to push for and achieve more streamlined, transparent, uniformly implemented and coordinated procedures of different authorities for import and export of goods, aimed at improving efficiency while safeguarding legitimate regulatory objectives. AmCham Public-Private Dialogue for Trade Facilitation Conference organized in November, highlighted the importance of identification and resolution of obstacles for more efficient import-export procedures that would lead to more intensive economic growth.

FOCUS

• Improving procedures applicable for import and export of foodstuffs allowing for more efficient and effective controls based on the risk assessment principle; • Improving regulatory framework and its implementation in the area of chemicals and cosmetics; • Providing private sector feedback and facilitating implementation of electronic procedures in the work of the Customs Administration.

DIGITAL ECONOMY PLATFORM Digital Economy Platform cross cuts all AmCham’s improving business environment working groups, to offer innovative solutions to overcome the traditional challenges that businesses face and facilitate Serbia’s transition to the digital economy era. The aim is to promote Serbia as an attractive investment destination and innovation hub with a sustainable talent pool, to stimulate entrepreneurial growth and development of a knowledge-based society in Serbia and to advocate for further optimization, expansion and investment in the ICT technologies by the Government. This platform is dealing with regulatory challenges, digital business, promotion of eGovernment & mGovernment, collaboration with startups and empowering Women in Tech. Our efforts are visible in the improvement of the Law on eDocument, eIdentification and eTrust Services, Law on Personal Data Protection, Cybersecurity Law and the Law on eGovernment. ■

CORPORATE

Dell EMC Cloud Transforming Business

hile security remains a key area Cloud computing is a fact of life for all enterprises, not just of focus, customer concerns for IT organizations. Cloud is now a business platform more have largely shifted from “is than just a technology solution, involving and affecting cloud safe?” to recognizing that people, processes and applications. It changes roles, an organization’s most mission-critical data increasingly is located in multiple clouds and priorities and mandates across the entire organization. For must continue to be protected at all costs. IT organizations, cloud brings dramatic effects, particularly Cloud service providers and their customers in three major areas: security, cloud-native applications, are collaborating to handle security chaland core business applications lenges for data, applications and services in the cloud. These include securing the edge for both traditional, corporate-owned, and requirements and fast-changing compliance EMC provides an array of options that meet other third- party endpoints, as well as aligning regulations in mind. These platforms embed the diverse needs of organizations, each with cloud security models with risk mitigation and new hardware and system-level security feadifferent areas of emphasis for cloud-based compliance requirements. tures to protect the infrastructure. applications and workloads. Combining the shared responsibility model Dell EMC prevents configuration changes with these and other security solutions, Dell that create security vulnerabilities and expose THE PATH FORWARD EMC Technologies offers customers the sensitive data. SecureBoot, BIOS recovery As a core element of digital transformation, confidence of a secure and scalexecuting on your multi-cloud stratable framework as more and more egy no longer is an option certainly By delivering security in hardware, customer applications, data, and not for any organization that needs software, and services, Dell EMC layers in services move to the cloud. to move faster, use human capital protection across the full infrastructure Dell EMC cloud-native platmore strategically, stretch tight stack so no one point of failure can forms are more secure than the budgets and deliver new business compromise critical data do-it-yourself configurations. They products and services rapidly. IT are built on known secure infraand business leaders should look structure configurations that are supported, capabilities, and signed firmware provide for an experienced partner both for developing patched and updated as an integrated system enhanced protection against attacks. their multi-cloud strategy and for deploying the to reduce vulnerabilities and mitigate advanced By delivering security in hardware, softright tools and services to help business users persistent threats. ware, and services, Dell EMC layers in protake advantage of all the cloud has to offer. ■ Dell EMC provides intelligence-driven tection across the full infrastructure stack For more information on how information security solutions to help organizaso no one point of failure can compromise Dell EMC Technologies can help you tions of all sizes prevent, detect, respond to critical data. In the real world, organizations navigate your journey to the cloud, please and predict cyber-attacks. Their servers are demand a mixed portfolio of solutions for cloud, visit www.dellemc.com designed with rapidly evolving cloud security on-premises and hybrid environments. Dell

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INTERVIEW

Good Dialogue Moves Mountains AMALIJA PAVIĆ

AMCHAM DEPUTY EXECUTIVE DIRECTOR

In our 17 years of cooperation with the government, we have successfully changed over 150 regulations and processes aimed at improving the business environment. The most important factors for these successes have been the openness of the government and their constructive approach to possible solutions •••

ith the mission constantly to improve the business environment and promote economic development in Serbia, AmCham has influenced many policy decisions and practices that have indelibly changed the institutional framework. We spoke with Amalija Pavic, AmCham Deputy Executive Director, about the organisation’s approach to the cooperation with the government and other stakeholders involved in the process of reforms.

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• Which internal mechanisms does AmCham have available in order to adapt its structure to member companies and their needs? - We see our members as customers but also as a resource of know-how, best practice, and entrepreneurship for fulfilling our raison d’être. Failing to infer the changing needs of our members would mean not only a lack of membership satisfaction, ultimately decreasing our membership, but also failing to seize the opportunity to foster faster economic growth. Therefore, we have different methods: from our annual investor confidence and business environment survey, to daily meetings, special projects, and formats to gather information and provide a platform for showcasing best practices and pursuing novel approaches to solving problems. As a result, we have three main platforms in which we structure our activities. They are: Improving the Business Environment, Networking and Promotion, and Accelerating Professional Development.

Thanks to the dedicated work of our committees, Serbia has conducted various successful reforms that affected the business environment and reaffirmed AmCham as a reliable partner for the government • How many committees does AmCham have today, and how do you confirm which new topics on which to focus and establish new committees to deal with them? - AmCham has nine active committees focused on issues that affect our members and their operations, such as tax regulations and their proper implementation, the grey economy, improving the healthcare system, introducing e-government, tackling environmental rules, labour, and business regulations. Our annual business environment and investor confidence survey keeps our finger on the pulse of our membership, provides us with a list of priority obstacles our members face. And we structure the priorities of existing committees or form the new ones based on this key input. Our committees are expert working groups that give us action plans and input for resolving identified obstacles, but also anticipate future challenges from the international or technological environment and

work to improve preparedness of the business sector against such threats.

• Considering that improving the business environment is among AmCham’s key objectives, which forms of cooperation with policymakers would you highlight in particular as the most effective for improving the legal framework and practise? - In our 17 years of cooperation with the government, and the more than 150 regulations successfully changed and processes installed to improve the business environment, there is no standard form of cooperation or channel that works best. AmCham is a resource to the government’s administration to identify which regulations should be changed and how are they implemented. In some cases, alerting them to issues members face in the process of the application of the law is enough for rectifying the situation. In others, showcasing best comparative practices, how similar issues are regulated and implemented, is needed. Sometimes there is a need for capacity building in the state administration in order to best implement new regulations. The most important ingredient is the open-

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formats for topic-based networking with government officials, but also within the membership among CEOs, public affairs, finance or legal experts and HRs to the logistics, procurement and marketing specialists. • One of the segments that sets AmCham apart is certainly investing in the development of top professionals. Which topics and forms of education are most interesting for members? - AmCham is committed to do what it can to bridge the gap between what education offers and what the business sector needs. That means programs and training for students, supporting and developing talents within membership, and we will be also lending our expertise to the government, through the National Academy for State Administration. The subject matter ranges from classical MBA topics, to soft skills like leadership, development of mentoring and other forms of talent development. However, we see a growing interest for skills of the future that would enable success in the digital world. • The AmChamps Youth Leadership Programme has now existed for five years. What would you single out as the highest achievement of this programme? - AmChamps is our landmark professional development program, launched in early 2014 as a showcase model on how academia and the corporate sector should work ness of the government, from the highest decision-makers, to those implementing regulations, to talk, to comprehend the perspective of others and to be constructive regarding possible solutions. In such cases, all obstacles have been resolved.

We are proud that our AmChamps Youth Leadership Programme has served as a role model for the development of the capacity building programme within the National Academy for Public Servants

• The networking of members within and between business associations is a trend that is increasingly evident among business associations in Serbia. What do you offer your members and which new networking options are you considering for the future? - We believe networking is an important part of doing business, so we carefully combine various formats to provide additional value to our membership and stay open for innovative approaches. With our network of 200 companies in Serbia, comprising over 100,000 employees, we are provided with a state-of-the-art opportunity for professional networking and knowledge sharing of different structures within companies. We have different

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together with the aim to develop people who will lead the business community in Serbia. This program, year after year, demonstrates all the positive sides of this kind of synergy and enables an exchange of knowledge between talented young leaders from AmCham member companies, prospective students, and expert lecturers with extensive experience from everyday practice. So far, more than 200 students and young managers participated in the programme. We are proud that our program has served as a role model in creating similar mentorship programs, but we have been most honoured to be a role model for the development of the capacity building programme within the National Academy for Public Servants. ■

ARTUR TUREMKA, GENERAL DIRECTOR MASTERCARD BALKANS CORPORATE

Cash Is The Past MASTERCARD MEANS SECURITY

Mastercard is a company with experience, technology and know-how that can positively contribute to fight against the grey economy in several regional markets, and the company is supporting its partners in expanding the payment network

e centre all our solutions on a unified customer experience – to enable our cardholders to enjoy safe and easy payments regardless of the time, location, device, channel, or amount of the transaction, says Turemka.

a priority, so countries are undertaking measures to bring unreported cash into legal, transparent flows. We are proud to have been recognized as a company with the experience and technology that can positively contribute to this fight on several regional markets, and are supporting our partners in the public and private sectors so that each player experiences a full share of the benefits which electronic payments inherently bring.

scalability are among our biggest strengths. When you have a regulatory framework that is a level playing field and open to all players, it encourages competition and further innovations. Although a specific market’s combinations of stakeholders, regulations and infrastructure will vary, our business model is flexible enough to allow us to deliver the values of a seamless and secure payment experience to which our cardholders and partners are accustomed to getting from us.

• You head Mastercard’s operations for the Balkan countries. How much do individual countries differ when it comes to awareness of the benefits of payment cards? - Balkan countries are at different stages of • Do the countries of the region give equal the cashless evolution, yet all of them share treatment to both foreign and domestic • Forbes Magazines has ranked Masteran understanding that electronic payments payment cards? For instance, what’s the card among the world’s 100 most innovaare the certain road to competitive and difference between Mastercard and the tive companies, due to its leadership in insustainable markets. We are talking about DINA card? vestments in technological innovations. a region where 95% of Serbian Which advantages does Mascardholders hold a debit card; tercard offer its regional users? Balkan countries are at different stages where Montenegro is the seventh - Global consumers have the same of the cashless evolution, yet all of them country in Europe per the share of expectations – to get through the share an understanding that electronic contactless payments, while pubcheck-out quickly, conveniently lic transport in Belgrade became and fuss-free and have their data payments are the certain road to contactless-enabled in January secure at any moment. We cencompetitive and sustainable markets 2018. Finally, we are talking about tre all our solutions on enabling a region that is mature enough cardholders to enjoy safe and to test the next generation of innovation, - Our biggest competitor is cash. So eseasy payments regardless of the time, so the first European biometrics trial was sentially both domestic and foreign card location, device, channel and amount of the successfully conducted in Bulgaria. schemes are united in building an ecosystem transaction. The point is that whenever you At the same time, businesses and insuitable for higher migration to cashless. As see a Mastercard logo on your card or the stitutions are increasing awareness about a global technology company, Mastercard screen of your device – and that’s at over the benefits of electronic payments, such is able to efficiently translate its worldwide 50 million locations – you know that the as decreased operational costs and risks technologies, innovations, and competences payment process is the same, that your for merchants, or better tracking of fionto individual markets and adapt them to payment will be accepted and processed in nancial flows on a micro and macro level, the local legal and market framework under a blink of an eye, and that your data is safe, i.e., market levels. The grey economy is which we operate - this global scale and secure and exclusively yours. ■

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AmCHAMPS

Network Of Today’s & Future Leaders

When five years ago we came to the idea to launch a unique professional development program that will bring together under the "AmCham roof", the most successful business people from our country, young managers and students, we could not have dreamed of creating a such powerful network of future leaders. In short AmChamps 5 may be described in five worlds: team, mentoring, challenge, network & knowledge

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mChamps is an educational program of the American Chambers of Commerce in Serbia (AmCham), originally imagined as a response to the private sector’s need for graduates with practical knowledge necessary for the business environment, but also as a professional development platform for young managers from AmCham membership. This annual program puts together 40 mentoring pairs each year (manager-student), with aim to provide them with the opportunity to learn how to deal with the most diverse business challenges. It combines a mix of different projects, assignments, lectures and workshops through which participants have a unique opportunity to meet leading people of the largest U.S. multinational and domestic companies in the country. These encounters offer chances to get insights into business leaders’ career paths and through the prism of their experiences learn most significant lessons

about victories and defeats. AmChamps is also a three phases competition - regular part for all, semi-finals for half and finals for top three pairs. Winners of the program receive scholarships from AmChamps educational partner, Sheffield University - managers for MBA, students for Master studies. This year, program is supported also by MK Group, Nelt, Coca-Cola Hellenic, Telegroup, PWC, Gi Group and Nedeljnik. But AmChamps is not all about learning from others and not all about learning it is a story of sharing. What AmChamps became through time is a place for generating new business ideas, connecting people and companies, launching startups, creating friendships. With an aim of expanding our network even more, we started with AmChamps lectures and inspirational talks at the faculties of the Belgrade

MILICA SAMARDŽIĆ AND TINA KOSTIĆ

AmChamps Alumnists. Two years ago, we decided to try with a more specialized program, that may become an industry-based boot-camp. Banca Intesa, the long-time member and partner of AmCham, accepted to be the patron of this initiative. Thus, the content of the program was

MILICA SAMARDŽIĆ and TINA KOSTIĆ

enriched with specific banking topics and enabled the participants to get information from the successful managers and directors of Banca Intesa about the functioning and the latest trends in the financial sector. Today, our entire AmChamps network counts around 300 people. Roughly 70% of AmChamps students were employed by our member companies, with several cases where either mentor helped employing a mentee in his/ her company or assisted in finding its job placement in some other company. Most of our mentors have been promoted to higher positions after finishing the program. Some decided to start their own businesses along with their AmChamps classmates. No matter which path AmChamps champions choose, one is for sure - their efforts are invested in improving business environment of our country. ■

With an aim of expanding our network even more, we started with AmChamps lectures and inspirational talks at the faculties of the Belgrade University. For the last two years organizers of these mini-events are AmChamps participants themselves University. For the last two years organizers of these mini-events are AmChamps participants themselves. Also, another important outreach activity towards youth community is AmChamps Summer School - a perfect example of how AmChamps works. The initiative came from the mentoring pair of the first AmChamps Generation, who came up with the idea to provide a wider circle of students to get acquainted with AmChamps way of learning. Their proposal coincided with our goals towards bringing the gap between business and academia, and four years ago we started with this mini program. In the first year, lecturers at the Summer School were exclusively

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CORPORATE

VLADIMIR KNEŽEVIĆ, COUNTRY MANAGING DIRECTOR, ORACLE SERBIA & MONTENEGRO

Safely Along The Path Of Digitalization Today, more than ever before, companies depend on innovation. Depending on the company, innovation might be expressed through digital transformation, upgrades to the cloud, the move from machine yearning to machine learning, autonomous everything, artificial intelligence, the Internet of things, blockchain, and many other innovative technologies. They are all recognized as top strategic CIO priorities for 2018

ccording to IDC, 50% of large complexities and rewards of various create and launch an entire digital bank. What is the reason why our customstarting blocks in a progressive moderniglobal enterprises will see most zation program. There are questions that ers consider us their trusted advisors? of their business depend on Oracle offers a comprehensive and fully their ability to create digitally- need answers. Which path to go for first? Should the company start with process integrated stack of cloud applications, enhanced products, services, and experiences by 2020. At Oracle, we are aware transformation? Should the company go platform services and engineered sysof this trend and we are glad to see it in for product innovation? Or should they tems. With more than 420,000 customers in more than 145 countries, Oracle progo for price innovation? Serbia as well. Yes, it may look complex, but it is vides a complete technology stack both in Currently, digital transformation in a company is usually a set of different not unattainable. Oracle was part of the cloud and in the data center. Oracle’s industry-leading cloud-based initiatives, mostly supporting and on-premises solutions give the idea of customer experiOracle offers a comprehensive and fully customers complete deployence enhancement, relying on integrated stack of cloud applications, ment flexibility and unmatched an omni-channel strategy. But platform services and engineered systems benefits, including application digital transformation is much integration, advanced security, more than an initiative - it is the future core revenue-generating busi- the National Australia Bank’s (NAB) high availability, scalability, energy effiness, and companies born in digital are transformation, described as the larg- ciency, powerful performance, and low est tech transformation in the bank’s total cost of ownership. already living it. We are all aware that the speed of The path to digital proficiency might history. Local institutions and compalook complex. Companies need to deter- nies in Serbia and Montenegro also change is constantly increasing and will mine the various paths to transformation gave us credibility to be their trusted continue. There are three key drivers for based on business priorities and risk advisors and lead them along the path the modern enterprise in such environappetite. They must also examine the of digitalization. We proved that we can ment: to drive engagement, increase

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productivity, and run agile IT. Oracle cloud gives the opportunity to business to adapt quickly to changes, reducing the risk of lacking resources, avoiding the risk of security breaches, ensuring a shortened time-to-market period, and providing business continuity and consistency. Cloud changes the innovation equation. From the finance perspective, cloud saves money due to two basic postulates: start small, grow big – no huge investments before results can be realized, and pay what you consume – scaled to

approach. Often, those benefits started with saving money, and driving greater efficiencies. We have seen over one billion dollars in savings across the organization by upgrading to Oracle Cloud. We used to be amazed by science fiction movies presenting artificial intelligence, autonomous vehicles, and now, it’s our business reality. Autonomous is set to dramatically transform industries. Automotive and transportation industry is already riding the autonomous wave and are estimating 8 million semi-automated

jobs required, and this is a process that has been going on for centuries. The use of modern autonomous technologies allows companies to make a shift from daily manual operational work towards innovation. There is no doubt but that autonomous capabilities will affect an organization’s systems, people, processes, but also external relationships. Slow response times affect overall performance and integrated, accurate, and timely communication, both internal and external, will have significant importance

in making decisions on estabyour real requirements and able Local institutions and companies in Serbia lishing of partnerships. to support your peak and down and Montenegro gave us credibility to be Emerging technologies times. From the technology their trusted advisors and to lead them such as artificial intelligence perspective, cloud enables comalong the path of digitalization (AI) and machine learning, the panies to use the most recent Internet of Things (IoT), chatand the very best technology in accomplishment of their innovation and or highly automated vehicles could bots, blockchain, and natural-language strategical goals. From the availability potentially be on the road within 10 processing (NLP) are the innovation perspective, the exact same capabilities years, creating up to US$60 billion in fuel for companies, and they are a realand emerging technologies are available annual revenue. Another estimation ity. It is not just a CIO topic. CxOs and is that autonomous IT systems, no LOB leaders are drivers of innovation equally to all size companies. Simply, cloud becomes a synonym for signifi- matter the industry, could save up to streams looking for new business opcantly faster innovation at significantly 50% of total cost of ownership (TCO) portunities, revenue growth, and cost in comparison with their traditional savings. Oracle’s portfolio has the answer lower costs. to innovation challenges bringing the We have upgraded our entire or- counterparts. very best technology and proven best This will not result in job cuts. As ganization with cloud, and it has given technology evolves, it will also and equally practice that can help organizations on us benefits and capabilities that were simply not possible from our legacy change the nature of business and the their path to future. ■

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CORPORATE

VLADIMIR ČUPIĆ, DIRECTOR OF THE ATLANTIC GRUPA REPRESENTATIVE OFFICE FOR SERBIA

Realistic & Ambitious Plans Atlantic Grupa, which employs in excess of 5,300 workers in the region and 12 other countries around the world, has – after 27 years of efficient and sustainable operations – become one of the largest and most successful food companies in the region, and a significant player on the European and global markets

ollowing a successful 2017 during which excellent results were achieved - despite the challenges - across all parameters, and in terms of profitability the most, reports from the first quarter of 2018 confirm that Atlantic Grupa is on track to continue working to high standards, thus confirming the group’s healthy and sustainable long-term growth.

have just achieved outstanding success with “Argeta” and are the first in Austria and Switzerland, which is no mean feat. Our focus is on further strengthening the position of our recognisable regional brands, developing distribution operations, strengthening existing principals and acquiring new ones, expanding our regional HoReCa portfolio and continuing

main markets and in all of its operational areas last year. The highest growth in the first quarter of this year was recorded in Slovenia – a record 15.3 per cent, followed by Croatia, with 11.5 per cent growth, and Serbia, which grew at an annual rate of 9.4 per cent. Viewed in terms of production categories, coffee – with a 20.7 per cent share of total revenue – represents the largest single category, with total sales revenue of €147 million.

• Alongside the region and the Europe• Atlantic Grupa last year achieved total an market, Atlantic Grupa has launched sales revenue growth of 3.9 per cent. its expansion to other continents. What What do you expect from 2018? What are your immediate plans on these comis shown by first quarter results? petitive markets? - Atlantic Grupa achieved - We have already swum across total sales revenue of €152.4 the ocean and reached America Atlantic Grupa achieved total sales million in the first quarter with “Argeta”, one of our brands revenue of €152.4 million in the first of 2018, which represents that has the greatest internaquarter of 2018, which represents growth growth of three per cent comtional potential. Late last year of three per cent compared to the same pared to the same period we launched the local producperiod last year last year. We have achieved tion and distribution of “Argeta” enviable revenue growth on for the entire territory of North America, and this investment proved to the internationalisation of operations all significant markets, demonstrating be justified already by the first quarter with those brands that have proved able our undiminished focus on the developof this year, when sales reached the level to be on par with the global competition, ment of our own range, as well as on the development of distribution opand those are primarily “Argeta”, “Donat achieved for whole of 2017. erations. A further reduction in debts, Mg”, “Cedevita” and “Bakina Tajna”. Although our plans are generally significantly reduced financial costs ambitious, we primarily plan responsibly and realistically. We link most of • On which markets does Atlantic Gru- and growth in liquidity all enable us to concentrate on planning future growth our operations to the region and are pa achieve its best results? extremely proud of our strong brands. We - The company grew on almost all of its even more ambitiously. ■

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IOSIF VANGELATOS, GENERAL MANAGER INOS BALKAN CORPORATE

We Are Ready For The New Era Thanks to investments of €11 million, the expansion of our recycling activities portfolio, and the huge knowledge of new owners, for the past 12 years Inos Balkan has achieved better business results

n the last few years, we have executed a wide reengineering of our operations, improving our logistics capability and efficiency. By acquiring the German-owned company ALBA, we increased our footprint in Serbia, and we continue planning for growth.

contribute to the overall export potential of the country? - The recycling sector in Serbia contributes € 120 million per year to the overall export potential of Serbia. In addition, our sector provides the local industry with secondary raw materials in the amount of € 135 million, securing regular flow and excellent quality. All over the world and especially in the EU, circular economic principles are dictat-

ing future business models. New products, infrastructure, equipment and services, are designed and delivered based on the principals of long-lasting design, maintenance, repair, reuse, refurbishing, and recycling. In the near future, Serbia will have to deal with environmental protection obligations arising from chapter 27 of the EU integration • Despite Inos Balkan’s having existed for process and the required investments will be almost seven decades, the company’s rapmore than €15 billion. At Inos Balkan, we are id development only began in 2006, when anticipating those developments. the ownership was taken over by With a solid financial state, modern the Greek company, Anamet. Was Furthermore, the recycling sector provides management, and robust engineertheir know-how just as important more than 10,000 jobs in Serbia with a as their investment? ing resources, we are ready for the huge growth potential. Among those jobs, - Viohalco Group (www.viohalco. new era. The Serbian placement is there are many for highly skilled employees com, a Euronext listed company) of strategic importance for our – i.e., engineers, environmental managers, acquired the company in 2006 and group, and our 12 years of presence Health and Safety technicians, etc set the trails for dynamic growth. in the Serbian recycling market will That was certainly a milestone for be further enhanced. ■ the 67-year-old Inos Balkan. Anamet s.a, the direct owner of Inos Balkan, has developed a wide portfolio of recycling activities such as Recycling Waste of Electric and Electronic Equipment, End of Life Vehicles, Alternative Derived Fuel Production and scrap cable processing. This invaluable know-how is available to us and will certainly guide our business steps in Serbia. Last but not least, Anamet has invested more than €11 million into our Serbian operations. • Inos Balkan is among the five biggest companies engaged in the local recycling industry. How much does this economic sector

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CORPORATE

ZORAN NAUMOVIĆ, ATTORNEY AT LAW, NAUMOVIĆ & PARTNERS LAW OFFICE

Unburden Courts The Naumović & Partners Law Office has been handling the most complex and challenging legal issues for twenty years, with its clients including some of the world’s largest companies. Focused on corporate and contract law, information technology and intellectual property rights – areas in which only the best survive

n these times of blockchain technology, the Internet of Things, smart cars and cities, the digitisation of business processes, internet-based purchases and payments and the share economy, only those who adapt to the digital economic and social environment will survive

(General Data Protection Regulation) among internet-based companies in the EU and the U.S. People in our country forget that the GDPR doesn’t only apply on the territory of the EU, but rather also has personal effect beyond the EU’s borders when it comes to EU citizens. The penalties are astronomical, and the risks in business are something to which we must pay the utmost attention. I’m not sure that domestic companies and public enterprises are aware of that.

ment of our legal system in relation to the EU. The differences are almost negligible, but the implementation of intellectual property regulations still remains at a low level. We need specific trial chambers to be specialised in this domain, because it is devilishly difficult to prove in court that someone has infringed on your intellectual property rights. Perhaps the licensing of an intellectual property expert within the Intellectual Property Office would solve this problem to an extent.

• Your office is focused on corporate, contract law, information technology rights and intellectual property rights. To what extent has the legal system defined issues related to information technology? • Viewed from your perspec- Information technologies create Our obligatory law supports the clashes tive, what else will Serbia have an entire array of situations that of the new era and it is certainly better to do prior to joining the EU that need to be dealt with legally, and to appear in court with a detailed contract isn’t covered by some of the acthis is not just about copyright, than without one, because there are no cession negotiation chapters? licensing, trademarks, designs existing solutions in law for individual - Serbia needs to move forward, and patents, but also the noncontracts or relationships, nor for bravely and forcefully impledisclosure of information, knoestablished practises ment reforms, solve problems whow, employees’ rights, unfair and solve them. Serbia needs competition, business secrets, interaction with the world, because that’s • How exposed is Serbia to penalties for personal data protection, complicated the only way that it can progress and realviolating intellectual property rights and contractual relations, subcontracting, taxes, ise its potential. Serbia must accept and plagiarism laws? penalties, responsibilities etc. learn standards from chapters for its own - The Kingdom of Serbia was one of only 11 Finally, information technology prosake, while it must prove that it is a reliable signatory countries to the Paris Convenduces new social relationships that need partner to the international community. tion of 1883 covering the protection of to be regulated legally, which is best Serbia will have to resolve all of its industrial property. Regulations in terms seen by the confusion in the protecissues with its neighbours within the frameof the protection of intellectual property tion of personal data which led to the works that are communicated through are probably the most harmonised segrecent adoption of the so-called GDPR

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international documents, to exert additional efforts in the field of constitutional reforms, media regulations, the rule of law, strengthening judicial independence, fighting corruption etc. • Foreign investors – and increasingly domestic ones too – complain about various forms of the grey economy. To what extent do legal regulations in Serbia and the region protect their rights and profits? - Paying taxes should be an issue of pat-

• You deal with the representation of the Jewish community in the property restitution process for Holocaust victims without heirs. To what extent has the Serbian states responded to this delicate task? - Yes, we have the unique opportunity of representing the Jewish Community in Serbia in the process of returning property under our law, which is actually a wonderful example of cooperation between Serbia and the U.S. It was nearly a decade ago, in 2009, that the so-called Terezin Declara-

The U.S. passed a law called the Justice for Uncompensated Survivors Today (JUST) Act, which was symbolically announced this year on 9th May, the Day of Victory over Fascism, which aims – among other things – to monitor which signatory countries of the Terezin Declaration have adopted appropriate measures. Given that the Republic of Serbia is almost the only state to have adopted an appropriate law and returned certain properties to Jewish municipalities, these flows should certainly be nurtured and communicated positively

with the United States and the riotism. The grey economy is a State of Israel. generator of many of our probLegal practitioners must move away from lems and causes damage to every their already known organisational • How do you rate Serbia’s judiinvestor. Being familiar with happroblems and courageously engage in cial system and what are your penings around foreign investors, the changes that are already occurring greatest objections? thanks – among other things – to in many segments of our society - The slowness of the work of conversations under the auspices our courts is our main problem, of AmCham, the areas under-fire which is the result of a large number of tion was signed by 46 countries, including are tobacco, medical products and medicases. It seems to me essential that we Serbia. The whole of Europe has real estate cines. Just is available to investors, but is urgently and comprehensively digitise the properties that were taken from executed slow, which also applies to other citizens process. Submitting entries electronically Jews and cannot be returned to their rightof Serbia, and this is a problem that must is one way of speeding up communication ful owners because all family members be solved systemically. between the parties in legal proceedings, were killed, so there are no living heirs and Regulations that cover the grey econand to unburden registrars from written descendants. The Republic of Serbia, as omy are relatively good, so it seems to communication. Judges could, I believe, be one of the signatories of the declaration, me that their further improvement will unburdened through amendments to the was the first and only European country to not have a significant impact on reducing Civil Procedure Code. This would allow legal enact a specific Law on so-called Jewish figures, as this should be resolved through parties, along with lawyers, to undertake Restitution in 2016. This law enables Jewish improved implementation, the specialicertain actions – such as hearing testimonies municipalities to recover property that is sation of trial chambers and increased of witnesses or parties – without appearing still under the ownership of the Republic investment in equipment, personnel and in court, for example with the inclusion of a of Serbia and which was seized from Jews inspections. This would reduce the level public notary and an audio-video record. ■ who do not have living legal heirs. of the grey economy.

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INTERNATIONAL CONFERENCE “PARTNERSHIP BETWEEN THE USA & SERBIA”

Remembering The Past, Building The Future

“E

In light of the latest events unfolding on the international political scene, and to mark the occasion of the 136th anniversary of the establishing of diplomatic relations between the United States and Serbia, the International Conference "U.S.A.Serbia Partnership: How to use history as a basis to build a better future" was held in Belgrade on 7th and 8th June.

urope is the hub of our interest, our biggest economic tions, as evidenced by the fact that the Serbian flag was the only partner, and we believe strongly in the idea of the flag – besides the American and French – to fly over the White European Union. The United States is the second House on St. Vitus Day 1918. Unfortunately, our common history biggest donor to your country, because our goal is has also had not-so-beautiful periods during which we were on to help Serbia’s development and its path towards the EU,” said opposing sides, such as during the time of the bombardment of Ambassador Kyle Scott. Serbia in 1999. With the belief that this will never happen again, The conference was organised by the Faculty of Political Science’s our mutual relations have been progressing across the board Centre for American Studies and Centre for Social Dialogue and since 2000,” – concluded Dean Simić. Regional Initiatives, with the support of the Embassy of the United Agreeing with him was U.S. Ambassador to Serbia Kyle Scott, States and the Belgrade University Faculty of Political Science. who spoke about the World War II period and our current relations. “This conference is the crown of the project of learning American “History serves for us to learn from the past and not repeat studies in Serbia and the historical cooperation between our countries, "History serves for us to learn from the past and not repeat because we are aware that without that which wasn’t good" a proper understanding of the past there can be no proper perception of the present moment and the future,” said Milan Krstić, an asthat which wasn’t good. The U.S. is always the same, while Serbia has changed, but we’ve always seen you as friends. In World War sistant professor at the Faculty of Political Science and one of the II we fought together against the fascists and won together. We founders of the Centre for Social Dialogue and Regional Initiatives. will never forget the courage of your nation and the humanity Speaking about the main highlights in the history of mutual shown in the rescuing of 520 American pilots. Serbian villagers relations between the United States and Serbia was Dragan R. protected them in their homes and shared their last piece of Simić, Dean of the Faculty of Political Science in Belgrade. bread and drop of milk with them. That’s why we want to develop “ Our mutual relations were at their peak during the Balkan our friendship, to be your partners, because we believe solutions Wars, during World War I, and especially after the end of World should be sought together to all the challenges and problems,” War II, when Serbia and America were allied countries. Americans said Ambassador Scott. ■ have always been able to value the contributions of small na-

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ŽIVORAD VASIĆ, IHG AREA MANAGER, INTERCONTINENTAL LJUBLJANA, CROWNE PLAZA BELGRADE

We’ll Build The Delta Centre

Delta Holding expects the new mayor of Belgrade to support the construction of the “Delta Centre”, a project that’s extremely important not only for Delta, but for Serbia as a whole, which would thus gain another five-star hotel

ur “InterContinental” will have 200 rooms, the largest and most beautiful ballroom and two restaurants – one for breakfast and lunch, and an exclusive one that will only open during the evenings

• You have been planning to build an “InterContinental” hotel and the first Indigo hotel in the city centre for years. Are there any new developments in this regard? - Yes, there are. German architecture firm Gensler has developed a project for our building plot behind Banca Intesa, for which we paid 35 million euros. It is there that we would build the “Delta Centre”, to include an “InterContinental” hotel, a business building and a small shopping centre covering an area of 3,000 square metres and featuring retail outlets of exclusive brands that are not yet present in Serbia. Although there are ever more cranes and piledrivers in Belgrade, we have already spent three years awaiting permission to launch construction. The financial part of the project, worth 100 million euros, is already ready, and now we again have solid promises from the City that we will receive location and building permits. The Indigo Hotel, construction of which began three months ago in Knez Mihailova Street, will open in July or August next year. It will have 62 rooms and four stars, and beneath it will be the department store of a major Spanish brand. • Delta Holding was the only company to apply for the tender to reconstruct and manage the Sava Centre. When do you expect a response from the City of Belgrade? - An answer should arrive by the end of summer and we believe it will be positive. It is very important for Belgrade to renew this congress centre, because we could then host congresses for five or six thousand people. This would increase the number of foreigners staying at all hotels – not just ours, but also generating revenue for the whole city. ■

CORPORATE

ČEDOMIR JANJIĆ, MAYOR OF THE CITY OF ZRENJANIN

We’re Expanding Industrial Zones “The City of Zrenjanin is expanding its industrial zones, as the existing ones are almost completely occupied and potential investors are seeking larger plots. Some of them are already expressing their intention to later expand their business premises and operations, due to them planning their longterm presence and development in our city

“C

ompanies wanting to invest in Zrenjanin are currently showing the greatest interest in production branches of the economy, agriculture and the food industry, but more recently also the IT sector, for which we can provide young, qualified people.”

very few local governments in Serbia can offer today in one place, while we’ve also sought to expand the Free Zone, because interest in that also exists among investors. • You were recently visited by U.S. Ambassador to Serbia Kyle Scott. What were the topics of conversation? - That was an opportunity for me to present the history and all the beauties and advantages of Zrenjanin, primarily as an industrial centre and a good place to invest. I hope that discussion will also have tangible results and that we will welcome potential

investors from the United States in the period ahead. I am pleased that Ambassador Scott assessed our region as being positive for attracting investments. We also looked back on the importance of Mihajlo Pupin and his role in connecting our two nations. He is one of our greatest scientists, who was born in the Zrenjanin area and gained success and repute in America.

• Which advantages and incentives does the City of Zrenjanin offer investors? • With the help of the U.S. Agency for In- We strive to provide investors with a good ternational Development (USAID), Zrenjaenvironment for doing business and excelnin’s Basic Court, Health Centre and severlent locations in our industrial zones, which al schools have been renovated in recent are owned by the City and are fully years. Has further cooperation equipped with infrastructure for been agreed? construction, which few cities - Thanks to USAID, numerous proand municipalities can boast of. jects have been implemented in Alongside that, we also offer them our city, including the renovation of complete logistics, assistance in the Magistrates Court in Zrenjanin, obtaining building permits and the opening of the Office for MPs’ other documentation, as well Communication with Citizens, asas temporary office space in sistance to our Health Centre and our Business Incubator. We also the renovation of several primary stimulate potential investors schools. These are all activities by granting them a commercial that assist us at the local level discount of 30 per cent, provided and I believe this cooperation will This year we are celebrating the centenary the costs of urban construction continue. For the City of Zrenjanin, of the great alliance between Serbia and land are paid immediately. the support of one of the world’s the United States during World War I, We’ve also gone a step further, largest and most influential counand the days when the Serbian flag flew such that last year we decided to tries is certainly welcome, and above the White House in honour of our expand the “Jugoistok” (Southwe are adhering to the policy at historic victory in the Great War. This is east) industrial zone to encomthe state level in that respect, i.e. also an opportunity for new projects and pass an additional 550 hectares maintaining good cooperation even better cooperation in the future of construction land intended for between the Republic of Serbia investors. That’s something that and the United States. ■

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CORPORATE

A Strategy Of Success

Have you ever wondered if there’s a formula to a successful day? One that starts and ends with a deep feeling of joy and contentment? And not just because a to-do list is fully completed. It’s that wonderful day when you actually have enough energy to take some time just for yourself and fill it with all the things you love and enjoy

ndeed, time management skills are extremely valuable when it comes to managing the ever-growing number of our daily tasks. Good planning, distinguishing between an urgent and important task, doing one thing at a time rather than multitasking. We all know this, right? So what happens when we still reach the end of the day feeling exhausted even after diligently putting all of our time management skills into practice? While doing the right things in the right time can instantly bring a sense of relief or joy, it’s another skill to take care that we are fueled with enough energy throughout the whole day so we do not burn out. This is the gist of State management skills or rather managing our mental and physical experiences. There’s a profound difference between completing a task with an agitated mind and performing with calm mind and clear focus. Efficient stress response, the ability to quickly replenish energy and focus, make decisions and perform effectively, all start with choosing a “resourceful” state in a given situation. Our states depend on our physical wellbeing, our thoughts, emotions, the way we perceive external events. As we practice to choose our thoughts and actions, we develop vital skills of managing our energy levels to fully experience joy and success. HR Centar business consulting, training and coaching provides professional and personal development to support sustainable excellence for companies and individuals. We believe personal development is at the core of any growth, which is why our certified programs and unique tools are focused on the individual needs of our clients. To learn more on what we can do for you, visit hrcentar.rs or contact us at 011/4066649 office@hrcentar.rs ■

CORPORATE

SANDRA MARINKOVIĆ, EXTERNAL AFFAIRS LEAD, MERCK SHARPE & DOHME

We Are Bringing New Hope For Cancer Patients Merck Sharpe & Dohme is an innovative global leader in the health sector that is dedicated to improving health and wellbeing of people around the world via innovative medicines, vaccines and biological therapies

e are dedicated to the values that our company promotes under the slogan “Inventing for Life” and will continue to work on improving the efficiency and quality of healthcare in the best interests of the citizens of Serbia.

been registered for some of the most serious malignant diseases, such as malignant melanoma and lung cancer, while its effect on other types of tumours is still being researched, in the hope that it will help make cancer a chronic illness rather than a fatal disease.

ic activities and various CSR activities that include donation of medicines, the provision of direct assistance to patients, public-private partnerships and the availability of high quality medical procedures with a total value exceeding $20 million.

• Limited funding for medicines had an impact on the slower introduction of innova• MSD is focused on research and produc• Merck Sharpe & Dohme (aka Merck in the tive therapies to Serbian patients in pretion of a wide range of products for the preUnited States) is one of the largest Amervious years. To what extent does this imvention and treatment of some of the most ican and global innovative pharmaceutical pact your company’s operations? serious diseases. How would you describe companies. Towards which areas of thera- Serbia is lagging behind EU countries operations of a major American pharmapy is your research orientated? and the region when it comes to the availaceutical company in Serbia? - Over the course of 125 years, MSD has conbility of innovative medicines, despite pos- In parallel to numerous activities in the field tributed significantly to the medicine we’re itive developments we’ve seen at the end of educating healthcare workers on the latwitnessing today with its numerous discovof 2016 and in the middle of this eries, among which was the first year. We are encouraged by the effective anti-tuberculotic, invenInnovative medicines, in addition to fact that the Serbian Health Mintion of the first statin, the discovextending life and reducing mortality, istry and the National Health Inery of a human papillomavirus vialso improve productivity, reduce work surance Fund also agree that it rus vaccine that prevents cervical absenteeism for patients and their is necessary to increase financial cancer, but what we are especialfamily members, as well as contribute allocation for innovative medily proud of is the introduction of a to the growth of gross national income cines, in order to catch up with Eunew class of medicines that repropean countries when it comes resents a revolution in the treatto introducing prioritized innovative theraest diagnostic and therapeutic trends, we are ment of malignant diseases. peutic options. putting a lot of efforts in ensuring that the inIn 2015, Global HealthCare ranked imMSD also advocates, within the framenovative therapies are not only being regismune-oncology as the number one treatwork of industrial associations like the Amertered on our market, but rather recognised ment in the TOP 10 medicines which promican Chamber of Commerce, for the Serbias affordable and available to Serbian citiise to save lives, with its unique mechaan state to recognise that health and pharzens under the mandatory health insurance. nism of action which does not target the maceutical sector are crucial investment MSD is committed to helping resolve sotumour, but rather the immune system of that promotes economic development. ■ cial problems, primarily through philanthropthe organism. This therapy has already

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One tiny device can reduce the cost of recycling refrigerators by 7.5% and we bet you didn’t know it. We are E-Reciklaza, a recycling company that specializes in electronic waste management. We are based in Serbia and have strong regional contacts, but our aspirations are global. Through years of experience, we have developed efficient and environmentally sound ways of recycling WEEE, PET and sorting communal waste, and think we have valuable experiences to share. The controller shown here is one of them.

The fact is, the recycling industry is not the most transparent in the world. We are not so good at sharing what we know. If one technique is developed in, say, Indonesia, chances are that it won’t be implemented in Bulgaria for another ten years. There are many reasons for this. The main one is that jurisdictional laws governing the recycling industry vary from country to country. Also, because waste treatment technologies are big and cumbersome, it’s assumed that transferring knowledge is too complicated and costly. But what is really costing us is not sharing our knowledge. Not sharing best practices or the challenges we are facing and not engaging in networking and open communication with each other. If other industries behaved like ours, we’d still be using rotary phones and driving Ford T.

We’d love to hear from you. Perhaps it will lead to a successful partnership, joint venture or consulting engagement. I am Ninoslav Milenković, CEO, and would be interested to personally speak with you. You can reach me on +381 63 1085231 (including Wapp) or at ninoslav@ereciklaza.com

U.S. IT INDUSTRY: TRENDS TO WATCH FOR 2018

U.S. Technology Spending

Will Top $4.8 Trillion

A scan of the 2018 horizon reveals a year that appears to be on the cusp of profound change. And yet, the closer a major leap forward seems, the more one is reminded of the last-mile challenges associated with next generation innovation.

hile there continues to be a sense of excitement for a future that is rapidly becoming reality, increasingly, questions and concerns are part of the mix as well. The trends unfolding will do so in an environment

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of higher expectations; namely, for business value, security, transparency, and equal access to opportunity. The Computing Technology Industry Association - CompTIA’s IT Industry Business Confidence Index notched one of its highest ratings ever heading into the first quarter of 2018. Executives cite robust customer demand and the uptake of emerging product and service categories as key contributors to the positive sentiment. Revenue growth should follow suit. CompTIA’s consensus forecast projects growth of 5.0 percent across the global tech sector in 2018; and, if everything falls into place, the upside of the forecast could push growth into the 7 percent-plus range. According to IDC, global information technology spending will top $4.8 trillion in 2018, with the U.S. accounting for approximately $1.5 trillion of the market.

With employer demand for tech talent routinely outstripping supply, the year ahead will force more organizations to rethink their approaches to recruiting, training, and talent management. Additionally, questions surrounding skills gaps, diversity, alternative education/career paths and the future of work will demand more meaningful attention and resources. Most organizations pursue incremental transitions, upgrading or adding technology piecemeal, followed by adjustments to workflows. CEOs and boardrooms across the economy are waking up to the fact that this approach is often inadequate in the face of rapidly changing industry and customer dynamics. This doesn’t necessarily mean chasing the latest shiny object or moonshot idea, but rather embracing an organizational mindset of proactively planning for a digital future.

$4.5 trillion in 2017, according to the research consultancy IDC. If growth expectations materialize in the year ahead, spending will eclipse the $4.8 trillion mark. The United States is the largest tech market in the world, representing 31% of the total, or approximately $1.5 trillion for 2018. In the U.S., as well as in many other countries, the tech sector is one of the most significant contributors to GDP. In the aggregate, the Asia-Pacific region, which encompasses Japan, China, Australia, India, and surrounding countries, accounts for one-third of the total. APEC has increased its share of the global IT pie, driven by the rise of countries such as China and

12 TRENDS TO WATCH FOR 2018 Building on previous iterations of CompTIA’s IT Industry Outlook, the trends to watch for 2018 revolve around technology, but that is really only one facet of the bigger picture. Complementary trends covering the business of technology, workforce dynamics, and macroeconomic conditions provide context and grounding. 1. The Democratization of Technology Leads to Breakthrough Models 2. Cloud Enters New Phase of Maturity 3. Internet of Things Expands Technology Footprints India, and the slower growth rates experienced in parts of Europe and other markets. By 2032, China is projected to claim the mantle of world’s largest economy. The vast majority of technology spending stems from purchases made by corporate or government entities. A smaller portion comes from household spending, including home-based businesses. With the blurring of work and personal life, especially in the small business space, along with the shadow IT phenomenon, it can be difficult to classify certain types of technology purchases as being solely business or solely consumer. Breaking the IT market down into its components, the traditional categories of hardware, software and services account for 53% of the total. The other core category, telecom services, accounts for 30%. The remaining 17% covers various emerging technologies that either don’t fit into one of the traditional buckets or span multiple categories, which is the case for many emerging

The United States is the largest tech market in the world, representing 31% of the total, or approximately $1.5 trillion for 2018. In the U.S., as well as in many other countries, the tech sector is one of the most significant contributors to GDP 4. Artificial Intelligence Adds a New Layer to the Solution Stack 5. Businesses Adjust to the New Normal of Security 6. Growing Up: Tech May No Longer Automatically Be Given the Benefit of the Doubt 7. The Insights Economy Comes Into Focus 8. Businesses Race to Upgrade Digital Expertise in the Boardroom 9. ‘New Collar’ Jobs Mindset Gains Momentum, but Challenges Persist 10. Online Marketplaces: Friend or Foe of the Channel 11. Subscription Pricing Gets Harder to Figure Out 12. Primed and Ready for the As-A-Service World The global information technology industry surpassed

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as-a-service solutions that include elements of hardware, software, and service (e.g. IoT offerings). The allocation of spending will vary from country to country based on a number of factors. In the mature U.S. market, for example, there is robust infrastructure and a large installed base of users equipped with computers, devices, and bandwidth. This paves the way for investments in the software and services that sit on top. These two categories account for nearly half of spending in the U.S. market compared

local conditions or have a less diverse base of customers, lag slightly, but are still solidly positive. Corroborating this optimism, the Conference Board’s Consumer Confidence Index reached its highest level in 17 years. Relatedly, the NFIB Index of Small Business Optimism recently recorded its highest level in 34 years. CompTIA projects the global information technology industry will grow at a rate of 5.0% in 2018. The optimistic upside forecast is in the 7.2% range, with a downside floor of 2.8%. Growth expectations for the U.S. market are in line with the global projection. As the largest market in the world for IT products and services, U.S. forecasts and global forecasts will always be inextricably linked. Other factors that influence revenue growth projections include currency effects, pricing, and product mix.The tech space is somewhat unique in that prices tend to fall, which may result in large numbers of units shipped, but modest revenue growth. In the year ahead, the product mix will be an especially important factor, as the high growth rates of emerging categories are expected to more than offset the slow growth mature categories. SMBs Smallbusinessesarecommonlydescribedasthe heart and soul of the U.S. economy. This is more than

to about one-third of spending Growth expectations for the U.S. market are in line with the globally. Countries that are not global projection. As the largest market in the world for IT quite as far along in these areas, products and services, U.S. forecasts and global forecasts will tend to allocate more spending to traditional hardware and telecom always be inextricably linked services. In some cases, not having hyperbole as SMBs account for the vast majority of the nation’s legacy infrastructure makes it easier to leapfrog ahead and adopt business entities, while serving as a key driver of job growth and newer generations of technologies. Another important dynamic innovation. Success as a small business owner means overcoming in understanding the global information technology industry is the challenges on many fronts. Increasingly, these challenges, as well as flow of tech goods and services from source country to consuming the corresponding opportunities, revolve around technology. Top country. For the most recent year of available data, U.S. exports of SMB priorities for the year ahead – customer retention, expansion tech products and services were an estimated $309 billion in 2016. into new markets, business process improvements, innovation, Exports account for approximately $1 out of every $4 generated and workforce development, will require the right mix of people, in the U.S. tech industry. Last year, CompTIA’s IT Industry Business process, and technology to ensure optimal results. Confidence Index (BCI) recorded the best year in its history, when Not surprisingly, SMB spending is highly correlated with firm the Index crossed the 70-point threshold for the first time ever. size. About 1 in 3 SMBs report spending more than $100,000 annuHeading into Q1 2018, the BCI fell off its record high just a bit, but remains in lofty territory. All three components of the Index are ally, with the remainder spending a lesser amount. Forty-percent performing well, including the rating of the economy, which has of SMBs acknowledge their investment level in technology is been a drag on the aggregate rating in year’s past. lower than it should be. According to Gartner, SMBs account As commonly seen in the CompTIA BCI, executives from for about 44% of IT spending globally. large and medium-size technology companies are most bullish As the role of technology expands, so do the decision-factors on the state of the market and their companies’ prospects. The related to how it is managed. While most small business owners smaller and micro-size firms, which may be more sensitive to would love to have a deep bench of highly skilled IT professionals,

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the reality is few are in a position to do so. While a strong majority – nearly 8 in 10 – have at least one full-time IT employee on staff, many SMBs operate in “just trying to get by” mode, whereby tactical and strategic roles are fluid. As expected, IT staff size is highly correlated with firm size. Averages range from about one IT staff person employed by micro SMBs, to eight for small SMBs, and 15 for medium SMBs.

Software has been a driving force in the tech sector and the broader economy; a trend that has accelerated in the past few years. From mobile apps and SaaS to open-source languages and platforms, software continues to “eat the world,” as noted by Marc Andreesen. As such, demand for software development skills make it the largest category of tech occupation and one of the fastest growing. According to CompTIA research, nearly 4 in 10 U.S. IT firms report having job openings and are actively

WORKFORCE Analysis of the tech workforce begins with an important distinction. As depicted in the Venn diagram below, there are two components to the tech workforce. All workers employed by U.S. technology companies represent tech industry employment. In 2017, an estimated 6.1 million workers were employed in this category, an increase of 2.0% over 2016. For 2018, the growth outlook should roughly mirror the previous year. Tech industry employment includes technical positions, such as software developers or network administrators, as well as non-technical positions, such as sales, marketing, and HR. Note: CompTIA’s IT Industry Outlook includes workers employed by companies with payroll, also known as employer firms, plus self-employed technology workers. recruiting candidates for technical positions. Hiring intent is most In 2017, an estimated 6.1 million workers were employed in concentrated among large- and tech industry, an increase of 2.0% over 2016. For 2018, the medium-size firms. growth outlook should roughly mirror the previous year Among hiring employers thirty-four percent do acknowlThe other component of the tech workforce consists of the edge the hires are replacements for workers that voluntarily or technology professionals working outside of the tech industry. In involuntarily left the company, which becomes more prevalent 2017, nearly 5.4 million individuals worked as technology profesduring a strengthening economy. Fifteen percent believe hiring will be significantly more challenging in 2018, while 33% expect it sionals across the U.S. economy. This represents an increase of will be moderately more challenging. The remaining group expect 2.1%, or nearly 110,000 net new jobs. Growth in the tech occupation the hiring landscape to be similar or slightly better than 2017. ■ category is also expected to hold steady in 2018.

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UNDERSTANDING AMERICANS

How Americans See Themselves America's population reflects remarkable ethnic diversity. More than 20 percent of the population of two major cities, Los Angeles and New York, were born in another country. In some other major cities (including San Francisco and Chicago) more than one of every ten residents is foreign born

merica’s population includes Catholics, Protestants of many denominations, and Jews of several persuasions, Moslems, Buddhists, animists, and people who believe in no supreme being or higher power. There are people who have many years of formal education and people who have nearly none. There are the very rich as well as the

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very poor. There are Republicans, Democrats, independents, Socialists, Communists, Libertarians, and adherents of other political views as well. There are lawyers, farmers, plumbers, teachers, social workers, immigration officers, and people in thousands of other occupations. Some live in urban areas and some in rural ones.

Given all this diversity, can one usefully talk about “Americans”? Probably so, if one is careful. Americans do not usually see themselves, when they are in the United States, as representatives of their country. They see themselves as individuals who are different from all other individuals, whether those others are Americans or foreigners. Americans may say they have no culture, since they often conceive of culture as an overlay of arbitrary customs to be found only in other countries. Individual Americans may think they chose their own values, rather than having had their values and the assumptions on which they are based imposed on them by the society in which they were born. If you ask them to tell you something about “American culture,” they may be unable to answer and they may even deny that there is an “American culture.” At the same time, Americans will readily generalize about various subgroups within their own country. Northerners have stereotypes (that are, generalized, simplified notions) about Southerners, and vice versa. There are stereotypes of people from the country and people from the city; people from the coasts and people from inland; people from the Midwest; minority ethnic groups; minority religious groups; Texans; New Yorkers; Californians; and so on.

own minds about the values and assumptions they hold. The notion that social factors outside themselves have made them “just like everyone else” in important ways offends their sense of dignity. Foreigners who understand the degree to which Americans are imbued with the notion that the free, self-reliant individual is the ideal kind of human being will be able to understand many aspects of American behavior and thinking that otherwise

might not make sense. Many Americans do not display the degree of respect for their parents that people in more traditional or family-oriented societies commonly display. They have the conception that it was a sort of historical or biological accident that put them in the hands of particular parents, that the parents fulfilled their responsibilities to the children while the children were young, and now that the children have reached “the age of independence” the close child-parent tie is loosened, if not broken. Closely associated with the value they place on individualism is the importance Americans assign to privacy. Americans assume that people “need some time to themselves” or “some time alone” to think about things or recover their spent psychological energy. Americans have great difficulty understanding foreigners who always want to be with another person, who dislike being alone.

There are stereotypes of people from the country and people from the city; people from the coasts and people from inland; people from the Midwest; minority ethnic groups; minority religious groups; Texans; New Yorkers; Californians; and so on INDIVIDUALISM AND PRIVACY The most important thing to understand about Americans is probably their devotion to individualism. They have been trained since very early in their lives to consider themselves as separate individuals who are responsible for their own situations in life and their own destinies. They have not been trained to see themselves as members of a close-knit, tightly interdependent family, religious group, tribe, nation, or other collectivity. It is this concept of themselves as individual decisionmakers that blinds at least some Americans to the fact that they share a culture with each other. They have the idea, as mentioned above, that they have independently made up their

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EQUALITY Americans are also distinctive in the degree to which they believe in the ideal, as stated in their Declaration of Independence, that “all men are created equal.” Although they sometimes violate the ideal in their daily lives, particularly in matters of interracial relationships, Americans have a deep faith that in some fundamental way all people (at least all American people) are of equal value, that no one is born superior to anyone else. “One man, one vote,” they say, conveying the idea that any person’s opinion is as valid and worthy of attention as any other person’s opinion.

or other informal attire. People slouch down in chairs or lean on walls or furniture when they talk, rather than maintaining an erect bearing. THE FUTURE, CHANGE, AND PROGRESS Americans are generally less concerned about history and traditions than are people from older societies. “History doesn’t matter,” many of them will say. “It’s the future that counts.” They look ahead. This fundamental American belief in progress and a better future contrasts sharply with the fatalistic (Americans are likely to use that term with a negative or critical connotation) attitude that characterizes people from many other cultures, notably Latin, Asian, and Arab, where there is a pronounced reverence for the past. In those cultures the future is considered to be in the hands of “fate,” “God,” or at least the few powerful people or families that dominate the society. GOODNESS OF HUMANITY The future cannot be better if people are not fundamentally good and improvable. Americans assume that human nature is basically good, not basically evil. Foreign visitors will see them doing many things that are based on the assumption that people are good and can make themselves better. “Where there’s a will there’s a way,” the Americans say. People who want to make things better can do so if only they have a strong enough motivation.

This is not to say that Americans make no distincAmericans have a deep faith that in some fundamental way all tions among themselves as a people (at least all American people) are of equal value, that result of such factors as sex, no one is born superior to anyone else age, wealth, or social position. They do. But the distinctions are acknowledged in subtle ways. Tone of voice, order of TIME speaking, choice of words, seating arrangements-such For Americans, time is a “resource” that, like water or coal, are the means by which Americans acknowledge status can be used well or poorly. “Time is money,” they say. “You only differences among themselves. get so much time in this life; you’d best use it wisely.” The future will not be better than the past or the present, as Americans are trained to see things, unless people use INFORMALITY their time for constructive, future-oriented activities. Thus, Their notions of equality lead Americans to be quite Americans admire a “Well- organized” person, one who has a informal in their general behavior and in their relationships written list of things to do and a schedule for doing them. The with other people. People from societies where general ideal person is punctual (that is, arrives at the scheduled time behavior is more formal than it is in America are struck by for a meeting or event) and is considerate of other people’s the informality of American speech, dress, and posture. time (that is, does not “waste people’s time” with conversaIdiomatic speech (commonly called “slang”) is heavily used on most occasions, with formal speech reserved for public tion or other activity that has no visible, beneficial outcome). events and fairly formal situations. People of almost any The American attitude toward time is not necessarily station in life can be seen in public wearing jeans, sandals, shared by others, especially non-Europeans. They are more

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likely to conceive of time as something that is simply there around them, not something they can “use.” One of the more difficult things to which many foreign businessmen and students must adjust in the States is the notion that time must be saved whenever possible and used wisely every day. Achievement, Action, Work, and Materialism “He’s a hard worker,” one American might say in praise of another. Or, “She gets the job done.” These expressions convey the typical American’s admiration for a person who approaches a task conscientiously and persistently, seeing it through to a successful conclusion. More than that, these expressions convey an admiration for achievers, people whose lives are centered around efforts to accomplish some physical, measurable thing. Foreign visitors commonly remark that “Americans work harder than I expected them to.” (Perhaps these visitors have been excessively influenced by American movies and television programs, which are less likely to show people working than to show them driving around in fast cars or pursuing members of the opposite sex.) While the so-called Protestant work ethic may have lost some of its hold on Americans, there is still a strong belief that the ideal person is a “hard worker.” A hard worker is one who “gets right to work” on a task without delay, works efficiently, and completes the task in a way that meets reasonably high standards of quality. More generally, Americans like action. They do indeed believe it is important to devote significant

other person will not find offensive or unacceptable. If they do not speak openly about what is on their minds, they will often convey their reactions in nonverbal way (without words, but through facial expressions, body positions, and gestures). Americans are not taught, as people in many Asian countries are, that they should mask their emotional responses. Their words, the tone of their voices or their facial expressions will usually reveal when they are feeling angry, unhappy, confused, or happy and content. They do not think it improper to display these feelings, at least within limits. Many Asians feel embarrassed around Americans who are exhibiting a

strong emotional response to something. (On the other hand, Americans are generally less concerned about history Latinos and Arabs are generally and traditions than are people from older societies. inclined to display their emotions “History doesn’t matter,” many of them will say. “It’s the more openly than Americans future that counts.” They look ahead do and to view Americans as unemotional and “cold.”) energy to their jobs or to other daily responsibilities. Beyond But Americans are often less direct and open than they that, they tend to believe they should be doing something realize. There are in fact many restrictions on their willingmost of the time. They are usually not content, as people ness to discuss things openly. Despite these limitations, from many other countries are, to sit for hours and talk with Americans are generally more direct and open than most other people. They get restless and impatient. They believe people from many other countries. They will not try to mask they should be doing something, or at least making plans and their emotions, as Scandinavians tend to do. They are much arrangements for doing something later. less concerned with “face” (that is, avoiding embarrassment to themselves or others) than most Asians are. To them, being DIRECTNESS AND ASSERTIVENESS “honest” is usually more important than preserving harmony Americans, as has been said before, generally consider in interpersonal relationships. themselves to be frank, open, and direct in their dealings with Americans use the words “pushy” or “aggressive” to describe other people. Americans will often speak openly and directly a person who is excessively assertive in expressing opinions to others about things they dislike. They will try to do so in a or making requests. The line between acceptable assertivemanner they call “constructive,” that is, a manner which the ness and unacceptable aggressiveness is difficult to draw. ■

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WHEN SERBIAN FLAG FLEW ABOVE THE WHITE HOUSE

100th Anniversary Of The First U.S. Intervention In Serbia

OVER 300,000 SERBIAN ARMIES AND 800,000 CIVILIANS LOST THEIR LIFE IN THE GREAT WAR

During World War I the American public stirred when it heard the news of the great victories of the Serbian Army and an epidemic of infectious diseases, so many Americans started looking favorably upon the brave Serbian people and army. Owing to the activity of Mihajlo Pupin, one of the greatest scientists in the world, the Serbian nation was viewed with great respect among the American elite and the political circles. Apart from organizing the Serbian emigration in America, Pupin wholeheartedly helped the Serbian people by sending financial and material aid

pon the initiative of Mihailo Pupin, a great American scientist of Serbian origin, a special Technical Mission comprised mainly of telecommunication (telegraph and telephone), bridge, mining and railway engineers was sent to Serbia. It was believed that their knowledge and experience was most needed

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in heavily devastated Serbia. They were leading experts who had volunteered their services to the famous US 17th Engineers Railway Regiment for the duration of the World War I, and who remained in Europe for a certain period upon the War’s end. During their stay in the Kingdom that lasted less than a year, they crossed about 35 thousand

kilometers on railways and river waterways and about 50 thousand kilometers by car. They conducted a complete review of the existing railway system and detailed analysis of several new projects aimed at linking the Danube Valley with Adriatic Coast. They wrote hundreds of pages of reports containing maps and suggestions on how to most efficiently reconstruct the old and construct the new railways. They personally expedited the reconstruction of the BelgradeThessaloniki railway. At the same time, they reviewed the mineral resources of the Kingdom and surrounding areas, with the exception of West Serbia, East Bosnia and Montenegro. The results of these analyses were compiled in more than fifty reports on each individual mine, containing numerous photographs, the analysis of the mine’s existing state and suggestions for further and faster development. The length of their brief stay in Serbia stands in stark contrast to the importance of the Mission’s impact on the county’s postwar recovery which is dis-

V E S NA A L E K S I Ć , S O NJA J E R KOV I Ć A N D S AŠ A I L I Ć

of the organization to an enterprising engineer Herbert Hoover who soon established Communications Section for the Supreme Economic Council to which he brought high-ranking American Army officers who were up till then serving in the 17th Engineers Railway Regiment. Their task was to coordinate food distribution operation on the territory of former Austro-Hungarian monarchy and, together with their team, to work on the reconstruction of railway,

MIHAJLO PUPIN

road and river traffic systems. However, just before the end It was on this occasion that in July, 1919 in Paris Hoover met of the Paris Peace Conference, with a renowned American scientist of Serbian origin, Mihailo the United States announced Pupin. The discussion they had resulted in concrete Hoover’s demobilization which meant suggestion to assign several reliable and eminent American that American officers could engineers on posts in “Greater” Serbia no longer stay on European soil in their previous capaccussed as the principal topic of the paper. ity. This automatically terminated the functioning of the During the neutrality period in the World War I, the Communications Section. But since several governments United States established over 100 humanitarian orof the newly established states addressed Hoover with an appeal to keep the American experts for a while as ganizations that provided aid to endangered European their advisors, the solution was found in establishing a civilians. After the war was over, in February 1919 American separate, non-government organization named European Congress passed a bill that granted 100 million dollars for Technical Advisers. the purpose of providing aid to European states (apart It was on this occasion that in July, 1919 in Paris Hoofrom former enemies). The law allowed President Woodrow Wilson to esver met with a renowned American scientist of Serbian origin, Mihailo Pupin. The discussion they had resulted in tablish American Relief Administration as early as on concrete Hoover’s suggestion to assign several reliable and February 25th, 1919. He entrusted the managing position

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eminent American engineers on posts in “Greater” Serbia, who would serve as Government advisors on questions concerning railways, traffic and mines reconstruction and the like. Since Serbian government was in the need of not only the material for the construction of railways but US funds for economic recovery as well, the agreement was reached to appoint experts who would operate on

which had not been existent at the time. At the same time, due to the military occupation and wartime destruction that had taken place between 1914 and 1918 Serbian industry and mining were so deteriorated that a complete reconstruction of railway system, factories and mines was necessary. It was estimated that around 30% of plants and 57% of machinery and facilities had been destroyed. Department of Mines of Yugoslav Ministry of Economy estimated that metal mines suffered installation and inventory losses amounting to 25%, and that coal mines suffered 50% loss in original investments. Upon retreating, occupying forces had destroyed a significant part of the remaining mining facilities. In Paris in 1919 during a Reparation Commission session, Delegation of the Kingdom of Serbs, Croats and Slovenes estimated that the war damage in Serbia amounted between seven and ten billion Faculty of Business Economics and Entrepreneurship International Review 11 golden francs (based on 1914 prices), which was, at the time, equivalent to one half of total Serbian national property. So as to facilitate HERBERT HOOVER

the field directly safeguarding Thanks to the agreement between American Government the material and funds. Their and the Government of the Kingdom of Serbs, Croats and knowledge of American railway Slovenes, the American experts spent an entire year in Serbia. and production system could have been highly important During that time, they provided concrete material and and useful to Serbian Governfinancial aid and put forth their suggestion on postwar ment. An eminent American economic recovery of Serbia representative might have thorough economic, social and infrastructural recovery, been extremely useful in negotiations regarding the the sum of 2.5 billion francs was required. In addition to resolution of the situation concerning the railway networks that, proportionally speaking, of all the counties involved with neighboring countries to which expert missions had in the War Serbia had experienced the greatest level of already been assigned. human loss. At over 1.2 million deaths (two thirds being Hoover and Pupin observed that Serbia should free civilians), the Kingdom of Serbia had lost about 28% of itself, without delay, from the dominance of Hungarian the entire population. Moreover, its casualties included and Austrian engineers, who “built railways on locations 114.000 war invalids and 150.000 heavily wounded civilians. useful to them”. Thanks to the agreement between American GovernBeing native to Vojvodina, Pupin was well aware of the fact that its formal unification with Serbia had to go hand ment and the Government of the Kingdom of Serbs, Croats in hand with the construction of infrastructural network and Slovenes, the American experts spent an entire year in

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Serbia. During that time, they provided concrete material and financial aid and put forth their suggestion on postwar economic recovery of Serbia. The Establishment and Operations of American Technical Mission in the Kingdom of Serbs, Croats and Slovenes An extremely important role in the recovery of Serbia was played by the mentioned organization, American Relief Administration. As early as in 1919, the American

Government, via American Relief Administration, had granted Serbia a significant food acquisition loan totaling 25 million dollars. Herbert Hoover, prompted by a conversation he had had with Pupin, offered to act on Serbia’s behalf in reaching an agreement with the U.S. Treasury Department so that 100.000 dollars would be set aside in order to finance the establishment and operations of an American expert Mission in Serbia. ■

WOODROW WILSON’S MESSAGE TO THE AMERICAN PEOPLE On July 28, 1918, U.S. President Woodrow Wilson gave the following message to the American people. It was read in churches throughout the country and published in virtually all major newspapers. The Serbian flag was raised over the White House and all public buildings in the nation’s capital. The message read: To the People of the United States: On Sunday, 28th of this present month, will occur the fourth anniversary of the day when the gallant people of Serbia, rather than submit to the PRESIDENT WOODROW WILSON AT THE CONGRESS studied and ignoble exactions of a prearranged foe, were called upon by the war declaration of Austria-Hungary to defend their territory and their homes against an enemy bent on their destruction. Nobly did they respond. So valiantly and courageously did they oppose the forces of a country ten times greater in population and resources that it was only after they had thrice driven the Austrians back and Germany and Bulgaria had come to the aid of Austria that they were compelled to retreat into Albania. While their territory has been devastated and their homes despoiled, the spirit of the Serbian people has not been broken. Though overwhelmed by superior forces, their love of freedom remains unabated. Brutal force has left unaffected their firm determination to sacrifice everything for liberty and independence. It is fitting that the people of the United States, dedicated to the self-evident truth that is the right of the people of all nations, small as well as great, to live their own lives and choose their own Government, and remembering that the principles for which Serbia has so nobly fought and suffered are those for which the United States is fighting, should on the occasion of this anniversary manifest in an appropriate manner their war sympathy with this oppressed people who have so heroically resisted the aims of the Germanic nations to master the world. At the same time, we should not forget the kindred people of the Great Slavic race--the Poles, the Czechs and Jugo-Slavs, who, now dominated and oppressed by alien races yearn for independence and national unity. This can be done in a manner no more appropriate than in our churches. I, therefore, appeal to the people of the United States of all faiths and creeds to assemble in their several places of worship on Sunday July 28, for the purpose of giving expression to their sympathy with this subjugated people and their oppressed and dominated kindred on other lands, and to invoke the blessings of Almighty God upon them and upon the cause to which they are pledged. Woodrow Wilson, President The White House, July 1918

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AMERICAN CORNERS IN SERBIA

Continue To Inspire, Empower & Connect People The American Corners program in Serbia is a partnership between the U.S. Embassy and local institutions such as public libraries and cultural centres that seeks to build mutual understanding and friendship between Serbian and American citizens

here are eight American Corners in Serbia: in Subotica, Novi Sad, Belgrade, Kragujevac, Novi Pazar, Niš, Vranje, and Bujanovac. All eight give local citizens the opportunity to learn more about the United States, use modern technology (including online databases and e-books), and participate in such programs as women’s empowerment, youth entrepreneurship and job creation, democracy and community engagement, health care, sports, culture and English language learning. Not only do the Corners provide useful, interesting information about American society, culture, and policies, but they also work to inspire future young leaders who will help Serbia move toward its stated goals of EU integration, improving relations with its neighbours, and increasing economic opportunities for its citizens. Corners often allow local citizens to meet Americans (in person or though live virtual programs) and engage directly with them in an open dialogue. About 250,000 people visit the Corners annually, while more than 100,000 participate in 4,000 programs and activities. Here are some examples from 2018:

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INTRODUCING YOUTH TO SOCIAL ACTIVISM In cooperation with a local civic association, the American Corner Novi Sad organized a workshop entitled “Basic Training for Youth Involvement in Social Activism,” which for the third year in a row aimed to empower young people to participate actively in society and decision-making processes. Participating students explored youth activism in the United States and its role in community change, as well as youth civic engagement practices that can be applied locally and that facilitate greater youth involvement in positive social change. VIRTUAL DIALOGUE ON MEDIA LITERACY The American Corner Novi Sad collaborated with the Novi Sad School of Journalism to host a virtual dialogue, bringing U.S. and international communities together to talk about media literacy and combating “fake news.” US speakers emphasized the importance of media literacy today and presented tools and resources for educators to use with students. This was a great opportunity to exchange ideas, experiences, and practices with participants from 13 European countries and the United States.

PROMOTING ENTREPRENEURSHIP IN NIŠ The American Corner Niš launched a series of workshops on the traditional craft of knitting to encourage self-employment of unemployed women. Participants, who had an opportunity to learn about some successful US women entrepreneurs and their projects, were also introduced to opportunities for online sales and were connected with various local handicraft organizations. EXPLORING AMERICA THROUGH ITS PLAYWRIGHTS The American Corner Subotica Theatre Club organized workshops that presented ten-minute plays by notable American playwrights. The plays were selected and translated by the participants, then performed for the public in English and Serbian at the Subotica Public Library. Through selected plays, students were able to explore models for promoting diversity, multiculturalism, and tolerance in the United States.

used Minecraft as a creative playground. The students learned how to overcome challenges with food and environment and program little Minecraft robots using Microsoft MakeCode. PREVENTING DOMESTIC VIOLENCE The American Corner Novi Pazar organized a panel on preventing domestic violence to raise awareness about this critical issue in Serbia, offer possible answers for victims, as well as to learn about existing mechanisms to prevent violence in both Serbia and the United States. The panellists included representatives from the police, judiciary, and NGOs who presented possible amendments to the law on prevention of domestic violence. After the introduction, the participants – mostly high

ENGAGING WITH YOUNG REFUGEES AND MIGRANTS The American Corner Bujanovac organized a series of workshops for refugee children from Iran, Afghanistan, Pakistan, and Cuba currently staying at a local refugee centre. Through activities like watching movies about the United States, drawing, and playing Wii, the children had the chance to learn English and more about the United States, as well as to develop team spirit leading to friendship. LEARNING ABOUT A US “MAKER SPACE” An American knowledgeable about “maker spaces” shared his experiences at the American Corner Kragujevac, explaining how such spaces can expand creative thinking, innovation,

Corners often allow local citizens to meet Americans (in person or though live virtual programs) and engage directly with them in an open dialogue. About 250,000 people visit the Corners annually, while more than 100,000 participate in 4,000 programs and activities entrepreneurship, and teamwork. He started the series of youth workshops using electronics, robotics, and educational gadgets, including solar robots and concept solar houses, and then expanded the program to other Corner towns in Serbia. Since 2015, the program has spread to over 150 workshops in six Serbian towns. MINECRAFT, MISSIONS TO MARS, AND MORE American Corner Belgrade launched a series of educational “Minecraft” workshops. They provided high school students with an opportunity to participate in a 4-module workshop that

school and university students, as well as NGO representatives – discussed the current situation in the local community and how challenges are being addressed in light of the new law.

FINANCIAL LITERACY As part of its TED Talk conversation workshop series, the American Corner Vranje organized a discussion focused on financial literacy. Moderated by a local English language teacher, the session started with a TED talk by Jacqueline Novogratz, an American entrepreneur and author who is also the founder and CEO of Acumen, a non-profit global venture capital fund whose goal is to use entrepreneurial approaches to address global poverty. This was an opportunity for the group to learn how basic financial skills are taught in the United State from an early age, why this is important, and to enhance their knowledge of English vocabulary related to money and finance. ■

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AMERICAN GOTHIC: GRANT WOOD, PAINTER

The Most Recognizable Painting In th 20 Century GRANT WOOD: Self-Portrait

American Gothic is a painting created by Grant Wood in 1930. The meaning of the portrait, which features two solemn-faced individuals, is something that has been debated since its creation

rant Wood was born in Iowa on February 13, 1891. His spent his childhood on a farm until his father died when he was ten. His mother then moved him and his sister to the more urban Cedar Rapids. Farm life and the Midwestern traditions of his childhood reappeared in Wood’s later works. Wood’s interest in art developed early. In high school, Wood was involved with the drama department designing sets for the school plays and creating illustrations for school publications. After graduating high school in 1910, Wood went to the Minneapolis School of Design and Handicraft. Here he learned many other skills that would benefit him throughout his career. These included metalworking, jewelry, and furniture making. He moved

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to Chicago in 1913 and opened his own shop. He would stay there until his mother’s illness brought him back to Iowa in 1916. Upon his return to Iowa, Wood taught school to support his mother and sister. He was also able to continue work on his art. After a few years, he was able to travel to Europe, enrolling in the Académie Julian and exhibiting his work in Paris. While there Wood viewed the work of the Impressionists, whose themes influenced his work. What really affected him, though, was a 1928 trip to Germany. There he viewed 15th and 16th century Flemish and German artwork, especially the works of Jan van Eyck. He chose to emulate their styles in his works. During this time, a new art movement was emerging in

PARSON WEEMS' FABLE

BREAKING THE PRAIRIE SOD (MURAL)

Europe in favor of more rural scenes. It was during this time This familiar image “American Gothic” was exhibited that Wood began painting his publicly for the first time at the Art Institute of Chicago, most famous piece, American winning a three-hundred-dollar prize and instant Gothic. fame for Grant Wood This familiar image “American Gothic” was exhibited publicly for the first time at the Art Institute of Chicago, America, mainly in the Midwest. This new form of art was winning a three-hundred-dollar prize and instant fame referred to as Regionalism, and Wood was one of its main for Grant Wood. The impetus for the painting came while leaders. Regionalism rose to prominence during the 1930s. Wood was visiting the small town of Eldon in his native It was a very American movement, as works produced Iowa. There he spotted a little wood farmhouse, with a during this time focused on depicting scenes of home single oversized window, made in a style called Carpenter and farm life. Regionalism artists rejected the modern art Gothic. “I imagined American Gothic people with their faces movements such as cubism that were coming over from

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WOMAN WITH PLANTS

stretched out long to go with this American Gothic house,” he said. He used his sister and his dentist as models for a farmer and his daughter, dressing them as if they were “tintypes from my old family album.” The highly detailed, polished style and the rigid frontality of the two figures were inspired by Flemish Renaissance art, which Wood studied during his travels to Europe between 1920 and 1926. After returning to settle in Iowa, he became increasingly appreciative of midwestern traditions and culture, which he celebrated in works such as this. American Gothic, often understood as a satirical comment on the midwestern character, quickly became one of America’s most famous paintings and is now firmly entrenched in the nation’s popular culture. Yet Wood intended it to be a positive statement about rural American values, an image of reassurance at a time of great dislocation and disillusionment. The man and woman, in their solid AMERICAN GOTHIC and well-crafted world, with all their strengths and weaknesses, represent survivors. Had Grant Wood Grant Wood’s retrospective at the Whitney Museum of not made the painting American Art this year fascinates as a plunge into certain “American Gothic” (1930), deliriums of the United States in the nineteen-thirties, notably there would not be a a culture war between cosmopolitan and nativist sensibilities Grant Wood retrospective now at the Whitney

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APPRAISAL

Museum of American Art this year. This would be a pity, because the show fascinates as a plunge into certain deliriums of the United States in the nineteen-thirties, notably a culture war between cosmopolitan and nativist sensibilities. But any notion that the Iowan—who died in 1942, of pancreatic cancer, on the day before his fifty-first birthday—is an underrated artist fizzles. “American Gothic” is, by a very wide margin, his most effective picture—though not his best, for which could be rather nominated “Dinner for Threshers” (1934), a long, low, cutaway view of a farmhouse at harvesttime that brought to disciplined perfection Wood’s strong suit, imaginative design. He was a strange man who made occasionally impressive, predominantly weird, sometimes god-awful art in thrall to a programmatic sense of mission: to exalt rural America in a manner adapted from Flemish Old Masters. “American Gothic”—starchy couple, triune pitchfork, churchy house, bubbly trees—succeeded, deserving the inevitable term “iconic” for its punch and tickling ambiguity. (It’s still hard to say what, exactly, is being iconized.) The work made Wood, at the onset of his maturity as an artist, a national celebrity, and the attendant pressures pretty well wrecked him . ■

SPRING IN TOWN

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AMERICAN-SERBIAN RELATIONS IN BASKETBALL

How An American & A Serb Changed World Basketball Belgrade will this mid-August host the international ’Basketball Without Borders’ (BWB) camp, which is traditionally organised by the World Basketball Federation (FIBA) and the American National Basketball Association (BNA), which is just one of the fruits of the joint “masterpiece” of the long-serving FIBA secretary general and NBA commissioner

e can only wonder what world basketball would look like today if Borislav Stanković and David Stern hadn’t reconciled the two basketball worlds – of professionals and amateurs – three decades ago, thus creating the conditions for “basketball without borders”. One thing is certain: without their historic mission, basketball wouldn’t be as beautiful and glamorous as it is today, and it certainly wouldn’t be one of the showpiece events at the Olympic Games. Belgrade will this mid-August host the Basketball Without Borders (BWB) camp, which is just one of the accomplishments of the joint work of Stanković and Stern. This camp is held on all continents and, alongside the game itself, it also promotes fair play, tolerance and cooperation in sport.

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DAVID STERN (left) AND BORISLAV STANKOVIĆ

-This idea was launched by FIBA, the NBA and the United Nations in 2001. At that time, NBA players from the countries of the former Yugoslavia gathered in Treviso, among them Vlade Divac, Toni Kukoč, Predrag Stojaković, Dragan Tarlać, Radoslav Nesterović et al. The upcoming camp will provide fresh confirmation that Belgrade is one of the cities that’s important to world basketball, a city where basketball lives, and a country that treats basketball as a national sport. FIBA and the NBA also wanted to visit Belgrade because, among other things, many NBA players have passed through here. It will be an opportunity to bring together former basketball stars from the region. A total of 66 players hailing from the territory of the former Yugoslavia have reached the NBA, which is an incredible figure - says FIBA sporting director Zoran Radović.

And everything actually began in the mid-1980s, when then FIBA Secretary General Bora Stanković and NBA commissioner David Stern met. Stanković, who became the head of FIBA at the time of the 1976 Montreal Olympics, saw a reliable partner in Stern, who took over the helm of the NBA in 1984. -Immediately after Stern’s arrival as the head of the NBA, an important press conference was held in Milan. These were the first tournaments organised by our Italian friends with NBA teams. Italy hosted the Phoenix and New Jersey teams, who played against the best Italian clubs, after which a press

66 NBA Players From The Territory Of The Former Yugoslavia SERBIA (28): Predrag Danilović, Željko Rebrača, Dragan Tarlać, Predrag Stojaković, Predrag Drobnjak, Igor Rakočević, Marko Jarić, Vladimir Radmanović, Nenad Krstić, Aleksandar Pavlović, Darko Miličić, Mile Ilić, Kosta Perović, Boban Marjanović, Miroslav Raduljica, Nemanja Bjelica, Nemanja Nedović, Nikola Jokić, Aleksandar Đorđević, Rastko Cvetković, Ratko Varda, Miloš Babić, Radisav Ćurčić, Vlade Divac, Ognjen Kuzmić, Žarko Paspalj, Miloš Teodosić, Bogdan Bogdanović.

conference was organised. Also present, alongside Stern and myself, was Enrico Vinci, then president of the Basketball Association of Italy. I then gave a resounding statement in which I said that I was very proud to be sitting at the same table with the “devil” – because professional basketball players and their officials were considered somehow evil by the international Olympic family and among the people from the Olympic committees - and that my desire was to work with Mr Stern to find the best way to further develop basketball around the world. Stern liked that statement a lot, so there was mutual support from the beginning – says Stanković. Following the meeting in Milan, Stanković and Stern

GIANTS OF SERBIAN BASKETBALL: BORISLAV STANKOVIĆ (left), RADOMIR ŠAPER AND NEBOJŠA POPOVIĆ (Photo Koš Magazine)

CROATIA (20): Toni Kukoč, Dino Rađa, Dražen Petrović, Žan Tabak, Bruno Šundov, Gordan Giriček, Stojko Vranković, Dalibor Bagarić, Mario Kasun, Zoran Planinić, Roko Ukić, Damir Markota, Bojan Bogdanović, Dario Šarić, Mario Hezonja, Dragan Bender, Ivica Zubac, Damjan Rudež, Duje Dukan, Ante Žižić.

SLOVENIA (9): Marko Milić, Radoslav Nesterović, Primož Brezec, Boštjan Nahbar, Saša Vujačić, Beno Udrih, Uroš Slokar, Goran Dragić, Zoran Dragić. MONTENEGRO (6): Predrag Savović, Slavko Vraneš, Nikola Peković, Nikola Vučević, Žarko Čabarkapa, Aleksandar Radojević. BOSNIA-HERZEGOVINA (2): Jusuf Nurkić, Mirza Teletović. FYR MACEDONIA (1): Pero Antić.

ALEKSANDAR MILETIĆ

continued to work on bringing the two worlds together and creating the conditions for professionals (NBA players) to appear at the Olympics. Stern recalls one of their first meetings in New York: - Bora Stanković and I met in my office with Russ Granik, who was then my deputy. He suggested that we consider the possibility of including NBA players in the Olympics. He said that it was unnatural for FIBA to have the entire basketball world under its jurisdiction with the exception of 350 exceptional players who were performing in the NBA. He also said that it would be a great thing for us to use our influence to contribute to the creation of such a climate in America. This proposal seemed to be something completely logical to us. Bora warned us that there would be strong opposition, primarily in the form of the basketball associations of the United States and the Soviet Union... We said that we would work on that and that, regardless of the outcome, we were glad to have

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at least had the opportunity to discuss the topic. At the 1992 Barcelona Olympics, the NBA arrived with the biggest stars of the NBA league... it was then, and remained, the “Dream Team”, the best collective of players ever to appear in a competition. They reached the gold medal by winning with an average points difference of 43.8, while Stanković and Stern were subjected to harsh criticism from their opposition. They told them that the idea of unification was ridiculous and made no sense.

THE 5TH GOLD AT THE WORLD CHAMPIONSHIPS WAS WON IN INDIANAPOLIS IN 2002

DREAM TEAM

- In the American qualifications for Barcelona, Cuban basketball players brought cameras to take their pictures Jordan, Bird, Magic and other American stars, which illustrates the vast gap in quality. However, Argentina had already won the Olympics in 2004, despite the U.S. being represented by professionals, says Stanković. Stern also recalls very well how much resistance there was in those years: -When we announced our unification deal, the media in America were very hostile. They said: why are we doing this when the rest of the world will never be as good as America? However, we ultimately saw confirmation of Bora’s wise stance that you can only advance if you play against those who are better than you, and thus the gap gradually narrowed. And so it was that at the 2016 Rio Olympics we had a total of 54 current and former NBA players in the tournament – so, 54 players in 12 national teams. That best illustrates how much the basketball world has changed since then, and what a great visionary my friend Bora was. ■

Serbs And Americans In The Film “Global Game” Belgrade-based production company Cinnesport is filming a feature-length documentary film entitled “Global Game” and dedicated to the joint mission of Bora Stanković and David Stern. The backbone of the film is the exclusive dialogue between Stanković and Stren, filmed in Geneva during the summer of 2016, when Stern was enrolled in the FIBA Hall of Fame. The film will be completed by the 2020 Tokyo Olympics and features some aces of Serbian and American basketball, but also some other famous names from elsewhere in the world.

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Basketball Collaboration With The U.S. 1923 American envoy of the Red Cross, William Wieland, brings the first basketball to Serbia and Yugoslavia, in early autumn 1923. He holds the first courses on the court of the Kralj Petar I School in Belgrade. 1952 Red Star basketball players become the first team from Serbia and Yugoslavia to have “contact” with the Harlem Globetrotters, at a tournament in Milan. This event shifts the view of the game among some of the pioneers of Serbian basketball. 1960 The Yugoslav national team encounters the U.S. team for the first time in a major competition. The American team wins the match at the Rome Olympics with a score of 104:42, marking the worst ever defeat in the history of the Yugoslav national team. That U.S. team goes down as one of the best in basketball history, featuring the likes of Oscar Robertson, Jerry West, Jerry Lucas et al. 1963 Yugoslavia beats America for the first time, 75:73 at the World Championships in Rio de Janeiro. 1964 U.S. President Lyndon B. Johnson sends an “All American Team” on a tour behind the ‘Iron Curtain’. Eight NBA players come to Belgrade, led by Boston Celtics coach Red Auerbach: Bill Russell, Bob Cousy, K.C. Jones, Tommy Hines, Oscar Robertson, Jerry Lucas, Bob Pettit and Tom Gola. 1970 Yugoslavia becomes world champion for the first time after victory over the U.S. in Lubljana. It is during the 1970s that Yugoslav clubs and the national team begin competing in tournaments in the U.S. and acquiring new knowledge through matches with college teams.

1976 Butch Reynolds signs for Partizan and becomes the first foreigner to play in Serbian basketball (the second in Yugoslavia). Dražen Dalipagić is invited by coach Red Auerbach to attend a camp of the Boston Celtics and heads to America. 1987 At the U-19s World Cup in Bormio, Yugoslavia beats America and wins gold. This leads to the forming of the “white dream team”: Divac, Kukoč, Rađa, Đorđević et al. 1989 Vlade Divac arrives at the Los Angeles Lakers, while Žarko Paspalj joins the San Antonio Spurs. The decision is made by FIBA in Munich confirming that NBA players can compete in the Olympics. 1997 American Tom Ludwig becomes Red Star coach. American players increasingly start coming to Serbia and become the top players of the best Serbian clubs, Red Star and Partizan. Many of them also receive Serbian passports. 2002 Yugoslavia becomes world champion in Indianapolis. It beats the U.S. team, comprising NBA players, in the quarter-final. 2016 The U.S. and Serbia meet in a gold medal match for the second time in three years. America wins convincingly, as it did at the World Cup in Madrid. These two national teams are the only ones to have won the world championships five times (inclusive of Yugoslav victories). 2018 Serb Igor Kokoškov signs for the Phoenix Suns and becomes the first foreign coach to sit on the bench of any NBA club. Serbia’s top five players compete in the NBA: Miloš Teodosić (LA Clippers), Bogdan Bogdanović (Sacramento Kings), Nemanja Bjelica (Minnesota Timberwolves), Nikola Jokić (Denver Nuggets) and Boban Marjanović (LA Clippers).

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GALA 2018:

55TH ANNIVERSARY OF AMCHAM EU

The AmCham EU Youth Entrepreneurship Award

AmCham EU speaks for American companies committed to Europe on trade, investment and competitiveness issues. It aims to ensure a growth-orientated business and investment climate in Europe

mCham EU facilitates the resolution of transatlantic issues that impact business and plays a role in creating better understanding of EU and US positions on business matters. Aggregate US investment in Europe totalled more than €2 trillion in 2017, directly supports more than 4.7 million jobs in Europe, and

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generates billions of euros annually in income, trade and research and development. AmCham EU members include some of the world’s largest, most prestigious US companies, law firms and public affairs consultancies. AmCham EU also represents non-US corporations which are limited to 10% of the overall membership.

Bioo will also receive significant mentorship from a number of European CEOs from AmCham EU’s Executive Council. ‘It is a fantastic opportunity to receive advice from such a distinguished group of business leaders who can help us grow and develop,’ Pablo Vidarte added. Susan Danger, CEO, AmCham EU, said: ‘Not only was I impressed by Bioo’s innovative technology, but also truly inspired by their drive to make business more sustainable. We are proud to support young and talented entrepreneurs. They are the future of the European economy.’ Caroline Jenner, CEO, JA Europe, commented: ‘We are thrilled to see that more and more young European entrepreneurs like Pablo are dedicated to tackling societal challenges. JA Europe, AmCham EU and its members, are committed to empowering young entrepreneurs and ensuring that together, we can contribute to the Sustainable Development Goals. The team behind Bioo are a fine example of sustainability in action.’ Other shortlisted start-ups included GrowGreen from Cyprus and Liight from Spain. The jury selecting the winner was comprised of: Daniel Calleja Crespo, Director General for Environment, European Commission; Susan Danger, CEO, AmCham EU ; Benjamin Fox, Reporter, EurActiv; Adam Shub, Chargé d’Affaires, US Mission to AmCham EU members include some of the world’s the EU; Mark Green, President largest, most prestigious US companies, law firms and for EMEA and CIS, AES; and Rupublic affairs consultancies. AmCham EU also represents dolf Ertl, Senior Vice President, non-US corporations which are limited to 10% of the Commercial Operations, EMEA, overall membership Gilead Sciences. ■

In January 2018, Fortune Magazine released its annual list of Top 50 World’s Most Admired Companies - 25 of which are AmCham EU members. On, 16 May 2018 AmCham EU welcomed members and stakeholders for its 55th Anniversary Gala at the Concert Noble in Brussels. On the occasion AmCham EU and Junior Achievement Europe (JA Europe) announced that Bioo, a Spanish start-up, is the winner of the sixth AmCham EU Youth Entrepreneurship Award.

Bioo created a unique system to generate electricity from plants in a sustainable way. With this technology, the start-up develops a range of applications, such as biological batteries or WiFi connection terminals. The AmCham EU Youth Entrepreneurship Award, organised in collaboration with JA Europe, aims to showcase young people with entrepreneurial talent. It is a symbol of American companies’ support for jobs, growth and innovation as well as their commitment to the prosperity of Europe. Pablo Vidarte, CEO, Bioo, stated: ‘With this award, we will be able to invest in research and development and continue to create the next generation of our bio-reactors. We hope to continue to reach new markets across Europe and in the rest of the world.’

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