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January 2021 | ISSUE No. 29 | ONLINE EDITION

14 JAN






Minister of Economy and Sustainable Development


PhD, Director General of the ALBERTINA Museum in Vienna




Head of European Investment Bank Office in Zagreb


Ambassador of Hungary to the Republic of Croatia




Or inclusive capitalism, or Elysium – there is no third option!




The offensives of charm


The Worst is Yet to Come?

might not be the worst thing that could happen. That 2021 might have something even more unpleasant in store for us. This sentence of mine was broadcasted in HTV’s Dnevnik 2 at the beginning of the report from the conference. Indeed, we are witnesses that a lot of people around us believe that everything will “go back to as it was” after the vaccination, that 2021 will be like 2019. I don’t want to be the eternal pessimist, but I think that nothing will ever be the same again. The news about the “new strains

of virus” from Brazil, Great Britain and South Africa are disturbing and they are saying that even the “episode” with the pandemic is not over yet. And let’s not even start to talk about its economic and geopolitical consequences. I remember that the headline of my editorial exactly one year ago was “New Roaring ’20?” "The US Ambassador to London Robert Johnson has said that the UK would enter the ‘Roaring Twenties’ after Brexit was delivered. Is the US Ambassador’s optimism applicable to the whole world, or can the Roaring Twenties happen only in the countries that made the former British Empire? What will the Roaring Twenties be like in the rest of Europe? Like they were in Chicago in the 1920s, like in the Weimar Republic in Germany or like in Mussolini’s Italy? How will the Great Gatsby of the 21st century end?", I wrote in January 2020, when the Covid-19 virus just crawled out of the market in Wuhan. “The The Empire on Which the Sun Never Sets (British Empire) has officially left the EU, and the British and the Europeans were faced with a trouble much greater than Brexit. So, it’s better to be prepared for: The worst is yet to come, and not have that happen, than to be surprised again, for the umpteenth time!










Magazine Director Croatia boban@diplomacy andcommerce.hr


Art director indigochild.ilija@gmail.com


Designer designamites@gmail.com




Predstavnik za RH



hen we organized the “Svijet u 2021.” conference on December 17 in Zagreb, which was opened by Prime Minister Andrej Plenkovic, I said in my keynote that if 2020 taught us anything is that we should prepare ourselves – as individuals, families, companies, countries and societies – that what happened to us with the pandemic






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SUPPORTING VACCINE RESEARCH ANTON KOVAČEV Head of European Investment Bank Office in Zagreb



HUNGARIAN-CROATIAN RELATIONS ARE EXCELLENT Ambassador of Hungary to the Republic of Croatia




CAPILLARY CAPITALISM Analytics by Nikica Miloš












Which is The Economist’s Country of the Year? The most-improved country is one where people stood up for democracy n most years most countries improve in various ways. In 2020, however, premature death and economic contraction became the new normal, and most countries aspired only to dodge the worst of it. Inevitably, our shortlist of most-improved countries includes some that merely avoided regressing much. Few people would argue that life in New Zealand was better in 2020 than in 2019. But the virus has been contained. When only 100 cases had been detected, the prime minister, Jacinda Ardern, closed the borders, locked down the country and urged its “team of 5m” (ie, the whole population) to be kind to each other. Only 25 Kiwis have died and life has more or less returned to normal. Rugby stadiums finished the season packed with fans. The amiable Ms Ardern was re-elected with a majority in a country where such things are almost unheard of. Taiwan has done even better, with only seven deaths and a far stronger economic performance. Leave aside whether Taiwan is a country or merely a contender for “de facto self-governing territory of the year”. It kept the virus at bay without closing schools, shops or restaurants, much less imposing lockdowns. Its economy is one of the few expected to have grown in 2020. It also showed courage, refusing to back down despite relentless threats from Beijing. China’s government often says that Taiwan must be reunited with the mainland. It has been sending warships and fighter jets ever closer to the island, ever more often. Yet in January Taiwanese voters spurned a presidential candidate who favoured warmer ties with China and re-elected Tsai Ing-wen, whose government has been sheltering democracy activists from Hong Kong. Taiwan is a constant reminder that Chinese culture is perfectly compatible with liberal democracy. These achievements are impressive. However, the pandem-



THE UNITED STATES DID ALMOST AS BADLY AS BRITAIN, ITALY AND SPAIN IN ITS RESPONSE TO COVID-19, BUT ITS OPERATION WARP SPEED WAS CENTRAL TO BRINGING ABOUT A VACCINE IN RECORD TIME ic is not yet over and to judge a country on its covid-fighting record is to focus on specific forms of good governance when circumstances of geography and genes make comparisons hard. Being an island helps. Some populations may have immunity to coronaviruses. So it is worth considering other candidates. The United States did almost as badly as Britain, Italy and Spain in its response to covid-19, but its Operation Warp Speed was central to bringing about a vaccine in record time. And by rejecting President Donald Trump in November, American voters did their bit to curb the spread of populism—another global scourge. Mr Trump’s efforts to overturn the will of those voters were unprecedented for a sitting president, but the judges he appointed were loyal to the law, not the man who picked

them. Voters in Bolivia, too, restored a measure of normality. After a fraud-tainted election, the overthrow of a socialist president, violent protests and the vengeful, incompetent rule of an interim president, the Andean nation held a peaceful re-run ballot in October and picked a technocrat, Luis Arce.But this year’s prize goes to a country in southern Africa. Democracy and respect for human rights regressed in 80 countries between the start of the pandemic and September, reckons Freedom House, a think-tank. The only place where they improved was Malawi. To appreciate its progress, consider what came before. In 2012 a president died, his death was covered up and his corpse flown to South Africa for “medical treatment”, to buy time so that his

brother could take over. That brother, Peter Mutharika, failed to grab power then but was elected two years later and ran for re-election. The vote-count was rigged with correction fluid on the tally sheets. Foreign observers cynically approved it anyway. Malawians launched mass protests against the “Tipp-Ex election”. Malawian judges turned down suitcases of bribes and annulled it. A fair re-run in June booted out Mr Mutharika and installed the people’s choice, Lazarus Chakwera. Malawi is still poor, but its people are citizens, not subjects. For reviving democracy in an authoritarian region, it is our country of the year. From The Economist, published under licence. The original article, in English, can be found on www.economist.com



With Green and Digital Economy to Mature Competitiveness Through investments, we want to ensure that the economy becomes sustainable, greener and circular through the supply of more environmentally friendly raw materials and energy

dr. sc. TOMISLAV ĆORIĆ Minister of Economy and Sustainable Development

r. sc. Tomislav Ćorić, Minister of Economy and Sustainable Development additionally explains that investments in renewable energy sources and energy itself will be carried out by increasing the production of energy from renewable sources, strengthening the infrastructure related to the reception and distribution of renewable energy sources, investing in energy efficiency and the development of new technologies.


Does Your Ministry have a clear vision of how this would look like and what will you do in the 2021?


— Given the green direction taken by the European Union, which aims at the complete decarbonisation of Europe by 2050, the new financial perspective is opening up a number of opportunities for modernization and greening of production. Investing in produc-

contribute to the preservation of existing and the creation of new jobs, facilitating the entry of companies into new markets and, ultimately, strengthening their competitiveness in the long run – all through legislative activities and projects.

LNG TERMINAL WAS BUILT TO THE HIGHEST ENVIRONMENTAL AND SAFETY STANDARDS tion and increasing competitiveness by upgrading technological readiness is the desired direction of recovery of our industry and the economy as a whole. That is why we support the introduction of green and digital technologies and encourage clean and efficient production, digitalization of business and development of digital competencies. Our goal is to

The Krk LNG terminal started its operations. Does it fit into your vision? — We are satisfied and proud that after over two decades we have managed to implement a project that is of strategic importance for the Republic of Croatia. The terminal is built to the highest environmental and safety standards. In the first three years, capacity

utilization is 100%, and by 2027 it will be 84%, which makes us especially happy because this alternative supply route will ensure our gas supply and encourage competition, which may affect the price of gas. The project was also recognized by the European Union, which co-financed it, it had the strong support of the Government of the Republic of Croatia, and with this project we put Croatia on the energy map of the world once and for all.

Does the Government of the Republic of Croatia intend to encourage the recovery of the economy from the crisis by investing in public infrastructure, especially given the availability of funds from EU funds? — It is important to emphasize that over the next three-year peri-


od, all the projects and programs of public infrastructure will contribute significantly to economic activity in the first years of recovery from the crisis. Currently, there are 59 ongoing projects in the Republic of Croatia to improve water utility infrastructure, with a total value of HRK 24.4 billion, which were stimulated with HRK 13.6 billion in grants from EU funds, as well as 12 projects worth HRK 1.6 billion for which HRK 1.4 billion in grants was provided. About 400 smaller and larger projects, which contribute to the revitalization of soil contaminated with waste and the promotion of sustainable waste management in the amount of about HRK 4.5 billion are underway. The Recovery and Resilience Facility will finance further improvements in water management, which is estimated to require HRK 16.5 billion. I would like to emphasize that the National Recovery and Resilience Facility, among other things, identifies three key programs: the Program for the development of public wastewater drainage worth HRK 11.7 billion, the Program for the development of public water supply in the amount of HRK 2.8 billion and the Disaster Risk Mitigation Program in the water management sector worth HRK 2 billion. At this point, the programming of a new 2021-2027 programme period has begun, and through it the financing of water utility infrastructure will continue, but also projects related to strengthening the disaster management system. In addition to the projects that will be phased out of this Operational Program, new water utility infrastructure projects and projects for defence against adverse effects of water are in various stages of preparation.

Promoting sustainable waste management is one of the priorities of the Republic of Croatia and the entire European Union... — The transformation of industry towards higher value-added products is not possible without inclusion in the circular economy. Next year, the plan is to continue investing HRK 1.87 billion in infrastructure for sustainable waste management through the National Recovery and Resilience Facility to prevent waste generation and separate waste collection and recycling in order to reduce waste disposal in landfills. These invest-

sure with all the mentioned investments that the economy will become sustainable, greener and circular through the supply of more environmentally friendly raw materials and energy.

PROMOTING SUSTAINABLE WASTE MANAGEMENT IS ONE OF THE PRIORITIES OF THE REPUBLIC OF CROATIA AND THE ENTIRE EUROPEAN UNION ments are of essential value to the modernization and improvement of existing recycling and waste management infrastructure, along with the development of alternative raw materials and increase in demand for recycled materials, and these are also a precondition for the transfer to circular economy. Given that circular economy covers all stages of the value chain, from production to consumption, repair and re-production, waste management and return of secondary raw materials to the economy, a large part of funds from the new 2021-2027Competitiveness and Cohesion Operational Program will be intended precisely for this purpose.

Will the Republic of Croatia finance projects that follow en-

ergy transition as yet another priority? — Investments in an energy transition for a sustainable economy is planned through the National Recovery and Resilience Facility. Investments in renewable energy sources and energy will be implemented through the reform of decarbonization of the energy sector, which includes increasing energy production from renewable sources, strengthening the infrastructure related to the reception and distribution of renewable energy sources, investing in energy efficiency and developing new technologies. The total investments planned for this purpose are HRK 21.96 billion, and the continuation is planned through the new Operational Program. It should be said that we want to en-

Such investments will certainly have a long-term positive effect on the Croatian economy, but many entrepreneurs will also need more direct help to get out of the crisis. Do you have ready solutions for this type of state intervention in crisis? — In regards to outstanding additional resources and implementation mechanisms under the Investments for Growth and Jobs objective to help address the crisis, in the context of the Covid19 pandemic (REACT-EU), we plan to focus them on the real economy. Our goal is to strengthen the competitiveness of small and medium-sized enterprises by investing in digital and green investments that stimulate growth and thus increase their ability to respond to market challenges caused by the crisis which is the result of the spread of Covid-19 disease. Preference will be given to those who will be the drivers of the economy, i.e. those who will create the next generations of commercial opportunities driven by the demand for sustainable solutions and thus increase not only supply but also demand for sustainable products. The focus will be placed on establishing processes and technological capacities based on medium to highly developed technologies for competitive high-quality goods and services, which will lead to sustainable economic growth and certainly a higher level of employment. Some entrepreneurs publicly expressed their criticism that the state didn’t help them enough in the crisis. What is your comment? — Already at the very beginning of the crisis, in March this year, we took measures to help preserve the liquidity of companies and jobs. So far, we have paid out HRK 7.4 billion, preserved 630,000 jobs and helped 107,000 companies. With a package of new measures related to jobs, covering part or all fixed costs during the suspension of work for sectors affected by the decisions of the Headquarters and Covid loans, we will help entrepreneurs and 80,000 employees to overcome this difficult period as painlessly as possible.



Supporting Vaccine Research There is finally good news from the Covid-19 front € 400 million to the COVAX initiative to ensure fair and equitable access to successful COVID-19 vaccines in Africa and scale up vaccine manufacturing in 92 developing and emerging economies. Another important lesson we can draw from the case of BionTech is the key role public banks, like the EIB, play in providing support to companies in the infectious disease sector to make sure they get into later stages of development faster. Experience and financing from public banks like EIB can easily compensate for private sector`s reluctance to finance these kinds of projects, and bridge the funding gap, notably in clinical trials and manufacturing capacity. The EIB is aware of the issue. In 2015 we launched the Infectious Disease Finance Facility (IDFF) following an extensive market consultation by InnovFin Advisory with leading pharma companies and foundations. This facility was designed under Horizon 2020 to provide innovative finance for research and innovation and address the financing needs of companies innovating in the infecANTON KOVAČEV Head of European Investment Bank Office in Zagreb

everal vaccines against the coronavirus are approved for use by the regulators, both in the US and the EU. This is a signal of the beginning of the end of Covid-19 pandemic. The speed at which the science delivered a way out from the devastating pandemic is amazing. In fact, thanks to many different teams working on the vaccine you could soon find yourself standing in line for at least one coronavirus vaccine developed with the support of the EU Bank. At the outbreak of the pandemic, the EIB responded quickly and built a pipeline of potential investments in vaccines, treatments and diagnostics. We leveraged on global partnerships with the European Commission, the World Health Organization, the Coalition for Epidemic Preparedness Innovations, the Israel Inno-



THE EIB LOOKS FORWARD DOING MORE BY BUILDING ITS LONG-TERM FUNDING CAPACITY FOR INFECTIOUS DISEASES TO OVERCOME THE GAP IN FUNDING IN THE DEVELOPMENT OF TREATMENTS AND PREVENTIVE MEASURES AND TO MITIGATE THE MARKET FAILURE IN THIS FIELD vation Authority and other partners to provide financial support. Partnerships like these proved precious, as they allowed us to confront this pandemic more effectively. In this process, the Bank`s experience from providing over EUR 30 billion in finances to healthcare sector around the world paid off. We were able to locate and assess the most promising projects quickly. One of these was the German BioNTech, founded by Özlem Türeci and her husband, Uğur Şahin. The company has produced one of the most promising vaccine candidates with reported success rates of above 90% – the vaccine we known as the “Pfizer vaccine”. The Mainz-based company was not a stranger to the EIB as the Bank already invested €50 mil-

lion to support their research on cancer treatments. In June 2020, a new €100 million loan was signed for vaccine trials and manufacturing related to Covid-19. The loan like the research broke some speed records having been assessed and signed in just two months. For this loan, the Bank received a guarantee from the EU budget under the Investment Plan for Europe, and the results of our shared commitment will soon benefit the whole world. The BioNTech is not the only company receiving EIB support for vaccine development with Nuritas, CureVac and many others benefiting from our desire to support a solution to COVID-19 pandemic. Once we get vaccines, we must ensure they are available to everyone. To this end, the EIB provided

tious diseases field. As of January 2020, IDFF had awarded 12 innovative companies in different EU Member States or associated countries a total of €241 million to develop drugs, vaccines and medical devices. The EIB looks forward doing more by building its long-term funding capacity for infectious diseases to overcome the gap in funding in the development of treatments and preventive measures and to mitigate the market failure in this field. Supporting innovative medical technology is key to the EU response to COVID-19 and it will be a way forward in combating many other healthcare issues like cancer. It can bring us more good news and improve the quality of our lives.



PBZ Group Donates HRK 7.8 Million in Aid of Victims of the Devastating Earthquake PBZ Group, a part of the Intesa Sanpaolo Group, donated HRK 7.8 million to support the victims and help repair the consequences of the devastating earthquake that hit Sisak-Moslavina County and the wider area

Dinko Lucić, President of the Management Board of Privredna banka Zagreb and Vilijana Belas, Executive Director of PR & Marketing

he donation totalling HRK 7.8 million includes a donation of HRK 3.5 million to Ivo Pedišić General Hospital in Sisak, the donation Aid for rehabilitation in the aftermath of the earthquake to the State Budget of the Republic of Croatia of HRK 3.8 million, and a donation of HRK 500,000 to the Vrbina Sisak Children’s Home. "I would like to emphasize once again, there is only one Croatia, this is what we all should bear in mind at all times and help our country whenever we can and especially now, amid the ravages of the earthquake that struck Sisak-Moslavina County and the wider area. PBZ is always prepared, with the support of our parent bank Intesa Sanpaolo, to help those that need it most and with this donation we wish to express our solidarity and communion in helping the disaster-stricken population and area. PBZ is not only market leader in many areas of banking and advanced tech-


nologies, but we are also proud to be the leading financial institution recognized by the public for its continuous and numerous humanitarian activities and serve as an example to others, motivating them to provide as much help as possible to the community“, said Dinko Lucić, President of the Management Board of Privredna banka Zagreb.

ators of changes in the field of social responsibility always strives to provide help to those who need it most and participate in positive changes in the society. Only in 2020, due to the extraordinary circumstances caused by the COVID-19 pandemic and the earthquake that hit the city of Zagreb and the surrounding area in March, the Group donated with-

PBZ HAS DONATED A TOTAL OF HRK 12.8 MILLION RESPONDING TO THE CURRENT NEEDS OF OUR COMMUNITY PBZ also adopted a number of measures to help the clients affected by the devastating earthquake, from deferral of loan payments (moratorium) for 6 to 12 months, temporary suspension of implementation of collection measures and certain fees, for example for the management of transaction accounts opened in Petrinja and Glina branch offices. PBZ Group, as one of the initi-

in its humanitarian project „Doing good every day” around HRK 5 million towards healthcare institutions to help combat the coronavirus pandemic and treat those infected as well as towards repairing the consequences of the earthquake. Including the latest donation, PBZ has donated a total of HRK 12.8 million responding to the current needs of our community.

It is noteworthy to recall also the charity project of the PBZ Group „Doing good every day“, unique in the country, which has been helping the community for more than 10 years by setting aside one kuna for each transaction carried out with a Visa card with a heart without any additional cost for cardholders. PBZ Group uses the collected funds to help national, long-term projects for the benefit of children and the young: "Monitoring children at neurorisk" of the Ministry of Health and "For the better life of children in social care homes" of the Ministry of Labour and Pension System, Family and Social Policy, and responds to current needs of the society. Within the „Doing good every day” project, the Group has so far collected more than HRK 22 million and made 54 donations, including children’s hospitals and paediatric wards and social care homes across Croatia. More information about project achievements is available at www.cinimdobro.hr.



Hungarian-Croatian Relations are Excellent Hungarian and Croatian minority policies are exemplary, and our economic and trade relations are constantly evolving

H.E. CSABA DEMCSÁK Ambassador of Hungary to the Republic of Croatia

ollowing our joint efforts in fight against the COVID-19, and after the earthquakes in December 2020, a new bilateral cooperation emerged, namely humanitarian cooperation, H.E. Csaba Demcsák, Ambassador of Hungary to the Republic of Croatia says for Diplomacy&Commerce. Hungarian non-governmental and religious organizations offered help and gathered donations in a very short time for Croatian people in need. The Government of Hungary also reacted very quickly and decided to rebuild the school in Petrinja and restore the destroyed church of Žažina, says the Ambassador.


Bilateral cooperation between two neighbouring and friendly countries is traditionally good. However, where do you see opportunities for its improvement? — I am glad to say that the Hungarian-Croatian relations are excellent, as one would expect from a neighbouring country. Croatia is an important partner in the Central European region. We have a historical relationship, which was always fruitful and mutually profitable for both states over the centuries. We have every reason to look to the future with optimism. We intend to continue to work closely with Croatia in many areas. Hungarian and Croatian minority policies are exemplary, and our economic and trade relations are constantly evolving. I am keen to help investors of our countries to find business and trade opportunities on each other’s markets. On-going construction of cross border roads, as well as the opening of new border crossings, is important for people and entrepreneurs living and doing business on both sides of the border. With the aim of strengthening


WITH THE OBJECTIVE TO CONNECT THE REGION’S ENERGY, TRANSPORT AND COMMUNICATIONS INFRASTRUCTURES, BOTH OF OUR COUNTRIES ARE ACTIVELY PARTICIPATING IN THE THREE SEAS INITIATIVE and boosting economic and human relations alongside the border, Hungary is a long lasting supporter of Croatia’s accession to the Schengen area. I also see great perspective in cooperation in the field of tourism, sustainable development, water management and energy security. With the objective to connect the region’s energy, transport and communications infrastructures, both of our countries are actively participating in the Three Seas Initiative. I think Hungary and Croatia can cooperate closely on the European scene as well: we support the accession of the Western

Balkan countries and have similar views on managing the migration threatening Europe from the South-East. Based on 800 years of close cohabitation of the Hungarian and Croatian nations, when it comes to culture, our Embassy intends to celebrate the anniversary of the birth of Miklós Zrínyi (Nikola Zrinski) with a large-scale outdoor concert in the renovated castle of Čakovec in May 2021. After the launching of the Hungarian lectureship at the University of Rijeka, we would like to extend our bilateral educational relations in the future. As Hungary will hold the Presi-

dency of the Visegrad Group from July 2021, we would like to organize several cultural and business events that would attract Croatian individuals and organizations as well.

What are the international topics of interest for both countries, and in what way do you cooperate in regards to these topics? — In my opinion energy is the most important area for improving our relations. As every country, Hungary considers energy security to be of strategic importance. Hungarian-owned companies annually reserved more than 1 billion cubic meters of capaci-


ty in the Krk LNG terminal, therefore we cannot emphasize enough how important it is that the terminal launched its commercial operation on 1st of January, 2021. Another tool for energy security would be the integration of Hungarian-Croatian gas markets, based on our common interests. The combined size of our markets alone would make the purchasing conditions and gas prices more acceptable for our consumers. Moreover, the elimination of the border crossing natural gas tariffs would be beneficial for both sides.

What are the opportunities that the European framework provides for cooperation through cross-border and other projects? Which of these would you especially like to point out? — The EU’s financial instruments, especially INTERREG, give a good background for the development of Hungarian-Croatian business relations and interconnections. I would like to underline the two projects that reflect how useful the cross-border cooperation can be for the people of our countries. First one is the bridge construction over the Mura River between Murakeresztúr and Kotoriba. The planning of the bridge has started in January 2020, and when the project would be completed, the bridge will contribute to the area’s business development. The other project that I would like to mention is the Beneficiary Light project, which supports the cooperation between the Hungarian and Croatian small- and medium sized companies, and their businesses. In the three calls so far, 22 projects were selected with a budget of almost €5.4 million. In addition, I hope that our countries can also coordinate their infrastructural and regional development projects set in their National Operative Programmes. Trade and economic cooperation between two countries is very good. Nevertheless, you have even greater ambitions. What are the areas where unused potentials still exist? — As neighbouring countries, Hungary and Croatia foster vibrant trade and economic relations. In 2019, Croatia was the 2nd most important destination country for Hungarian capital, and in 2020 - despite the pandemic - our trade turnover exceeded 2 billion euros. Furthermore, last year

Hungary was Croatia's 4th most important trading partner with a 7.4% share in Croatia’s total trade, and Croatia accounted for 14.6% of Hungary's total trade surplus. Of course, there are always possibilities to enhance the cooperation. In my opinion, there is huge potential in the agricultural cooperation, and within that sector, in the production and joint appearance of Hungarian and Croatian

— MOL's participation and operation in INA's ownership structure is an issue between MOL and the Republic of Croatia as the two largest shareholders. Negotiations between MOL and the Croatian Government are ongoing and it would be inappropriate for the Government of Hungary to comment on it. We hope that a mutually acceptable solution will be reached

Ministry of Foreign Affairs and Trade of Hungary closely cooperates with the Economica Hungarica Foundation based in Osijek, which is responsible for its implementation on site. In 2020, the Economica Hungarica Foundation announced its applications for the fourth time. In 2020, despite the COVID-19 situation, four tenders were published, and a total of 2.1 million euros were paid to SMEs.

IN 2019, CROATIA WAS THE 2ND MOST IMPORTANT DESTINATION COUNTRY FOR HUNGARIAN CAPITAL, AND IN 2020 - DESPITE THE PANDEMIC - OUR TRADE TURNOVER EXCEEDED 2 BILLION EUROS GMO-free foods in third countries. Another potential area for cooperation could be the car manufacturing industry. The automotive industry in Hungary is the most important branch of the economy, which could mean a business opportunity for Croatian suppliers. Furthermore, the ZalaZone proving ground could mean a great opportunity for cooperation. As it is located close to the border with Croatia, ZalaZone is easily reachable to Croatian companies. It also provides a multi-level testing environment for R&D activities in the field of automotive development.

To what extent does the matter of INA occupy the attention of the two countries?

in the near future, and we can step forward and work together for the satisfaction of both our countries.

Hungary is the fourth biggest investor in the Republic of Croatia. How much of these investments is directed to the areas where Hungarian minority lives? — The Government of Hungary considers it particularly important to support the ethnic Hungarian minorities living outside the country’s borders to stay and live in their birthplace. To achieve this objective, in 2017, the Government of Hungary launched the Drávaszög Economic Development Program with the aim of supporting the SMEs active in Croatian counties where the majority of Hungarians live. The

Do you see room for closer cooperation of the two tourist giants in the region, which Croatia and Hungary certainly are? — Yes, definitely. Tourism is an important branch of the Hungarian economy, although it is not as dominant as in the Croatian economy. I believe that the two countries could work together in providing services for tourists from third countries, especially from overseas or Asia. Croatia has one of the most beautiful coastlines in the world with a well-developed tourist infrastructure and road network. Hungary has a potential in thermal baths and health services. With the combination of our offers, we can attract tourists from all over the world.



Knowledge is the Most Valuable Currency and We Must Fight for Knowledge Profil Klett is the awarded publisher of the best textbook in Europe


EO of the company Dalibor Greganić says for Diplomacy&Commerce that in the future, creative and visionary change management will be paramount. In addition to the skills of careful and precise planning, in the future, the most important thing will be precisely the creative and visionary change management. In such circumstances, knowledge becomes the most valuable currency and we must fight for knowledge, says Greganić.



WE ARE PRIMARILY AN ALLY OF TEACHERS IN THE STRUGGLE FOR KNOWLEDGE, BECAUSE THEY ARE THE ONES WHO PASS THE KNOWLEDGE ON TO STUDENTS EVERY DAY Your Croatian language textbook recently won the award as the best textbook in Europe. What does such an award mean for Croatia, and what does it mean for you as a publisher? — This is primarily a reward for Croatian teachers, both those who created it as authors, and those who chose it for everyday work with students. This is an important award for both Croatia and the Croatian education system be-

cause it proves that international experts in the field of education recognize the quality of work in Croatian education. Such recognitions raise the level of self-confidence and motivation of all of us involved in our children’s education. For us, as the publisher of an award-winning textbook, it is also an obligation to continue with the same level of commitment and aspiration of excellence that both our teachers and our students deserve.

How has the pandemic affected you and were you forced to change your own business ethics in this “new normal”? — The pandemic brought dramatic changes in the market and in technology. However, it brought another novelty – people’s everyday life has become extremely complex, changeable and insecure. In addition to the skills of careful and precise planning, in the future, the most important


thing will be creative and visionary change management. In such circumstances, knowledge becomes the most valuable currency and we must fight for knowledge. To know how to overcome fear and resistance to change and initiate positive and new trends, motivate people to explore, be creative and give their best. By launching and developing the educational IZZI platform for creating digital textbooks, which proved extremely valuable for online teaching, we have prepared for this scenario, although we could not have known that a pandemic would occur. With Izzi, we have proven our orientation towards the mentioned change management and we will certainly continue in that direction.

You mentioned fight for knowledge, is knowledge jeopardised today? — We live in a time when fake news has become available even in places where only a decade ago we could not have even imagined it. On the other hand, in very similar, practically the same places it is possible to find both valuable relevant knowledge based on the latest scientific knowledge and trivial false news bordering with nonsense and evil. In these circumstances, for the good of the society as a whole, I find it more important than ever to fight for knowledge. What role do you as a publisher play in this? — We are primarily an ally of teachers in the struggle for knowledge, because they are the ones who pass the knowledge on to students every day. Our role is to go one step further in the search for the best way to transfer knowledge to our children, both in terms of technological capabilities and in terms of quality of content, and to justify with our results the trust that is the key to what we do. We believe that with a well-designed education, together we can all change the world that needs change more than ever. Then, as the teachers’ ally, are you satisfied with the current

DIGITAL PUBLISHING IS CERTAINLY AN IMPORTANT PART OF THE FUTURE OF EDUCATION, BUT WE MUST NEVER RULE OUT TRADITIONAL FORMS THAT CARRY SOME OTHER ADVANTAGES AND VALUES reform of education and what is needed for further modernization of education? — The adopted curriculum reform determined and directed the development of new educational materials. Accordingly, in the last two years, Profil Klett has offered new textbook sets to Croatian teachers. These sets are creative and innovatively designed, with new methodologies and concepts, and teachers have supported our approach based on quality and innovation. You are a market leader in digital publishing, and your educational platform for creating digital textbooks, IZZI, is even more prominent at a time when teaching in schools was con-

ducted online. Is digital publishing the future? — Digital publishing is certainly an important part of the future of education, but we must never rule out traditional forms that carry some other advantages and values. At Profil Klett, we see ourselves primarily as a service provider in the field of educational content, with an emphasis on the quality of content. The modes of transmission of this content adapt to the time we are living in. IZZI, as our own educational platform for creating digital textbooks, is the best example of this successful adaptation. We are very proud that as of this year our digital educational platform is used by companies in Germany, Slovenia, Bosnia and Herzegovina, Bulgaria and

Romania, but also by other Croatian publishers such as Naklada Ljevak. We are especially proud of the partnership project with the Government of Montenegro in the digitalization of their education system, with an emphasis on the first grade of primary school.

What world awaits us in 2021 and what can we expect Profil Klett in this year? — A world full of challenges awaits us, I am certain of that, and we are giving it our best to be ready for these challenges. You can expect plenty of quality educational content in various forms from us, with lots of passion, creativity and innovations, as well as full commitment to alliance with teachers in the fight for knowledge.

BELMA AWARD FOR THE BEST EUROPEAN TEXTBOOK The 6th grade Croatian language textbook, “Šetica”, published by Profil Klett, won the award as the best textbook in Europe at the big international competition BELMA − Best European Learning Materials Award, organized by EEPG (European Educational Publishers' Group), the Frankfurt Book Fair and IARTEM (Int. Association for Research on Textbooks

and Educational Media). A three-member jury, composed of international experts in the field of education, awarded this textbook a prestigious award for its innovative concept, modern approach and outstanding quality of materials that promote reading in the digital age and develop critical thinking, analytical thinking and creativity.




MISLAV VUČIĆ Executive Director Jadran Galenski Laboratory (JGL) At the end of 2020, Vučić advanced as a newly elected member of the Board. JGL's management team was joined by four more experienced experts - Anton Barbir as Corporate Finance Director, Darko Pejnović as Market Director of Croatia and Southeast Europe, Zdravka Knežević as Director of Scientific and Professional Operations and Marijo Volarević as Director of Digital Excellence. In his career related to advanced IT systems, business digitalization and quality and supply chain management, he was also in charge of Pliva, Hrvatski telekom and Croatia osiguranje.

ANDREAS RÖRIG President of the Management Board of E.ON Croatia In the E.ON group, he spent 12 years in various management positions. After working for E.ON in Brussels and at E.ON Germany, he joined the E.ON headquarters in Essen in 2016, first as Vice President for Sustainability and finally as Senior Vice President for Sustainability and Health, Safety and Environment. E.ON is the first major European energy company to fully dedicate itself to the new energy world and customer needs. E.ON is active in the areas that will determine the success of the transformation of the European energy system, namely smart distribution networks and innovative solutions for customers.




Islamic Revolution Day



 oundation of Vatican F City



Revolution Day



 ational Day N (Emperor's Birthday)



Independence Day



 ational Day and N Liberation Day



Independence Day



Capillary Capitalism Or inclusive capitalism, or Elysium – there is no third option!

ately, everything in the world is seen through the prism of one phenomenon, and a great number of people in the world are furious, and this phenomenon that so many people are angry about can be referred to as CAPILLARY CAPITALISM. What would that mean? Well, we have the arteries and the veins as the major blood vessels, and capillaries as small blood vessels, therefore the term ”capillary” would mean “to the smallest details and the most distant areas”. In other words, “exploit all opportunities to the smallest detail“.


BUILD WHERE YOU CAN, AVOID TAX WHERE YOU CAN! In practice, this means that Amazon didn’t pay federal taxes for two years even though Jeff


Bezos is the wealthiest man in the world, and he became even more rich thanks to the pandemic, while Donald Trump, although a billionaire, paid only $750. They found legal loopholes they objectively didn’t need, in order to

process is coming to an end now and there is no more space, so they started using neglected areas, like the Belgrade Waterfront (which in itself is not a bad project because it was long overdue, it’s more of a matter of who’s

that are less “legally organized” than Croatia, a member of the EU, everything is more obvious. Dežulović will say that in the case of gentrification of Split or “capillary capitalism” on the Croatian Adriatic coast, the situation is the

CAPITAL WANTS TO MAXIMIZE ITSELF BY ENTERING AND CONTROLLING EVERY PORE OF THE ECONOMY AND MAXIMIZING PROFITS IN EVERY LITTLE PIECE STILL UNUSED maximize their profit. This means that in the cities – let’s take Vojvodina’s capital Novi Sad as an example – empty lots are bought first to build six- and four-storey buildings, and after that they buy ground-level houses and tear them down to build high-rise buildings in their place (they are doing it in Belgrade now, while destroying the old Dorćol). This

building there and the matter of transparency), and the pile-dwellings in Mitrovica, or even more dangerous, the “Novi Sad Waterfront”, which is dangerous for hydrological reasons, because of the floods and the destruction of biosphere. In Zagreb, Bandić’s “Zagreb Waterfront” was planned, but it was stopped in the project-making stage. In Serbia and countries

same as in Serbia, even though Croatia is a member of EU.

CAPITALISM WITH A VENGEANCE Capital wants to maximize itself by entering and controlling every pore of the economy and maximizing profits in every little piece still unused. Forests are being cut down, small hydropower


plants are being built to utilize the small rivers, even if that means doom for the fishes and the animals that drink water from them, jadarit will be dug, even if it destroys Podrinje, crude lignite coal and waste-rock are being dug and sold and pollution in the Balkans is increasing to unprecedented levels, and a nuclear waste storage will be built near Dvor na Uni even though this area is prone to earthquakes, as we saw in Petrinja, and an earthquake could potentially irradiate the entire Croatia and Bosnia as well. In art, there is no more time to make a new “American Beauty” or “The Truman Show”, you just pick up a Marvel comic and pimp it up for the kids and the Chinese market, and billions in profit are a sure thing. Or a remake or a sequel. This is not 1997 or 1999 when people took risks. TV shows must be strictly profitable, we are not in the 1990s to have free TV shows and to make interesting and free content. Radio stations are formatted and there are no more options to play normal music, they only play a list of some 100 “proven hits” that are on the top lists. YouTube is used to target the smallest geographic and demographic categories and when it comes to music, nothing is left to chance anymore. In music, there is no time to let a bunch of junkies or bums who sleep under a bridge or practice in some shed

to become the new Red Hot Chili Peppers, Nirvana, Oasis. Stars are created instantly. You find a fine looking woman (90% are female fabricated stars): Dua Lipa, Rihanna, Ava Max... Even Taylor Swift was basically prohibited from making music, she only wrote lyrics that made her a celebrity when she was just a little girl with a guitar. Then they remember that they need a male star and they release Harry Styles. Until they noticed that all the songs are the same and then they let Taylor write on her own again. If you take a look at the manner in which castings for

a charade in 90% countries, and the people rightfully don’t believe in democracy. If you have countries that are responsible to their citizens, like the Scandinavian countries or New Zealand, they will impose laws on the capital. If you have China, the state is stronger than capital there and state capitalism is ruling there, so for 30 years they will be like “we are working full steam ahead and polluting maximally”, and then things change and it’s like “we are the champions of green technologies” (we will export the dirty ones). Cap-

can’t remember that everything around them is controlled by capital, whether they are white, black, straight, gay or anything in between, Christian, Muslim, believers, non-believers…

EPILOGUE What is the possible solution? Inclusive capitalism suggested by Pope Francis and supported by Bank of America, Johnson&Johnson, MasterCard and... Lynn Forester de Rotschield, who said that companies in the Fortune 500 must not have workers on welfare or poison the Earth. Either this in-

EITHER THE COUNCIL FOR INCLUSIVE CAPITALISM INITIATIVE WILL STOP THE CAPILLARY CAPITALISM, OR WE WILL BE FACED WITH A SITUATION LIKE IN THE MOVIE „ELYSIUM“ – A RUINED PAUPERIZED PLANET AND THE RICH IN THEIR FAIRYTALE OASIS, IMMORTAL AND FAR FROM MISERY K-Pop groups are being conducted, you can see instantly how cruel and fabricated process that is. The existence of music bands performing their original music will be permitted, but it’s the same as cutting down the trees with huge treetops and then planting those little trees. Formally, we have the same number of trees in the street, but there’s no shade or air. We are all these little trees.

THE RISE OF POPULISM Politics is the service for capital, and a multi-party system is

illary capitalism doesn’t care if it might lose your city, your river, your planet. The system is unsustainable by itself, just like imperialistic capitalism 100 years ago, and it will end in an equally big tragedy like in 1914-1920. There are too many of those who are unsatisfied on an economic, environmental, social and every other level, it’s just that the capital is holding all these dissatisfactions unconnected by pointing out the identity politics of religion, nation, gender identity, skin color and the like, so they

itiative will stop the capillary capitalism, or we will be faced with a situation like in the movie „Elysium“ – a ruined pauperized planet and the rich in their fairytale oasis, immortal and far from misery. Maybe there are some who doubt the Council for Inclusive Capitalism, which is the name of the new body where all the mentioned have come together, but hey – the revolution is nowhere in sight. And the revolution from 1917 didn’t turn out to be inclusive, at least not enough. Let’s keep our fingers crossed.



4 Things Every Manager Needs to Know About Law A modern-age manager encounters legal issues that are important for his status as a manager in a company but also for running a business and making operational decisions PETAR PETRIĆ Attorney at Law, Petrić & Kajić Law Firm LLC

MANAGERIAL CONTRACT A managerial contract is a contract concluded by employer and manager with the objective that the manager achieves the set goals with his knowledge and experience. Important components of a managerial contract are the provisions that regulate the rights and obligations of the manager and the material income of the manager for the work performed, and the provisions on special awards, paid insurance premiums, participation in the company's profit, etc. can also be agreed. In practice, mixed managerial contracts most often occur, and they, in addition to the obligatory legal elements, also contain labour law elements, as well as elements of the work contract and the mandate contract. The Labour Law stipulates that a natural person who, according to the regulations on companies, as a member of the management or Executive Director or a natural person in another capacity under a special law, individually and independently or jointly and collectively, is authorized to manage the employer’s operations, may perform operations for the employer as an employee. Provisions of the Labour Law on a fixed-term employment contract, on termination of employment contract, on the notice period and severance pay do not apply to such persons, and the employer and the manager may regulate these issues separately in the managerial contract, or the employment contract if the same was concluded. In practice, contracts called managerial contracts are often concluded with other persons, and although it is not forbidden


IN PRACTICE, MIXED MANAGERIAL CONTRACTS MOST OFTEN OCCUR, AND THEY, IN ADDITION TO THE OBLIGATORY LEGAL ELEMENTS, ALSO CONTAIN LABOUR LAW ELEMENTS, AS WELL AS ELEMENTS OF THE WORK CONTRACT AND THE MANDATE CONTRACT to call such contracts managerial contracts, all provisions of the Labour Law apply to these persons without the stated exceptions. From case law of the Court of the European Union: To assess whether a board member is an employee or a manager, it is necessary to take into account whether he works according to the company's instructions and under the supervision of another body that can dismiss him against his will (subordination relationship), and whether he is paid for personally performed work. If the answer is yes – he is an employee and should enjoy the right to ju-

dicial protection. It does not matter what the contracts are called in national law.” (Court of the European Union, Verdict reached in the C-232/09, Danossa case dated November 11, 2010)

STOCK OPTIONS Stock options are a type of compensation given to employees and/or members of the management in form of options for acquiring an ownership share in a joint stock company. The option of acquiring company shares means to have the right to purchase company’s shares at a certain price within a limited time

period. An option contract or contract with stock options has to be concluded for this right. Once the conditions from the contract are met, the worker can use the options and buy shares of the company with discount and thus become a participant in the ownership structure of the company. Option contracts are often associated with startup companies that initially do not have the ability to provide sufficient compensation for their workers, but expect value growth and then they will reward those who have been part of the company since its inception.


With option contracts, companies also encourage workers to stay in the company and to work with motivation to develop the company and increase the value of shares. As of 01 January 2019, a more favorable method of taxation was introduced and the tax burden on the allocation of option shares to employees and members of the management was reduced. Shares acquired by members of the management and employees through stock purchase options, i.e. shares acquired by the company itself, have favorable tax treatment. From the perspective of employees and board members, as expected, option shares have a more motivating effect, making them more productive given that it is in their immediate interest for the value of the company's shares to increase.

COLLECTION AND SECURING THE COLLECTION OF RECEIVABLES According to the collectability criterion, receivables can be divided into collectible, partially collectible and uncollectible. When collecting receivables, it is important to distinguish two grounds for determining enforcement: a credible document (invoice, interest calculation, bill of exchange and check protest, ex-

cerpt from business books, public document, legally certified private document, document considered a public document by special regulations, and enforcement document (enforcement court decision - judgment, decision, payment order, enforcement court settlement, enforcement settlement from the mediation procedure, enforcement decision of the arbitral tribunal, enforcement decision rendered in administrative proceedings and settlement, settlement before the courts of honor at chambers in the Republic of Croatia and notary decision and document). How to ensure collection of receivables? With a promissory note, bill of exchange, registration

It is extremely important for managers to make sure that business operations of the business entity are in compliance with legal regulations. Why is this important? Because it ensures: • Manager’s full focus on business operations • professionalism in the performance of operations • lack of fear of control by the competent authorities and the consequences of imposing penalties How it is implemented – through continuous control of compliance of business operations with legal regulations:

ACCORDING TO THE COLLECTABILITY CRITERION, RECEIVABLES CAN BE DIVIDED INTO COLLECTIBLE, PARTIALLY COLLECTIBLE AND UNCOLLECTIBLE of a lien, guarantee, bank guarantee, insurance policy for collection of receivables, escrow account, including prior checking of the buyer's creditworthiness.


• checking the regularity of the company's basic acts, status, management and property rights • verification of compliance of contractual rights and obligations of the company with legal regulations and acts of the company • checking the level of collection security and collection security instruments, the status of enforcement and other proceed-

ings before courts, notaries and other bodies • verification of the status and validity of trademark registration and industrial design, the degree of achieved protection of intellectual property, compliance of copyright and related agreements with legal provisions and verification of the legal status of Internet domains • checking the compliance of personal data protection in the company (GDPR and personal data protection) • checking the compliance of transactions with regulations on market competition protection and checking the existence of concentration • checking the status of registration of real estate owned by the company, checking compliance with regulations on environmental protection, the existence of location, use and other permits for real estate of the company • checking the compliance of labor law documentation with labor law regulations • checking the status of safety at work • preparation for inspection controls and controls of other competent bodies, checking the existence and preparation of procedures for acting in control procedures Who conducts this – legal departments and lawyers.



Electric Pathway to the Even Brigther Future Porsche significantly increases its electric share and achieves a robust level of deliveries in 2020 ast year was challenging for the entire world. In the automotive industry, the pandemic clearly showed who’s done their homework. Porsche delivered a total of 272,162 new vehicles worldwide last year, just three percent below a record-breaking 2019. In this respect, the sports car manufacturer benefits from its strong global positioning. “The corona crisis posed a great challenge from spring 2020 onwards. Nevertheless, we were able to keep deliveries comparatively stable for the year as a whole,” says Detlev von Platen, Member of the Executive



Board for Sales and Marketing at Porsche AG. “Our fresh, attractive product range, the successful start of the Taycan as the first all-electric Porsche and the charisma of our brand – all this contributed to this positive result despite the difficult times."

MORE THAN 20,000 DELIVERIES OF THE ELECTRIC SPORTS CAR TAYCAN Taycan deliveries totalled 20,015 in 2020, despite a six-week halt in the production just as the new model was ramping up and many markets were planning


spring premieres. The goal was to sell 20,000 Taycans and it was achieved despite the coronavirus. In Europe, one third of Porsche cars were delivered as electric vehicles, half of them fully electric and half as hybrids. Compared to the previous year, this is an increase of 60 percent. This shows that Porsche's electric strategy is working. They have succeeded in transporting the sportiness typical of Porsche to the new electric models. The all-electric Macan

will be the next big milestone. In 2025, around 50 percent of the Porsche cars will be electrically powered. The majority of these will be fully electric sports cars, with the remainder being sporty plug-in hybrids.

NEW ALL-ELECTRIC ENTRYLEVEL FOR THE MOST INNOVATIVE CAR IN THE WORLD Thanks to a total of 27 new developments, the Porsche Taycan

is the most important innovation driver in the global automotive market. 13 of these, or almost half, are world firsts. The feedback from customers and experts when it comes to Taycan is very positive, and it is declared as the most innovative car in the world. So the fourth variant of this first Porsche all-electric sports saloon was the logical step. The new model lines up alongside the Taycan Turbo S, Taycan Turbo and Taycan 4S. It features rear-

wheel drive and is available with two sizes of battery. The starting price in Croatia will be HRK 681,500, and it will for sure be one of the most wanted vehicles even in 2021. Please contact Porsche Centar Zagreb for more information. Porsche Centar Zagreb Velimira Ĺ korpika 21-23, 10090 Zagreb, Croatia 0800 0365 info.porsche@porsche.hr



Crisis Communication Management 4.0 How high-tech improvements resonate in Public Relations today, in a world where AI and Big Data have turned to be valuable tool in many businesses, what is the role of spokespersons in modern crisis management and how they build credibility - the most important intangible asset, it is discussed within this text

JAGODA POROPAT DARRER Business Communication Professional

ompanies are operating in a high-speed environment as the rapid spread of information, rumors, and fake news on social media increases the risk of major organizational crises. To face this new reality, managers must now adopt new tactics of crisis management, new IT tools, and adapt very quickly to any eventualities to protect the reputation of their organization. Big data and artificial intelligence turn out to be valuable allies (Fabien and Prud'hommes, 2019). Crisis communication management (CCM) 4.0 unveils a new paradigm in Public Relations. It appears chronologically after Crisis communication management 1.0 (until the mid 2000's), Crisis communication management 2.0 (from late 2000's until 2010) and Crisis communication management 3.0 (from 2010 to now) following the marketing evolution model and the online one. Artificial intelligence learns at a faster rate than ever and soon be able to help managers to make decisions based on facts, thanks to deep learning and algorithms based on advanced metadata, sentiment analysis, and natural language processing. Collaborative decision-making between humans and AI will soon become a reality and essential to managers. Fabien and Prud'hommes (2019) suggest, as do other experts, that AI will be able to generate credible messages to specific audiences on a regular basis. But it won't be able to generate messages connected to human emotions during a crisis. Human managers will always have to make the final decision based on AI scenarios. The



next generation of PR executives will have to master inner and outer diagnostics, especially inserious situations like crisis management. This means that they will have to have emotional intelligence already embedded into their leadership skills and be diagnostic driven, in order to make decisions based on a larger perspective that is especially crucial in crisis management. CCM 4.0 includes important crisis preparation components that are crucial to the business communications strategy. Although the change is sometimes considered costly in time and money, the return on investment is easy to demonstrate, state Fabien and Prud'homme (2019). Top crisis management challenge is the effectiveness of leadership and decision-making. Having a crisis plan has proven to significantly reduce the impact of crisis. It encompasses nine pillars: credibility engineering, metadata, deep learning, AI, collaborative decision making, error management strategy, stress manage-

ment, emotional intelligence and mindfulness, as suggest Fabien and Prud'homme (2019). Crisis is inevitable. The 2020 has given communication experts, crisis managers and even head of states plenty of opportunities to exercise and to brush up the skills and abilities to manage crisis. Some has done a great job and some of them unveiled weaknesses of their management style and more, all the weaknesses and strengths on a personal, organizational and national level. In managing crisis, it is crucial to maintain credibility. Credibility is a part of the reputation building framework along branding, image and trust. It is the result of being believed by an audience. If the public does not believe a spokesperson or an organization, no communication is possible. That also means, if there is no communication, there is no way to end a crisis. Based on the Kouzes and Posner (2011) statement on leadership and on Prud’homme’s master’s dissertation (2004), credibility is a dialogue; it is a relationship


built on mutual understanding. Kouzes and Posner (2011) also state that credibility is the foundation of leadership and that an audience must believe in a leader – Fabien and Prud'hommes (2019) add “or in an organization” – before people follow them – “listen to them.” The only way to build this mutual understanding is to build credibility before a crisis hits. The findings of the research paper named Communicating COVID-19 Pandemic: Media Coverage of the Headquarters and the Use of Persuasion Strategies in Croatia by Marijana Grbeša (2020) indicate that the coverage of the key communicators during the first three months of the pandemic in Croatia was overwhelmingly positive. A challenging task of communicating the pandemic was assumed by the people associated with the Headquarters of Civil Protection of the Republic of Croatia. Four people from the team soon emerged as the faces of the battle against the virus: Vili Beroš, Croatian Minister of Health, Davor Božinović, Minister of Interior Affairs, Krunoslav Capak, the head of Croatian Institute for PublicHealth, and Alemka Markotić, the head of the Clinic for Infective Diseases 'Dr. Fran Mihaljević'. They communicated mainly through daily press conferences that became the central media event for citizens confined to their homes. As Grbeša (2020) states the media and pundits praised 'the fantastic four' for their expertise, credibility, and sober communication. Commonly skeptical and distrustful citizens championed the efforts of the Headquarters and went along with their instructions. It is a prove that professional credibility in managing crisis communication can mobilize to action, protect reputation and homogenize people to overcome the crisis.



by Nikica Miloš

Vaccine Diplomacy The offensives of charm t's been a long time since our planet has been hit with so many problems which solutions caused so many divisions. Firstly, like never before, there are conspiracy theories that have been evolving along with the pandemic develops – initially, they said that the virus was linked to the 5G network, that the curfew was a cover for migrants to set up 5G and settle in Serbia, or elsewhere, etc. Of course, there were also bigger and more "exotic“conspiracy theories.

easier to believe in it.“ This is a vaccine that is based on the chemically inactivated SARS-CoV-2 virus which triggers the body's immune response. Some examples of vaccines that contain inactivated viruses are polio and the flu vaccine. The Chinese don't need that many vaccines because the epidemic is under control, so they can send them abroad. Some of their clients include Mexico, Brazil, Peru, Chile, Argentina, Jordan, the UAE, Bahrain, Egypt, Morocco, Indonesia, Russia and Turkey. China has promised that 6 million doses of CoronaWac, made by the biotechnology company Sinovac, will reach Brazil by January, where they are eagerly awaited. If you don't have money, the Chinese will give them to you "on the tab" - a loan of one billion dollars will be approved to the Latin American and Caribbean countries. A healthy


CONSPIRACY THEORIES AND ANTI-VAXXERS To remind about an incessant mention of „chips“ which cannot remain in the bloodstream if they are solid (they would be expelled from the body very quickly) and they do not exist in a liquid state. Now, the latest theory spread by anti-vaxxers is that the "chip" is actually altered or inserted RNA. Imagination does run wild which exposes a sad truth, and that is 1) people are uneducated 2) people do not trust states and elites. These are two problems, in fact, and the second is much bigger. RACE FOR THE VACCINE Finally, when the vaccine was developed, we had to deal with a triple problem: 1) convincing people to get vaccinated because if we don't vaccinate 67-70% of the population, there is no "collective immunity", and the virus cannot disappear – so, instead of in March, the epidemic will disappear in August, where collective vaccination does not take place, 2) some believe in one vaccine, not in others, 3) some believe in every vaccine but cannot get it because rich countries have reserved all the doses produced from Western sources. But, fortunately, the vaccine comes from various sources. Great Britain was the first country to start vaccinating with the US vaccines which annoyed the Americans who approved it at a later date. The Russians came right after them. The bidding with percentages started too – the Russian vaccine, Sputnik V, is 95% efficient, some say that other vaccines are from 92% and onwards

AND THE ONE WHO PROVIDES THE VACCINES, AS SOON AS POSSIBLE AND AT A GOOD PRICE, WILL BE CELEBRATED AS A SAVIOUR. IN THE "GLOBAL SOUTH", RUSSIA AND CHINA, TO A GREAT EXTENT, WILL REIGN efficient... That's all great, but what ensued was the slander. Westerners have not mentioned the Russian vaccine at all, while certain countries don't even want to receive the American one. And yet, 50 countries have immediately ordered the Russian vaccine, including the biggest ones - India, Brazil, China and South Korea. Hungary asked the EU countries for a Russian vaccine, and 92% of Serbian citizens said that they had confidence in the Russian vaccine, which is the highest percentage of trust among all vaccines. However, the Russians will simultaneously vaccinate their citizens in December, and only in January, will they dispatch the vaccines abroad. They must not be flippant about it either - if they send too many vaccines abroad, the citizens of Russia will feel betrayed. If they do not send them until they vaccinate the Russians, the world will lose the will to wait for them.

WHO WILL BE THE FIRST WHERE? The first part of the pandemic

seriously shook the West because after the initial rage against the Chinese for "causing the pandemic by eating bats", they were grateful to China for sending masks and ventilators all over the world, even to Europe. Together with its Western allies, the United States is focusing on having enough vaccines for the "Western world" from Alaska to Australia to the EU. And they will succeed in that. But they will not be able to supply the whole world fast enough and that's where the Russians and the Chinese emerge - the Chinese, with their Silk Road, and the Russians, with wherever they can and should – the BRICS countries, Africa, Eastern Europe, Central Asia, South America. After that, comes a series of surprises. Sudden "pacts" are formed just like in the board game Risico. Here are some of the headlines: "The UAE has approved the vaccine against COVID-19 produced by Sinopharm / CNBG, the state-owned pharmaceutical company from China", „It is 86% effective and uses the old school methods so people find it

person has 1,000 wishes, while a sick person has only one. China has two more vaccines in the final phase and is preparing to produce 3 billion doses in 2021, which could immunize 1.5 billion people – some in China, some elsewhere. It's all a matter of prestige - it's called the Silk Health Road. While waiting for the story to end, the whole world will look like Africa in 1912. At that time, there was ‘The Scramble for Africa’, where European colonial powers seized all countries except Ethiopia and Liberia. Now, the whole world will be a testing ground for influence. And the one who provides the vaccines, as soon as possible and at a good price, will be celebrated as a saviour. In the ‘Global South’, Russia and China, to a great extent, will reign. The global shifts in power and reputation due to the coronavirus will be greater than the economic ones, thanks to which China has already taken an unexpected step ahead of everyone. In bookmakers' world, this is called "from 2 to 1" - from defeat to victory.



The Literature of Lockdown Classic works have helped people make sense of the pandemi t least in the West, few people alive today have lived through a year quite like 2020—not just the convulsions but the isolation, not just the trauma but the tedium. Less violent than a war, more protracted than a natural disaster, covid-19 has been deadly, disorientating and unfamiliar. But although living memory has been of limited help as a guide to how to cope, the memories of others, and their imaginations, have proved useful to millions of readers. The solace and solidarity of reading have rarely been more important to more people. Locked down and lonely, many escaped into other lives and faraway worlds. But many sought out writers who might help them make sense of the pandemic. Popular books included “A Journal of the Plague Year”, Daniel Defoe’s semi-fictional diary (thought to be based on his uncle’s) of life in London in 1665, when the bubonic plague swept through the city. The same scourge features in Samuel Pepys’s diary: Pepys blithely notes the approach of the disease yet continues recording the details of his meals and frolics, exhibiting the same sense of disbelief and denial that were widespread in early 2020. Before long, though, he laments the capital’s empty and melancholy streets. The fictional outbreaks in Mary Shelley’s “The Last Man”, Albert Camus’s “The Plague”, José Saramago’s haunting “Blindness” and Emily St John Mandel’s “Station Eleven”—which weighs the death of an individual against the fate of the world—have offered, if not comfort, at least a fresh sense of perspective. For some of these authors, illness is a metaphor for other problems, such as extreme politics; in a similar way, stories about other kinds of derangement seemed to capture aspects of the pandemic and its management. In Mikhail Bulgakov’s “The Fatal Eggs”, for instance, a bureaucratic cock-up means a bid to boost poultry production instead yields a plague of giant serpents that overrun Russia. In a tale that also features heedless carousers in the streets and blinkered sci-



ALTHOUGH LIVING MEMORY HAS BEEN OF LIMITED HELP AS A GUIDE TO HOW TO COPE, THE MEMORIES OF OTHERS, AND THEIR IMAGINATIONS, HAVE PROVED USEFUL TO MILLIONS OF READERS entists, the authorities are slow to acknowledge the calamity, before taking drastic, draconian countermeasures. Some readers heard an echo of the year’s rhythms in what, on the face of it, is an entirely different sort of story. Thousands across the world were unhappy in the same way, and consoled in the same way, as they immersed themselves in “War and Peace”. The oscillation of Leo Tolstoy’s epic saga between, on the one hand, the battlefields of the Napoleonic wars, and, on the other, the salons of St Petersburg, eerily reflected the experience of lockdown; that, too, combined domesticity with an awareness of tumultuous happenings outside. In Tolstoy’s acute portrayal of the seesawing, exaggerated emotions that are evoked by times of crises,

readers found a reflection of their own volatile feelings—the alternating closeness and exasperation with loved ones, say, or the sense of liberation from ordinary life that flickered amid the crush of claustrophobia. For hope that life would go on—indeed, was already going on—The Economist suggested turning to Alexander Pushkin. Quarantined in 1830 because of a cholera outbreak, the poet found a serendipitous escape from worries over his impending marriage, his rickety finances and his runins with tsarist censors. Confined to a rural estate, Pushkin discovered a perverse sense of freedom and vitality. His writing and imagination roamed around the world; he finished “Eugene Onegin”, his brilliant novel in verse. And he reworked a verse drama by

a Scottish poet set during a bout of plague. Pushkin’s version offers this poignant, defiant riposte to sickness and death: There’s rapture on the battleground, and where the black abyss is found, And on the raging ocean main, Amid the stormy waves of death, And in the desert hurricane, And in the Plague’s pernicious breath. For all that threatens to destroy Conceals a strange and savage joy— Perhaps for mortal man a glow That promises eternal life; And happy he who comes to know This rapture found in storm and strife… We’ll sip the rosy maiden wine And kiss the lips where plague may lie! From The Economist, published under licence. The original article, in English, can be found on www.economist.com



A Musician is the Wonder of the World Surviving uncertainty Also, gigs are a primary source of income for me and many of my colleagues: you can’t make a living from selling albums, and copyrights for alternative music bring more serious revenue only to the biggest hits. If 0 is the easiest and 10 being the hardest, I would say that we stand at a solid eight in this pandemic. Just like a big portion of people on Earth, sadly.

Has the terrible year behind us, with earthquakes and quarantines, influenced you to get an "attack of creativity" or introspection? How and has this situation changed at all? — When the whole thing started, I didn't write a single song I think that we live a historical precedent and that it is quite legitimate, even desirable, to stop for a while and just listen to the situation. As this crisis situation has now turned into a crisis year, and I’m afraid it will turn into crisis years, I am trying to find a way to live and work every day with complete uncertainty. Since the situation on the independent cultural scene was anything but certain SARA RENAR Musician

ara Renar is one of the most remarkable figures of “Zagreb’s new wave” of authors. The woman with an atmospheric guitar, samplers and her electrifying, cat-like voice, has won over the hearts of Croatia and the region. The pandemic especially affected the music – concerts, festivals, promotions, and Sara is no exception. One of the latest pop sensations of the always inspiring Zagreb talks about her music and about how she is surviving the pandemic.


You are part of the wave of “new female singer-songwriters”, a woman with a guitar and samplers. You became one of Zagreb’s trademarks in the musical sense. How do you find the inspiration?

THE CONCERTS, JUST LIKE INFATUATION, ARE ONE OF THE MOST BEAUTIFUL “DRUGS”. TRANSFER OF ENERGY THROUGH LIVE PERFORMANCE IS A FEELING OF ENORMOUS LOVE, THERE IS NO TECHNOLOGY THAT CAN REPLACE THIS — Thank you for these kind words. I try to live my life to the fullest, explore and play. A.B. Šimić wrote that poets are the wonder of the world, and I would like to add – musicians as well.

How can one reconcile the architectural mind and the chaotic artistic impulse? How much has architecture shaped you in the creation of “projected” music? — Technical education has certainly affected the way I approach the creation of a song. Approach to creativity is very individual. In my case, it’s a combination of something intuitive and very elusive and some more tangible structure and context. The

concept plays a key role, I try to enable its reading to be consistent on a wider scale and in detail. But the initial impulse is outside reason, it comes from the subconscious. This is the aforementioned wonder.

You joked that you “could have been an architect but you didn’t want to” when the pandemic broke out. How difficult is it to be a musician without gigs at this difficult time? — The concerts, just like infatuation, are one of the most beautiful “drugs”. Transfer of energy through live performance is a feeling of enormous love, there is no technology that can replace this.

even when things were "normal", I was equipped with good tools for survival.

What are your plans for when all this madness ends? — The album is coming out on March 8th, 2021, how and under what conditions will we promote it, I really don’t know. Considering the pandemic and the earthquakes, for the sake of my own mental health I have decided it’s best not to make any long-term plans, or at least not to get too attached to them. I was never a very tactile person, but as soon as we get vaccinated, I plan to give my family and friends a big hug. Especially my mum.



by Svetlana Nenadović-Glušac, D&C Austria

As an Institution, We Can Promise Eternity Some collectors see works of art as an object of speculation while some share their wealth with the world through works of art

PhD, Director General of the ALBERTINA Museum in Vienna

he pandemic caused by the Sars-Cov-2 virus has affected the global economy, leaving its mark on every industry and, above all, negatively affecting the arts sector. All the governments of the world are struggling to have as few human casualties as possible, save the domestic economy, provide medical care, and protect their citizens as best they can, and in this struggle, the arts are almost marginalized. All branches of art are feeling the crisis, and among them, museums are the ones which were hardest hit. In an exclusive interview with Professor Klaus Albrecht Schröder, PhD, Director General the ALBERTINA Museum, we will find out how the pandemic-induced crisis has affected museums.


The pandemic emerged shortly before the opening of the Albertina Modern, which was planned for March 2020, and was followed by a lockdown. As a result, both Albertina museums had to close. To what extent did the lockdown affect Albertina's financial year? — Due to the repeated closure, I cannot precisely quantify the loss of income, but we anticipate the loss to be around 12 million euro. Shorter opening hours brought around 900,000 euro, we received 2.8 million euro from the corona fund and we were also able to save over 6 million euro through cancellations and postponements. Normally, we have over 1 million visitors a year, but this year, we will have a maximum of 300,000. However, in the eight days before the closure alone, the two Albertina locations had 15,000 visitors, as both the opening show in the Albertina Modern and “Van Gogh, Cézanne, Matisse. The Hah-


nloser Collection” were nearing their end. My heart is bleeding that these exhibitions will be closed until the end of the term. Due to the lockdown, we now expect higher costs in paying 70 international loans. The rush of visitors over the past few days has shown the population's vital need to take part in an extraordinary cultural experience which is a necessary outlet in these difficult times.

Many museums around the world offered virtual tours during the lockdown. Do you think there is potential for future museum business as a result? — We are currently working hard on new formats for mediation and are testing online tours, digital exhibition tours and expanding our range of videos. The online collections were re-launched in the spring. We have a very good range of social media services and are well-positioned internationally. All of this is important to stay relevant, but for me, it cannot replace the encounter with the original work of art. Photo: Christopher Mavric © Albertina, Wien


How does the “new normal” affect the business of the Albertina museums, since museums are no longer allowed to be open to the public as part of pandemic measures? — I am disappointed and saddened that, contrary to the draft laws, the museums must now be closed. Nobody tried to have a different view of the requirements.

HOWEVER, IN THE EIGHT DAYS BEFORE THE CLOSURE ALONE, 15,000 PEOPLE VISITED THE TWO ALBERTINA LOCATIONS The museums in particular have behaved in an exemplary manner in recent months. Without any legal requirements, the Albertina introduced a mandatory mask requirement in July for low-level infections and was able to guarantee the minimum physical distance of one metre.

These measures were very well received by the public in the summer. Besides, it was not taken into account that our ventilation and air conditioning systems completely replace the oxygen in a gallery every 5 to 10 minutes. However, a museum is more than just its exhibition business. There is

ongoing research and we are already working on setting up the follow-up exhibitions and catalogues for 2021.

The pandemic has caused an almost unbelievable turnaround in terms of museums in countries that have so-called liberal cultural policies. In the United States, museums are allowed to trade in artwork from their collections. What is your opinion about this type of business?


Photo: Harald Eisenberger © Albertina, Wien

— There was and still is a full consensus that the money generated for sales should be used for repurchases. I'm the last one to throw stones now. This happened out of great need, I understand that. We are in the middle of a health crisis that will result in an economic crisis.

Recently, the Brooklyn Museum of Art sold nine of the ten works auctioned by New York's Christie's, including “Lucrezia”, a 16th-century masterpiece by Lucas Cranach Sr. that raised $ 6.6 million for the museum. Can you imagine something like that happening in Austria? — Fortunately, we don't have to ask ourselves this question. That’s unthinkable in Europe today. Until the 1960s, however, thousands of pieces of art from our collection were sold. This was legal as the owner of the museum, the Finance Ministry, can in principle sell works from the federal government. And we could just as well sell works that we as a scientific institution under public law received or acquired as gifts after 1999. However, we are not even remotely faced with this question. It was announced at an auction at Sotheby's in New York that works by Monet, Degas, Miró, Mathis and several other famous artists from the museum's collection would soon be on offer for sale. Do you think that this type of fundraising takes valuable and important works of art away from the general public forever, hiding them from the eyes of mankind and thus reducing the business of museums in the future? — Some collectors see works of art as an object of speculation while some share their wealth with the world through works of art. Today, you have to have collectors because the prices of contemporary art have risen so im-

WE ARE CURRENTLY WORKING HARD ON NEW FORMATS FOR MEDIATION AND ARE TESTING ONLINE TOURS, DIGITAL EXHIBITION TOURS AND EXPANDING OUR RANGE OF VIDEOS measurably that a purchase of first-class works for a museum is only affordable in the rarest of cases. We receive donations from famous artists because, as an institution, we can promise eternity. Private collections, such as Batliner, Essl or, most recently, Jablonka, are closely linked to our establishment and have made it possible for millions of visitors to encounter outstanding works of modernity and the present. But don't be mistaken when it comes to hiding. As a museum, we are primarily a store of knowledge and only regularly show a small

part of our collection that numbers 1.1 million pieces of art.

What are your plans for the Albertina? — The Albertina Modern has been very well received by the Viennese public in recent months. I would be delighted if the follow-up exhibitions also generate a positive response internationally. I'm in the middle of the preparations for "The Essl Collection" and other exhibitions, together with the new chief curator Angela Stief. I want to get both establishments safely through the crisis and continue to

stage top-class exhibitions.

How are the preparations for the long-awaited Modigliani exhibition going? — Unfortunately, the exhibition had to be postponed to autumn 2021. All lenders were very understanding and cooperative. I think a pioneer like Amedeo Modigliani deserves to be accessible to a large audience, but this is not possible for the time being due to travel restrictions. The exhibition “Munch and the Consequences” is also being rescheduled and will now take place in 2022 instead of spring 2021.

PLANS FOR THE NEXT YEAR What can art and Albertina fans expect in 2021? — In the spring, we will present retrospectives by the two important contemporary artists Michela Ghisetti and Xenia Hausner. In the field of photography, we will showcase masterpieces by Lerski and Sander from the interwar period with “Faces” and, in the summer, we will present the Japanese photographer Araki. In terms of our collections, there will be spectacular presentations based on Schiele and Michelangelo as we are currently still working on the programme. Photo: Jeanne und Donald Kahn Galleries © Albertina, Wien


Photos: Office of the President of the Republic of Croatia / Tomislav Bušljeta


14 JAN



President of the Republic Zoran Milanovic received the French Minister of Europe and Foreign Affairs Jean-Yves Le Drian, who is on an official visit to the Republic of Croatia. The topics at the meeting between President Milanović and Minister Le Drian were the bilateral relations between the Republic of Croatia and the French Republic, which they deemed to be excellent. Furthermore, they also talked about the importance of cooperation inside

the European Union, primarily in the context of fight against the pandemic caused by the COVID-19 virus and continuation of the vaccination procedure. Topic of conversation between President Milanović and Minister Le Drian was also the current implementation of the Dayton Agreement, where President of the Republic pointed out to the need and importance of ensuring the full equality of Croats in Bosnia and Herzegovina as a constituent people.




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