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October 2020 | ISSUE No. 26 | ONLINE EDITION

21 SEP

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TURN AROUND TOWARDS EACH OTHER AND COOPERATE JOHN JOVANOVIĆ

Regional Director of DFC

APRIORI WORLD BETTER RELATIONS A WORLD WITH MANY WINNER OF THE GOLDEN BETWEEN SLOVENIA CHALLENGES WORLD AWARDS 2020 AND CROATIA GORDAN GRLIĆ-RADMAN

Minister of Foreign and European Affairs of the Republic of Croatia

End of the illusion

THE ARABISRAELI CONFLICT IS FADING

DANIJEL KOLETIĆ

H.E. VOJISLAV ŠUC

CEO Apriori World

Ambassador of the Republic of Slovenia

THE MOST SPOKEN LANGUAGES IN EUROPE

Gulbenkian for the 21st Century? FOLLOW US TO STAY UPDATED

WEBSITE

FACEBOOK

BOBAN SPASOJEVIĆ

Magazine Director Croatia boban@diplomacy andcommerce.hr

ILIJA PETROVIĆ INDIGOCHILD

Art director indigochild.ilija@gmail.com

ALEKSANDAR KOSTIĆ

Designer designamites@gmail.com

ROBERT ČOBAN

Director Photos GETTY IMAGES TOMISLAV SMOLJANOVIĆ

Translation GORANKA MILOŠEVIĆ

Predstavnik za RH

FOREWORD

ROBERT ČOBAN Director

he pandemic brought an almost unbelievable twist when it comes to museums! Especially museums in countries that practice the so-called liberal cultural politics, among which USA undoubtedly takes the crown. A decision was recently reached in the US to allow museums to trade with artwork from their own collections – a practice that is most strictly forbidden by the ICOM (International Council of Museums) Code of

THE ARAB-ISRAELI CONFLICT IS FADING End of the illusion

A WORLD WITH MANY CHALLENGES GORDAN GRLIĆ-RADMAN Minister of Foreign and European Affairs of the Republic of Croatia

TURN AROUND TOWARDS EACH OTHER AND COOPERATE JOHN JOVANOVIĆ

CIP - Katalogizacija u publikaciji Biblioteke Matice Srpske, Novi Sad 33 Diplomacy & Commerce / glavni i odgovorni urednik Žikica Milošević, 2016, br. 1 (mart)-.Novi Sad: Color Media Communications, 2016 - , -33cm Mesečno. ISSN 2466-3808 = Diplomacy & Commerce COBISS.SR-ID 303269895

from the Hermitage in Saint Petersburg in exchange for oil and money. Gulbenkian collected his valuable art collection in his house in Paris, and when the Germans entered the city in 1940, he transported it to Vichy. Later on, at the urging of the ambassador of neutral Portugal, he and his treasure came to Lisbon, where the famous Gulbenkian Museum is located today. We are left to hope that valuable artwork that end up being sold to “new money” during the pandemic – will one day as well end up in a private collection – open to the public.

H.E. VOJISLAV ŠUC

ZLATKO MATEŠA

Ambassador of the Republic of Slovenia

Partner Attorney-at-Law Mateša&Kapitan Law Firm

CONTENTS

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Ethics, as the key document that defines the museum, its obligations and rights. Namely, this decision was reached so the museums could survive the increasing economic crisis with the help of their own resources, i.e. by selling the artwork from their own collections. Last weekend, the Brooklyn Museum of Art sold nine of ten artworks put up at auction at Christies’ New York, including “Lucretia”, a masterpiece by Lucas Cranach Senior from the 16th century. This way they earned $6.6 million, even though the museum management underlines that they need at least $40 million for collection maintenance and paying salaries to a small number of remaining employed curators until the museum starts working as usual. In that name, they will offer the works by Monet, Degas, Miro, Mathis and some other famous artists from their collections at an auction at Sotheby's next week. The Brooklyn Museum is not alone in this situation. Their example will be followed by others as well, even though this is an incomparable precedent in the history of museums of the world. While reading this news, I remembered the story of Calouste Sarkis Gulbenkian, an oil magnate of Armenian origin who used the USSR’s need for money and oil for industrialization in the 1920s. Namely, the Soviets secretly sold him works of art

Regional Director of DFC

BELARUS IN THE WEST Analytics

BETTER RELATIONS BETWEEN SLOVENIA AND CROATIA

RECOVERY EXPECTED IN 2021, BUT SLOWER THAN ORIGINALLY ANTICIPATED

RESOLVING PARTIES’ LEGAL CHALLENGES IS OUR PRIORITY

APRIORI WORLD WINNER OF THE AWARDS 2020

European Bank for Reconstruction and Development (EBRD)

DANIJEL KOLETIĆ

NAOS ADRIA – CONTINUATION OF A SUCCESSFUL STORY KORALJKA MLAKAR Country Manager / Business Unit Manager at NAOS (Bioderma - Institut Esthederm - Etat Pur)

CEO Apriori World

HATE SPEECH IN PUBLIC SPHERE JAGODA POROPAT DARRER Business Communication Professional

END OF THE ILLUSION

The Arab-Israeli Conflict is Fading But that will not resolve the one with the Palestinians even decades of official ostracism ended with a few strokes of a pen. On September 15th, at a ceremony in Washington (pictured), Bahrain and the United Arab Emirates (UAE) established formal diplomatic relations with Israel. They are the first Gulf states to do so. The documents they signed were thin: details of flights, commerce and the exchange of ambassadors must be worked out. Still, in one afternoon, Israel doubled the number of Arab countries with which it has official ties. It also has informal relations with at least five others, from Oman to Morocco. It was a genuine achievement for President Donald Trump, whose attempts at high-stakes diplomacy have been marked more often by stalemate than success. For Binyamin Netanyahu, Israel’s prime minister, it validated a long-held belief that his country would not have to make peace with the Palestinians to enjoy better regional ties. (It was also a welcome excuse to get out of Israel, where covid-19 cases are surging and the public is furious about a newly imposed three-week lockdown over Judaism’s holiest festivals.) There was much talk of peace, as if a long, vicious war had finally ended. “It’s been blood all over the sand for decades and decades,” Mr Trump said. “That’s all they do is they fight and kill people.” In fact, Israel never fought Bahrain or the UAE; neither was even a sovereign state until more than two decades after Israel’s founding. They have been quiet partners for years, brought together by a mutual fear of Iran. The Emiratis moved first to make that partnership public, but Bahrain’s decision to follow suit may be the more interesting one. The UAE did not have to worry about whether normalisation would be popular. It is strong enough to brush off criticism from countries such as Iran and Turkey (which itself recognised Israel in 1949). At home there is little space for dissent. One prominent Emirati academic, known for past criticism of Is-

rael, tweeted a tearful emoji when the UAE announced its decision last month. He has since reaffirmed his support for the country’s leadership. Bahrain, by contrast, has a history of protest. The Shia majority has long complained of discrimination by the Sunni royal family. Unrest peaked in 2011 during protests inspired by the Arab spring, which were crushed with the help of troops from other Gulf countries. Opponents of normalisation with Israel have more room to express dissent in Bahrain, although the most strident critics risk arrest. There was an outpouring of

old Arab orthodoxy of offering Israel full relations only if it withdraws from Palestinian lands. Bahrain and the UAE settled for much less. The Emiratis did extract a promise that Israel would shelve plans to annex parts of the occupied West Bank. In their telling, they now have more leverage to push for a two-state solution. “The policy of the empty chair has not served the Palestinians well, and indeed has not served the Arabs well,” says Anwar Gargash, the UAE’s minister of state for foreign affairs. History suggests such leverage will count for little, though. Egypt

THE REACTION WILL BE WATCHED CLOSELY IN SAUDI ARABIA. MR TRUMP HAS HINTED THAT SAUDI ARABIA COULD BE NEXT discontent on social media in the days before the ceremony. The reaction will be watched closely in Saudi Arabia. Bahrain relies on its larger neighbour for political and economic support. It would not have made such a consequential decision without the kingdom’s blessing. It may serve as a test run. Mr Trump has hinted that Saudi Arabia could be next. The crown prince, Muhammad bin Salman, may see a way to polish his reputation in Washington, which has been blackened by the war in Yemen and the murder of Jamal Khashoggi, a Saudi journalist. For now, though, King Salman sits on the throne. He hews to the

and Jordan signed peace treaties with Israel decades ago but have not brought the Palestinians any closer to statehood. The treaties that Israel signed with Bahrain and the UAE did not even include a nod to a two-state solution, only vague talk of a “just” resolution. The autocrats who gather at Arab League gabfests still recite paeans to the Palestinian cause. Out in the real world, though, the Arab-Israeli conflict has long since ebbed. Almost four decades have passed since a regular Arab army fought Israel. It is hard to say precisely how the Arab public feels, as dictatorships do not lend themselves to credible polling.

Most Arabs no doubt remain sympathetic to the Palestinians. But there has been a gradual softening of opinion. Most Arab states are suffering from political and economic crises, exacerbated by a power struggle between Iran, Turkey and the Gulf states; the Palestinian cause no longer arouses the passions it once did. Mr Trump thinks there will be more diplomatic announcements to come. “We’ll have at least five or six countries coming along very quickly,” he said. A bit of Trumpian exaggeration, perhaps, although others will surely follow and the Palestinians will find themselves ever more isolated. Yet the loss of Arab support will not compel them to abandon their demands. Strip away the façade of an Arab-Israeli conflict, and the problem remains what it always has been: a territorial dispute between two peoples that only they can resolve.

From The Economist, published under licence. The original article, in English, can be found on www.economist.com

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A World With Many Challenges International relations and global relations have changed significantly, and new times require new solutions

INTERVIEW

GORDAN GRLIĆ-RADMAN Minister of Foreign and European Affairs of the Republic of Croatia

s part of their European agenda, but also in accordance with their interests, in addition to the current crisis caused by COVID 19 pandemic, Croatia acts in order to resolve all open issues in the world and the region, stated Minister of Foreign and European Affairs Gordan Grlić-Radman for Diplomacy&Commerce magazine. Aside from Brussels, relations with Washington are also very important to Zagreb, which we talked about in the previous period, Minister Grlić-Radman adds.

US Secretary of State Mike Pompeo visited Croatia. How do you rate his visit and how do you rate the current relations between Croatia and the USA? — Secretary Pompeo's recent visit to Croatia confirmed the good strategic relations between our countries. Croatia and the US close partners and NATO allies. We are leading an open dialogue on a number of topics, from the Middle East, Southeast Europe and other regional issues to the global ones like the pandemic that hit us all. I was glad to hear Secretary Pompeo stating that he sees Croatia as a factor of stability and a success story in Euro-Atlantic integration in Southeast Europe. We are a staunch proponent of the European and Euroatlantic integration processes. When the latter are based on the strong political will and fulfillment of the set criteria – as was the case for Croatia – they are the best way towards peace and stability in this region. Croatia and the US have robust cooperation in a number of fields, notably in defense and security. I am very optimistic regarding the recent steps we made towards entering the US Visa Waiver Program for Croatian citizens and we are looking forward to final positive steps in that regards in the very near future. Let me mention

CROATIA AND THE US HAVE ROBUST COOPERATION IN A NUMBER OF FIELDS, NOTABLY IN DEFENSE AND SECURITY that generations of Croatian immigrants played a significant role in building American society and today they represent a valuable bond between our peoples and countries. Another important issue that we made substantial progress on is the Agreement for the Avoidance of Double Taxation. We started negotiations on the Treaty and, once concluded, it will play a significant role in attracting mutual investment, providing a major impetus for expanding Croatian-US economic cooperation. Cooperation in economy and energy is something we extensively talk about with Secretary Pompeo.

Topics for conversations were many, from avoiding double taxation, abolition of visas for Croatian citizens, purchase of air-

craft to global issues, energy supply, 5G network. Which of the listed topics would you single out as the most important, and how close are the views when we talk about all the topics? What has been agreed? — All of the topics that you mentioned reflect the diversity of our cooperation, a diversity that strengthens the already-solid foundation on which Croatian-US relations are built. Very important topic is the situation in Southeast Europe. We exchanged views on the overall situation in the region. We acknowledged an important anniversary this year, the 25th anniversary of the Dayton Accords where the US had a leading role and of which Croatia is a signatory. We reiterated our well known position that progress in Bosnia and Herzegovina can only

be attained if all three constitutive peoples are equal before the law and have legitimate political representatives in the country’s institutions. In terms of further efforts of the US in the SEE region, I’ve complimented the United States on its engagement in the normalization of relations between Serbia and Kosovo adding that this dialogue is important for the longterm stability and prosperity of the region. Secretary Pompeo congratulated Croatia on our EU Presidency and stated that the Zagreb Summit Declaration was a great success and another significant step in promoting need for comprehensive reforms and sustainable stability in the region. We both acknowledged the importance of opening accession talks with North Macedonia and Albania. We are also glad that the floating LNG terminal entered the Rijeka harbor on October 13 and is currently undergoing testing in the Viktor Lenac shipyard. This marks an important milestone in the development of our ener-

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gy sector and diversification of energy sources in Europe. It puts Croatia highly on the energy map of Europe.

How does Republic of Croatia see the situation tied to Middle East peace processes, then your visit to Israel and meetings with Israeli officials? — Croatia warmly welcomed the signing of the agreements between the United Arab Emirates and Israel, and between the Kingdom of Bahrain and Israel. We commend the role played by the United States in this regard and we believe that this leap will represent a positive contribution to peace and stability in the Middle East and globally. The UAE-Israel agreement entails a decision by Israel of moving from a policy of annexation to that of normalization, thus creating momentum to revitalize the Peace Process and opportunity for the EU to play a more significant role in the process, in order to facilitate our ultimate objective, a negotiated twostate solution. Croatia advocates exploring ways of strengthening EU-Israeli relations, which is in the interest of all parties and the Peace Process as well. During my official visit to Israel i congratulated Israeli Officials on this historic achievement. Our bilateral relations with Israel are strengthening, minister Ashkenazi and I have agreed to raise them on higher level by signing a Memorandum of Understanding on Strategic Partnership between two ministries of foreign affairs. What is Republic of Croatia’s view of the situation in Belarus? Which measures should be taken? — Croatia is deeply concerned about the developments in Belarus, especially the recent escalation of violence, use of force against peaceful protesters, arbitrary detentions, and the use of blackmail against the political opposition. We have called on Belarusian authorities to respect fundamental freedoms, human rights and the rule of law, all of which are principles that are directly linked with the right of the Belarusian people to freely choose their own representatives. We supported imposing sanctions against 40 individuals involved in the acts of repression and intimidation against peaceful protestors. Our position is clear: on short-

term the violence and repression must end, detainees and political prisoners must be released, media freedom and civil society must be respected. However, an inclusive national dialogue is the only sustainable way out of the crisis.

What is the position of official Zagreb, which follows Brussels’ position regarding the current conflict between Azerbaijan and Armenia? What do you think how will this crisis unfold? — The initial clashes and skirmishes along the contact line in Nagorno-Karabakh have regret-

number of years. There is another unresolved dispute in close vicinity to Croatia, in the region, which might become frozen. What is the official Zagreb’s position regarding the dialogue between Belgrade and Priština? And where and how do you see the resolution of this problem? — We discussed the Dialogue during the Foreign Affairs Council meeting last week. The EU Special Representative for the Belgrade-Pristina Dialogue and regional issues, Miroslav Lajčak, briefed us on the current state of affairs and other challenges relat-

to my fellow ministers at the latest FAC meeting that the agenda for our meeting in the near future include a discussion on the Western Balkans.

Bosnia and Herzegovina has special relevance, both political and emotional, when it comes to Croatia. Zagreb was recently individually visited by leading politicians from this country. The problem is the Constitutional Law and position of Croats as constituent peoples. How do you see the solution for this issue, and which direction will this issue take in the future? We know Zagreb’s position, but how will it act and in what direction? — In terms of our future course of action we will, of course, encourage and welcome processes that would prevent future unconstitutional gerrymandering through present Election Law. As an example, the Croats were three times in recent history (2006, 2010, 2018) denied of their legitimate representative in the three-member Presidency of Bosnia and Herzegovina, the collective head of state. The current member of the Presidency who should represent the Croats was elected into office not by votes of the Croat constituency which he should be representing, but by Bosniaks. This kind of inequality and discrimination causes tensions and instability on the

OUR POSITION IS CLEAR: ON SHORT-TERM THE VIOLENCE AND REPRESSION MUST END, DETAINEES AND POLITICAL PRISONERS MUST BE RELEASED, MEDIA FREEDOM AND CIVIL SOCIETY MUST BE RESPECTED tably escalated into a full-blown conflict between Armenia and Azerbaijan, with wider repercussions for the whole region. Although we welcomed the two ceasefire agreements reached so far, we noticed with regret their fragility and disability to preclude further hostilities, and armed clashes leading to further casualties and damage to infrastructure. We urged both sides to stop the conflict and return to the negotiating table and called on all actors, including external parties, to refrain from any actions that may lead to further hostilities and casualties. Our full support goes to the negotiations facilitated by the Co-chairs of the OSCE Minsk Group towards a sustainable peaceful settlement.

The Nagorno-Karabakh conflict has been a frozen conflict for a

ed to the Dialogue. I expressed my support for the Special Representative’s efforts because reaching a comprehensive agreement on the normalization of relations between Kosovo and Serbia is of paramount importance for the countries involved, but also for the wider region. In addition to being comprehensive, this agreement should also be legally binding and sustainable in a manner that resolves all open issues and contributes to regional stability. We do not see the existing status quo as a solution; it is currently - and has been for a long time - a destabilizing factor and an open fissure in European security. Here, I have to mention Bosnia and Herzegovina - 25 years have passed since the Dayton Accords, it is high time to seriously reflect on the situation inside the country. I therefore suggested

political landscape and is a central cause of functional challenges Bosnia and Herzegovina faces today. Thus, it is paramount that the recent political Agreement between Mr. Čović and Mr. Izetbegović (leaders of the largest Croat and Bosniak parties) on the principles of the much-needed reform of the Electoral Law is respected and implemented without delay. Furthermore, in light of periodical interferences of third states in Bosnia and Herzegovina, the common goal of all true friends of Bosnia and Herzegovina should be to promote and encourage this Electoral Law reform which would immediately stabilize the political landscape and, together with other reforms, result in a well-functioning Bosnia and Herzegovina, firmly on the path to NATO and the EU - to stability, prosperity and security.

Turn Around Towards Each Other and Cooperate The economic cooperation is crucial, we are here to help INTERVIEW

JOHN JOVANOVIĆ Regional Director of DFC

nited States of America decided to shift their focus from futile attempts to create full-blown perfect political solution in the Western Balkan region to the effort to elevate the living standard and the economy. This is clearly visible in the recent Serbia-Kosovo Agreement and in opening the regional branch of DFC, a very important and a quite new American development bank. We talk to John Jovanović, newly appointed Regional Director of DFC about the future plans of this financial giant.

Bearing in mind that the US International Development Finance Corporation deals in, why

did it take so long to open an branch here in the region and have the necessary conditions been met only now? — Maybe it is helpful if I explain a little bit how DFC came about. It is an idea that originated actually under the Obama administration which was to create the proper American development bank akin

it agency that was previously with the USAid, and combine it, but it was the past Congress that authorized it in 2018 with the bipartisan support. And what it did… it did couple of things that were particularly important. 1) It doubled the size of the balance sheet available to DFC from 30b to 60b, 2) and most importantly, quite im-

EACH OF THE COUNTRIES HAS ITS UNIQUE SET OF CHALLENGES. LIKEWISE, EACH HAS ITS OPPORTUNITY SET to what the counterparts have, to work together, to achieve some of our development goals globally. So think of EBRD, EIB, IFC and countless others. So the idea was to take OPEC which has been very active around the globe and in the region for decades, combine it with some development cred-

portantly for this part of the region, it took away the requirement that any transaction or a project in which we participate, so we the American involvement. So we have projects that have international involvement, with those companies that kind of share our values. That happens with some-

thing quite important. Most importantly for Croatia, but we are sitting in a high income country, a member of the EU, stable and true ally of the USA, typically in normal circumstances all of our development work and our investment and financial support… we couldn’t do here. However, with congressional authorization as a part of our desire to spur energy cooperation both within the region and transatlantically, in the energy sector the DFC is being able to be active in the region. By and large that is the motivation for my trip to Zagreb for our work here in Croatia.

OK, I plan to ask you about Zagreb and Croatia later. As an American Development Bank… — Sorry, I don’t think I answered your question… on the regional bill… So DFC only began to work

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in late 2019. The part of the plan was to really sort of think about the different regions of the world as coverage areas. It came to IFI’s or other development institutions of the globe. As part of the economic normalization that we have reached in the White House between Kosovo and Serbia, this administration saw in the DFC the potential to help both of those countries broaden the financial tools available to them to realize the commitments under the economic normalization agreements. That really helps the Western Balkans and come to the forefront and hence the original place. But this is the first proper regional office and regional presence anywhere. We’ve had investment officers elsewhere around the world but this is the beginning of what would, I’m sure, follow – other regional offices and regional coverage for DFC. OK, as an American Development Bank that cooperates with the private sector, how interesting you think the Western Balkan is to the US companies? You have history here, and as you explained now, you are just beginning here. We can explain it maybe in that way. Sure, as I mentioned a moment ago, we have near term goals and we are heavily oriented towards helping Kosovo and Serbia to realize their commitments under the

economic normalization agreement. However, a key sector for us and a key focus of our development team is energy security and energy diversification. You perfectly pointed out that our unique toolkit is geared towards catalyzing private sector investment and private sector capital. In Croatia, regional security and regional energy diversification truly has to start with a leader and it is truly a regional story. A lot of countries in the region are too small to think about a sustainable ener-

You have now this growth potential and you have this potential to emerge as an energy leader in the region. Let’s talk about that, how can we do that, how can we help you do that, most importantly how can we mobilize American private sector. It’s a good question. With regards to energy projects, it is as much a story about the United States as it is about Croatia… or the region. We are the world leader in shell and there is a tremendous amount of private capital invested in expanding the LNG ex-

ing. But there are oftentimes projects that are a bit short fall in capital. And that risk capital shortage is where we’d like to play a role. I’d really like to make myself out of the job, in Zagreb and Croatia and mobilize enough private capital to render us not necessary.

You mentioned relationships between Serbia and Kosovo and we are here now in Zagreb, Croatia. How do you see the differences in the region and where do you think there is most room

THE BIGGEST POTENTIAL IS TO INCREASE REGIONAL COOPERATION AT EVERY LEVEL, NOT JUST KOSOVO-SERBIA BUT ACROSS THE BOARD. EACH OF THE COUNTRIES HAS ITS UNIQUE SET OF CHALLENGES gy future as natural gas and LNG in particular, but even we’re down on the line with some renewables advancements. It’s regional economic cooperation that will be crucial to realize those goals. Croatia has realized and has a proof of concept in Krk, in LNG facility which is meant to go alive in January 2021. Sure, there is a tremendous growth potential here, the smaller scale projects, as far as global scene is concerned… sure, but you’ve demonstrated the proof of concept, you’ve done it. The motivation for this visit is to say… OK, you’ve done this, this is a wonderful achievement.

port capacity. There is a technical know-how and capacity and capability. And there is also a desire in this low-interest environment to find on a risk-reward basis, attractive financial returns. DFC can be tip of the spear and mobilize some of the capital by ways of some of our direct investment products which are energy-eligible, so, oftentimes there are projects in the region, Croatia is no exception: they are attractive, they are making sense, there are common equity sponsors, someone who’s ready to lose money first. That’s a project sponsor. It is attractive enough to bring the bank financ-

for progress? For example… In Serbia, Kosovo, Bosnia, Croatia maybe? — I think about it quite differently. I think that the biggest potential is to increase regional cooperation at every level, not just Kosovo-Serbia but across the board. Each of the countries has its unique set of challenges. Likewise, each has its opportunity set. Many of these opportunities sets overlap. We will engage in success of the DFC’s initiative and as we work closely with our European counterparts and other development banks and finding ways to increase the number of jobs

here and help these economies in these countries keep their talented young people here to realize their dreams, build their stories, build their companies on the ground here. And be a catalyst even at the local, technical level, for more regional cooperation because you see more value in shared future than in arguing about the past.

Who can apply for the funds? Is it on the state level or is it open for some companies and individuals? For your budget? — In Croatia, I think, our toolkit is much better geared towards the private sector. However, a lot, particularly in the energy sector, there is still a heavy guidance and leadership in the part of the public sector so for that reason many of our consultations in the region are introductory meetings, that’s what they are. I’m never gonna understand, especially the outside, the opportunity side is the wellness of the people on the ground. Both in the government and in the private sector. Getting to know each other, getting a better understanding of these opportunities will rise. I think, ideally, in high-income country like Croatia, we are geared towards the private sector. What is that DFC insists on in investing? The most important for you? — On one hand we wanna find the deals that make the economic sense. We are here to catalyze and realize projects that by and large make financial and economic sense. On the other hand, we are a development bank, the development agency with very robust development criteria. So, these are thinks we would like to see, the key development goals of ours: 1) job creation 2) female empowerment – we want to support the initiatives that help empower women, employ women, see women in leadership positions they deserve. These are two axes. The other key growth and development criteria: we want the environmental… Especially since the projects have fallen into certain categories of the work, there is in-depth environmental and social impact… there is public comment… there is a very keep development compass in everything we do. As a development corporation, how many funds have you secured for the region?

vesting in your know-how and your team and your people. And high-quality people with shared ethical point of view, with shared values, that really care about doing a good job together, is crucial. I think that’s where more American involvement, spreading… Capital is being monetized around the world right now, especially when interest rates stay so low, but high-quality partners with know-how and shared vision, with shared values for the future, I think that is crucial. So you want to work with partners, especially as a common investor, in multinationals, that hire local people, help develop the local supply chains, that leave with their work a positive impact on know-how, knowledge and society.

IT IS ALL ABOUT TURNING AROUND AND FACING EACH OTHER AS A REAL OPPORTUNITY FOR ECONOMIC COOPERATION — There is no minimum and there is no maximum. So it is very much opportunity-set driven. In other parts of the region where we have more development goals, there are actually smaller-scale projects that we think can make tremendous impact. All the way up to larger projects that would require more capital. Our framework is not “we are allocating this much to the region, we are allocating this much to a country, or a sector”. It’s opportunity-driven which is why our conversation like we have had in Zagreb today is so crucial. Introducing ourselves, better understanding where we can work together. We’re to deal with the pipeline, the way we wouldn’t do with the private sector.

It’s the plan you mentioned actually: Krk. What are the project plans for Croatia? You met the people from the Government, some ministers here… — I think it is too soon to identify specific projects. I met these people for the first time today but

we have started to crystallize and sharpen our view of certain sectors (energy being the crucial one) and it is extremely important. These are state-born and state-sponsored projects. Right now, rightly so, they are focused on executing their projects. There is no use talking about the future growth unless you can deliver the commitments for today. So we really kindly took time on their busy schedule to have this conversation. In my experience in a private sector, once you get these first few months of operation, and you work out the short-term problems, you very quickly start thinking about the future. And setting up those open lines of communication, as they sort of have those thoughts, and hopefully our team in the region gets better up to speed of the opportunity set, we hope those two paths meet in the middle.

Finally, what is the key message for the successful business? Is there any secret key? — In my experience, it’s been in-

What is the biggest problem here when we talk about business? For whole region, all countries? They might have one and the same problem: people’s minds, legislation… or something? — Each country has its own challenges and its own road to reform. You are very fortunate here in Zagreb… By the way, the entire region is very fortunate. The US Ambassadors are so driven, so committed, they are your biggest champions and your biggest advocates, both here in Europe and home in Washington. And I know the Embassy here in Zagreb and the wonderful ambassador have been pushing for judicial reforms and improvement of administration efficiency etc. By and large it exists everywhere around the world, but this is a shared problem. But I would say… look, it’s hard for me with anything I am doing to help and so on. But one thing is what the entire region is thinking about. It’s turning around and facing each other as a real opportunity for economic cooperation. Even at the micro-level, since the business is by and large already doing it. If we think about the economic prosperity, and it doesn’t necessarily mean getting your differences or you cultural identities, your linguistic identities or your sovereignty, but seeing a true value in better trading and cooperating with each other, building the economic future together. Good message for the end. Thank you very much. — Thank you for your time.

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by Nikica Miloš

ANALYTICS

Belarus in the West What if there are two winners of the US presidential election?

ven in the worst of times and in the most uncertain presidential races, there has always been something gentlemanly about the American presidential elections, and that is to admit defeat. Situations like in Belarus or Venezuela, where noone is willing to admit defeat and everyone claims that they are legitimate winners, have not been possible in America until now.

WHEN DID THIS HAPPEN LAST TIME? The last time when it happened that nobody could tell who was the elected president was in 1876, but that was immediately after the Civil War and the feelings between the North and the South were still negative, strong and vehement. Even in the year 2000, Bush Jr. won in the entire state of Florida by just 537 votes, thus securing presidential win against Al Gore. In 1876, the Republican,

IN THE UNITED STATES, OVERWHELMED BY THE CORONAVIRUS, BLM PROTESTS AND THE ECONOMIC CRISIS, WE COULD WELL SEE THE UNTHINKABLE HAPPENING; THAT IS THE SAME SCENES FROM THE STREETS OF BELARUS OR VENEZUELA Rutherford Hayes and the Democrat, Samuel Tilden clashed over who had conquered the four key states - Florida, Louisiana, Oregon, and South Carolina. To make matters more complicated, 3 out of 4 of these states, except Oregon, sent two electoral delegations each - that is, all three were Southern. It was not clear who the Congress would deem as legitimate – the Democrats argued that Tilden's electoral votes were "the real ones" and the Republicans claimed that Hayes' were “the real deal”. As a result of the 1877 compromise, Hayes was appointed president, but had to order the withdrawal of the army from the former Confederacy,

which exposed black people to attacks from white militia and slowed their integration. But no war erupted!

WHAT ABOUT 2020? The Americans were divided into two large factions four times in their history. In 1776, some Americans wanted independence, and some were loyal to the British crown. As a result, a revolution happened. In 1861, the North and the South clashed and the Civil War broke out. During the 1960s, there was no war, but the conflict over integration in the South reached a boiling point with the assassinations of Robert Kennedy and Martin Luther King. Still, there

was no civil war per se, although white supremacists and Black Panthers paraded through the cities. But in today's America, plagued by the coronavirus, a great dark cloud is hovering over democracy, which has been an example at least in that sense, and that is voting by mail. Because of the coronavirus, a large number of people asked to vote by mail. Postal services in America are feeble and neglected. Secondly, in some states, the Democrats have already managed to send ballots en masse to voters’ home addresses, even to those people who did not ask to vote from home. The possibilities for abuse are becoming enormous. Trump has repeatedly underlined

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that the results must be declared on the election night and has reiterated that in several of his threatening tweets. Hillary Clinton said she had advised Biden not to admit defeat on election night in any way and to wait for the postal votes to be counted. But Trump intends to declare himself the winner based on the votes counted on the election night, which will probably be the case in several so-called "swing states". He will also consider all changes made in the days after the election night as illegitimate. But as the votes received by mail in the swing states are counted, the result can turn in Biden's favour. If that happens, Biden will be declared the winner and we will have two self-proclaimed winners. The atmosphere will probably reach the boiling point.

WHAT DOES THE CONSTITUTION SAY? Since the Republicans will win big in some states and the Democrats in others, the composition of the electoral delegations of those countries will not be questioned. But in the states where

there has been a change in the period from the election night to the final count of votes received by mail, these states can send two electoral delegations to a session at which the president is elected. On January 6, 2021, the session will be chaired by Mike Pence, and he will convene the electoral votes to count. If there are two delegations, say, one sent by a Democrat-

electoral votes. If this happens, the "how many states did each candidate win" approach will be used. Currently, Trump is leading against Biden with 26:22, which would suffice for him to win. If the Democrat-run Congress says it will accept only those electoral votes confirmed by the governors, and the Republican-controlled Senate rejects that option,

HILLARY CLINTON SAID SHE HAD ADVISED BIDEN NOT TO ADMIT DEFEAT ON ELECTION NIGHT IN ANY WAY AND TO WAIT FOR THE POSTAL VOTES TO BE COUNTED ic governor, in line with the total number of votes in the end, and the other sent by a team of Republican lawmakers, based on the election night results, then both Congress and the Senate must decide which delegation is "the right one." If the Congress and the Senate disagree, the Senate can annul both delegations from that state, and if there are more such delegations, then neither Trump nor Biden could reach the required 270

the Speaker of the House of Representatives, Nancy Pelosi, automatically becomes acting president. However, this decision must be confirmed by the Supreme Court, in which the Republicans will have a 6:3 majority, so the decision will be annulled. When that happens, a real constitutional crisis arises, because, on January 20, the US army will not know who has the nuclear codes and who is the supreme commander.

STALEMATE IN THE MAKING If Trump loses the total number of votes and wins 270+ electoral votes, 40% of the Democrats have said that they would reject the election results. If Trump has the lead after a direct vote count on the election night, and then loses it when the postal votes are counted, 30% of the Republicans have said that Trump should stay president. White supremacists, extreme Christians, the WASP elite, and various armed formations are avid Trump supporters, while Biden is supported by the BLM activists, leftists, and the liberal elite. The possibility of conflict is plentiful. And that gentlemanly quality of the US election we talked about earlier will evaporate. In the United States, overwhelmed by the coronavirus, BLM protests and economic crisis, we could well see the unthinkable happening; that is the same scenes from the streets of Belarus or Venezuela. And that is unimaginable. For now!

Better Relations Between Slovenia and Croatia Paradoxically, the crisis caused by COVID caused a turn in relations between the two countries There wasn’t even the expected solidarity among members. Now that the second wave has struck us, this cannot and will not happen. As you can see, the EU is intensively harmonizing a common approach to testing, closing of the regions, strategy for introduction of a vaccine, and the vaccination itself.

INTERVIEW

H.E. VOJISLAV ŠUC Ambassador of the Republic of Slovenia

he Ambassador of Slovenia in Croatia, H.E. Vojislav Šuc, stated for Diplomacy&Commerce that the crisis caused by the COVID19 pandemic showed that the two countries are ready for fast cooperation and that relations are becoming more intense and better in all segments. Aside from the current crisis that will eventually end, it is in Slovenia’s interest for Croatia to become a part of the Schengen area. The same applies to the introduction of Euro, Šuc adds.

For us all, the year 2020 was certainly not as we planned it. The COVID 19 pandemic made us adapt to new rules of life. As an experienced diplomat, how do you see the global situation and the condition in the world now, while the pandemic is in progress, but also after it is over? What are the greatest challenges of mankind today? — The pandemic taught us that cooperation and solidarity between countries is of extreme importance for overcoming crises such this one, primarily cooperation with neighbours and the region, among EU members and wider, on a global level. COVID will undoubtedly leave a mark and it will affect our lives in the future, we will live in a different way. We will pay more attention to values we took for granted until yesterday, and this primarily refers to safety in the broadest sense of this word. By this I refer to the resilience of our health systems, the resilience of our economies, protection of strategic segments of our society. The pandemic, for example, has shown that as much as 80% of EU's need for medical protective equipment depends on external manufacturers. That urgently needs to change. In addition to that threat,

climate change and nuclear disarmament continue to dominate the top of humanity’s list of challenges.

Slovenia, like other European countries, is keeping track of the situation and we adapt our measures accordingly. Current numbers are increasing in Slovenia but also in all other countries. How is the official Ljubljana facing the pandemic and do

crease in the number of cases of infection. If we talk about the order of priority of the measures taken by the government, the protection of life comes first, followed by health, followed by the economy. We have introduced the mandatory wearing of masks outdoors, restrictions on crossing between regions, restrictions on movement at night. We hope that these measures will be effective and that we will successful-

SLOVENIA WILL BE TAKING THE PRESIDENCY OF THE EU COUNCIL IN THE SECOND HALF OF 2021, FOR THE SECOND TIME you think that there will be a new lockdown (closing of borders, limiting of movement…)? To what extent do the countries continue to turn “to themselves”, and how much do they adapt with others? — Slovenia has declared an epidemic again due to the large in-

ly reduce the numbers. Slovenia discusses and consults with other countries on a daily basis. At the beginning of the epidemic, we saw that the EU’s reaction was very slow, that’s why the countries relied heavily on their own forces and coped differently according to their capabilities.

How do you see the cooperation between Slovenia and Croatia during the pandemic? — Croatia and Slovenia did a great job with this. I would like to emphasize the successful coordination between countries in the return of Slovenian and Croatian citizens from abroad immediately after the crisis, the opening of corridors for the transport of goods so that economic flows do not stop completely, ensuring the crossing of thousands of workers employed on both sides of the border, daily solving of problems of the population in the border region, etc. In all this, the states had a foothold in the epidemiological data that were then, as they are today, exchanged between the Croatian and Slovenian public health institutes. Recovery will require even stronger cooperation to pull our economies out of the crisis and shift to a green and digital agenda. How do you rate the development of political relations between the two countries and do you see the open issues being resolved soon? — Paradoxically, the crisis caused by COVID caused a turn in relations between the two countries. We have established an intense dialogue on all levels for resolving crisis situations, presidents of the states meet regularly, as do the prime ministers and ministers. Total trade and exchange of services was worth more than 6 billion euros last year, which is more than the trade exchange between Slovenia and the rest of the Balkans. This year, Slovenian tourists realized 7.6 million overnight stays on the Adriatic, which is less

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than last year for well-known reasons, but this is the smallest drop of all the foreign tourists. There are a few more open bilateral issues, but this relaxation of relations, if we can call it that, is creating the much needed atmosphere of trust, and if the political will exists, we will find a way to resolve these issues.

What is official Ljubljana’s position when it comes to admission of Croatia to Schengen and the introduction of euro? — It is in Slovenia’s interest for Croatia to become a part of the Schengen area, when member countries will estimate that all the standards have been met for supervision of the Schengen border. The same applies to the introduction of euro. In principle, the position of the Slovenian Government is that it is necessary to round up the Schengen and the EURO as well with the remaining EU member states, Romania and Bulgaria. It seems that the migrant crisis is not toning down, even though the colder weather is approaching. What is Slovenia’s take on the solution to this problem, and what does it stand for as a principle within the EU? — The migrant crisis is really not toning down. Slovenia already recorded over 12,500 illegal crossings of the state border this year. On a global level, we believe that the phenomenon of migration needs to be approached holistically, while addressing countries of origin, countries of transit and countries of reception. Slovenia considers cooperation with countries surrounding the EU, e.g. countries of the Middle East, Central Asia, Northern Africa, to be very significant, and we attach special importance to cooperation with the countries of the Western Balkans. On the other hand, over the past decades, developed countries of the West haven’t managed to find the right concept for integration, a manner to include these people mentally, emotionally and even creatively in all the structures of the society. Today’s events in Western societies are greatly defined precisely by this gap. The Pact on Migration and Asylum that was recently published by the European Commission is a good base and it paves the path for a final agreement between member countries on how to prevent illegal and regulate legal migrations in Europe. And Slovenia is

THE MIGRANT CRISIS IS REALLY NOT TONING DOWN. SLOVENIA ALREADY RECORDED OVER 12,500 ILLEGAL CROSSINGS OF THE STATE BORDER THIS YEAR committed to allowing the countries to decide on their own, on a voluntary basis, how to contribute to joint efforts in combating migratory pressure.

The situation in the region, where Slovenia has an impact, does not seem to be stabilizing at all. Official Zagreb raises the issue of the position of Croats in Bosnia and Herzegovina. How do you see this issue and how much strength and desire does the EU have to open or finally close another problem in the Balkans? — BiH is a country that lags the most on the European path. If they want to reduce the development gap, they will have to make a turn - from Dayton BiH to European BiH. The only way for BiH is the European Union and it is necessary to change their mindset in that direction. Without adapting to EU standards, there will be no progress. And the only way to leave the status quo is to start with reforms. I am convinced that many other issues related to the functioning of the state will be resolved along the way. The EU must deal with these problems, because the stability and development of

BiH also means stability in the countries of the Western Balkans, the future members of the EU.

The burning issue of the region are the relations between Belgrade and Pristina. Slovenia has recognized the independent Kosovo, but negotiations on "normalization of relations" are slow. How do you see the end of these negotiations and how important is it for the region that they end as soon as possible? It’s true, the negotiations are progressing slowly, but they are progressing. Both sides need to show more trust, and then also more courage and boldness to take the necessary steps to accept a compromise solution. In international politics, it often happens that many solutions that were, for example, completely unacceptable until yesterday, suddenly become acceptable with a new political dynamics and a change of climate. The dialogue has intensified now, the EU is active, and its Special Representative Lajčak is doing a good job. I hope that we will see the results. Slovenia will be chairing the EU Council in the second half of

2021, according to the rotating presidency model. What will be the priorities of your presidency and what will you focus on? — That’s right, Slovenia will be taking the presidency of the EU Council in the second half of 2021, for the second time. The focus of our presidency will be placed on four theme areas. The first is the strengthening of resilience of the European Union. By this we mean improving the EU's crisis management system so that, in the future, the EU is ready to respond quickly to various crisis situations, such as pandemics, cyber-attacks, and larger illegal migration flows. The second area is the economic renewal of the EU in the direction of the development of green technologies, digitalization, circular economy, sustainable development. In this segment, special attention will be paid to so-called water diplomacy. Third and fourth area include the strengthening of the rule of law in the EU and EU’s position as guarantor for good cooperation in the region and worldwide. Special emphasis will be placed on the Western Balkans, in terms of development and economic progress and in terms of approaching the EU.

ANALYSIS

Recovery Expected in 2021, But Slower Than Originally Anticipated EBRD revises down economic forecasts amid continuing coronavirus uncertainty

he European Bank for Reconstruction and Development (EBRD) has wound back forecasts for the emerging economies where it invests, after measures to contain the impact of the coronavirus lasted for longer than previously anticipated. The EBRD is now forecasting an overall contraction across its economies of 3.9 per cent this year, and a return to growth next year of 3.6 percent. The previous forecasts published in May had projected a 2020 decline of 3.5 per cent and a stronger recovery of 4.8 per cent in 2021. The EBRD’s Chief Economist Beata Javorcik said: “Output in the EBRD regions contracted sharply in the second quarter of 2020 by around 8.2 per cent year on year. In many economies the contraction was larger than declines seen

during the global financial crisis. The speed of recovery is expected to be similar to the one observed in the aftermath of that crisis, with pre-pandemic levels of GDP returning towards the end of 2021.”

tral Asia and the Middle East and North Africa, primarily promoting the private sector and supporting sustainable and inclusive development.,The Bank’s latest set of forecasts are subject to a high level of uncertainty and are depend-

may face lasting damage in the longer term, but says others, such as online retail, could benefit from increased digitalisation. It says that contractions this year are likely to be largest in economies highly dependent on exter-

THE NEW REPORT WARNS THAT SOME SECTORS, SUCH AS TOURISM, MAY FACE LASTING DAMAGE IN THE LONGER TERM, BUT SAYS OTHERS, SUCH AS ONLINE RETAIL, COULD BENEFIT FROM INCREASED DIGITALISATION EBRD economies have seen pressure on supply and demand because of domestic measures to contain the pandemic, while external shocks have included low commodity prices, shrinking exports, a collapse in tourism and drops in remittances. The EBRD invests in emerging economies from central and eastern Europe through to Cen-

ent to some extent on the accuracy of early estimates of growth in the first half of 2020. They are also sensitive to whether governments impose further lockdowns or to how people may react to a continuation of the virus, possibly by self-imposed social distancing. The new report warns that some sectors, such as tourism,

nal sources of income, such as Albania, Croatia, Cyprus, Greece and Montenegro which lost most of their tourist season this year. Exports from EBRD regions were down by over 14 per cent in the first half of 2020, compared with the same period of 2019. International as well as domestic tourism fell sharply, with international tourist arrivals to the EBRD

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regions down by some 65 per cent in the first six months, compared with the same period a year earlier. Other highly affected economies include countries that saw large drops in remittances such as the Kyrgyz Republic, or which are strongly integrated within global value chains, such as the Slovak Republic. Remittances from Russia to Central Asia, eastern Europe and the Caucasus fell by 29 per cent year on year in the second quarter of 2020, relative to the same period of 2019, similar to the decline seen during the global financial crisis. Payments back to Serbia fell by 30 per cent in January to May 2020, compared with a year earlier. The report said that, while some remittances may have been only postponed, many migrants returned to their home countries, suggesting that remittances may fall further in the future. It said Lebanon’s output is likely to contract sharply, reflecting rising uncertainty after an explosion in Beirut in August that caused extensive damage and loss of life and compounded existing economic and political challenges in the country. The new report includes findings from a survey conducted in August 2020 by the EBRD and the Munich-based ifo Institute showing that the economic impact of the Covid-19 crisis on people’s lives was more pronounced in the EBRD regions than in advanced Europe. According to the survey (*), job losses, and in particular business closures, appear to be more widespread than during the global financial crisis and the burden of the crisis is disproportionately borne by those with lower levels of education and income. The survey reveals that 73 per cent of respondents in the EBRD regions say they were personally affected by the Covid-19 crisis, compared with only 41 per cent in advanced Europe, where stimulus packages were typically larger. Workers in the region have so far relied more on supplementary employment than during the global financial crisis. About a fifth of respondents in the EBRD

regions say they increased their hours in their existing job. A similar share is saying they started a second job. A separate EBRD survey (**) of small and medium-sized enterprises (SMEs) suggests that SMEs are more optimistic about recoveries in economies where stimulus packages were larger. The survey shows that the crisis had the strongest impact on SMEs in hospitality and recreation services, non-food retail, light industry and construction. Over 40 per cent of SMEs in hospitality and recreation services saw sales fall by more than half in the first quarter of 2020.

on the tourist seasons weighed on growth in the southern European Union in 2020. GDP in the region is forecast to fall by 6.5 per cent in 2020, with a partial rebound of 3.3 per cent in 2021. Output in the Western Balkans is projected to fall by 5.1 per cent in 2020 due to a collapse in tourism, in Albania and Montenegro, disruptions in global supply chains and lower industrial output, declines in foreign direct investment inflows and remittances. GDP growth could recover to 3.4 per cent in 2021. GDP in Russia is expected to shrink by 4.5 per cent in 2020 as a result of the Covid-19 crisis and

Economies in Central Asia are likely to contract by 3.3 per cent on average in 2020, with the Kyrgyz Republic and Mongolia most severely affected. Assuming a partial recovery in tourism and some improvements in the external environment, the region could see growth of around 3.2 per cent in 2021. Turkey’s economy is expected to contract by 3.5 per cent in 2020, following a fall in external demand which led to a collapse in exports. Domestic lockdowns and supply chain restrictions hurt the services and manufacturing sectors. GDP growth could pick up to 5.0 per cent in 2021.

THE SURVEY SHOWS THAT THE CRISIS HAD THE STRONGEST IMPACT ON SMES IN HOSPITALITY AND RECREATION SERVICES, NON-FOOD RETAIL, LIGHT INDUSTRY AND CONSTRUCTION Exporting SMEs in particular were more affected, and were also more pessimistic about recoveries – reflecting widespread travel restrictions and border closures.

REGIONAL ECONOMIC FORECASTS Output in central Europe and the Baltic states is expected to drop by 4.4 per cent in 2020, with a recovery of 3.5 per cent seen in 2021. That forecast assumes a gradual normalisation of activity, some recovery in external demand and a boost from European Union funds. Strict lockdowns and travel restrictions that had a major impact

a drop in oil prices. The introduction of the National Plan for Economic Recovery has helped mitigate some of the negative effects. A rebound of 3.0 per cent is expected in 2021, conditional on some recovery in oil prices. The Covid-19 crisis weighed on growth in eastern Europe and the Caucasus through a sharp fall in remittances during the early months of the pandemic, lower commodity prices, which affected Armenia, Azerbaijan and Ukraine, and a collapse in tourism that weighed on growth in Georgia. GDP in the region is expected to fall by 4.5 per cent in 2020, recovering somewhat to 2.5 per cent growth in 2021.

Output in the southern and eastern Mediterranean region is expected to contract by 1.3 per cent in 2020 as a result of containment measures, a drop in tourism, falling external demand and a slowdown in foreign direct investment inflows. GDP could rebound to 4.4 per cent in 2021, conditional on the implementation of reforms and reduced political uncertainty. Egypt is the only economy across all of the EBRD regions likely to escape recession in the 2020 calendar year, with projected growth of 2.0 per cent supported partly by large public construction projects and a boom in the telecommunications sector.

* The EBRD and the ifo Institute conducted a survey of almost 40,000 adults in 14 countries in August 2020. The survey covered eight economies in the EBRD regions (Belarus, Egypt, Greece, Hungary, Poland, Serbia, Turkey and Ukraine) and six advanced European economies (France, Germany, Italy, The Netherlands, Spain and Sweden). It is representative by age, gender, income and subnational regions. ** In June and July 2020, the EBRD conducted a survey of 1,652 SMEs in 15 economies in the EBRD regions (Bulgaria, Croatia, Egypt, Jordan, Kazakhstan, the Kyrgyz Republic, Lebanon, Mongolia, Morocco, Romania, Tajikistan, Tunisia, Turkmenistan, Uzbekistan and the West Bank and Gaza), aiming to assess the early effects of the Covid-19 crisis on SMEs.

ARRIVALS & DEPARTURES NATIONAL DAYS

in October & November

THE AMBASSADOR OF THE RUSSIAN FEDERATION PRESENTED HIS CREDENTIALS TO THE PRESIDENT OF THE REPUBLIC The President of the Republic Zoran Milanović received the credentials of the Ambassador of the Russian Federation, H.E. Andrey Nesterenko.

OCTOBER

GUINEA

National Day

INDIA

ahatma Gandhi’s M Birthday

GERMANY

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

THE AMBASSADOR OF INDIA PRESENTED HIS CREDENTIALS TO THE PRESIDENT OF THE REPUBLIC President of the Republic Zoran Milanović received the credentials of the Ambassador of India. The credentials were presented to the President of the Republic by H.E. Raj Kumar Srivastava, the Ambassador of India in the Republic of Croatia, seated in Zagreb.

SOUTH KOREA

aecheonjeol, ancient G Korea founded in 2333 BC

SPAIN

National Day

HUNGARY National Day

24 UN

Main Holiday: UN Day

AUSTRIA

National Day

BOŠKO TOMAŠEVIĆ Managing Director of CBRE in South Eastern Europe (CBRE SEE) CBRE Company, leading global property adviser, announced today the appointment of Boško Tomašević as Managing Director of CBRE in South Eastern Europe (SEE) effective January 1st 2021. Boško Tomašević succeeds the current Managing Director Andrew Peirson, who is stepping down from his position and will leave CBRE in December 2020. Boško joined CBRE in 2018 when CBRE Group established a new regional office in Belgrade to

German Unity Day

TURKEY

National Day (Republic Day)

provide a full range of real estate advisory services to international and domestic clients in South Eastern Europe. In his role as Head of Advisory & Transactions, he helped with the expansion of the CBRE SEE business into a market-leading commercial property firm with offices in Belgrade and Sofia. Previously, Boško headed the Agency teams of JLL for SEE region for six years and Colliers International prior to that for 7 years.

NOVEMBER

ALGERIA

tart of the War of S Independence

ANGOLA

Independence Day

ANDRIJA KURIC Director of OSJEČKA PIVOVARA

POLAND

Independence Day Kuric is taking over the position of the recalled Davor Sertić, who has been in that position for less than 15 months. Osječka pivovara is located at Zeleno polje in Osijek which is a city with over three centuries of tradition in beer-making. Their main product

is their light beer named Osječko. Today, the brewery annually produces 10 million liters of beer and one million liters of non-alcoholic beverages. Osječka pivovara d.d. is the oldest Croatian brewery and it is the only one in 100% Croatian ownership

BELGIUM King's Day

PALESTINE

Independence Day

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by Nikica Miloš

The European Religions in Motion

urope is the continent with the most religiously unaffiliated people in the world, which an be traced to the era of French Enlightment and Revolution and Socialism, so the highest number of atheists can be

found in France, Estonia, ex-GDR, Czechia and Scandinavia, while the most religious people, as a boomerang, can also be found in the Eastern, ex-Communist, Europe. The religion which has the most tendency to disappear is

Protestantism, since its followers are the most numerous in leaving the religion. In 2019, overall in Europe 47 percent of Christians were Roman Catholic, 18 percent were Protestants, and 35 percent were Orthodox. The Jews, deci-

mated after Holocaust, live mostly in France, Ukraine, Moldova, Russia and the UK, while Muslims are present both in their “native” countries like Turkey, Albania, Bosnia-Herzegovina and Azerbaijan (majority), Serbia, Russia, N. Macedonia, Bulgaria, Georgia (minority) and the Western Europe, as the immigrants from the former colonies or in the case of Germany, the descendants of Gastarbeiters. Azerbaijan is the only predominantly Shia country, while Kalmykia in Russia is the only Buddhist territory in Europe. The influx of Hinduism is clearly visible in the UK (inheritance of the British Raj), while in Iceland and Portugal there are a lot of people following the old, Pagan folk religions. In the end, Germany is the country most divided in religion: ex-GDR left East Germany almost religionless, while in West Germany religion has a solid ground. Albania has one of the most divided populations, with the Catholic north, Muslim central area and Orthodox south.

The Most Spoken Languages in Europe The Legacy of Empires

urope is the home of some 150 native languages, and the majority of them descendants of the Indo-European branch spoken by 740 million inhabitants. But what languages are most spoken in the continent? Well, it has a lot to do with the legacy of mighty empires which spread their languages. So, the most spoken language is Russian, with 120 million native speakers on the continent and many more who speak it as the second or the third language. It is followed by the language of philosophers and thinkers, German. It comes in second for the largest native-speaking population in Europe. It’s the sole official language of Germany, Austria and Liechtenstein, and it’s a co-official language in Switzerland, Belgium and Luxembourg, with 95m speakers. After Russian and German,

the next most spoken language in Europe is French, with about 80 million native speakers. It is the official language of France, as well as a co-official language of Belgium, Switzerland and Luxembourg. If you consider the percentage of the population that learned French as a second language, then over 30% of European inhabitants know the language. 400 million people around the world speak English, and 71 million of Europeans speak it as their first language, with 44% of the EU inhabitants claiming the knowledge of it. The 5th is Turkish, official in Turkey and Cyprus, but spoken in N. Macedonia, Bulgaria, Greece and Serbia with 70m native speakers. The following Top 10 languages are: (6) Italian – 69m, (7) Spanish – 45m, (8) Ukrainian – 44m, (9) Polish – 40m and (10) Romanian (also known as Moldavian) – 26m.

by Svetlana Nenadovic-Glusac · photos Dean Calma / IAEO

64th IAEA General Conference Slightly Different due to COVID-19 This is the IAEA of 2020, this is the IAEA of the future

Opening of the IAEA Science Forum 2020 "Nuclear Energy and the Clean Energy Transition" at the 64th General Conference of the IAEA

he 64th general conference of the IAEA (International Atomic Energy Agency) took place in Vienna from September 21 to 25, this time a little different than in previous years due to the coronary virus pandemic. To a lesser extent and taking all precautionary measures in the fight against COVID-19, the IAEA conference took place in the Vienna International Center this year. Important nuclear science

IMPORTANT NUCLEAR SCIENCE AND NON-PROLIFERATION ISSUES WERE ON THE INTERNATIONAL AGENDA THIS YEAR WHEN REPRESENTATIVES FROM OVER 140 COUNTRIES CAME TOGETHER FOR THE IAEA'S ANNUAL MEETING and non-proliferation issues were on the international agenda this year when representatives from over 140 countries came together for the IAEA's annual meeting. In his opening speech, General Manager Rafael Mariano Grossi spoke about the nuclear safeguards that have been implemented this year

despite the COVID-19 pandemic. “We didn't expect to inspect hundreds of nuclear facilities around the world, in a world that was closed, where planes couldn't land and we couldn't take off to get there. The whole thing to ensure that nuclear material is not used for prohibited purposes - but

we did it” - said General Director Grossi. General conference usually hosts thousands of participants and around 70 side events. However, this year it was scaled back to meet pandemic safety restrictions. Delegates voted on key resolutions to further strengthen the

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H.E. Azzeddine Farhane, Ambassador of Morocco, was elected President of the 64th IAEA General Conference

IAEA's work in the fields of nuclear science and technology, safety, protective measures and technical cooperation. All of the more than 30 side events were virtual or hybrid, with agency experts preparing videos, recording speeches and virtual tours of IAEA laboratories. One virtual event celebrated ten years of the Nuclear Law Institute, which trains legal experts from around the world to draft nuclear laws, and another discussed the

IN ADDITION, A NEW INITIATIVE HAS BEEN LAUNCHED TO STRENGTHEN COUNTRIES' ACCOUNTING AND CONTROL OVER THEIR NUCLEAR MATERIALS, WHILE FACILITATING THE IAEA'S WORK ON NUCLEAR REVIEW fight for nuclear safety at the national, regional and global levels. The main side event was the two day scientific forum focusing on innovative nuclear energy to support the transition to clean energy. In addition, a new initiative has been launched to strengthen countries' accounting and control

Member States delegates and representatives to vote on resolutions at the afternoon session of the 64th IAEA General Conference

over their nuclear materials, while facilitating the IAEA's work on nuclear review. Participants also discussed the IAEA's strong support in responding to COVID-19 and ways to tackle future zoonotic pandemics through the agency's ZODIAC initiative.

Rafael Mariano Grossi: "This is the IAEA of 2020, this is the IAEA of the future, an IAEA that is present at every major societal, global challenge that its mandate allows," said the Director General at the closing session of the 64 General Conference of the IAEA in Vienna.

Rafael Mariano Grossi, Director General of the IAEA, gives his opening address at the opening of the 64th IAEA General Conference

NAOS Adria – Continuation of a Successful Story For good products and lines there is always a place in the market, quality is recognized and appreciated

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place in the market, quality is recognized and appreciated!

CORPORATE

KORALJKA MLAKAR Country Manager / Business Unit Manager at NAOS (Bioderma Institut Esthederm - Etat Pur)

You are a successful woman and you run a company that represents a global brand. How hard was it from your perspective to succeed or was it not hard at all? What is it that you think about as a leader? — It is a pleasure and a privilege to be a part of the NAOS story and to work with top people and products and to collaborate with top experts in the field of dermatocosmetics. It gives me ‘wind at my back’. How difficult or challenging something is, it's all a matter of arranging the given situation in your head. I view everything as a challenge and it drives me, every day. In the family, I am surrounded by athletes and through them I have learned that both victory and defeat are an integral part of the game and this should be accepted as such. Every defeat is just an incentive for an even bigger victory!

oraljka Mlakar, Country Manager / Business Unit Manager at NAOS (Bioderma - Institut Esthederm - Etat Pur) reminds for Diplomacy&Commerce that Bioderma is not a new player on Croatian market, it has just reappeared again in a new release, in its natural guise. Eco biology is in the very center of NAOS Company, Mrs. Mlakar explains.

Croatian subsidiary of the French company NAOS has been operating as Naos Adria since February this year and it has taken over the entire business of BIODERMA brand under its auspices. How difficult is it to make changes in business in the changed business conditions, in the middle of the pandemics and "when everything stops"? — That's how the Croatian branch of NAOS, NAOS Adria, started its work in February this year, and I was given a lot of trust to build this beautiful story. I would be lying if I said that everything went very smoothly at the very beginning, with the fact that we were hit by a lockdown (with all its consequences), and even an earthquake in which our office in the city centre was destroyed. That’s why some of the original plans were a bit prolonged… But I was lucky to ‘put the business on its feet’ with very supportive and professional partners and associates, so it all came to already in early May. Today, looking retrospectively, a lot has been done in a very short period of time and therefore a big THANK YOU to everyone who participated in it. And who are still involved. How do you rate the business conditions in Croatia and how do you rate the market of your

ALL OUR PRODUCTS ARE MADE IN FRANCE AND PASS A NUMBER OF QUALITY TESTS industry? How much has it grown, how much room is there for new players? What would you single out as a good thing, and what would you change? — Most of my working life is in Croatia, in multinational companies. Looking at the general conditions and business in Croatia, it has changed over the years, un-

derstandably, and for a few years back it has moved in a positive direction. The current situation is not promising, but, as an eternal optimist, I believe it will get better soon. Bioderma is not really a new player in the market, it has just reappeared again in a new release, in its natural guise. For good products and lines there is always a

French pharmacist and biologist Jean-Noël Thorel created NAOS, a company that has been passionate about skin biology for more than 40 years. A set of brands that inspire the skin and complement each other has been created. What is the main difference between your brands compared to others and what is it that sets them apart from the competition? — Eco-biology has been at the very heart of NAOS, from its inception. The foundation of eco-biology is in the observation of the skin, our largest organ, as a dynamic ecosystem that is in mutual and inseparable, continuous connection with the environment. The skin is a reflection of our health status and our inner state. Our mission is to provide it with optimal ingredients and in optimal quantities, through our products, and thus teach it to function independently and properly. Instead of treating it excessively and unnecessarily.

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Bioderma products are classified in the group of dermatocosmetics, and contain natural ingredients and components isolated from the extract of medicinal plants, the effectiveness of which is clinically proven. Each product passes 125 quality tests. How important are such details to you and how important are they for the final product? To what extent does the end consumer recognize this? — I am glad that you have asked me this question and I am glad that you have noticed this important detail. All our products are made in France and pass a number of quality tests. In our formulations, we use only active ingredients and only those of satisfactory purity and in optimal amounts necessary for the normal functioning of the skin. Out of a total of about 50,000 ingredients available for cosmetic formulations, NAOS has selected only 600 for its products, guided by strict criteria that guarantee the best level of safety for skin health, human health and a healthy planet. In addition, patents in our products make a difference, and are a guarantee of our quality and efficiency. Currently, NAOS has 70 registered eco-biological patents. All our efforts and perseverance at only the best, are recognized by the experts and our end consumers. Sensibio H2O, 25 years of the first micellar water in the world, is your world-class product. How hard is it to produce simi-

ALL OUR EFFORTS AND PERSEVERANCE AT ONLY THE BEST, ARE RECOGNIZED BY THE EXPERTS AND OUR END CONSUMERS lar revolutionary products after such a great success? — Yes, Sensibio micellar water is the oldest micellar water in the world, and it is celebrating its 25th anniversary precisely this year. I would dare to say that it was a real example of the vision of one passionate scientist. Today, 25 years

later, Sensibio micellar water remained the flagship of Bioderma brand, and maybe even a brand for itself. An interesting fact is that one micellar water is sold in the world every second! … Micellar was just the beginning, research and development and visions in Bioderma never stop, so

today we have a lot of excellent and recognized lines and products in our range.

What would be your message to all the leaders, and what is the one thing they should never forget in business? — Primarily to be and remain a human being, with all their virtues and flaws… And find some “exhaust” of their own, and a source of energy – for example, I have been running intensively for a significant number of years.

Resolving Parties’ Legal Challenges is Our Priority Mateša&Kapitan Law Firm has been successfully providing legal assistance to its clients since 2010 in accordance with positive regulations of the Republic of Croatia and acts of the Croatian Bar Association commercial law, labour law, land registry law, collection of receivables, protection of intellectual property rights and copyright, etc.

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INTERVIEW

ZLATKO MATEŠA Partner Attorney-at-Law Mateša&Kapitan Law Firm

n today’s age of fast and accessible communication, daily conclusion of various contracts and jobs among people who are often completely dislocated, it is much more important to resolve their legal issues so that they do not take away their time, create negative energy and divert focus from their ongoing business, which is the basis of every entrepreneur, Zlatko Mateša, Partner Attorney-at-Law at Mateša&Kapitan Law Firm, says for Diplomacy&Commerce. He explains that with today’s fast development of the economy and technologies, the law and legal

practice, being a conservative profession after all, are changing and adapting increasingly faster.

Your Law Firm was established in 2010 and you have been successfully providing legal assistance to your clients in accordance with positive regulations of the Republic of Croatia and acts

What is it that makes Mateša&Kapitan Law Firm different from others? — First of all, I think it would be pretentious to think that we are particularly different or better at something than most of our other colleagues lawyers, who do their job professionally and with quality. What I can do is talk about the part that makes us Mateša & Kapitan Law Firm, and I believe that it’s primarily our focus on resolving legal challenges of our parties. Namely, we try to offer legal services in a way to truly resolve the legal issues of our clients, to eliminate or shorten the duration of legal proceedings as much as possible, to communicate with the opposing counsel and try and find an optimal solution to end a dispute - of course, always taking into consideration the interests of our party. I believe that In today’s age of fast and accessible communication, daily conclusion of various contracts and jobs among people who are often completely dislocated, it is much more important to resolve their legal issues so that they do not take away their time, create negative energy and divert focus from business, which is the basis of every

ties themselves are rarely overly interested in the actual result of the court proceedings, but if they are still in business - then they are just waiting for the end of such a procedure, which is usually difficult for them. In our operations, we strongly appreciate the basic values: ethics, morality in business and decency in dealing with our clients and other stakeholders in the process. I believe that these basic values should be emphasized and used in performing this work, regardless of the fact that the most common perception of a good lawyer is a loud and aggressive appearance, but I assure you that it is often completely unnecessary and a failed approach that usually harms the interests of the client.

How would you describe the current state of advocacy and the legal profession in Croatia, and what is the direction it should take in the future? What are the basic differences in business today compared to when you started? — I can say that the legal profession is changing almost every day. Since we as a profession are, after all, tied to the economy, and we represent some form of its service, we ourselves are thus susceptible to changes that are taking place in the economic transactions, which are significant. Today, the legal profession is increasingly becoming a consulting activity and I

AS A MEMBER OF EUROJURIS, WE PROVIDE OUR PARTIES WITH QUALITY LEGAL AID OUTSIDE CROATIA AS WELL, IN COOPERATION WITH VERIFIED LAW FIRMS FROM EUROPE AND THE WORLD of the Croatian Bar Association. What services can clients turn to you for and which activities are your specialties? — Our Law Firm works predominantly with economic entities, where we provide all the legal assistance they need in their operations. This most often includes

entrepreneur. It is my opinion that lengthy court proceedings seldom bring any great satisfaction, even in case of ultimate success, since time is what ultimately erases the importance and often the emotions that led to a dispute. For example, 10 years after the beginning of process, the par-

think that we will continue in this direction in the future. Our clients ask us to be available to them on a daily basis and to assist them in making their business decisions. We are present almost in everyday business of our clients, since we ourselves must be familiar with at least the general way their busi-

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ness operations are conducted, in order to be able to provide them with timely and good legal advice. I think, therefore, that the line between business and law is getting thinner, and that it is almost impossible to deal exclusively with law, like before, without a deeper understanding of business and business relations, but also to do business without neglecting its legal order, especially taking into account the growing number of legal regulation of each individual business. With today’s fast development of the economy and technologies, the law and legal practice, being a conservative profession after all, are changing and adapting increasingly faster. Today, at the level of legal profession, increasing topics are personal data protection, intellectual property rights, web commerce, consumer protection, etc. and these legal segments were previously on the margins of the legal profession. At the level of daily business of the legal profession, E-communication with courts is being introduced, hearings are held via web platforms, we take part in proceedings before European courts with the application of EU law, foreign law offices come and operate in the Republic of Croatia. So all of the above are huge and daily changes in the legal profession, and it is certainly a challenge for all of us to permanently educate ourselves and be competent in the large amount of legislation that is constantly being adopted and changed. I am of the opinion that the legal profession will continue its development in the direction of advisory services in the future with the aim of actually facilitating and preventing the accumulation of classic litigation among clients. Interdisciplinarity in the provision of legal aid, alternative dispute resolution and international cooperation will become more and more pronounced.

Your company is the member of a leading European network of independent law firms – EUROJURIS, which is seated in Belgium. How significant is this for you and what are the advantages of this membership? — We are very happy that, as a member of Eurojuris, we can take an active part in educational events and more informal gatherings with colleagues from all over the world. As an organization, Eurojuris is very active and

we often have events or specialized work groups from a particular branch of law, which allows us to exchange experiences with other colleagues, and it gives us insight into the legal profession at a wider European level. The current situation with the pandemic has, of course, limited the possibilities of holding meetings, but I hope that the same will soon return to normal. An additional benefit from this membership is definitely the possibility to provide our parties with

rectly through one of the online platforms, we receive the necessary information and documents, and provide the requested service without physical contact with the party. All the necessary technologies for this kind of “online” legal services have been present in the past as well, but we now provided a new product to our clients by combining these technologies, which saves them time, money and doesn’t expose them to the currently present health risk.

THE RATIO OF SPEED AND QUALITY OF SERVICE IS IMPORTANT IN ONLINE OPERATIONS quality legal aid outside Croatia as well, in cooperation with verified law firms from Europe and the world.

Since the beginning of the COVID 19 pandemic, we all adapted and in many cases transferred to online platforms. You give your clients the possibility for cooperation, making agreements, doing business via online platforms? Which ones do you use and how? — Yes, sadly the current circumstances are such that the possibility of direct social interaction has been reduced practically to a minimum. What’s fortunate in this entire situation is that technology provided us with ICT solutions that enable us to use direct communication at a distance, use and transfer of documentation and in fact to continue our business operations, etc. Since these solutions exist, we enable our clients to contact us and use our services without coming to our office in person. In practice, this means that we communicate with a client di-

How much have online business operations affected the changes in business? For example, how do you conduct online mediations and the like? — Online business and the development of communication technologies in general has of course accelerated business processes, so today, mainly when a service is not received the same or the next day, clients become impatient, although some legal matters undoubtedly take time if you want to do quality work. But it’s also understandable that business operations can’t wait so all of this together has accelerated the processes that used to be more time consuming. It is important here to maintain this ratio of speed and quality of service, as otherwise the consequences may be undesirable. As for mediation, i.e. conciliation, this alternative manner of resolving disputes has many advantages, so even though it has not yet been fully in use in our country, I believe that it will be more represented in the future. The promotion and encourage-

ment of the use of this type of dispute resolution at the Croatian level is particularly successfully performed by the Croatian Mediation Association, and this form of dispute resolution has been adopted by some formal organizations as well (e.g. the Croatian Insurance Bureau). Mediation focuses on the primary resolution of a legal dispute between the parties by bringing the opposing parties closer through communication with the aim that they find a way to resolve the dispute themselves with the professional assistance and guidance of the mediator. I can say from my experience that in some disputes, it is precisely the lack of communication that leads to lengthy court proceedings which is why I believe that mediation can be a good alternative to courts in terms of speed, a different approach and less formality in resolving disputes. Lawyers should not be afraid of losing their significance in this type of procedure, but rather use their behaviour and participation in mediation to help and resolve their disputes, often faster and "more painless" than in court proceedings. Since lawyers actually often act as mediators in their everyday work, knowingly or unknowingly, their adaptation to this kind of procedure is practically natural.

What are you personally guided by when it comes to work and what do you strive for? — Personally, I am satisfied with the cooperation with colleagues from the law firm and the fact that we have created a quality team and work environment in which everyone can participate with their ideas and work. I think today it is more important than ever to give people the opportunity to prove themselves, give them the confidence and have flexibility and understanding for each individual. I am also professionally satisfied that we have managed to build long-term relationships with our clients, which over time often go beyond the business relationship itself. However, it is always important to remember that we are a law firm and that the services we provide to our clients must be of high quality. In perspective, I hope that the COVID 19 pandemic will tone down and that we will all be able to turn to new business challenges and personal pleasures, with a few hugs here and there.

Apriori World Winner of the Golden World Awards 2020 This award was received for the “Soaps with Dots” (“Sapuni s točkicama”) project honour, but also a responsibility. There are many great projects, but in order to achieve certain results, in addition to an innovative idea, you must constantly and continuously donate your time, which we sadly lack. Everyone who worked in front of the Apriori World team was honoured for their work, and I still do it pro bono to this day. We have upgraded this project and just recently presented the production of liquid soaps aimed at employing three more blind and visually impaired people. We have been awarded for wholesomeness, not only for communication strategies for numerous stories the media constantly reported over the past 5 years, but also for sustainability of this project. We all have our business goals and plans in business terms. Maybe it is my luck that as a consultant I always have a broader picture and give importance to the processes of communication management, which I deal with, so I can implement them more easily accordingly. INTERVIEW

DANIJEL KOLETIĆ CEO Apriori World

e have been awarded for wholesomeness, not only for communication strategies for numerous stories the media constantly reported over the past 5 years, but also for sustainability of this project, stated Danijel Koletic , CEO Apriori World, for Diplomacy&Commerce. Since we also operate globally, this is definitely a huge competitive advantage for our new clients, and a confirmation to the old ones that they have indeed chosen a good partner, Koletić added.

Apriori World won first place in the world, or more precisely, you are officially the winner of the 2020 Golden World Awards awarded by IPRA (International Public Relation Association)

from London. The award is awarded for global contribution of public relations in accordance with United Nations’ sustainable development goals. What specifically were you awarded for? — As you said so yourself, this year, IPRA decided to follow sustainable development goals in cooperation with the United Nations. There are 17 of them in total, and we were awarded for

of the Blind, with Braille labels. This is a social entrepreneurship project that was joined by the City of Zagreb, the Institute of Expertise, Professional Rehabilitation and Employment of Persons with Disabilities, as well as many donors like the European Bank for Reconstruction and Development (EBRD), Turkish Cooperation and Coordination Agency (TIKA), Zvijezda Oil Plant, but also

THE ENTIRE INDUSTRY, NOT ONLY PUBLIC RELATIONS, BUT OTHERS AS WELL, CHANGED THEIR COMMUNICATION GOALS AND MESSAGES goal no. 10: “Reduce Inequality”. Apriori World has been contributing to the community for 20 years in continuity, through various projects. This award was received for the “Soaps with Dots” project. These are soaps made by blind and visually impaired persons from the Zagreb Association

architects Vedran Pedišić and Erick Velasco Ferrera, and many others. I am proud of everyone who is a part of this project, but what stands behind it is consistency, perseverance, vision, renunciation and time that you must bestow, along with knowledge. Being the first in the world is a great

What an award like this means in your PR industry, and how important is it for further business operations? — Many PR agencies try to draw attention through their PR projects so they could have a certain impact and results within the company or outside it, that is, so they could make a positive impact on the community. Creativity and competitiveness are great in the market, within the communications industry, however this award has definitely put us in the world’s focus, and therefore not only my knowledge but the knowledge of all of us from this region. Many agencies win national, regional, and even global awards in certain categories, more in the field of creative advertising than in the field of communications on this level. When I was informed about winning this award, I wasn’t aware that we won it because, as far as I know, this is the first time in the past 25 years that

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someone in the PR industry was proclaimed the first in the world. I always see results behind me in the routine of constant creation, but it took me a while to gain international recognition and start appreciating myself more. After this award, it is not impossible, but it is difficult to win another global award. But behind my work through different teams and individuals I have mentored and who are successful in their positions today, there is 30 years of experience and I am learning every day. Since we also work globally, this was definitely a huge competitive advantage for our new clients, and a confirmation to the old ones that they have indeed chosen a good partner. This changes the perception not only of Apriori World, but also re-promotes knowledge and creativity from our region.

How do you rate the state of PR industry during the pandemic and how much has the business changed? What is more difficult,

and are there maybe something positive things? — There is no PR office or agency that hasn’t changed the way they do business. At the very start of the pandemic, the focus of corporate communication transferred to the field of internal communications, which the management also had to do. The entire industry, not only public relations, but others as well, changed their communication goals and messages. This historic situation for the plant Earth created a real global crisis where millions of people lost their jobs. A lot of people in the PR industry also lost their jobs and many agencies are on the verge of survival. Organizational rules are changing, personal incomes for certain groups of PRs working in the private sector are dropping, the event in-

dustry, with which the PR industry is also closely tied, is on its knees. We embraced the new way of communicating through online platforms, which already lead to new communication standards, where emotions are lost. The pandemic opened the issue of weakness of communication standards in crisis communication, and it showed once again that regardless of how expert they are in their fields of operation, epidemiologists, doctors and scientists don’t necessarily have to be good communicators. Sadly, the role of PR expert was not as visible as it should have been. It depends on what generation of public relations person you represent and from what angle and business habits you look, that’s how this pandemic has affected PR. While some enjoy working from home,

some lack the contact with people live. It is inconceivable to me that these emotions full of love, life and passion cannot be seen when presenting a marketing or PR campaign, but holograms and changes in our lives await us in the near future and thus in the business of PR industry. Man has been changing, adapting, transforming and learning for centuries, so we are now again at a great turning point. Without PR, there is no digital communication. What will need to change are definitely the documents referring to the communication strategy because the pandemic has not only set new standards of communication, but it has set new challenges. An industry revision is needed, and new technologies will still change not only habits but also the business operations.

IF YOU CALL A PR CONSULTANT IN SWITZERLAND, JUST TO TALK TO HIM FOR 30 MINUTES, YOU WILL HAVE TO PAY UP TO 150 SWISS FRANCS, PROVIDING THAT THIS CONSULTANT HAS A REPUTATION

You are a doyenne in this business, you know the markets, the trends. In which direction is the PR industry developing, and Public Relations themselves, in relation to new technologies, new habits, ways of consuming any product? — The PR business is made of creativity, relinquishment, quality time management, constant learning, adapting and love. The field of public relations has its impact in all sectors of management. It is a management function that cares and will care in the future about the reputation of the company, its brands, products or services, but also about the reputation of the first man of the company. Also, public relations have a key role in the transformation of public administration and public enterprises, as well as individuals in different industries. New technology has posed new challenges in the public relations sector. The first of these is digital communication. Unfortunately, today very few companies have a communication strategy document that contains a special chapter titled "Digital Strategy". PR trends change according to the trends and possibilities of different generations and interests. Behind all the good you see, but unfortunately also the bad, PR

sometimes hides. PR is like nature, it’s all that surrounds us. I spoke about this 19 years ago at the first PRO PR Conference in Herceg Novi. From entrance to the office building, the reception, clothes, business secretary’s nails, the rhetoric, the details, the colours chosen in the space, the vehicles and the mode of transport used by the CEO, these are all messages that are read and they create image. An image is not bought, it is created, it is a process. The first challenge in this industry is to educate the politicians, managers and everyone who manages. The vast majority of them do not understand well enough what the function and role of public relations is, even after 30 years. The importance of public relations has long been discovered by corporations. Today’s PR expert, if he doesn’t have much practical experience, won’t be able to connect breadth and scope in an advisory sense. Every investment in public relations is an investment in prosperity, and without prosperity there is no survival. There is no month in which I do not educate myself. My team and I are expect-

ed, now more than ever, to deliver ideas to clients that will impact development and survival in the long run. Every idea and concept needs to be constantly upgraded, just as the PR industry will change in the future. Fortunately, public relations will not be replaced by artificial intelligence and algorithms so quickly, but nothing is impossible. I believe that a new Alexa will be created that will offer a million protocols and solutions to some new generations. But just like in real life, there will always be something called instinct, something that cannot be learned and bought, something that is given to you or not.

What is your opinion of the PR market in Croatia and the region? You do a lot of work abroad, all over the world, what is the main difference? — The first difference is in the position of the public relations profession and the respect for this profession. I would dare to say that, although we are full of knowledge and creativity, sometimes because of our vanity instead of the interests of the pro-

fession we put our own interests first. Thanks to digital communication, all information is available. If you want to spend a little more time, you will quickly learn some basic but key details about each individual, but also about the position of the profession. Sadly, even after 30 years of work, I cannot say that my colleagues are equally recognized by those who manage as experts not only in Croatia, but also in the region. I always put Slovenia in the first place, in terms of perception and status by the business community. Slovenia was among the first to introduce standards in the field of communication. Montenegro is full of knowledge and experts in this field who are really appreciated, who are listened to, but who are unfortunately not united, so they do not exist as experts on the world map, just as experts from Northern Macedonia are wanted on that map. Bosnia and Herzegovina has received the most international knowledge in this area, but those in power do not understand the importance and role of public relations. That’s why position and percep-

WE EMBRACED THE NEW WAY OF COMMUNICATING THROUGH ONLINE PLATFORMS, WHICH ALREADY LEAD TO NEW COMMUNICATION STANDARDS, WHERE EMOTIONS ARE LOST

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tion of the profession is somewhat underestimated. Today, Croatia and Serbia are almost on the same level. Although almost all hostesses in Serbia were PR managers ten years ago, they managed to let the market know what public relations is, thanks to numerous corporations. Unfortunately, professional associations in Croatia and in Serbia have failed to attract all those involved in the profession through the private and public sectors to discuss not only the challenges but also the better position of the profession. However, sometimes egos of individuals working in public relations in these countries are sometimes bigger than knowledge, and it’s hard to restore the shaken trust, but this will too change if there is good will. We must not forget that we are a young profession that is still in its mature teenager years, that managed, in very short time, to caught up, but also to upgrade the rhythm of global standards in a practical sense. I will deliver the same quality of knowledge to Croatia or Slovenia or Montenegro as I would to London, Doha, Tokyo or Milan, the only difference is that I would be paid three times more on these markets outside the region and that my every advice will be accepted and implemented there, because when you’re abroad, someone who has 30 years of experience is perceived

THE PR BUSINESS IS MADE OF CREATIVITY, RELINQUISHMENT, QUALITY TIME MANAGEMENT, CONSTANT LEARNING, ADAPTING AND LOVE and appreciated differently. For example, if you call a PR consultant in Switzerland, just to talk to him for 30 minutes, you will have to pay up to 150 Swiss Francs, providing that this consultant has a reputation. Company management, StartUps, investors abroad clearly understand why they must invest in PR relations. Unfortunately, many here still see public relations as an expense. It would be interesting to conduct an analysis in the region about how many members of the management attended an education on the topic of public relations in the past two years, and do they know what this name means today. I see in their perceptions that they still see it as media relations, just like many don’t understand the difference between, for example, a government spokesperson and the director of the government communications office.

Your business recommendation for success, do you have one or is everything relative? — I look at the success in life through different things. We can look at it from different angles, I dare say that it can be associated

with charisma, perseverance, consistency, great sacrifice and interest, whatever that sounds like. I come from an entrepreneurial family, namely my late parents were tailors. My father died when I was five years old, and entrepreneurship wasn’t my mother’s cup of tea, so she continued her life not as a seamstress but as a cleaner, and then a delivery girl. My success is related to work habits. I started to develop work habits from the age of ten, which is when I started to work in Crikvenica, where I worked every season and even in Zagreb until the age of 25. When I came here, like many others, from a small town to a big city, I lived as a tenant, working sometimes more than ten hours a day. I created the habit of waking up early, but I always set myself one goal – that I wouldn’t let anyone weaken my positive spirit, despite the constant life struggle. Looking at people and their successes, their constant accumulation or inheritance, I come to the conclusion that success depends on how willing you are to give because the energy of the words you tell people and the time you give them are something that al-

ways comes back. All people want to be rich, and they are not aware that wealth is hidden in them, they just have not peeked enough into their thoughts to discover the skills that make them rich. I believe that every man possesses in himself something that distinguishes him from others, that every man sends us a certain message if we are destined to know how to read that message not only through words. Success depends on a willingness to change. Take a look at a 75-year-old man today, if he didn’t work on himself and if he talks about himself as being old, his life stops. If he is willing to learn, to connect, his life goes on and that’s his greatest success. People sometimes don’t understand the motto “Less is More” because, in the end, a billionaire will eventually be sentenced to stay in a smaller space, despite his real estate or movables. To me, success has several faces because we all depend on each other, but we sometimes don’t respect all people the same. We forget that we can be the man we are talking to. Success takes patience which is lacking today. This topic requires a bit more space, after all. I would like to thank everyone I encountered, I had the opportunity to talk to, get to know them better or learn something from them, to be the first in the world today together with my team.

BALKING AT BALKAN BABIES

The Balkans are Getting Short of People The demography of south-eastern Europe threatens its hopes of prosperity outh Eastern Europe is in a Catch-22. The region’s many problems prompt young, talented people to leave in droves. But it will not catch up with the rest of Europe without young, talented people to generate prosperity. Across the Balkans, populations are shrinking and ageing, and unless that changes even more will leave. Measuring demography in the Balkans is difficult: apart from those for births and deaths, data are hard to come by. A lorrydriver who leaves Belgrade to take a job in Germany does not have to tell the Serbian authorities. Because of the region’s complicated history, millions of its citizens can get passports from neighbouring “mother countries”. These are especially attractive if the mother country belongs to the EU, since EU citizenship includes the right to work anywhere in the union. A fifth of Croatian passport-holders working abroad are probably from Bosnia, and almost all Moldovans working in the West have Romanian documents. All this makes it hard to tell who is where. Yet the data that are available paint a clear picture. The population of every Balkan country is shrinking because of emigration and low fertility. In the past, populations grew back after waves of emigration, since many women had six children. Now few have more than one. Serbia may have more pensioners than working-age people by next year. In the short run governments do not mind emigration because it lowers unemployment and increases remittances from abroad. But in the long run, says Vladimir Nikitovic, a Serbian demographer, it is “catastrophic”. About 50,000 people leave Serbia every year. Of those who return, around 10,000 are pensioners who have spent their working lives in the West. Their children will not follow them back. On current projections Bulgaria will have 39% fewer peo-

MEETING WESTERN EUROPE’S NEEDS WITHOUT DRAINING THE BALKAN COUNTRIES OF THEIR PEOPLE REQUIRES CONCERTED ACTION BY THE EU AND THE STATES OF THE REGION ple by 2050 than it did in 1990 (see chart). The region has some of the world’s lowest fertility rates. Bosnian women have an average of 1.3 children and Croatians 1.4. Kosovo, with a median age of 29, has the region’s youngest population, but its fertility rate of 2.0 (just under the replacement rate) has been falling for years too. Elsewhere, rates are similar to those of western European countries. But because the Balkans host hardly any taxpaying immigrants, money for pensioners is scarce. The effects of population shrinkage are stark. At the height of the summer holidays Rasnov, a pretty town in Romania’s Transylvanian hills which once had a bustling marketplace, is eerily empty, with barely a café open. A generation ago its ethnic Saxon population, which traced its roots to the Middle Ages, left for Germany. Its ethnic Romanians seek work elsewhere. They send money

home to ageing parents, but few come back except to retire. Why work in a café in Rasnov when you can do the same for far more money abroad? A few of the region’s cities have grown. Cluj, another town in Transylvania, is booming. Albania’s capital, Tirana, is also drawing people in. Its mayor, Erion Veliaj, says it faces an influx of 25,000 people every year. But those are exceptions. This combination of rapid emigration, low fertility and sparse immigration produces the worst imaginable result, says Kresimir Ivanda, a Croatian demographer. Greece, Italy and Spain have low birth rates, but attract lots of immigrants. In Poland, more than 1m Ukrainians have filled gaps in the labour market left by emigration. Mr Nikitovic worked for a national commission on solving Serbia’s demographic cri-

sis, but the government, he says, did not act on enough of its ideas to make much difference. As in many Balkan countries, the problems are legion. Women are discouraged from having more children by the lack of protection against being fired when they become pregnant. Cheap air travel makes seeking work abroad easy (or did before covid-19 struck). In normal times, Croatian carers in Britain or Romanians in German slaughterhouses can commute to short-term jobs. This worsens labour shortages at home, which in turn pushes up wages. Ivan Vejvoda, of the Institute for Human Sciences in Vienna, thinks meeting western Europe’s needs without draining the Balkan countries of their people requires concerted action by the EU and the states of the region. Of course, for citizens of Balkan countries, earning higher wages abroad is a boon. Remus Gabriel Anghel, a Romanian demographer, says the migration experiences of the past 15 years have also been a motor of social change. Before, people just wanted to make ends meet; now those who have lived in western Europe demand better schools, hospitals and services. This, Mr Anghel says, is something the government “does not really understand”.

From The Economist, published under licence. The original article, in English, can be found on www.economist.com

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Hate Speech in Public Sphere As the online communication rises, rises as well the opportunity that any stakeholder of the communication process in the public sphere comments on the ongoing debate among social media personas. Those comments often slip into hate speech. The question imposes itself: how and who should address it?

COLUMN

JAGODA POROPAT DARRER Business Communication Professional

ate speech is defined by the Cambridge Dictionary as "public speech that expresses hate or encourages violence towards a person or group based on something such as race, religion, sex, or sexual orientation". Hate speech is "usually thought to include communications of animosity or disparagement of an individual or a group on account of a group characteristic such as race, colour, national origin, sex, disability, religion, or sexual orientation". A majority of developed democracies have laws that restrict hate speech, including Australia, Denmark, France, Germany, India, South Africa, Sweden, New Zealand, and the United Kingdom. Laws against hate speech can be divided into two types: those intended to preserve public order and those intended to protect human dignity. Although, there is no uniform definition of hate speech under international human rights law, rather, it is a broad concept which captures a wide range of expression. While there is no exact legal definition of “hate speech”, it is generally defined by the United Nations as, "any kind of communication in speech, writing or behaviour, that attacks or uses pejorative or discriminatory language with reference to a person or a group on the basis of who they are, in other words, based on their religion, ethnicity, nationality, race, colour, descent, gender or other identity factor." When left unaddressed it can lead to violence or hate crimes against marginalised groups. While some statements

may not immediately incite violence, they can spread seeds of intolerance and anger that lead to legitimising acts of hate. Germany has some of the strictest laws on what is acceptable speech. Forged in the late 1950s, according to Delcker (2020), Germany’s robust hate speech laws were a direct response to the country’s experience with Nazism and an acknowledgment that the rise of authoritarianism was partly made possible by the fact that it was legal to use incendiary propaganda that drew on racist tropes and was designed to stoke prejudice. Around the world, hate speech is on the rise, and the language of exclusion and marginalisation has crept into media coverage, online platforms and national policies. The International Dialogue Centre (KAICIID) believes hate speech requires a coordinated response from religious leaders, policymakers, journalists and the

general public – both to address the main drivers of hate speech and to provide a coordinated response which upholds the fundamental rights and inclusion of all communities and individuals. Freedom of expression is protected under international law, with clear rights outlined in Article 19 of the Universal Declaration of Human Rights (UDHR) and the International Covenant on Civil and Political Rights (ICCPR). However, the international community has also agreed to certain limitations – such as on speech which advocates “national, racial or religious hatred” and “constitutes incitement to discrimination, hostility or violence.” Therefore, it is extremely important for governments to establish sound legal frameworks on hate speech which hold perpetrators accountable, uphold human dignity, protect marginalised groups, while still balancing the right to freedom of expression.

IT IS EXTREMELY IMPORTANT FOR GOVERNMENTS TO ESTABLISH SOUND LEGAL FRAMEWORKS ON HATE SPEECH

Tulkens (2013) suggest, tackling hate speech is a complex and multidimensional task in which we are all involved (parliamentarians, journalists and the media, law-makers, political leaders, civil society, lawyers, teachers, academics, etc.). So where do responsibilities lie? The answer is short and simple: everywhere. For effective prevention, it is necessary to understand the patterns of hatred and have a better knowledge, grounded on empirical data, about the phenomenon: scientific research versus ideological bias of the foundations of hate speech. For instance, is there a connection between the ascending wave of hate speech and the economic crisis? It seems not because poverty does not necessarily lead to extremism. Populism and hate speech were doing well before austerity. The economic crisis is not the root cause of this. So it is an illusion to think that the problem will disappear when we are out of the crisis. „Politicians and other public figures have a greater responsibility because they have broader possibilities for spreading prejudice against certain groups“, Tulkens (2013) states. Moreover, the impact of political speech is also greater because politicians are in a position of authority: so hate speech has an impact on potential offenders who feel encouraged in their intolerance and bias. In some countries, it has been said that criminal legislation has an added responsibility if the author of hate speech holds public office. In the light of the recent discours between Croatian President and the Prime Minister, let's conclude this topic with a hope that they are having a dynamic and vivid political public debate, and let's hope once again, they'll soon focus on much more relevant and important state affairs.

HOW WE LIVE NOW

Visors and violence: We are Returning to the Middle Age Even before the new plague arrived, modernity seemed to be in retreat on Quixote sees phantoms of the Middle Ages wherever he goes. Roadside inns are castles, vagabonds are knights in shining armour and windmills are giants to be jousted with. I often feel the same way myself these days. Shop assistants wear visors shaped like seethrough helmets and shelter behind Perspex sheets that look like transparent shields. This is perhaps as it should be: the Middle Ages was a time of plagues. The Roman Empire was felled as much by viruses as barbarians. The Black Death of the 1340s killed more than 40% of Europe’s population (which puts our little problem into perspective). The rich fled the cities to hunker down in the countryside (“The Decameron” by Giovanni Boccaccio is a collection of tales narrated by people sheltering outside Florence from the plague). A new artistic genre, the Danse Macabre, told the story of the universality of death. Flagellant religious orders whipped themselves in the hope that the pain would ward off the Last Judgment. Now we are witnessing the return of many medieval pathologies. Millenarianism is on the march again. Extinction Rebellion activists close down cities and daub town squares with fake blood in protests that usually involve wild dancing and drumming along with predictions of the end of the world. The new high-tech Middle Ages is even seeing the return of medieval political nomenclature. Kings were once called the Bald (Charles) or the Cruel (Peter of Castile). Donald Trump now dubs his opponents Sleepy Joe or Crooked Hillary. There are structural similarities too – similarities that began long before covid-19 took hold and raise worrying questions about our post-covid future. The middle class that was the bulwark of the post-war world is on the retreat across the West. The new tech oligarchy resembles the medieval ar-

RATHER THAN CONTAIN A MULTITUDE OF THOUGHT, THESE LATTER-DAY CLERICS ARE OBSESSED WITH SIN IN THE FORM OF RACISM AND SEXISM AND DOLE OUT FEARSOME PUNISHMENTS TO SINNERS istocracy, “the chivalrous class without the chivalry”, as Joel Kotkin wrote in a recent book, “The Coming of Neo-Feudalism”. Its members live in gated communities or isolated enclaves protected from the rest of society. They socialise with each other at global festivals but seldom have any contact with those who inhabit unfashionable areas such as flyover country in America (the parts of the country most Americans only ever see from the air), or the north of England. Large armies of “retainers” wear their livery, in the form of T-shirts or baseball hats emblazoned with logos, and do their bidding. The academic elite looks more like the medieval clergy by the day. Universities and university towns are latter-day monasteries that protect their members from contamination by hoi polloi. Academics engage in the modern equivalent of scholastic debates: rather than discussing how many angels can dance on the head of a pin they discuss whether sex is a social construct (the answer: of

course). Rather than contain a multitude of thought, these latter-day clerics are obsessed with sin in the form of racism and sexism and dole out fearsome punishments to sinners. Those who venture outside a narrow range of permissible opinion are excommunicated from society, publicly flayed on Twitter and forced to live in the intellectual equivalent of medieval forests. These gated communities and medieval monasteries are surrounded by an expanding class of serfs and beggars. The serfs exist at the beck and call of the tech and clerical elites – they drive their cars, deliver their food and clean their houses. But rather than being tied to particular people or plots of land they are just-in-time workers on zero-hours contracts who are tethered to an algorithm. The serfs pick their way through the crowds of beggars, living in tent cities and subsisting on the cast-offs of the wider society. Police officers look increasingly like Don Quixote’s knights.

This is particularly so in America, the country that is leading the charge back to the Middle Ages despite having never experienced the Middle Ages itself. People there wear helmets to protect themselves from rocks, special vests to ward off bullets, and pads on their elbows and knees. They are weighed down by all sorts of heavy equipment – radios, flashlights and, of course, guns. They sometimes ride on horses, like knights of old, but are more likely to choose armoured Humvees, or even tanks. Despite all this heavy armour, the police are losing control of the streets. One of the signature achievements of modernity was the creation of the nation state which could claim a monopoly of violence within its borders. The state is once again losing the battle against feudal gangs of various sorts. In London, knife-crime is becoming so common that it can’t be long before people wear swords and scabbards. In many of America’s great cities the police have left inner-city areas to look after themselves. Downtown Portland is ruled by gangs of activists who wear medieval armour of their own and engage in regular – and highly ritualised – jousts with police. The most striking similarity, though, is the distance between image and reality. The people of the Middle Ages talked about chivalry and the Glory of God but lived in a brutal world in which gangs mugged each other and monks engaged enthusiastically in all the sins of the flesh. Today’s elite talk constantly about “inclusion” and “win-win” situations but have created a world in which the spoils go to a tiny minority, and more and more people are cast into the wilderness. The inferno beckons. From The Economist, published under licence. The original article, in English, can be found on www.economist.com

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BUSINESS NEWS

03 Hrvatska poštanska banka INTRODUCING INSTANT PAYMENT TO A NUMBER FROM A MOBILE PHONE OR E-MAIL

BOR H €100 MILLION FOR SMALL AND MEDIUM-SIZED ENTREPRENEURS 01

As the largest creditor of the domestic development bank, EIB has approved a loan for favorable lending to small and medium-sized enterprises and ‘mid-caps’, companies with up to 3,000 employees. This is the European Union's economic assistance for small and medium-sized companies affected by the COVID-19 epidemic, which was adopted by the Union’s Development Bank in April 2020. The line is intended for working capital loans, but also for monitoring of investment projects, which in practice means 'thickening' of existing programs of the development bank. The main limit is set in the size of the company, but given that the doors are open to all who have up to 3,000 employees, in reality this covers the vast majority of domestic companies. Those outside these limits have other types of credit instruments at their disposal, both in the domestic and cross-border markets.

Hrvatska poštanska banka offered the service of instant payment transactions on its digital channels, 24 hours a day. Execution of payment orders with im-

isa and MasterCard V RETAILERS ACCUSING OF COLLECTING EXTRA PROFITS 04

Visa and MasterCard charge too high fees and benefit from the situation caused by the Coronavirus pandemic, BBC reports the warning of the British Independent Retail Association. Fees for payment with cards

02 OTP INITIATED PROCEEDINGS AGAINST CROATIA FOR LOAN CONVERSION

Hungarian OTP Bank announced that they initiated international arbitrary proceedings against Croatia, thus joining a group of banks seeking reimbursement of costs arising from the prescribed conversion of loans in Swiss francs. With its 2015 law on conversion of CHF-denominated loans to

EUR-denominated loans, Croatia violated the agreement with Hungary on the protection of investments, states the press release of the Hungarian bank, issued on Monday. That is why OTP initiated arbitrary proceedings before the International Centre for Settlement of Investment Disputes (ICSID) and they are asking for reimbursement of costs tied to the conversion, which are currently estimated at HRK 224 million.

Fina PAYMENT SYSTEM WITHIN 10 SECONDS 05

Fina developed NKSInst payment system, which, as they reported, almost immediately enables the transfer of funds from the payer's account to the payee's account - in just a few seconds at any time of

mediate transfer of funds to the payee's account for clients of Hrvatska poštanska banka becomes a reality on October 29, 2020. On that day, NKSInst, a new payment system in the Republic of Croatia, developed by Fina and approved by the Croatian National Bank, will start working, which will mark a new era of development of modern payment services.

have almost doubled in the previous two years, British retail associations warn, adding that retailers were forced to transfer added costs to consumers. This means that the credit card bill will increase by £40 annually, they underlined. Increase of fees by 39% in 017, and then by 56% in 2018, expressed as a share of turnover, “is a clear demonstration of abuse of market dominance.

the day, i.e. this means urgent payments in case of online shopping, sending money to family members or friends, sharing a restaurant bill, paying salaries, fees, emergency insurance and other bill payments and other receivables. Currently, participants in the NKSInst payment system are PBZ, HPB and Partner banka d.d.

CULTURE NEWS

The film "Extracurricular" candidate for the Academy Award The film “Extracurricular” (“Dopunska nastava”) directed by Ivan Goran Vitez, a satirical thriller about a hostage crisis in an elementary school, is Croatia’s candidate for the American Academy Award, the Oscars. Vitez, whose film was selected in the second round of voting of the Association’s committee, says that he was very happy and surprised by the news, because he did not hope for it. His film was already shown in the US, in festivals in Chicago and Palm Springs. The story of “Extracurricular” follows a newly divorced father who, furious because he can't celebrate her ninth birthday with his daughter, bursts into school with a gift, a cake and a rifle. The situation is causing unrest at all levels - the current mayor sees the hostage crisis as an opportunity for political

points ahead of the local elections, and as the son of a young police officer is in the class as well, things are taking on new proportions. The film uses the story about a hostage crisis to talk about the position of political elites, and the Croatian society as a whole towards the Croatian education system. The cast includes Milivoj Beader, Marko Cindrić, Anita Matić Delić, Željko Königsknech, Filip Eldan, Zlatko Burić, Đorđe Kukuljica, Darko Janeš, Janko Popović Volarić, Marina Kostelac, Zlatan Zuhrić Zuhra. Frida Jakšić and Franko Pavičić make their debut in the role of schoolchildren. Director of photography is Lutvo Mekić, costume designer is Katarina Zaninović, makeup artist is Snježana Gorup, Mario Ivezić is the set designer and Ivana Rogić is the film editor.

Presented Lexicon of Croatian Goran Bogdan and Marija Škaričić awarded with MOFF awards Emigration and Minorities "A Lexicon of Croatian Emigration and Minorities”, edited by Vlado Šakić and Ljiljana Dobrovšak, was presented at the Croatian Heritage Foundation (HMI) in Zagreb. Director of the Ivo Pilar Institute for Social Sciences, Željko Holjevac, pointed out that the Lexicon is a source of verified information about the history of our people in migration, and added that its publishers tried to reach the majority of individuals and groups who were in some way included in the creation of Croatian section of the modern culture of encounters on a global level.

Croatian films at the Cottbus Festival

Croatian actors Goran Bogdan and Marija Škaričić won the Tree of Love Award at the 14th Mostar Film Festival (MOFF). Jury of the competition program made up of Miro Barnjak, Anila Gajević and Branka Bešević Gajić stated that Goran Bogdan in the film “Father” (“Otac”) and Marija Škaričić in the movie “Mare” deserved the best actor and best actress awards among the ten films shown at the festival that was held in the form of a drive-in cinema and online. Award for the best supporting actress went to actress Jadranka Đokić for her performance in the film “Focus, grandma” (“Koncentriši se baba”), and Boris Isaković won the best supporting actor award for his performance in the film “Father”.

Four Croatian films will be screened in different program sections of this year's Cottbus Film Festival, which will be held in cinemas and online from November 3rd to 8th, Croatian Audiovisual Centre announced. As part of the competition in feature films of the 30th edition of this German festival dedicated to Eastern European cinema, the multi-award-winning film "Mother" (“Mater”) by director and screenwriter Jure Pavlović, will be shown. The Spectrum section features 13 movie titles, two of which are Croatian – a satirical thriller by Ivan-Goran Vitez “Extracurricular” (“Dopunska nastava”) and a minority Croatian co-production “I Am Frank” by Metod Pevec (Interfilm Company is the Croatian co-producer). Another minority Croatian co-produc-

tion will be screened in the program section “Of Frustration and Freedom” – the film “When the War Comes” (“U slučaju rata”) by director Jan Gebert, made as a Czech-Croatian co-production. The debut feature film “Honey Bunny” (“Koke”), directed and written by Igor Jelinović and “Closed to the Public” (“Zatvoreno za javnost”) by director and writer Vanja Juranić, will be shown as part of the co-production expo Connecting Cottbus, which will be held from November 4th to 6th. Both projects are co-financed by the Croatian Audiovisual Centre, and one of the awards for projects in development within this year's cocoPITCH, in the amount of 5 000 euros, will also be awarded under their auspices.

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