NALED time line 2006 2007 2008

March July January

The National Alliance NALED Managing NALED positioned for Local Economic Board held its first itself as a leader in Development was cre- constitutional meet- promoting public- ated within USAID’s ing. The project port- private dialogue and municipal support folio was defined. The cooperation. It moved program. Its first steps Certification Program to its own premises in were supported by the for business-friendly the centre of Belgrade, President of Serbia municipalities was becoming self-sustain- and the U.S. Ambas- launched. able and independent. sador.

June

Eight months before the Comprehensive Regulatory Reform NALED initiated its “Out of the Maze” campaign for cut- ting the red tape, and started preparing the first Grey Book of procedures. 2009 2010 today

December September Naled

The “Top Reformer” 32 local governments in is one of the most award was established Serbia have improved influential associations, to recognize most their business envi- introducing standards active representatives ronment through the into the work of public of the public adminis- NALED certification administration and tration, as viewed by program. Billboards stimulating changes at NALED members and promoting investments the local and national broader public. The to Serbia have seen level in accordance with first awarded minister the light of the day at the requirements of a was Mlađan Dinkić. Belgrade airport. competitive economy.

November

Pilot-project Calcula- tor was launched – a unique on-line appli- cation for calculating and comparing costs of doing business in Serbian municipalities. Contents

7 Word from the president 8 NALED in numbers 9 Executive Office report 11 What we have accomplished together 12 Investment promotion and business support 24 Business guided policy reforms 29 Municipal capacity building 37 Capacities of the Alliance 38 Organizational structure 41 Sources of financing 43 Financial results 45 NALED membership 47 NALED partners 49 Communications and marketing 50 Media presence 52 Communication strategy he year 2010 was a challenge to the natio- We have promoted the implementation of legal re- Word from the nal economy and to all of us who do our best forms with active participation of the business sector. president to stimulate its growth. Serbia has officially Upon our initiative the Government has fully or par- Tcome out of a period of recession quicker than most tly implemented 16 recommendations from the Grey of its neighbors, with a mild increase in exports and Book aimed at simplifying bureaucratic procedures, overall economic activity. resulting in multimillion worth savings to the natio- This has slightly opened the door to optimism whi- nal economy. We have advocated the establishment ch is a necessary element for success not only in the of a legal framework in the field of public-private economy but in all other spheres of life as well. Howe- partnerships through public debates with decision ver, this alone will not be sufficient for a genuine re- makers, experts, domestic and foreign investors. We covery and overcoming the crisis. When it comes to have pointed out the problems businesses face when competitiveness, Serbia’s economy is still lagging be- calculating local taxes and fees and offered a soluti- hind the majority of countries in the region according on in a form of an on-line Calculator that computes to reports and rankings by international institutions. and compares signage and land usage fees in 20 local If we take a look at what’s behind such ranking, we governments. We have launched a unique investment shall see that inefficient administration, corruption promotion campaign at the airport that has drawn and political instability are provoking the majority huge attention from foreign and domestic investors, of criticism. Maybe this is not such a bad thing after improving Serbia’s image as an investment destina- all – at least we know that the faith of our economy tion. We have contributed to a better business envi- is in our hands. ronment in 32 local governments in Serbia through We in NALED see the enhancement of Serbia’s the Business Friendly Certification Program. These competitiveness as the common goal which unites all are just some of our successful initiatives. the activities of our Alliance. Boosting competitivene- Finally, when we look back at 2010, we in NALED ss is not only a priority for the businesses, but also for may be very satisfied with what we have accomplished. every state institution, local government, the entire We believe that we have assisted many entrepreneurs, education system and the non-governmental sector, businesses and local governments to get through the as they can all contribute to and benefit from a more year behind us, and expect that we will have some competitive economy. more success stories to share in the years to come. In order to have an economic recovery and growth we will definitely need new foreign investments and incre- ased exports, things which will not be achieved without introducing a sustainable and stimulating business en- vironment and lessening the administrative pressure on the economy. The NALED Managing Board focused exactly on these issues when defining the Alliance’s stra- Vladimir Čupić, tegic orientation and activities in 2010. President, NALED Managing Board NALED in numbers

128 NALED members including successful businesses, local governments and NGOs work together on removing the barriers for economic growth in Serbia

20 Government institutions, international development agen- cies and associations support NALED efforts and goals

32 local governments have improved their business environ- ment through the NALED certification program

16 partly or completely implemented Grey Book recommen- dations have brought multimillion savings to the economy

225 thousand national and foreign passengers have seen the in- vestment promotion campaign at the airport

33 conferences and round tables with ministers, ambassadors and investors gathered around 2,400 visitors

9 workshops and two study tours have strengthened internal capacities in 19 local governments

130 thousand visits to the company web-site and its Database of available funds and Legislative tracking system proved NALED to be a reliable source of information

518 media announcements and 22 TV appearances ensured high visibility and influence of the organization espite the crisis, in 2010 NALED has membership in the realization of all events. Executive Office achieved growth in all fields. Thirty new Program activities of the organization respond to report members, the doubling of the budget and the common ideas and needs of our membership. Da growing support of institutions and international In order to ensure their efficient realization we have organizations prove that we have justified the trust obtained additional funding from leading donors of our members and partners and have built strong operating in Serbia such as USAID, GIZ, CIDA, foundations for future endeavors all in accordance the Open Society Fund, LEDIB and others. By se- with the priorities of the municipalities, the econo- curing donor funds and international support, NA- my and the citizens gathered in NALED. LED is in the position to successfully implement In order to strengthen the capacities of the or- economic growth programs, offering additional ganization, NALED has expanded the Executive value to its members. Office by engaging new expert staff and renting The crown of our activities is high visibility and additional office space equipped with the support media attention – over 500 media announcements of USAID. NALED staff is now including highly were made during 2010 as a result of a well prepa- qualified foreign experts engaged with the support red marketing approach and a synergy of activities of the German embassy and CIM centre, as well as of all members. newcomers from the “First Chance” program who Plans for 2011 include activities aimed at agri- are gaining their first work experience in our team. culture and rural development, networking with The network of institutional partners coope- young people from the country and abroad and rating with NALED is getting stronger. As of this establishing standards of corporate social respon- year, we are joined by the Ministry for the Nati- sibility. Only with additional engagement and lea- onal Investment Plan, the Ministry of Public Ad- dership coming from our membership we can ma- ministration and Local Government, the National ke all these new initiatives happen. Agency for Regional Development, the Free Zones On behalf of the NALED Executive Office I sin- Administration, and Nikola Tesla Airport which cerely thank you for your generous support to the has supported our campaign for promoting inves- activities of the organization and for your personal tments to Serbia and our municipalities. contribution to the reforms which are so signifi- Apart from intensifying activities on existing cant for the economy; I am convinced that the key projects (certification of municipalities, Grey Bo- results of our joint efforts are yet to come. ok, public-private partnerships), in 2010 we have launched several new and interesting initiatives such as the Calculator of local business costs and certification program for rural areas. We have or- ganized and supported 33 conferences and round tables with institutional and business representa- Violeta Jovanović, tives from country and the region, involving the NALED Executive Director

What we have accomplished together

The mission of NALED is to improve the business environment in Serbia through institutional reforms with active participation of businesses, municipalities and citizens.

NALED implements its mission by operating in three key areas of activities:

• Investment promotion and business support • Business guided policy reforms • Municipal capacity building Investment promotion and business support

Calculator of business expenses ing the use of renewable energy sources. LTS During the year NALED started develop- attracts more than 15,000 visits per year to the ing a unique on line system for calculating NALED web-site. and comparing costs of doing business in Serbian local governments. The idea and ini- Working Group for tiative to establish the Calculator originated Entrepreneurial Development from NALED members, as several entrepre- in Eastern Serbia neurs pointed out the problem to understand and calculate certain local taxes and compen- sations. The pilot phase of the project available via the Internet at www.kalkulator.naled-ser- bia.org enables calculation of two very impor- tant costs of doing businesses / two sources of revenue in 20 local governments: land usage fee and signage fee. Calculator enjoys the sup- port of USAID. The first meeting of the Working group for entrepreneurial development Legislative Tracking System According to the number of on-line visits, In March 2010 NALED established coop- one of the most attractive services NALED has eration with the KWD program of GTZ, which to offer is the Legislative Tracking System supports local economic development in mu- – LTS. In 2010 NALED experts prepared de- nicipalities in eastern Serbia. After the first plan- tailed analyses of 5 new laws and their practical ning session a working group for the develop- consequences including the Law on Trade, Law ment of entrepreneurship in eastern Serbia was on Copyright and Related Rights, Law on State formed including the following members: 10 lo- Survey and Cadastre, Law on Controlling the cal governments from eastern Serbia, Ministry of State Assistance. In LTS database one may also Economy and Regional Development, Business find several other analyses regarding the Law Registers Agency, National Employment Service, on Regional Development, Law on Planning Association of Small and Medium Enterprises 12 and Construction and Regulation on stimulat- and Entrepreneurship, Regional Agency for the Toplica Spasojević, vice-president of NALED Managing Board, Dragan Pušara, director of PUC Belgrade City Markets spoke at the conference "Belgrade Wholesale Market” along with the representatives of USAID Agribusiness Program and Delta Agrar

Development of Eastern Serbia (RARIS) and sev- business people and entrepreneurs informed via eral local associations of entrepreneurs and eco- the web-site and e-mail on the most recent an- nomic chambers. Members of the working group nouncements and possible funding sources for are ensured with a privileged position when ap- their development projects and business plans. plying for GTZ funding, which serves as an ad- There were 109 funds presented in Compendium ditional stimulation for local economic develop- during 2010, which attracted over 13,000 web- ment. The working group has met three times, site visits. firstly in June (after it was formed), thereafter in October and December. Expert seminars and One of the key results of the working group is the conferences for businesses analysis of entrepreneurship status in eastern In 2010 NALED organized 3 expert confer- Serbia showing that local governments generate ences and supported the organization of an ad- insufficient income from land while small and me- ditional 5 round tables and seminars in the field dium-sized enterprises are paying too much for sig- of economic development. These events attracted nage fees and income taxes. These findings inspired more than 600 visitors from the private and pub- the elaboration of a different tax system which lic sectors in Serbia. will be more stimulating for the local economy. For In April, NALED supported the Belgrade a start, three pilot municipalities will implement Chamber of Commerce and the PUC City and benefit from the proposed tax system. Markets in organizing the round table "Belgrade Wholesale Market", with the aim Compendium – on line to promote the concept and advantages of sell- database of available funds ing agricultural and alimentary goods through NALED regularly updates the on-line database wholesale markets. of available funds “Compendium” keeping the In May, NALED arranged an open dialogue 13 Strategic partnership with FIAT - contribution to the economic and social development of Serbia

with FIAT for the benefit of selected business and three sectors of the society so they can find a way institutional partners. The round table named to be more successful and productive together. "Strategic partnership with Fiat – contribut- Representatives of the local government, business ing to the economic and social development of community and media were present at the event. Serbia" took place in the National Bank of Serbia. Deliberations participants were Nebojša Ćirić, In mid-October in Hotel Continental the first State Secretary in the Ministry of Economy and annual advisory meeting of the banking sector Regional Development, Giovanni De Filippis, and businesses was organized by the Business Managing Director of FIAT, Nebojša Zdravković, Dialogue and NALED on the issue “Banks and Deputy Mayor of Kragujevac, Jurij Bajec Ph.D., Businesses in 2011 – Strategic Partnership or Serbia’s Prime-Minister economic advisor, Ana Business Risk?". Leading bankers, economists Trbović, Ph.D. professor at FEFA, and Saša and entrepreneurs in Serbia opened the issue of Radulović from the Association of SMEs. business risks and perspectives in a time of cri- sis and in post-crisis period, and offered possible At the beginning of October, NALED orga- solutions to the problems identified. There were nized a round table on the issue of public-private general managers from 10 major banks in Serbia partnerships in cooperation with municipality participating at the advisory meeting, along with of Indjija and USAID. Speaking about their expe- high-level representatives from the National Bank rience with PPPs were Hans Estermann, develop- of Serbia and international financial institutions ment advisor in NALED, Holly Wise, expert for (EBRD and MMF). PPP with USAID, and Dragan Janković, director of Agency for Local Economic Development of In mid-November NALED participated in the the Indjija municipality. The purpose of the round round table “Public Private Partnerships as an 14 table was to stimulate a dialogue between all instrument for resolving the emerging needs Davor Inđić, principal banker from EBRD in Zagreb discusses the possibilities for the implementation of public-private partnerships in the region with representatives of local institutions at the conference in the Club of Representatives for social and public services“ which was orga- in-chief of the Economist magazine. During the nized in the Belgrade Chamber of Commerce by introductory panel the participants were ad- the Group 484 and Unicredit Foundation. Hans dressed by the Minister of Environment and Estermann, NALED consultant from Germany Spatial Planning Oliver Dulić, the State Secretary was advocating the standpoint of the Alliance in the Ministry of Economy and Regional regarding legal framework for PPPs. Other top- Development Nebojša Ćirić, and the Secretary ics presented at the round table covered some General of SCTM Djordje Staničić. Eminent best practice examples from Italy, as well as the experts shared their experiences in the field of concept of social entrepreneurship which is com- public-private partnerships covering operative, pletely new to Serbia. legal and financial aspects. The speakers included Following the activities aimed to stimulate representatives of international financial institu- PPPs, NALED organized a regional expert con- tions, local governments, business banks and ference “Making Public Private Partnerships a consultants: Davor Indjić from the EBRD office Reality in Serbia“, in cooperation with the law in Zagreb, Darko Jovanović from the law office office Karanović-Nikolić and with the support of Karanović & Nikolić, Kirk Lovric, collaborator the Hypo-Alpe-Adria bank. The conference was with Paul Hastings of London, Erich Thewanger, held in November, at the Club of Representatives, KPMG from Austria, Marjan Bilić, General with more than 200 respectable guests from the Manager in Euromedic from Bosnia-Herzegovina, private sector and public administration. The Werner Weihs, Head of Infrastructure and the event was moderated by Milan Ćulibrk, editor- Public Sector in Erste Bank from Austria, Klaus 15 Gruber, Director of PORR, Slobodan Kocić, Investment promotion campaigns Mayor of Leskovac and Miroslav Hudjek, Head of In September, after many months of preparation the Administration for Education in the Varaždin NALED and Nikola Tesla Airport in Belgrade municipality in Croatia. launched a unique advertising campaign in Serbia called “Serbia is Business-Friendly“, In this period, NALED also participated in the aiming to improve the country’s image as an in- panel discussion ‘”Investment Opportunities vestment destination and promote 8 municipali- and Challenges in Serbia” within the Belgrade ties which are certified as business-friendly. The real estate and investment fair (BelRe). Other Belgrade Airport provided free advertising space speakers at the conference included high-level at key locations in accordance with the move- representatives of international institutions (IFC, ment of the passengers / prospective investors: World Bank), representatives of the National Terminal 1, Terminal 2, Exit A, Exit C, waiting Agency for Regional Development and foreign room C3, baggage claim area. NALED created investors. the entire advertising campaign, including the vi- At the end of November NALED supported sual identity, key messages and slogans for local SWOT Learning & Consulting who organized a governments. Also, NALED secured significant seminar with Andrew Wileman – leading interna- funds for producing all the promotional mate- Advertising totems for tional finance expert, on The“ I ntelligent way for rial: 4 big flags, 3 light box displays, 2 advertis- promoting investment cutting costs”. NALED ensured free entrance ing banners, 9 standing totems and 11 perforat- to business friendly municipalities for a limited number of members among which: ed foils for glass surfaces in the halls. Municipal standing along the C Hall of the Uniqa insurance, Sremska Mitrovica, Eurobank promotion at the airport is a long-term strat- Belgrade Airport EFG and Initiatives. egy, and its value reaches tens of millions RSD. NALED has designed the whole campaign for promoting investments to Serbia and business-friendly municipalities

Official launch of the campaign at the airport - from left to right: Vladan Vasić, mayor of certified municipality of Pirot, Dragijana Radonjić- Petrović, state secretary for regional development and promotion of entrepreneurship, MERD, Vladimir Čupić, president of NALED Managing Board, Susan Fritz, USAID Mission director, Eric Blanchetete, president of Findomestic Bank Executive Board and member of NALED Managing Board This campaign has generated great attention and among other things, business-friendly envi- positive reactions of passengers, the broader public ronments in Vranje, Subotica and Kragujevac. and the media. The significance and scope of such Simultaneously, NALED ensured appearance in project is illustrated by the fact that in 2010 there broadcasts on TV networks Pink, Avala and B92 were 2.7 million national and international for leaders of certified municipalities (morning passengers who passed through the airport. programs, broadcast program Uvecanje). The campaign at the airport was preceded by the promotion of municipalities and the cer- Competition tification program in the in-flight Jat Airways “Invest-in-Serbia 2010“ magazine: The New Review which is read by NALED supported the organization of the 60,000 people each month – many of whom USAID’s municipal competition in investment come from national and international busi- promotion Invest-in-Serbia 2010, which was held ness communities. NALED has published 5 in March. NALED participated in the preparatory affirmative PR articles in March, June and July workshops for municipalities (4 workshops which issues of the New Review which presented, included 32 local governments in total) and later in

Vladimir Čupić, president of NALED Managing Board, chaired the ambassadorial conference held in the Hyatt Hotel at the end of March the evaluation of the municipalities. In addition to this, NALED contributed to the successful realiza- tion of the competition finals organized as an invest- ment fair in the Crystal Ballroom of Hotel Hyatt, in the presence of 500 esteemed guests including suc- cessful businessmen and foreign diplomats. Finally, Business luncheon in Belgrade: Dutch NALED contributed to the media promotion of Ambassador Ronald the competition and provided one of the awards Van Dartel talking to the vice-president of the for the city of Niš which had the best stand at the NALED Managing Board, fair by the public vote (Microsoft donated laptops). ToplicaSpasojević An ambassador conference devoted to investment promotion in Serbia was held in parallel with the competition finals. The conference was attended by ambassadors of Germany, Italy, Austria, U.S.A. and Slovenia. The event was moderated by NALED Managing Board President, Vladimir Čupić.

Meetings with ambassadors Business luncheon in Subotica: German This year, NALED continued to organize ambassador Volfram Maas and the mayor of business luncheons with foreign ambassadors; Subotica, Saša Vučinić events which were attended by representatives of local governments, businesses and the NALED France, Jean Francois Terral and the Ambassador Managing Board. The aim of these meetings was of The Netherlands, Ronald Van Dartel) and one to promote the local governments as business at a local level (with the Ambassador of Germany friendly environments, to get acquainted with Wolfram Maas). The aim of the meeting with current support programs foreign countries of- the Ambassador of France was to promote co- fer, to establish connections between the local operation between the Serbian and the French business community and foreign embassies, economies, therefore, apart from representatives present NALED activities, discuss plans for of NALED, the meeting was attended by repre- stimulating investments and economic exchange sentatives of the French Chamber of Commerce with Serbia. In 2010 NALED organized 6 busi- presided over by Eric Blanchetete (who is also ness luncheons and meetings with foreign member of the Managing Board of NALED). At ambassadors. the business luncheon with the Ambassador of In February, NALED organized as many as three the Netherlands, members of NALED had the working meetings with foreign ambassadors, two opportunity to learn about available economic of which in Belgrade (with the Ambassador of support programs and experiences investors and 19 Business luncheon in Novi Sad: Arthur Koll, businessmen from The Netherlands have in Serbia. Peter Epstein was organized in March at the Hyatt ambassador of Israel, The business luncheon with the Ambassador of Hotel to discuss cutting the red tape in Serbia, addresses businessmen and representatives of Germany was organized in Subotica. The meet- decentralization and its significance for local eco- institutions ing was attended by the Secretary for Economic nomic development and expected new initiatives Relations with the German Embassy, Birgit USAID and NALED plan to realize in order to Business luncheon in Belgrade: Violeta Singer-Carter, representatives of local govern- improve the competitiveness of Serbia. Jovanović, executive ment headed by mayor Saša Vučinić and the The business luncheon with the Ambassador of director of NALED, Nenad Milenković, mayor of most successful local businessmen (Euro Petrol, Israel Arthur Koll was organized in April in Novi Novi Beograd and Đorđe Suncokret, Dairy Subotica, Phiwa). Sad. In addition to the Mayor of Novi Sad, Igor Staničić, secretary general of SCTM, talking A business luncheon for representatives of Pavličić, the luncheon was attended by presidents with the ambassador NALED and the U.S. Ambassador Mary Warlick of several other municipalities from NALED mem- of Belgium, Denise de Hauwere and the Director of the USAID MEGA Program bership, Israeli investors in Serbia and the most suc-

InvestExpo 2010: with the support of the Novi Sad Fair, NALED has displayed large promotional banners with certified municipalities at the entrance to the Master Congress Centre cessful businessmen operating in Novi Sad. The business luncheon with the Ambassador of Belgium, Denise de Hauwere, was organized mid- year in Belgrade. In addition to the President of New Belgrade Municipality, Nenad Milenković, the lun- cheon was attended by municipal representatives operating under Belgrade jurisdiction, prominent local businessmen, as well as the president of the Belgian-Serbian business club, Hugo van Veghel. Investment fairs and conferences This year in October NALED participated at the Investexpo investment and real estate fair in Novi Sad together with eight municipalities Germany and Slovenia. Business Base Fair: director of the National th and cities which have already built a business- In December, NALED exhibited at the 9 Agency for Regional Development, Ivica friendly environment through the certification “Business Base” international SME and en- Eždenci and chairman program or are working on it. Out of these 8 trepreneurship fair in partnership with the of NALED Managing Board, Vladimir Čupić, municipalities, six have been certified (Loznica, National Agency for Regional Development signing a memorandum Vranje, Leskovac, Bujanovac, Pirot, Subotica), (NARD) which organized the fair. NALED of understanding at the joint stand and two are going through the certification shared the stand with other institutions rel- procedure (Pančevo and Stara Pazova). The evant for the development of economy and municipalities were exhibiting at very advanta- entrepreneurship: SIEPA, Business Registers geous conditions using the joint stand of 90m2. Agency, Export Credit and Insurance Agency, NALED designed and branded the entire stand, Development Fund and the Agency for licens- in accordance with the visual identity and mes- ing bankruptcy administrators. On the second sages used for the advertising campaign at the day of the fair, the president of the NALED Belgrade airport. The theme of the stand was Managing Board Vladimir Čupić and the director “Business-friendly environment”. In agreement of NARR Ivica Eždenci signed a Memorandum with the Novi Sad fair, big advertising flags, the of Understanding which outlined the direction same as those at the airport, were placed at the of future joint actions of the two institutions in main entrance to the Master Centre , to addi- the field of stimulating competitiveness of the tionally promote the certified municipalities. Serbian economy. The Investexpo is the largest national investment NALED helped the Svilajnac Municipality fair, which, in 2010, attracted around 7000 visi- to present itself during September at Shanghai tors mainly from Serbia, but also from Austria, Expo 2010 - one of the largest world fairs held in Bosnia-Herzegovina, Bulgaria, Croatia, Hungary, China. The Mayor of this municipality took part in 21 the conference “Economic Transformations and Urban-Rural Relations” as the only representative of municipalities from South Eastern Europe. Support to investment realization In accordance with its capabilities and needs of its membership, NALED offers technical support in investment realization processes. For instance, NALED performed due diligence analysis on an investor who wanted to build a recreational com- plex in Bački Petrovac Municipality. NALED was directly engaged in solving the prob- Vuk Pribić, government relations manager at JTI International, lems JTI and its suppliers had in the Municipality solved the administrative issue of connecting the gas facility in of Stara Pazova with preparing the documenta- Stara Pazova with the support of NALED tion necessary to get the connection supply for gas. The Municipal authorities were also very co- for two graduates from the School of Law and the operative in speeding up the procedure. School of Economics through the “First Chance” NALED also provides support to prospects program of the National Employment Service. in terms of establishing communication with In the period from August to November NALED local governments and later on during the and the Volunteer Centre of the PUC Belgrade negotiations, as it was in the case of Plaza City Markets organized four workshops for 14 Centers Company which was interested in in- fourth-year students at the agricultural and veteri- vesting in Novi Sad, Subotica, Niš, Šabac and narian faculties. NALED engaged its members and Zrenjanin. partners, like Imlek and the USAID Agro-business project, to participate as lecturers in these work- Stimulating local economic shops and share their experience with students. growth by engaging the youth In November, NALED participated at the NALED recognizes the creative and working Belgrade Fair of practice, in order to inform the potential of our students and young experts at student population in Serbia about NALED ac- home and abroad, which could be utilized to tivities and projects. For this occasion NALED the benefit of both the national economy and offered 2 assistant positions for three-month prac- the young, educated work force which needs tice in marketing and project department, which employment. will be realized in the beginning of 2011. NALED tries to set an example and show that During 2010 NALED established cooperation young people should be given a chance. At the be- with representatives of young Serbian Diaspora 22 ginning of the year, NALED ensured employment gathered around the Organization of Serbian Students Abroad (OSSI). One of the first com- tion (CSR – Corporate Social Responsibility). mon projects includes volunteer engagement of The aim of this program is to set corporate social OSSI members in diplomatic and consular repre- responsibility standards in Serbia, recognize and senting offices of the Republic of Serbia in foreign promote best practices and thus stimulate others countries. The idea is that the young people from to engage in responsible business conduct. Social Serbia who study abroad make use of their knowl- responsibility means that companies shall take edge of foreign languages, markets and culture care of their working, social and natural environ- in order to assist our economic attaches in com- ment and make a positive impact in this regard municating, collecting and analyzing information through their business opervwations and business significant for promoting investments and exter- conduct, which in the long-run is in everybody’s nal trade. This project will be realized in 2011 in interest. In 2011 NALED will select 5 companies cooperation with the Ministry of Economy and from different cities in Serbia and include them Regional Development. into the certification process. NALED and OSSI are also planning to establish NALED members, among which Novi Beograd, cooperation with the Ministry of Diaspora and Stara Pazova, Komercijalna banka, UNIQA organize summer practice in local governments Insurance, Delta Generali Insurance, Petit Geneve and companies which are NALED members. Petrović and many others, have demonstrated ad- herence to social responsibility standards which Promotion of corporate the Alliance is promoting by donating significant social responsibility funds to Kraljevo after a strong earthquake which NALED, as a member of the UN Global hit this town in November 2010. Also, at the be- Compact, is actively promoting corporate social ginning of December NALED and Kraljevo orga- responsibility which is a precondition of sustain- nized a local donors’ conference and collected an able development. One of the most significant additional RSD 2.5 million for the post-earth- activities in this regard was the initiation of a quake recovery of business facilities of the town. new and unique program for certifying socially These funds were donated by the Nikola Tesla responsible companies named CSR certifica- Airport and Hypo-Alpe-Adria bank. Donor Conference for Kraljevo: "Nikola Tesla" Airport donated a significant amount of money for the recovery of local economy from the earthquake damage in Kraljevo

23 Business guided policy reforms

NALED makes effort to support and stimu- Regulatory Reform (CRR). The majority of pro- late policy reforms in Serbia the only efficient posals published in the Grey Book came from en- way possible – by ensuring active participation trepreneurs and businessmen during the campaign. of the businesses and through public-private Some novelties of the Grey Book such as the cooperation. Grey and White Lists of institutions attracted huge public and media attention. The idea of these “Out of the Maze” campaign and lists was to stress the responsibility of institutions the Grey Book of procedures for implementing policy reforms and to stimulate In December, NALED published the third edi- their reaction. NALED has analyzed global lists of tion of its Grey Book of procedures which shed competitiveness – “Doing Business Report” of the light upon administrative obstacles to doing busi- World Bank and “Global Competitiveness Index” of ness in Serbia. The Grey Book presented 75 inef- the World Economic Forum, in order to determine ficient procedures and 75 concrete proposals to which ministries are responsible for the results Serbia overcome them. All problems and proposals were has achieved. The ministries who performed well organized around responsible ministries. The Grey and contributed to Serbia’s better ranking in the past Book came out as one of the results of the “Out of year were placed on NALED’s White List, while the the Maze” campaign NALED had initiated in June ministries who performed poorly in certain aspects 2008, eight months before the Comprehensive found themselves on the Grey List of institutions.

Loup Brefort, World Bank Country Manager in Serbia at the Grey Book III Launch

24 It is important to say that NALED’s intention was Comprehensive Regulatory Reform and the certainly not to criticize, but rather to make concrete results of the “Out of the Maze” campaign. The recommendations to the Government and thus help quarterly report is publicized on the NALED in creating a better business environment in Serbia. website, and distributed in electronic form to Finally – what we have accomplished in the over 2500 addresses, among others to representa- meantime. The Government has completely or tives of relevant institutions, ministries, agencies, partly implemented 16 recommendations of local governments, businessmen and the media. the Grey Book: the validity of travel forms has The quarterly report is being used and publicized been extended from 1 to 30 days, the obligation by various electronic media, including E-Kapija. for the enterprises to conduct audit in the first In this way, NALED introduces transparency into year of existence was abolished, the possibil- the regulatory reform process and motivates re- ity to register employees in the company seat sponsible institutions to be more efficient. not only at the residence of the employee was NALED has had the opportunity to present its ex- introduced, the obligation to notify the Tax perience and standpoints on the issues of regulatory Administration of changes already registered reform, the business climate in Serbia and reaching with the Business Registers Agency was elimi- EU standards at regular annual consultations with nated, the value of imported goods does not the EU Delegation, which were held in May. have to exceed EUR 200,000 any more in order for the small and medium enterprises to use Top Reformer Award customs benefits etc. Apart from these, anoth- In 2009 NALED initiated the tradition of an an- er 18 recommendations of the Grey Book are nual award for the most successful reformers in encompassed by CRR. Serbia. Reformers are predominantly selected The effects of the implementation of the Grey from the public administration sector (minis- Book recommendations are measured in mil- ters, mayors, agency directors) as individuals who lions of EUR. The research made in June 2010 are actively engaged in bringing about reforms by USAID in cooperation with NALED and the and are resolutely implementing changes in or- Fund for Development of Economic Science has der to improve the efficiency and transparency of shown that the economy in Serbia could save the state and local administration. The purpose of around €48 million by implementing only 5 ana- the Top Reformer award is to promote the signifi- lyzed recommendations of the Grey Book. cance of regulatory reform in our country and to point out best practice examples other institutions Monitoring and reporting on the should look upon. regulatory reform status Previous year’s award winners were Saša Every three months since the beginning of 2010 Paunović, Mayor of Paraćin Municipality, NALED and the law office Karanović-Nikolić Zvonko Obradović, Director of the Business have been preparing reports on progress of the Registers Agency and Mladjan Dinkić, Minister 25 of Economy and Regional Development. Special handed over by Vladimir Čupić, president of the award for journalistic contribution to the reforms NALED Managing Board, Mary Warlick, U.S. was given to Miomir Brkić, Editor of the economy Ambassador, and Adriano Martins, Deputy Head section in the Politika newspaper. of EU Delegation. In 2010 the award was enhanced by introduc- ing a more transparent and clearer system under Round Tables and conferences which the Reformer is selected, which enables the on legislation broader public and NALED members to vote and NALED regularly organizes public meetings follow the voting results via the NALED web-site. and discussions with representatives of state in- The final selection among the candidates who stitutions in order to reach constructive solutions won the majority of votes is made by the NALED for the regulatory reform and improvement of the Managing Board. legal framework in Serbia through dialogue with Thetitle of the Top Reformer in 2010 w a s aw a rd - the business sector. In 2010 NALED organized 7 ed to the Minister of Defence Dragan Šutanovac, conferences and round tables on legal frame- Mayor of Belgrade Dragan Djilas, Commissioner work for businesses in Serbia which attracted for Information of Public Importance and Personal over 600 businessmen and representatives of the Data Protection Rodoljub Šabić, and the Director public administrations and media. At the beginning of May, NALED orga- nized a round table "Local Government and Construction Land Management" in coop- eration with Vršac municipality and the USAID MEGA program in order to discuss the new Law on Planning and Construction and its implemen- tation. Among the round table participants were Čedomir Živković, Mayor of Vršac Municipality, Dragan Pejčić, expert for investment promotion from SIEPA, Hans Estermann, advisor for eco- nomic development in NALED, Goran Mraović, Dragan Šutanovac, Minister of the Regional Tax Administration Centre in Novi head of Colliers office in Niš, Miomir Pešić, as- of defense, speaking to the media representatives Sad Zoran Radoman. The General Manager of the sistant Mayor of Niš, Danijela Ilić, Director of after receiving the Top Reformer Award 2010. Nikola Tesla Airport Velimir Radosavljević was the Business Centre of the Property Appraisers, awarded special certificate of gratitude for contrib- Nebojša Janjić, Assistant Minister of Environment uting to local economic development in Serbia. and Spatial Planning. The Top Reformer award ceremony was held on In cooperation with the Ministry of Environment 13 December in the hall of Radio-Television of and Spatial Planning, USAID MEGA Program and 26 Serbia who supported the event. The awards were the CRR Unit, NALED organized a round table with Minister Oliver Dulić on the issue "Changes of reform and the recommendations for eliminating the Law on Planning and Construction and the or simplifying bureaucratic procedures which bur- Regulatory Reform" (June). Among those who ad- den the economy. The conference was addressed by Vladimir Čupić, President of the NALED Managing Board, Branko Radulović, on behalf of the CRR unit, Zoran Radoman, Director of the Tax Administration Novi Sad and Dušan Vasiljević, Head of the Policy Reform Team of the USAID MEGA Program. The moderator was Miša Brkić, editor of the economy section in the Politika daily. In November, within the promotion of the Costin Bork, CEO of Lafarge and Oliver Dulić, Minister, at the Calculator project, NALED organized a panel conference "Draft Law on Amendments and Supplements to the discussion “The Impact of Local and Republic Law on Planning and Construction and the Regulatory Reform" Fees upon the Economy of Serbia”, for a large dressed the round table were Costin Bork, General audience at the Club of Representatives. The mod- Manager of Lafarge, Michael Harvey Director of erator of this conference was Saša Radulović from USAID Mission for Serbia, Đorđe Vukotić, Legal the Association of Small and Medium Enterprises Team Leader of the Regulatory Reform Unit, as well and Entrepreneurs from Serbia. Introductory as assistant ministers in the Ministry of Environment notes were made by Dragan Đuričin, President of and Spatial Planning, Aleksandra Damnjanović- Deloitte and member of the NALED Managing Petrović and Nebojša Janjić. Board, Goran Jović, Mayor of Stara Pazova In July, NALED organized the conference Municipality and Vice-President of NALED "Regulatory Reform in Serbia – Way out of Managing Board, and Director of the USAID Out of the Maze: Vladimir Čupić, president of NALED the Maze?" in the Media Centre and presented MEGA Program, Peter Epstein. Representatives of Managing Board, Zoran the findings of the II quarterly NALED report on the business sector and other relevant institutions Radoman, director of Tax Administration Novi Sad the progress of the Government and the relevant including Roland Haidner, Financial Director of and Miša Brkić, editor of the economy section of the institutions in the implementation of regulatory VIP, Emil Džudžević, General Secretary of Uniqa Politika daily

Emil Džudžević, secretary general of UNIQA Insurance talks about local and central government taxes and fees at the promotion of the “Calculator” project. On the right, Saša Radulović from the Association of SMEs, Slobodan Ilić, state secretary from the Ministry of Finance and Roland Haidner, CFO of Vip Mobile insurance, Slobodan Ilić, State Secretary in the Radulović, Economy Team Leader of Regulatory Ministry of Finance, Jelena Bojović, Team Leader Reform Unit, Andrea Vugrinović, expert for local of the USAID MEGA program and Amalija Pavić, economic development from Croatia and Gordana Government Affairs and Policy Advisor from Opačić-Zečević, Head of Department for Policy Amcham, took part in the discussion. Impact Analyses in the Ministry of Economic At the end of November, in cooperation with the Affairs and Regional Development of the Republic Ministry of Environment and Spatial Planning, Srpska. The meeting was moderated by the B92 NALED organized a round table with assistant journalist Jugoslav Ćosić, and during the cer- ministers Aleksandra Damnjanović-Petrović and emonial part of the event the present institutions Nebojša Janjić and NALED members from the and guests were addressed by Vladimir Čupić, business sector in the Palace of Justice; they had President of NALED Managing Board, Michael the exclusive opportunity to be the first to know Metzler, Acting Director of the USAID Office about the Draft Law on amendments to the Law for Economic Development, and Loup Brefort, on Planning and Construction and to discuss it Director of the World Bank Office in Serbia. with relevant ministry representatives. In December, in a very well-attended RTS gallery, Participation in the National NALED organized a panel discussion “Results Competitiveness Council Jugoslav Ćosić, B92 of the Regulatory Reform“ during which the In October 2010 NALED became member of journalist, moderating institutional pillars of reforms and experts from the National Competitiveness Council (NCC) a panel discussion on the results of Serbia, Republic of Srpska and Croatia exchanged by decision of the Government of the Republic of regulatory reform experiences in regards to the implementation of Serbia. NALED has established cooperation with in the region, in the crowded the “Guillotine of Regulations”: Dušan Vasiljević, the USAID program for the development of com- gallery of RTS Regulatory Reform Advisor in NALED, Branko petitiveness and the vice-president of the Office for European Integration of the Government, Božidar Đelić, in order to promote the implemen- tation of recommendations which the NCC has prepared and the Government of the Republic of Serbia has adopted. The implementation of these recommendations is in the immediate interest of NALED members because it contributes to the creation of a better business environment in Serbia. Specifically, NALED has focused on fol- lowing the recommendations in the field of infra- structure, enhancing efficiency of the public -ad ministration and preparing the missing legislation in this field. M u n i c i p a l c a p a c i t y building

Certification of business friendly Investment and Export Promotion Agency municipalities (BFC) (SIEPA), Vojvodina Investment Promotion Fond (VIP), Executive Council of Vojvodina, USAID, and as of this year – Ministry for the National Investment Plan, Open Society Fund, Ministry of Public Administration and Local Government and the National Agency for Regional Development (NARR). In October, NALED’s BFC standard has become de facto a national standard for a business-friendly community, aft er 30 local governments had Evaluation Committee for the certification of municipalities visiting Šabac signed the Declaration on its acceptance at the investment Certifi cation of business friendly municipalities fair in Novi Sad. (BFC) is a process which promotes standards All the institutions sup- and enables the evaluation of service quality porting the BFC have signed and information which the local governments the memorandum of render to businesses. Th e certifi cate serves as a understanding with NALED, guarantee for investors that the municipality pro- stating the form of support vides all the necessary support and conditions for they will provide for the realizing an investment effi ciently, business start Program and the certifi ed mu- up and further development. nicipalities. So, the memoran- dum with the Ministry for the In just a few years NALED’s municipal certifi ca- National Investment Plan ensured that certifi ed tion program has become known and recognized municipalities get additional points when apply- by the most relevant national and international in- ing for funds, increasing their chances to get ap- stitutions and organizations. At the moment bfc proval for project from the National Investment supports a total of 10 state institutions and Plan. Th e Executive Council of Vojvodina has international organizations among which are: allocated over EUR 40,000 for introducing the Ministry of Economy and Regional Development, business friendly environment into less devel- 29 Mlađan Dinkić and Milan oped municipalities of eastern Serbia in order to ing for additional 5 local governments which had Marković, ministers, Vladimir Čupić, president stimulate balanced regional development. succeeded in reaching BFC standards: Subotica, of NALED Managing Board, Alberto Cammarata, Head Growing interest of municipalities in Serbia Pirot, Leskovac, Vranje, Bujanovac. Vladimir of Economic and European has also confirmed the quality and relevance of Čupić, President of the NALED Managing Board, Integration Sector of the Delegation of the the BFC program. As many as 32 local govern- Mlađan Dinkić, Minister of Economy and Regional European Commission ments have introduced or are introducing a Development and Milan Marković, Minister for to Serbia, Mary Warlick, U.S. ambassador, Arthur business-friendly environment through the Public Administration and Local Government Koll, ambassador of NALED certification program, which implies awarded the certificates to the respective mayors. Israel, Clemens Koja, ambassador of Austria and that they have an efficient administration, a From June to December 2010 another three local five mayors who received transparent local administration, adequate in- governments were certificated: Čačak, Zrenjanin NALED’s Business-Friendly Certificate frastructure and partnership relationships with and Niš. the business sector. Out of this number, 11 local governments hold a BF certificate, and oth- Promotion of professional ers have joined the program and are working to skills development reach the expected standards. Through its internet presentation NALED Pioneers of certification areI ndjija, Loznica and notifies municipalities and towns about the pos- Kragujevac – the first three municipalities which sibilities for subsidized or paid expert train- successfully mastered the process and received a ing in the field of local economic development, business-friendly certificate in September 2008. At language, management, information technology the beginning of June, NALED organized a certifi- and the like. In 2010 NALED collected and pub- 30 cation ceremony in the National Assembly build- licized in its on-line database over 40 different training programs in Serbia and abroad which the Open Society Fund in January and February are available to representatives of local adminis- 6 expert seminars and workshops on municipal trations under advantageous conditions or free bonds were organized in order to prepare the of charge. Among others, NALED receives infor- municipalities for emission. Representatives from mation from foreign embassies in Serbia which public companies and administrations from the fund study tours to their countries. Thus, for City of Niš, Valjevo and Smederevo attended the instance, in the summer 2010 representatives of training. The education of municipalities on addi- the Novi Beograd Municipality and the City of tional funding instruments began in 2009 with a Valjevo travelled to India for specialized training regional conference “Development of Municipal in the field of IT and English language. The data- Bond Market in Serbia” attended by relevant ex- base related to training was visited by nearly 1700 pert and guests such as the Governor Radovan visitors in one year. Jelašić. In July, September and November NALED or- Assistance in applying for funds ganized 3 media workshops for PR managers and NALED regularly notifies local governments heads of LED offices of 8 certified local govern- about the available financial support and ments. The aim of the workshops was to instruct funds for LED projects. This information is sent the municipalities on how to promote the busi- to over 250 e-mail addresses throughout Serbia, ness-friendly climate in the best possible way from Media workshops while the municipalities also have Compendium a media perspective. The secondary aim was to for certified at their disposal – the on-line database of funds develop relationships between local governments municipalities held in the which at any time contains at least 70 current and journalists reporting on economic issues. Businessmen calls. Apart from that, NALED assists municipali- Lecturers at this event were editors and journalists Club ties to apply for funds by providing letters of sup- port, preparing common projects and advising. For instance, Kladovo municipality received a let- ter of support from NALED for a project within the Danube strategy. Also, NALED arranged an advisory session with a Croatian expert for the purpose of writing EU projects for 5 Belgrade municipalities – Mladenovac, Lazarevac, Zemun, Palilula and Zvezdara. Education and training for public administration In 2010 NALED prepared a total of 9 work- shops for local governments. With support of working with the most influential media in Serbia: vate partnerships (PPP) for representatives RTS, Danas, Tanjug, Politika, Blic, B92, Biznis, NIN, of central and local authorities and the media. TV Pink, Ekonomist, Kurir, Press, Privredni pregled. The aim of the study visit was to get acquainted NALED has also prepared a training of lead- with best practices in Slovenia, as well as to pro- ership and managerial skills for women work- mote the concept of PPP in Serbia. Seven local ing in local administration, led by female mentors governments – Vračar, Stari grad, Savski venac, from municipal offices for local economic devel- Sombor, Novi Sad, Pirot and Prokuplje – took opment. This project shall be realized in 10 mu- part in this study tour as well as representa- nicipalities and towns in Serbia during 2011 with tives of the Standing Conference of Towns and support of CIDA. Municipalities. In autumn of 2010 NALED and the PUC Belgrade Study tours City Markets organized a study tour related to In 2010 NALED has organized two study tours wholesale markets for selected representatives abroad in cooperation with partner organizations. of the City of Belgrade and the media. During the In the period 8-11 September NALED and the eight days of the program the participants visited PALGO centre, supported by the PUC Belgrade wholesale markets in Budapest, Bologna, Cesena, City Markets and Banca Intesa organized a Rijeka and Zagreb, which resulted in a very inten- study tour to Slovenia related to public-pri- sive media campaign after they had returned to

Participants of the study tour to wholesale markets in EU

32 Serbia, informing the public on the advantages of such type of a new market mechanism. Expert Conferences and forums for municipalities In 2010 NALED organized two expert con- ferences on investment promotion and whole- sale markets which were attended by over 200 representatives of local governments. In addi- tion to this, NALED supported its partners and members in organizing conferences and forums (a total of 5) on issues relevant for local administrations. In March, NALED supported 2 events – Asseco “Open Day” for municipalities interested in in- troducing electronic services into the work of the public administration, and – a public debate with operation with the Ministry of Mining and Energy, Goran Ješić, Mayor of Inđija municipality the Ministry of Agriculture on “Potential for the Energy Efficiency Agency of the Republic of moderated the Agro-Business and Rural Economy” organized Serbia, GTZ and the host-town. Among the par- conference, "How to get an Investor by the Program Business Bačka. ticipants in the Forum there were the Minister of Knocking on your In April, NALED took active part upon the Mining and Energy Petar Škundrić, the Mayor Door" invitation of the Ministry of Economic Affairs of Niš Miloš Simović, experts from Austria, and Regional Cooperation of the Republic of the Czech Republic, Slovakia and many oth- Srpska in the regional conference on the issue ers. Member of NALED Managing Board and "Competitive Locations” which was held in Director of Nimax Vladan Maksić spoke about Prijedor. Participant as the conference, apart energy efficiency programs. from the NALED Executive Director included At the beginning of October, NALED or- representatives of relevant state and international ganized a regional conference “How to Get institutions from the region like GTZ, USAID, Investor Knocking on Your Door?” at the IFC and SIEPA who shared their experience in Investexpo fair in the congress centre of Novi promoting investment. Sad. The meeting was moderated by the Mayor NALED also participated in the “First of Inđija Municipality Goran Ješić. Participants in International Forum on Energy Management the discussion were representatives of municipali- at the Local Level”, which was held in September ties and state institutions – Saša Vučinić, Mayor in Niš. The Forum was organized by CEDEF of Subotica, Yongwoo Nam, General Director of (Central European Development Forum) in co- Yura Corporation, Andrea Vugrinović, expert for 33 local economic development from Croatia, Ioan of Economics, Luis Faoro, Director of the USAID Iovan, Cross-Border Cooperation Coordinator of Agribusiness Project and Ivana Dulić-Marković, Deta Municipality from Romania, Ferenc Szücs, SEEDEV consultant. Director of Development and Operations from Also in October, at the Hotel Majestic in Metro Cash & Carry and Zoran Vučić, Assistant Belgrade, NALED participated in the national Director of the Free Zones Administration with meeting on local environmental action plan- the Ministry of Finances. ning with representatives of the municipali- At the end of October, in the Club of ties Trstenik, Velika Plana, Vrnjačka Banja, and Representatives in Belgrade, NALED and PUC Ćuprija, the Ministry of Environment and Spatial Planning, the Standing Conference of Towns and Municipalities, GTZ and the European Integration Offi ce. Th e national meeting was organized by the Regional Environmental Centre for Central and Eastern Europe, and was fi nanced by SIDA. Th e Executive Director of NALED, Violeta Jovanović, spoke on the issue of local sustainable develop- ment. Stimulation of rural development Toplica Spasojević, In September 2010, with support of GTZ and vice-president of NALED Managing Board Inwent, NALED initiated new certifi cation and Dragan Pušara, program for rural areas in six municipalities director of PUC Belgrade City Markets at the of eastern Serbia: Golubac, Sokobanja, Veliko conference on “National Gradište, Knjaževac, Negotin, Majdanpek. Until Wholesale Market” in the Club of Representatives December NALED prepared indicators and cri- teria for the new certifi cation. Th e goal of the Belgrade City Markets organized a round table project is to support the rural population and “national Wholesale market” in order to in- the less developed or neglected regions with the form municipalities and their cooperatives on potential for the development of vegetable pro- opportunities to off er agricultural products at the duction, agriculture, old handcraft s, village or Belgrade market through the wholesale market. ethno-tourism, organic food and the like. Th e Th is event was att ended by Dragan Pušara, di- certifi cation of rural areas will be very helpful rector of PUC City Markets, Toplica Spasojević, when Serbia obtain the status of an EU candi- Vice-President of the NALED Managing Board, date country and get access to funds from the Živorad Anđelković, Assistant Mayor of the City 5th ipA component which relate exactly to rural 34 of Belgrade, Stipe Lovreta, professor at the Faculty development. When this time comes, munici- palities participating in rural certifi cation will rural Areas”, which encompasses 6 munici- have an advantageous position in comparison to palities – Golubac, Negotin, Veliko, Gradište, others while applying for funds. Zaječar and Kladovo. During 2010 NALED initiat- ed and realized several proj- NALED Agri ects in cooperation with With the aim to support the development of the Ethno Network. In the agriculture, one of the most signifi cant and pros- second half of the year, these perous economic branches in Serbia, NALED two organizations, in partner- decided to establish the fi rst agricultural pro- ship with the Ministry of fessional association – NALED Agri, and has Economy and Regional gathered together all relevant participants in the Development and the value chain (primary producers, representatives National Employment of the processing industry and trade), as well as Agency, have organized 6 government and non-government institutions month long public works and organizations which have impact on legisla- in 23 municipalities tive framework and economic policies relevant throughout serbia for this sector. Th e goal of NALED Agri is to raise for 100 women who standards in the agricultural sector and enhance have been producing the market presence of agricultural products in traditional handcraft for the protocol needs of the Serbia and the EU. Government of the Republic of Serbia. NALED Th e establishment of NALED Agri is sup- ensured that the local governments provide free ported by the Agro-business project fi nanced by space for the production of handcraft s, and sup- the USAID, while regional consultant company ported media promotion of the project making it SEEDEV provides technical support. more visible at the national level. NALED and the Ethno Network in partner- ship with GTZ have initiated the project of licensing old craft workshops with the aim of developing tourism. Th e project includes 5 municipalities in east Serbia: Veliko Gradište, Kladovo, Negotin, Boljevac and Soko Banja. In order to get a license, workshops will need to have the space, equipment and educators for each of the techniques used in handcraft . Finally, NALED and the Ethno Network are working together on an eu project “employment in

Capacities of the Alliance

After three years of independent activity, relying on the support of its governing bodies, members and partners, NALED became a recognizable and credible organization equipped with expert capacities and necessary funds for the design and realization of programs whose ultimate goal is to create a business-friendly environment in Serbia O r g a n i z a t i o n a l structure

NALED is governed by the Assembly, the ment of the organization and define priorities Managing Board and the Executive Board. The for the forthcoming year. Regular Assembly Executive Office carries out projects of the Meeting was held on the 23rd of April this year Alliance in accordance with the strategic goals in Belgrade Hotel Hyatt. On this occasion, the and priorities of the organization. membership discussed the priority projects for 2010 (stimulating public-private partnerships, NALED Assembly Certification of Municipalities, Grey Book of The Assembly is consisted of all NALED procedures, and support to CRR) and agreed on members. The Assembly meets at least once a the key areas of development: year to get acquainted with NALED activities • Investment promotion and business support and financial results, adopt Executive Office • Business guided policy reforms reports, set strategic directions for the develop- • Municipal capacity building

Vladan Maksić, director of Nimax and David Banjai, director of Ball Packaging at the Annual Meeting of NALED

38 Managing Board The Managing Board takes care of the Alliance goal realization and of its good image. In accordance with the decision of the Assembly from October 2009, the NALED Managing Board consists of fol- lowing 15 members: Vladimir Čupić (Hypo Alpe Adria Bank) as President, Ivana Veselinović (Luka Beograd), Toplica Spasojević (ITM Group) and Goran Jović (Stara Pazova) as Vice-Presidents, and other members – Vladan Živanović (Microsoft), Vladan Maksić (Nimax), Nenad Milenković (Novi Beograd), Vladan Atanasijević (Asseco), Vladan Pirivatrić (Energoprojekt), Eric Blanchetete (Findomestic Banka), Neven Marinović (Smart kolektiv), Miodrag Babić (Hemofarm), Dragan Administration and Local Government, Bojan Meeting of the NALED Đuričin (Deloitte), Vesna Martinović (Pančevo) Pajtić, President of the Government of Vojvodina, Managing and Nebojša Momčilović (ComTrade), while the Mary Warlick, U.S. Ambassador, and Susan Fritz, Board Standing Conference of Towns and Municipalities Director of the USAID Mission in Serbia. is a standing advisory member of the Managing Board. Executive Board In 2010 the Managing Board held four ses- The NALED Executive Board has 7 mem- sions – one in Belgrade, and the other three in bers according to the decision of the Managing Stara Pazova, Vršac and Kraljevo. Members of the Board from October 2009, including the fol- Managing Board have been directing the work lowing: Vladimir Čupić as President, Ivana of NALED and verifying the key decisions pro- Veselinović, Toplica Spasojević, Goran Jović, posed by the Executive Board and the Executive Vladan Živanović, Vladan Maksić and Nenad Office. Apart from these activities, the Managing Milenković. The Executive Board carries out the Board has been actively promoting the interest of strategy and action plan of the Alliance through the Alliance before relevant institutions on work- the Executive Office. In 2010 the Executive Board ing meetings with ambassadors, ministers held six meetings and prepared a quality input and leaders of foreign organizations, including: for the meetings of the Managing Board. Božidar Đelić, Vice-President of the Government in charge of European Integrations, Vincent Executive Office Degert, head of the EU Delegation in Serbia, The Executive Office carries out all the projects Slobodan Ilić, State Secretary in the Ministry of of the Alliance, meets the needs and requests of Finance, Milan Marković, Minister for Public the membership, prepares expert analyses and 39 Representatives of the NALED Executive Office publications, prepares project applications and Embassy). The Executive Office has 15 regular secures additional funds from the donors, de- employees at the moment. signs the marketing approach of the organization, NALED provides its employees with opportu- keeps the databases, organizes conferences, round nities for professional development as an incen- tables, expert seminars and trainings. tive and precondition for further carrier advance- In 2010 NALED expanded and strengthened ments. In 2010 NALED staff participated in do- the Executive Office. In accordance with the in- nor funded trainings (with USAID, REC, GTZ, crease of membership and the project activities, InWent), attended courses on English language, the number of staff has significantly increased went on study tours and conferences abroad during the year and it includes additional per- (Slovenia, Germany, and U.S.A.). sonnel for project related activities (project man- With the consent of the Managing Board, agers), as well as expert staff which is strength- NALED leased additional office space in Zetska ening the capacity of the organization to serve 4a in Belgrade. The premises were equipped with its members. With the support of the German the support of USAID MEGA Program who also Embassy in Serbia, NALED has procured the donated a vehicle (Voyager Chrysler) for the pur- services of two CIM experts from abroad who pose of field visits of the expert teams and mem- have a permanent job in NALED: an expert for bers of the Executive Office. In order to have a project preparation and an expert to work on more precise and efficient financial reporting, youth development (NALED is obliged to se- NALED has installed the Microsoft Navision cure the average salary in RSD for them, while Express accounting and financial management 40 the rest of the funds are provided by the German system. S o u r c e s o f financing

NALED has been working intensively to define The membership fees pay for the operating costs new business opportunities and develop services and the functioning of the Executive Office. The for its membership whereas the priority is on long- collection rate of membership fees in 2010 was term financial sustainability of the organization 91%, confirming high level of satisfaction among and quality of rendered services. NALED members. ensures means for its activities from the following sources: membership, project funds, services and Project funds sponsorships. Grants make up to half of the total annual bud- naled income structure get of the organization. These are donations of international and national development agencies intended for the realization of concrete economic Services 4,6% development projects contributing to a better Membership business environment in Serbia. NALED in this fees 42,6% way offersadditional value to its members, who Donors' funds 52,7% may influence the project portfolio of the organi- zation and in this way realize activities useful to both members and the entire society with the do- nor support. Membership fees During 2010 NALED obtained donor funds They are most reliable part of the financial for the development of existing programs such as means that NALED has at its disposal. Specifically, the Certification of business-friendly municipali- the members of NALED undertake to pay the ties and launched several new initiatives, such as: regular annual membership fee in accordance Certification of rural areas, Working Group for the with the membership category they belong, and development of entrepreneurship and the elabo- in return they acquire the following benefits: the ration of a new taxation model in Eastern Serbia, right to participate in all activities and events of participation in the National Competitiveness NALED without charge, the possibility to influ- Council, Calculator of business expenses. Most ence the legal and institutional reforms in the important donors in 2010 include InWent, GTZ, country, access to information and funds, public- Open Society Fund, USAID, CIDA, and the ity and visibility, the image of a “good citizen”. Executive Council of Vojvodina. 41 Services NALED provides additional services to its members which are not covered by the member- ship fee and are subject to separate agreements. These include, first of all, NALED certification programs, as well as various other services at re- quest – researches and analyses, organization of events and promotions, advisory assistance. Sponsorships NALED members and partners as sponsors have the opportunity to procure additional funds and help the organization of certain events of spe- cial interest (conferences, round tables, expert seminars, study tours). Although some sponsor- ship occurred during 2010, they still constitute an insignificant part of NALED’s overall funds. F i n a n c i a l results

2010 2009 In the last four years the annual inflow of OPERATING REVENUES NALED increased as much as 12 times. Income from membership fees 20,469 15,361 Revenues in 2010 approach RSD 50 million. Income from services 2,230 2,350 In the revenue structure the biggest share is that Income from donations 25,285 10,771 Total 47,984 28.482 of donors’ funds (52.7%), followed by member- ship fees (42.6%) and finally services (4.6 %). OPERATING EXPENSES Service costs (3,512) (5,255) Income statement Costs for employee’s salaries (21,905) (8,180) Royalties costs (4,688) (1.849) In the period from 1st January to 31st December Expense accounts (2,542) (1.738) 2010 (in thousands of RSD) Rental costs (2,117) (751) Office costs (146) (175) Travel costs (1,333) (226) Telephone (569) (387) Internet (64) (25) Maintenance costs (139) (61) Amortization costs (324) (289) Fuel and energy costs (610) (318) Marketing and promotion costs (7.778) (3.717) Tax costs (334) (139) Total (46,829) (23.234) FINANCIAL REVENUES AND EXPENSES Interest income 937 571 Interest costs (2) Positive exchange differentials 1 1 Negative exchange differentials (17) (2) Net financial income 919 570 OTHER REVENUES AND EXPENSES Other income 1 10 Other costs (364) (147) Total (363) (137) EBITDA 1.711 5.681 Income tax (11) (60)

NET INCOME 1.700 5.621 Auditor’s Report With the aim to enhance credibility and trans- parency of the organization, NALED has engaged deloitt eduring 2010 to audit the annual fi nancial statements for the period 2007-2009. Th e assess- ment of the auditor was positive and without reserve.

44 naled membership

Membership structure and growth which resulted in attracting new members such as In only a few years since it was established until Telenor, VIP Mobile, Valjaonica bakra Sevojno, today, NALED has achieved to attract numerous EFG bank, Banka Intesa, Fiat Serbia, IBM, Nikola and influential membership from the business Tesla Airport and many others. The number of lo- community, local administration and the civil sec- cal governments in NALED also increased (7 new tor. By the end of 2010 there were 128 members members), and now practically all towns and larger in total – 48% come from companies, mainly big municipalities are represented in NALED mem- enterprises (62 total), 45% from local govern- bership (1/3 of all local governments in Serbia are ment (57 total), and 7% from NGOs (9 total). members of NALED). The number ofNGO mem- In relation to the previous year, NALED in- bers increased just slightly (Group 484), showing creased its membership by 23% (30 new mem- that more attention should be paid to strengthen- bers) in 2010. This year, special attention was ing the so-called third pillar of NALED, that is the paid to attracting big and successful enterprises, organizations of the civil society. naled membership structure membership structure by sectors

IT sector 10% NGOs 7% Banking sector 12% Municipalities 45% Production sector 21% Companies 48% Service sector 57%

NALED municipalities / total number of municipalities in serbia membership structure by size

Member municipalities 33% Big companies 86% Other municipalities 67% SMEs 14%

45 Member companies Actavis Credy Bank Hemofarm Media Centar Rudnik Asseco Deloitte Holcim Merck Sharp Dohme Sava Osiguranje Aerodrom Beograd Delta Agrar Hypo Alpe-Adria Microsoft Simpo Austrian Airlines Delta Generali IBM NIMAX Sojaprotein Ball Packaging Delta Real Estate Imlek Nitea Telekom Srbija Bambi Dunav Osiguranje ITM Novosadski Sajam Telenor Banca Intesa Eurobanka EFG JAT OMV Tigar Beohemija Inhem Energoprojekt JTI Petite Petrović Uniqa CIM centar Feromont Karanović-Nikolić Phoenix-Pharma Valjaonica Sevojno Colliers Fiat Srbija Komercijalna Banka Porr-WernerWeber VIP mobile ComTrade Group Findomestic Bank Lafarge BFC Porsche SCG Consulteam Gradske Pijace Luka Beograd PSP Farman CPU Gradsko stambeno McCann Erickson PTT Srbija Member municipalities City of Belgrade Town S. Mitrovica Municipality Bor Municipality Mladenovac Municipality Stara Pazova Town Čačak Town Subotica Municipality Bujanovac Municipality Novi Beograd Municipality Svilajnac Town Kragujevac Town Šabac Municipality Ćuprija Municipality Osečina Municipality Ub Town Kraljevo Town Užice Municipality Despotovac Municipality Odžaci Municipality Veliko Gradište Town Kruševac Town Valjevo Municipality Golubac Municipality Palilula Municipality Vračar Town Leskovac Town Vranje Municipality Inđija Municipality Paraćin Municipality Vrnjačka Banja Town Loznica Town Zaječar Municipality Ivanjica Municipality Pećinci Municipality Vršac Town Niš Municipality Aranđelovac Municipality Kikinda Municipality Pirot Municipality Zemun Town Novi Sad Municipality Arilje Municipality Kula Municipality Plandište Municipality Zvezdara Town Pančevo Municipality Bački Petrovac Municipality Kladovo Municipality Požega Town Požarevac Municipality Bečej Municipality Lapovo Municipality Prokuplje Town Sombor Municipality Boljevac Municipality Lazarevac Municipality Senta

NGO members ACES Protekta Ethno network Smart Kolektiv Group 484 SEEDEV Initiatives USS EDC Evaluators Association National Association of Valuers n a l e d PaRTneRS

NALED has established strong, contract-based partnership with Government institutions and prominent national and international organizations.

Government institutions Associations and and Agencies non-governmental organizations Ministry of Economy and Regional Development Serbian Union of Employers Ministry of Public Administration and Standing Conference of Towns and Municipalities Local Government Serbian Chamber of Commerce Ministry of the National Investment Plan Local Government and Public Service Reform Provincial Secretariat for Local Government Initiative and Inter-Municipal Cooperation Centre for International Migration and Serbian Investment and Export Promotion Development Agency (SIEPA) Vojvodina Investment Promotion Fund Public companies National Agency for Regional Development Nikola Tesla Airport Administration for Free Zones in the Ministry of Finance International development agencies and donor organizations US Agency for International Development (USAID) The Urban Institute Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) Program for Local Economic Development in the Balkans (LEDIB) Canadian International Development Agency (CIDA) Open Society Fund Austrian Development Agency (ADA)

Communication and marketing

In 2010 NALED has significantly strengthened its position in the national and local media, which has resulted in greater visibility for the organization and its members. This is illustrated by over 500 media announcements and reports in daily newspapers, magazines, internet portals and TV broadcasts, which is twice as much than in the previous year. P r e s e n c e i n the media

Media coverage overview TV broadcasts and interviews Among the national daily newspapers, the In cooperation with relevant television net- work of the Alliance got most attention in Blic (32 works during the last year NALED has organized announcements), Politika (29), Danas (28) and 22 TV programs and interviews on relevant Večernje novosti (17), and among the local papers topics (two to three shows a month, excluding mostly in Narodne novine Niš (11 announcements). the summer period when there were no appear- Magazine which reported the most on NALED ances). NALED arranged for its members and was Biznis monthly with 12 articles, followed by partners from the public, private and NGO sec- Ekonometar, NIN, Cord and Ekonomist with 3 to 6 tor to participate in TV shows as guest speakers. announcements each. As regards television net- Large number of unpaid TV appearances (14 in works with national coverage, the greatest num- total) illustrates that in a very short time NALED ber of broadcasts and reports related to NALED has positioned itself as an organization the media were on B92 (21), followed by Avala (16), Radio- can rely on in order to get an independent, expert television of Serbia (15) and Pink (8). Among lo- evaluation or analysis of current economic poli- cal television stations best results were achieved cies, rules and events. with Studio B (25) and then TV Vojvodina (12). The television networkB 92 broadcasted a total Articles on NALED may be found also on relevant of 9 reports – three in the morning program “TV internet portals such as E-kapija, B92.net, Biznis Dizanje” and 6 in the series Uvećanje. The morn- novine and Emportal. As for radio stations, Radio ing program hosted guest speakers from NALED Belgrade 1 broadcasted the most on NALED. to discuss regulatory reforms and administrative procedures burdening the economy as a follow up media presence structure to the promotion of the Grey Book II organized in December 2009. Uvećanje show discussed the Radio 3% following topics: local taxes and fees imposed Magazine 11% on businesses, old handcrafts as a possible driver Internet 13% for the local economy, certification of business- friendly municipalities, wholesale markets, newly TV 27% adopted policies relevant for the economy. Daily newspaper 46% NALED participated in a total of 6 shows 50 broadcasted by RTS-a: Evronet (3 broadcasts), RTS News 2, Mreža, Oko. Representatives of the Alliance discussed issues significant to local eco- nomic development, such as guillotine of regula- tions, efficiency of local and public administra- tion, obstacles to the development of small and medium enterprises and entrepreneurship. Also, NALED members participated in 6 shows of the Studio B network, mainly in Ekonnews and one time in Ekran in order to present their stand- points and experience related to the tax system in our country, investment promotion , significance of large investments like FIAT for the economic recovery and consequences of the world econom- ic crisis. C o m m u n i c a t i o n strategy

Events with media coverage more than 30 high level events during the Increased presence in national and local media year (3 events each month, except for January resulted mainly from a large number of successful, and August when there were none due to holi- attractive events which NALED organized in 2010, days). By far, the greatest media attention such as round tables with ministers, business lun- was provoked by the Promotion of the Grey cheons with ambassadors, conferences attended Book III and the Top Reformer Award which by major foreign and national investors, leaders took place in the premises of Radio-Television of local governments and experts from Serbia and of Serbia (December). Other event that has the region. drawn significant media attention was the In order to promote dialogue and coopera- award ceremony for municipalities certified tion between the private, public and civil sec- as business-friendly, which took place in the tor NALED has organized and supported National Assembly (June). Engaging the media the dominant information media of our times. An important aspect of NALED’s communica- Enhancement of the content and visual identity tion strategy relates to the inclusion of media into of the web-site, keeping the members and the the activities of the organization, which has also broader public informed on NALED activities proven to be very efficient for creating publicity. by updating the News section on a day-to-day ba- This relates to: sis, updating the on-line databases of funds and trainings, adding new on-line services such as the • M edia sponsorships, such as with RTS for blog section on regulatory reform and the press/ the promotion of the Grey Book. video-clipping section, have resulted in signifi- cant increase of interest for NALED’s web-site, • E ngagement of editors and journalists as which is illustrated by over 130,000 visits to the moderators for expert conferences and round site (increase by 240 %) that is 48,000 visitors tables – for instance, the Editor-in-Chief of the in 2010 (increase by 364%). journal Ekonomist Milan Ćulibrk was moder- Also, NALED regularly notifies its members ating an exceptionally well attended and suc- and partners via e-mail on current developments cessful regional conference on public-private both in NALED and in the public administra- partnerships in November, while the editor tion – in this way NALED has distributed 3 quar- of economy section of the daily Politika Miša terly reports on the results of the Comprehensive Brkić was moderating the round table devoted Regulatory Reform, information on new avail- to regulatory reforms in July. able funds and subsidized trainings, invitations to events organized by NALED, as well as informa- • E ngagement of editors and journalists as tion on achieved results. lecturers – in July, September and November NALED organized 3 media workshops for PR managers and LED Office managers from 8 mu- nicipalities certified as business-friendly. Many eminent journalists served as trainers such as Milica Nedić, editor and moderator of News 2 of RTS, Voja Stevanović, editor of Ekonomist, Mijat Lakićević, editor of NIN, Zoran Luković, editor of Blic, Zoran Panović, editor of Danas. Internet marketing NALED’s communication strategy is also fo- cused on intensifying activities and the pres- ence of the organization on the internet, as 53 Impressum

Publisher: National Alliance for Local Economic Development / Nacionalna alijansa za lokalni ekonomski razvoj (NALED)

For the publisher: Violeta Jovanović

Preparation of content: NALED Executive Office

Design and layout: Dizajn biro Beograd

Press: Cicero d.o.o.

Circulation: 300

Belgrade, January 2011. www.naled-serbia.org

Zetska 4a/2, 11000 Belgrade, Serbia + 381 11 3349 899, + 381 11 3347614 (fax), [email protected], www.naled-serbia.org