Agenda-2021-Towards-Better-Business-Conditions.Pdf

Contents

100 RECOMMENDATIONS FOR BETTER WORKING WE ACHIEVED THE IMPOSSIBLE! 06. CONDITIONS 30. ILIJA CEROVIĆ, ACTING DIRECTOR OF SERBIAN DEJAN ĐOKIĆ, PRESIDENT OF THE EXECUTIVE BOARD OF TELEVISION AND EDITOR-IN-CHIEF OF THE RTS NALED AND DIRECTOR OF ASSECO SEE EDUCATION AND SCIENCE PROGRAMME EDITORIAL aim team DIALOGUE IS THE BEST PATH TO SUCCESSFUL OUR DUTY IS TO TELL IT THE WAY IT IS 08. REFORM 31. ALEKSANDAR MILOŠEVIĆ, ECONOMICS EDITOR, WITH SPECIAL THANKS TO VIOLETA JOVANOVIĆ, EXECUTIVE DIRECTOR OF NALED DANAS Milica Stefanović, NALED Ivan Radak, NALED NALED’S KEY GUIDELINES ARE CRUCIAL FOR A THE GREY BOOK IS AN AUTHENTIC REFLECTION 12. SUCCESSFUL PARTNERSHIP 34. OF OUR BUSINESS ENVIRONMENT ART DIRECTOR DUŠAN VUJOVIĆ, PRESIDENT OF NALED SCIENTIFIC Branislav Ninković OVERVIEW OF REFORMS CARRIED OUT IN 2020 COUNCIL [email protected] 16. EXCESS BUREAUCRACY STIMULATES THE PHOTOS WE ARE FULLY COMMITTED TO THE WELL-BEING 36.SHADOW ECONOMY Zoran Petrović 22. OF BOTH INDUSTRY AND THE PUBLIC IVAN MILETIĆ, PRESIDENT OF THE FAIR COMPETITION Nemanja Jovanović SLAVICA SAVIČIĆ, STATE SECRETARY AT THE MINISTRY ALLIANCE OF FINANCE TRANSLATION DIGITALISATION AGAINST BUREAUCRACY Halifax Translation SERBIA HAS POSITIONED ITSELF AS A COUNTRY 38. ŽELJKO TOMIĆ, PRESIDENT OF THE 24.OF INNOVATION EGOVERNMENT ALLIANCE OFFICE MANAGER MIHAILO JOVANOVIĆ, DIRECTOR OF THE OFFICE FOR IT Svetlana Petrović AND EGOVERNMENT WE KNOW THE ROAD TO THE TOP OF THE DOING [email protected] 43.BUSINESS LIST MAGIC IN THE HANDS OF TEACHERS JOVAN PURAR, PRESIDENT OF THE PROPERTY AND EDITORIAL MANAGER 26. MILAN PAŠIĆ, ASSISTANT MINISTER INVESTMENT ALLIANCE Neda Lukić OF EDUCATION, SCIENCE AND TECHNOLOGICAL [email protected] DEVELOPMENT DIGITALIZATION OF AGRICULTURE BEGINS WITH 48. EAGRICULTURE SALES MANAGERS: TOGETHER WITH NALED, WE CAN DO MUCH ANDREJ BESLAĆ, PRESIDENT OF THE FOOD AND Biljana Dević, 27. BETTER AGRICULTURE ALLIANCE [email protected] DR GORAN STAMENKOVIĆ, ASSISTANT MINISTER OF Vesna Vukajlović, HEALTH AND HEAD OF THE WORKING GROUP OF THE SIMPLIFYING ADMINISTRATIVE PROCEDURES IS [email protected] COORDINATION COMMISSION FOR THE SUPPRESSION 50. THE LEAST EXPENSIVE TASK Mihailo Čučković OF COVID-19 JELENA KIŠ, PRESIDENT OF THE ENVIRONMENTAL [email protected] PROTECTION ALLIANCE WE WON WITH OUR HEARTS FINANCIAL DIRECTOR 28. DANIJEL NIKOLIĆ, ASSISTANT SECRETARY NO PAPER COPIES FOR DOCTOR’S APPOINTMENTS Dragana Skrobonja GENERAL OF GOVRNMENT OF SERBIA, DEPARTMENT 51. UNA LJUBIČIĆ, PRESIDENT OF THE HEALTHCARE [email protected] FOR INTERNATIONAL AND DEVELOPMENT COOPERATION ALLIANCE

GENERAL MANAGER DIALOGUE WITH INDUSTRY TOP RECOMMENDATIONS FOR THE MORNING Maja Vidaković 29. STEFAN BADŽA, ADVISER IN THE PRIME 65. AFTER [email protected] MINISTER’S CABINET JELENA BOJOVIĆ, NALED DIRECTOR OF REGULATORY REFORM PUBLISHER Ivan Novčić [email protected]

DIRECTOR Ana Novčić [email protected]

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4 | CorD | NALED | AGENDA 2021

DEJAN ĐOKIĆ, PRESIDENT OF THE EXECUTIVE BOARD OF NALED AND DIRECTOR OF ASSECO SEE 100 Recommendations For Better Working Conditions

For the economy to keep turning despite the Covid-19 pandemic, institutions must try harder to find comprehensive rather than partial solutions to create better working conditions in 2021

or 13 years now, the Grey Book by All the descriptions of the procedures economy and enable significant savings FNALED has been pushing the bounda- to be eliminated or simplified consist of in various business procedures. ries in the efforts to establish a predictable thorough lists of articles of various laws and In the previous 12 editions, there were and favourable business environment in regulations that complicate bureaucratic 268 unique recommendations, out of which Serbia. Ensuring efficient procedures is one procedures. Also, all the unnecessary 72 have been completely solved, and 59 of the key steps toward the achievement steps that must be taken and the expenses have been partially solved, which means of that aim. However, such victory cannot of such procedures are included, when that almost half of the recommendations be achieved by an endless search for se- applicable. The descriptions of identi- have found their way to the legislators. cret passages through the administrative fied issues are always accompanied by I would like to remind you that, in the pre- system but by defining solutions everyone possible solutions, with clarifications on vious years, the Grey Book has contributed will be willing to implement. how the work and regulations of the public to eliminating excessive administrative Sometimes we refer to the Grey Book administration can be modified. procedures, leading to the simplification as the “regulatory Bible” the economy The Grey Book is a list of guidelines for of the process of obtaining construction and public administration should always relevant institutions, telling them how to permits and real estate rights registration, go back to. Truly, no such publication do their work efficiently and which steps introduction of electronic taxation for flat (and there are many that deal with issues to take in order to reach the desired aims rate entrepreneurs, simplified electronic related to the bureaucratic system) is that to the satisfaction of everyone involved. procedures for the registration of seasonal comprehensive. The success of the Grey The choice of the issues that could be workers, electronic tax certificates and Book lies in the fact that it does not aim to included in the Grey Book is always very electronic public procurement processes. place all the responsibility on public admin- wide. Therefore, in each edition, we strive The list is long, but I would also like to istration expecting the decision-makers to select 100 procedures that would be remind you of the already improved pro- to take notice of and do something about the most useful in helping improve the cedures (some of which were improved as the issues because that will never happen. circumstances in most sectors of the long as a decade ago). Nowadays, it’s even

6 | CorD | NALED | AGENDA 2021 The Grey Book is a list of guidelines for relevant institutions, telling them how to do their work efficiently and which steps to take in order to reach the desired aims to the satisfaction of everyone involved previous edition, out of which 2 were fully coming up with solutions, in which public implemented and 11 were partially imple- administrative bodies will consider the hard to remember how many issues we mented. Although this is the usual score suggestions of those the procedures will used to have. Some of the improvements when it comes to the implementation of be applied to, whether they come from the are as follows: certificates can now be Grey Book recommendations in the previ- area of the economy or the civil sector. older than 6 months, and they no longer ous 12 years, we are not completely satis- The adoption of the majority of rec- have to be submitted at counters; employ- fied. In order for the economy to remain ommendations is the result of direct ment record booklets are no longer used; functional in the difficult circumstances cooperation between the Government health cards are renewed automatically; imposed by the COVID-19 pandemic, of Serbia, international institutions and procedures for the submission of financial institutions must make greater efforts in NALED. We are very thankful to Prime reports have been simplified, as well as finding comprehensive rather than partial Minister Ana Brnabić and the ministers for the procedures for mandatory daily tak- solutions aimed at establishing better trusting us. We are confident that together ings deposit; simplified TIN obtainment, working conditions in 2021. we can work on the implementation of employee registration, payment of taxes Cooperation is the key to success. It the Grey Book recommendations more and contributions, etc. comes as no surprise that, year by year, efficiently to mitigate the consequences This year’s issue of the Grey Book (No the majority of the recommendations (al- of the pandemic and boost the economy. 13) also contains 100 new recommenda- most a third) are directed at the Ministry We are also very grateful to the Eu- tions. It differs from previous editions in of Finance (in the previous years, that ropean Union and the governments of that 15 of the recommendations have number rose to 40%, but the sector in Germany, Great Britain, Sweden and the the Covid-19 badge. This is the result of charge of finance has made numerous USA, the European Bank for Reconstruc- NALED’s realisation that, in these try- improvements in the last few years). They tion and Development and others whose ing times, the strategic priorities have, are immediately followed by the recom- donations proved them to be reliable understandably, switched toward the mendations related to multiple sectors partners in the development of Serbia most essential issues – the preservation at the same time. Their implementation year by year. of human lives and workplaces. requires an inter-sectoral approach. We are Finally, the Grey Book would not be the If we look back at the year behind us, faced with ever more complex reforms, so “regulatory Bible” if it was not backed by we see that, despite pandemic circum- coordination and equal efforts by all institu- its true believers – the NALED members, stances, the reforms were not completely tions are key to achieving the maximum, who possess the energy and motivation halted. In 2020, institutions managed to particularly if we include comprehensive to help us make Serbia a great place to carry out 13 recommendations from the public-private dialogue in the process of live and work in.

CorD | NALED | AGENDA 2021 | 7 VIOLETA JOVANOVIĆ, EXECUTIVE DIRECTOR OF NALED Dialogue Is The Best Path To Successful Reforms

What has enabled us to initiate major changes is the synergy we have created by bringing together companies, local governments and civil society, ready to dedicate their time and capacity to achieving the goals of our association, with the involvement of academia and the wider professional public

n a society where many meddle organisation is a crucial partner of the reform we need most. “Iin all trades, NALED is one of the Serbian government and institutions The advantage and strength of rare organisations that does only what relevant to critical reforms of the busi- NALED is precisely that it has learned it knows best.“ In a sea of descriptions ness environment. We are members the importance of dialogue within its used for NALED, it is difficult to find of over 50 working groups that draft own framework. We are still the only one that sums us up better. Expertise, regulations, and we have published organisation in Europe that brings to- independence, innovation, integrity, over 550 research papers and similar gether private, public and civil sectors courage, those are just some of the publications that shed light on many to create better working conditions. values we cherish. areas that need change. NALED members are crucial for our We are unwaveringly persistent The project ‘Public-Private Dialogue involvement in reform. They analyse because we use analysis and data to for Development’ particularly stands data, comment on regulation or draft it, offer solutions for every shortcoming out among other successful projects. provide donor support, communicate we point out. We understood the importance of this with ministries and carry out activities. Owing to our approach, we have topic for future regulation and changes This kind of dialogue allows us to grown from 17 to over 310 members. to the working atmosphere, and we reach solutions beneficial for all sec- We started out with one staff member set out to strengthen the ability of tors. Such solutions acknowledge their only to have 80 now, and we have businesses, professional associations, needs and interests and focus on the implemented over 160 projects to other civil organisations and state common good, rejecting individual improve working conditions in Serbia. institutions to cooperate and create wishes and intentions. That makes All that in just 15 years. Today, our solutions together. This is the kind of NALED’s suggestions valuable and

8 | CorD | NALED | AGENDA 2021 Dialogue within our organisation allows us to reach solutions that satisfy the needs and interests of the public, private and civil sectors, focusing on the common good allows them to reach decision makers. In addition to offering solutions, NALED has another important feature, as it helps institutions implement public policies, from drafting regulations and creating software to training officials Another important activity consists partmental cooperation. to implement new regulation. of drafting the first strategic document Construction and issuing construc- Finally, NALED monitors how new on combating the grey economy and tion permits constitute another issue public policies are implemented, and establishing the first common body for crucial for economic development. reacts when necessary. We act based the public administration, business and An effort to revolutionize these pro- on specific data and figures. the civil sector. This body would define cesses has already begun, coupled Instead of focusing on many smaller and implement measures to reduce with reformed cadastre registration, projects, we have set up our resources business ventures in the grey zone. The urban and spatial planning, and solving in a way that allows us to develop the National Programme for Suppression legalisation and land conversion issues. very foundations of the Serbian busi- of the Grey Economy has encouraged We think that similar far-reaching ness environment. Our members work an important breakthrough, particularly results will soon be achieved in other together under thematic alliances for inspection reforms, digitalisation strategic areas. e-Government has focused on systemic areas, e.g. com- of the fiscal system, flat tax reform come a long way, followed by digi- bating the grey economy, developing and registration of seasonal workers, talising agriculture and healthcare e-Government, reforming agriculture while encouraging entrepreneurship and a growing number of activities in and healthcare, improving property and strengthening tax culture. environmental protection. relations, planning and construction, Similar results were achieved by This issue is all about the Grey Book. and protecting the environment. What forming a joint government group to Its contents are important and practi- has enabled us to initiate major changes improve Serbia’s position on the World cal, but it is just one of the many ways is the synergy we have created by Bank’s Doing Business List, profes- to influence change, pinpoint obstacles bringing together companies, local sionally supported by NALED. This to business and offer solutions. These governments and civil society, ready move would allow change in 10 areas changes were initiated by members of to dedicate their time and capacity to important for existing businesses and NALED, so don’t miss the opportunity achieving the goals of our association, potential investors, as these issues had to join NALED and write your name with the involvement of academia and been only selectively touched upon by among the founders of the new busi- the wider professional public. individual institutions, with no interde- ness environment in Serbia.

CorD | NALED | AGENDA 2021 | 9 AGENDA FOR A NEW GOVERNMENT

On its traditional annual conference, NALED has presented the new, 13th edition of the Grey Book, confirming the reforms priorities and measures to support the economy during pandemic times, together with Government and international community leaders.

At its 13th annual conference on economic reform, NALED with its members and partners presented its traditional 100 recommendations in the Grey Book, whose goal is to rapidly overcome the effects of the pandemic and improve conditions for doing business and investments.

he first panel ‘Together for Fair Com- NALED’s Fair Competition Alliance. Sian McLeod, Head of the EU Delegation Tpetition’ was addressed by Deputy Željko Tomić, President of the NALED to the Republic of Serbia H.E. Sem Fabrizi, Prime Minister of the Serbian Government e-Government Alliance, led the second and director of the IT and e-Government and Minister of Mining and Energy Zorana panel entitled ‘United Towards Digital Office, Mihailo Jovanović. Mihajlović, German Ambassador H.E. Economy’. He spoke with the Minister Prime Minister of Serbia Ana Brnabić Thomas Schieb, and Swedish Ambassador of Labour, Employment, Veteran and then addressed the participants. She H.E. Jan Lundin. The conversation was Social Affairs, Darija Kisić Tepavčević, the dedicated her speech to future prospects moderated by Ivan Miletić, President of Ambassador of the United Kingdom H.E. in 2021.

ANA BRNABIĆ, PRIME MINISTER OF SERBIA The Government and NALED have a common goal – further digitalisation

She said that 2021 would also pose identify crucial steps in reforms and to many challenges, and added that that the carry them out, so that Serbia can become government was trying to strike a balance a country where business will be easier between the population’s health and the and where our people will have better healthcare protection system, business quality of life”, said the Prime Minister. activities, the economy and life. Support The Serbian Government and NALED for people and businesses will be provided share a focus on digitalisation, and many “Last year was quite difficult not only for again this year: the third package of state of the measures the government adopted Serbia, but for the whole world, as we faced aid is worth 250 billion dinars, and more in 2020 were the fruit of their cooperation: unexpected challenges. In the midst of than 6 billion euros have been allocated introducing electronic public procurement the pandemic, Serbia managed to do two since the beginning of the crisis. and electronic delivery of cadastral and fascinating things: it had the lowest drop Speaking about the importance of tax decisions for sole traders on flat rates. in GDP in Europe, only 1%. Furthermore, simplifying administrative procedures, Otter fruits are common deliberations it had the second highest vaccination rate Brnabić emphasized digitalisation and on removing administrative obstacles in Europe, but came second to none in its benefits for companies and the public, through modern digital solutions in both the number of revaccinated people. We which became particularly evident during the state administration and in healthcare, couldn’t have imagined such results a year the pandemic, illustrating this with the agriculture, international business and ago.” This was how Prime Minister Ana fact that state administration and local other areas. Brnabić began her address, adding that governments had exchanged 22 million “When I look at the 10 priority recom- these successes serve as an incentive for pieces of information since 1 June 2017, mendations of Grey Book 13, I see the the government to continue reform, and meaning that people didn’t need to visit common denominator for most of it is a reminder that this wasn’t pure luck, but a counter 22 million times. digitalization. I can promise that we will a result of dedicated reforms and recent “I’d like to thank NALED for their long- do our very best to resolve most of it”, financial consolidation of the country. term support to reform, and their help to she concluded.

12 | CorD | NALED | AGENDA 2021 H.E. THOMAS SCHIEB, AMBASSADOR OF GERMANY TO SERBIA

ZORANA MIHAJLOVIĆ, DEPUTY PRIME MINISTER AND The Grey Book provides MINISTER OF MINING AND ENERGY important guidelines for We are fighting bilateral cooperation systemically for easier German Ambassador H.E. Thomas Schieb said that many business in Serbia German companies intended to reinvest in Serbia, and especially praised the electronic registration of seasonal workers. NALED and GIZ worked together on this procedure, which allowed Deputy Prime Minister and Minister of Mining and Energy 44,000 seasonal workers to be registered, while five million Zorana Mihajlović, who has closely cooperated with NALED on euros were paid in contributions and taxes. He also said that various reforms that have allowed Serbia to climb the World NALED’s Grey Book provided important guidelines for planning Bank’s Doing Business List, announced the continuation of bilateral cooperation in the programmes of GIZ and KfW. He reforms that would help Serbia reach the top ten countries for announced the continuation of support for measures aimed at ease of doing business. improving the business climate in Serbia, but also the transpa- Mihajlović announced joint efforts for more efficient electrical rency of business – with a special focus on non-cash and online grid connection procedures, which could also help Serbia rank payments. He also paid tribute to NALED for its contribution better on the Doing Business List. “Serbia is currently 94th to overcoming economic problems created by the pandemic. on the list for grid connections, but I believe we can make it to “We still need to fight the grey economy, which is very prono- No 22 with more efficient procedures”, said Mihajlović adding: unced in Serbia”, said Schieb, citing the negative aspects of the “If we could improve the issuing of building permits in such a situation such as slower economic growth, irregularities in the way that we are now the 9th most efficient country on that labour market, weakening tax discipline and the development criterion, then there is no reason we shouldn’t rank higher on of corruption, which all together, "hampers Serbia's entry into other points”. the EU and is an obstacle to fair competition”. She said that businesses know very well what good proce- In contrast, transparent business conditions appeal to dures are, and how cooperation with NALED “has shown that investors from all over the world, including Germany, which we can improve business conditions every year”. Mihajlović increases the volume of investment. Such a policy creates mentioned that not one investor left Serbia in 2020, and pointed new jobs, especially for youth. out that despite the circumstances the government managed Speaking of good practice and the German experience, to adopt an action plan for 2021-2023 to further improve busi- Schieb said that the grey economy there amounts to some ness conditions. She also mentioned the importance of support 10%, and that combating it still proves challenging for the from the German development cooperation and their programs government. He pointed to 2019 data showing around 16,000 being implemented with NALED, whose goal is to continue the criminal proceedings against those who did not follow the law systematic fight against the grey economy and corruption. and operated in the grey zone.

CorD | NALED | AGENDA 2021 | 13 H.E. SEM FABRIZI, HEAD OF THE EU DELEGATION TO THE REPUBLIC OF SERBIA

H.E. JAN LUNDIN, Digitalisation AMBASSADOR OF THE KINGDOM OF SWEDEN TO SERBIA helps EU accession Public procurement Head of the EU Delegation to the Republic of Serbia H.E. Sem requires greater Fabrizi talked about digitalisation as an important aspect of reform. “Digitalisation is what links reforms”, said Fabrizi, referring to the competition importance of this topic in the European Union. Digitalisation and the green agenda are EU priorities and the digitalisation process can help Serbia join the EU and improve working conditions. Ambassador of the Kingdom of Sweden H.E. Jan Lundin Fabrizi noted the EU’s continued support towards European said he was satisfied with cooperation with NALED and men- integration and mentioned strong economic ties: “About 60 to tioned areas where they have begun to cooperate, especially 70 percent of Serbian trade and investment come from the EU. improving electronic public procurement and wastewater tre- The more Serbia invests in its green and digitalization policy, the atment, where Swedish Development Agency SIDA is investing more it fits into European plans for economic reform.” considerable funds. He also pointed out the importance of the Economic Reform Ambassador Lundin observed that the value of public pro- Programme, a detailed plan on how to improve the management curement in Serbia constituted 8% of GDP, around four billion of reform in Serbia, and noted that the EU provided a range of euros, a reasonably good result, but the EU average was 12%. financial instruments for 2021-2027, for the Economic and In- “In contrast, Sweden allocates 15% of GDP for procurement, vestment Plan for the Western Balkans, with the aim to help all and our experience could help Serbia improve competitiveness countries including Serbia continue their growth with the EU. The in that field so that businesses would trust the process more and plan is to mobilise between 25 and 28 billion euros for the region be more willing to participate”, said Lundin. This is especially over the next seven years to invest in reforms and all major drivers important for us, since in half of public procurements in Serbia of economic development. there is only one bidder. There is also a focus on developing the regional market, and He also stressed the importance of improving the criteria for Fabrizi assessed that Serbia was doing a lot to help make the awarding public contracts so that contracting authorities take Western Balkans more appealing for investment. He pointed out into consideration not just the price, but also the quality of pro- that the goal was to prepare an agenda that will cover all areas of ducts, services and works. The Swedish Ambassador specially development in detail, from tax policy to environmental protection. mentioned how far Serbia had come since the beginning of his “A good business environment is something we support for Serbia mandate, that improved infrastructure and business climate to continue its road towards the EU, while NALED is one of our were visible. He underlined the importance of reforming cadastre best partners on this road”, concluded Fabrizi. registration, which allowed foreign investors to better under- “Many NALED recommendations are also our recommenda- stand investment opportunities in Serbia make easier decisions. tions, and we find them very useful”, he added.

14 | CorD | NALED | AGENDA 2021 H.E. SIAN MCLEOD, AMBASSADOR OF THE UNITED KINGDOM TO SERBIAI DARIJA KISIĆ TEPAVČEVIĆ, MINISTER OF LABOUR, EMPLOYMENT, VETERAN Cadastre reform AND SOCIAL AFFAIRS has improved Together we can business conditions regulate non-standard and the rule of law forms of employment

The Ambassador of the United Kingdom, Sian McLeod, praised the digitalisation of the registration process as a way to Minister of Labour, Employment, Veteran and Social Affairs help the construction sector and the real estate market, while Darija Kisić Tepavčević, thanked NALED for systematically contributing to improving business conditions and the rule of recognizing the need to regulate the status and rights of law. It is a reform supported by the UK’s Good Governance workers in seasonal and occasional jobs and for proposals to Fund in cooperation with NALED, and implemented together resolve the issue. She said that “due to good results with the with the Ministry of Construction, the Ministry of Justice, the registration system in agriculture, the Ministry has recognised Republic Geodetic Authority and other ministerial institutions. the need to expand the registration of seasonal workers to She observed that the Good Governance Fund especially construction, tourism and hospitality, and domestic work”. supported projects focused on digitalization and development She also pointed out that cooperation with NALED was of e-Government services, as those two areas are crucial to a important to regulate the rights of those engaged by foreign modern in the service of its people and companies. Since 2015 the employers, through online platforms and all other non-standard fund had financed over 65 projects to a total of 20 million pounds. forms of engagement. McLeod said that the Good Governance Fund supported She said that new forms of employment are present all over another important reform initiated by NALED – expanding the the world due to technological development: “Various types of electronic registration of seasonal workers in agriculture to non-standard employment have increased by 53% in our country new areas of work. She added that this would be an important as well. Part-time engagement has also increased significantly. achievement, guaranteeing the rights of workers who have Although part-time work makes up about 10% of total employ- mostly been working illegally. In that context, the ambassador ment, still only half the EU average, it reminds us that we must especially referred to the importance of regulating the status be ready for the future and need to adjust certain regulations of ‘freelancers’, as she was familiar with their position from and that a whole list of regulations are being prepared. personal experience I her own youth. “We have recognized all the recommendations that NALED The Ambassador expressed the hope that digitalisation in has systematic ally presented in the Grey Book. These are the Serbia would reach the field of environmental protection to guidelines we will work on in the coming period”, said Kisić reduce the impact of climate change. Tepavčević.

CorD | NALED | AGENDA 2021 | 15 Overview Of Reforms Carried Out In 2020

In 2019, reforms were in full swing, but last year’s Covid-19 crisis gave little room for working on systemic reforms, the focus of institutions was on preserving public health and preventing a potentially dramatic decline in business. In 2020, however, some of NALED’s long standing vital recommendations were implemented.

state of emergency was declared inform businesses and the public and added, last year ended with 10,000 A already in the first quarter, so the collect donations for the most affected businesses more than 2019. capacities of the public administration local communities and health facilities. were focused on preventing the spread On the declaration of the state of 10 PRIORITIES of the virus. Regulation was focused emergency, NALED was the first to TO SAVE BUSINESS almost exclusively on adopting rules introduce a set of 10 priority measu- 3 out of 10 of NALED’s priority me- on the movement and gathering of the res followed by many sector recom- asures for supporting businesses and population and the work of businesses. mendations. Their adoption and the preserving jobs were adopted in the first NALED responded to the social joint activities of the government and support package by the government: challenges by proposing measures business associations successfully the possibility of deferred payment of to support businesses, joining the helped many to survive the crisis. taxes and contributions without interest government’s efforts to preserve not Serbia’s fall of only one percent of and access to cheap or interest-free only public health but also businesses GDP was an exceptional result in Eu- loans to provide liquidity and refinance and jobs. rope, where drops were calculated in liabilities; a recommendation for direct Addressing the challenges of the double digits. APR business data and financial support to businesses; and a pandemic, NALED formed the Co- the positive net result of RSD 433.5 moratorium of at least three months on vid-19 digital platform (www.naled.rs/ billion, better by a fifth than the year the repayment of loans to banks and covid19) during the first days of the before, and 43.500 new jobs in com- all state duties. A recommendation emergency to identify problems and panies submitting financial reports by NALED and other philanthropic solutions, provide legal assistance, confirm this. When sole traders are organizations on the abolition of VAT

16 | CorD | NALED | AGENDA 2021 NALED responded to the social challenges brought by Covid-19 by proposing measures to on donations during the state of emer- certain technical difficulties in practice. support businesses, joining gency was also adopted. Also adopted was our recommendation government efforts to regarding electronic application for preserve not only public EMERGENCY MEASURES obtaining a license to operate vehicles IN HEALTHCARE for delivering medications and medical health but also businesses The crisis committee accepted several devices during curfew. and jobs of the 15 emergency measures recommended by NALED concerning operation HELP FOR FARMERS of healthcare system under Covid-19. The The government accepted three of allowed the farmers to apply electro- first was to cancel the decision to ban NALED's five emergency measures nically for a permit to work their fields the export of medicines, which enabled to help farmers and beekeepers. On during the state of emergency. Unfor- the uninterrupted supply of previously our initiative financial assistance was tunately, the paperwork for both the planned quantities to countries in the provided for agricultural holdings - two public administration and the farmers region and avoided shortages, especially regulations were passed securing assi- created a great problem because they of medicines not related to Covid-19. On stance of RSD 2.6 billion for farms, and had to obtain individual permits for our initiative, expired prescriptions were one of RSD 236 million that covered the each day of work. In addition, farmers automatically extended for patients with purchase of surplus fattening cattle. over the age of 65 were not allowed to chronic diseases (so-called electronic Although needed, this solution offered visit their fields. One of the positive therapies) through the eRecept applicati- only a short-term respite, primarily for measures was the launch of the ePi- on. This measure was carried out despite small farmers. NALED’s initiative also jaca portal, which initially established

CorD | NALED | AGENDA 2021 | 17 a register of agricultural producers. support of the European Bank for Re- red the result of extraordinary efforts. However, nothing could be ordered or construction and Development, and the Although this result is in line with the paid directly through the portal. Ministry of State Administration and resolution average of the previous Local Government, the Support Unit 12 years, we believe that because of SUPPORT TO THE for the Coordination Commission for everything we have gone through, the CONSTRUCTION INDUSTRY Inspection Supervision and the Office challenges of reform in 2021 should be AND TRANSPORT for IT and eGovernment played a key addressed with more agile adoption of NALED also submitted a proposal for role. Individuals and businesses could comprehensive solutions, to prepare 20 measures supporting the constru- report any observed irregularities or Serbian businesses for post-pandemic ction industry and the infrastructure grey economy issues by phone or conditions. and transport sectors. Thanks to the online via the website inspektor.gov. Last year, the Ministry of Finance coordination of the Ministry of Constru- rs. Operators filtered the information fully or partially implemented most of ction and the Ministry of the Interior, received, directed it to the respon- NALED's recommendations, which is in some filling stations were opened all sible inspections and further action line with the number and importance of day throughout Serbia where trucks within the legal deadlines. During the Grey Book recommendations that are were allowed to move, preventing the pandemic, about 1,600 reports were in the scope of work of this ministry. formation of large convoys of trucks received per week, only to rise by Implementation of electronic public at the border. In addition, a green the end of January 2020 to 16,000. procurement began in 2020, and the corridor was introduced in May to allow People could also report violations long-awaited new Law on Fiscalization trucks to cross borders in the Western of anti-pandemic measures to the was adopted, which will modernize and Balkans, which boosted foreign trade contact centre. digitize retail sales and processing of and enabled a regular supply of goods. fiscal cash register data in real time. The Ministry of Labour accepted the AN EFFECTIVE VACCINATION Also, this regulation will enable the recommendation to move the expiry APPLICATION SYSTEM date of 2019 annual leave to the end During 2020, the Government’s of 2020, helping employers organize expert team and the IT and eGover- Given the overall situation work during the state of emergency. nment Office worked on establishing of the coronavirus Additionally, NALED’s recommenda- a single vaccination management pandemic, the reforms tions to obtain permits electronically information system, which ranked enacted can be for the movement of goods transport our country at the very top in Europe considered the result of were adopted. Help of around EUR in organizing immunization of the extraordinary efforts, 200 million was also provided for the population. In January 2021, mass but the challenges to roads to partially compensate for the vaccination of Serbians began, with reform in 2021 should loss of income. the electronic system enabling efficient be addressed with a Unfortunately, one of NALED’s im- management of available vaccines portant recommendations, to secure through monitoring each bottle from more agile adoption of deferred payment of contractual obli- its entry into the country to its use. comprehensive solutions gations to the state, and the urgent The system also enables all interested settlement of obligations to transporters residents to apply for vaccination fiscalization of most business entities by the state was not realized. In fact, through the eGovernment portal by that had no obligation to issue fiscal the opposite was done. The Ministry filling out an online form, or through invoices so far. of Finance informed local governments the contact centre, and then receive The first step towards the complete to postpone the payment of agreed their vaccination appointment via SMS abolition of the obligation to submit obligations. and e-mail. proof of payment was made with fees for courts, since their central collection SINGLE CONTACT CENTRE REFORMS HAVE NOT BEEN system has been established. Redu- FOR INSPECTIONS STOPPED ction in payroll deductions also went To prevent market irregularities like Despite the challenging situation ahead although they are still insignifi- illegal increases in the prices of food, and judging by the results of the re- cant, and new electronic tax services medicine and protective equipment commendations of the Grey Book 12, were introduced on the ePorezi portal. during the pandemic, five days after the reforms did not stop. During 2020, The following ministries have par- declaration of the state of emergency two recommendations were fully im- tially adopted the recommendations a single contact centre for inspections plemented, while 11 were partially im- of Grey Book 12: Ministry of Health was established. The Contact Centre plemented. Given the overall situation – working on a plan to optimize a heal- was launched by the Government in of the coronavirus pandemic, what has thcare institutions network and solving cooperation with NALED and with the been achieved so-far can be conside- the problem of state pharmacy debts;

18 | CorD | NALED | AGENDA 2021 Ministry of Trade, Tourism and Telecommunications and Ministry of State Administration and Local Se- lf-Government – further developing eUprava in Serbia, from establishing the Central Population Register to eDelivery; Ministry of Labour, Employment, Veteran and Social Affairs – started expanding the system for simplified registration of seasonal workers; National Bank of Serbia – work on simplifying procedures for assigning claims. The Ministry of Finance and the Ministry of Constru- ction, Transport and Infrastructure, together with the Republic Geodetic Authority, are responsible for the complete resolution of two recommendations in 2020.

ELECTRONIC PUBLIC PROCUREMENT An important advance was made in establishing an electronic public procurement procedure based on the Law on Public Procurement adopted during 2019, from 1 July 2020 when the provisions of this law began to apply. All communication between contracting authorities and potential suppliers in public procurement processes from the moment of the invitation, through the submission of bids, till the conclusion of the contract, is done through the public procurement portal which is publicly available on jnportal.ujn.gov.rs. During 6 months of use, about 10,000 advertise- ments and public calls were published, and little more than 11,000 procedures were conducted, which shows the system was rapidly accepted.

eDELIVERY OF REGISTRATIONS IN THE CADASTRE The reform of the registration of rights in the real estate cadastre enables citizens to electronically submit requests for registration through a public notary, and in future to receive cadastral decisions on their requests electronically. Through the eŠalter system it is possible for the solutions issued by the Republic Geodetic Authority to be delivered as an electronic document to the mailbox of the citizen. For those who have not opened an account on the eGovernment portal, a printed copy of an electronic document can be delivered by registered mail through a postal service. Recipients have long been bothered by these registered deliveries being returned if the postal operator did not find them at the address at the time of delivery. More than 90% of decisions were not delivered. Amendments to the Law allow the shipments to be left at the nearest post office after the first unsuccessful attempt, and only after a 15-day period be returned. Additionally, in case the party does not pick up the shipment, it is published on the authority’s website, and considered delivered no later than 30 days from the day of its publishing on the site.

This year, NALED awarded two special recognitions and one team award for prominent civil servants who confronted the year’s challenges to make exceptional contributions to improving the regulatory framework for business, reforming public services and overcoming the pandemic crisis. Special awards were also presented to media figures for promoting reforms and ensuring high quality reporting on initiatives to alleviate the consequences of Covid-19.

CorD | NALED | AGENDA 2021 | 21 SLAVICA SAVIČIĆ, STATE SECRETARY AT THE MINISTRY OF FINANCE We Are Fully Committed To The Well-Being Of Both Industry And The Public

I think we have managed to alleviate the consequences of the pandemic and to save our economy and employment, but also the health and lives of our people. I am proud to have been part of the economic crisis headquarters of the Government of Serbia

lavica Savičić, State Secretary at the of unknowns. I think that at that time, all ministries, so we worked together on SMinistry of Finance, is the winner when we knew little about what awaited all assistance measures, both generally of NALED's annual recognition for an us, we did everything very quickly and and by sector. Furthermore, during the outstanding contribution to improving efficiently to allay the consequences of pandemic the government and all insti- the regulatory framework for business the coronavirus pandemic. I can now tutions were absolutely committed to a and economic measures to support see that as part of the economic crisis successful adoption of all the measures. the economy during Covid-19. She also headquarters I had the opportunity to The biggest challenge was devising how played an important role in carrying out participate in a process of rapid and to ensure that all the measures were car- some of NALED’s key recommendations efficient decisions that preserved the ried out quickly and efficiently, so that to combat the grey economy, including vitality of the Serbian economy, the the burden on companies and the public preparing a legal framework for digital health of our people and employment. was as light as possible, but also so that fiscalization and electronic invoicing. My role was to formalize all the deci- aid beneficiaries were less exposed to sions, to prepare a legal framework epidemiological risks. What was your role in preparing the with my colleagues on the basis of the aid package to preserve the economy measures to be implemented. A further You have also made a great con- and jobs? challenge was designing procedures to tribution to enforcing the measures Last year was very challenging for implement the measures. I must point of the National Program for the Sup- the Ministry of Finance, as we faced a out that throughout the pandemic, we pression of the Grey Economy - what serious health and economic crisis full have had very good cooperation between are the results?

22 | CorD | NALED | AGENDA 2021 I appreciate the commitment of my colleagues at NALED. I think NALED’s activities and the open approach of its professionals contribute to pushing the boundaries every year with an increasing number of resolved recommendations for better business at NALED. I think NALED’s activities and non-cash payment of fees without conditions the open approach of its professionals submitting proof of payment. What contribute to everything that affects progress can we expect on these the efficiency of the system, allowing recommendations? Besides crisis measures, the Ministry of the boundaries to be moved every year The Ministry of Finance will be fully Finance was committed to other aspects of with an increasing number of resolved committed to all proposals. Due to the improving the economic framework, so we recommendations for better business pandemic, this year will be difficult too, also worked on important laws passed at conditions. there will be a lot of challenges, both in the end of the year, the Law on Fiscalization preparing and implementing each recom- and the Law on Digital Property. The Law Among the 100 recommendations mendation. In that sense, analysis, work on Electronic Invoicing is currently passing of the Grey Book, most are always and preparation await us, to establish the through the National Assembly. Also, the related to the Ministry of Finance. conditions for their execution. prize game ‘Take the Bill and Win’ had a Does that worry or inspire you? full effect, because we received over 11 For the Ministry and the Minister of And finally - what new things are million envelopes. Everything the Ministry Finance, any new proposal that can im- you preparing for us in the Ministry of Finance does is aimed at providing the prove the business environment and of Finance? best possible conditions for the function- help industry is a challenge to find the Adopting the Law on Electronic In- ing and competitiveness of our industry. best solutions and be practical enough to voicing is currently underway, beginning The fact that we have implemented more make use of any good recommendation. I the roll out of one of the Grey Book’s than 70% of measures from the National think the greatest challenge this year will recommendations. It remains for us to Programme for Suppression of the Grey be to implement the recommendation to prepare the other elements necessary to Economy shows how committed the Min- establish a single system of electronic implement this law, such as the necessary istry of Finance is to creating conditions invoicing to bring greater transparency regulations and a functional platform to for fair competition. of transactions and predictability and exchange and register electronic invoices. security of payments. We are also preparing the necessary You worked with NALED on these technical elements to enable the full im- activities and reforms. How would Looking at the priorities of indus- plementation of the Law on Fiscalization you rate your cooperation? try, the Grey Book highlights propos- from 1 January 2022. The novelty that I think we had a completely open and als for reducing payroll deductions, will make people happy is that this year constructive relationship over the three establishing a public electronic reg- we will organize two more rounds of the years we have worked together. I appre- ister of non-tax charges, introducing Take the Bill and Win game, now during ciate the commitment of my colleagues a unified tax certificate and enabling May and in the autumn.

CorD | NALED | AGENDA 2021 | 23 MIHAILO JOVANOVIĆ, DIRECTOR OF THE OFFICE FOR IT AND EGOVERNMENT Serbia Has Positioned Itself As A Country Of Innovation

In the past three and a half years, we have established the necessary infrastructure and developed many electronic services, transforming the public administration into an efficient service for people and business. On this basis we have been able to defy pandemic conditions to create new platforms and electronic services at key moments practically overnight, to ensure the coordination of healthcare, education and other key systems

ihailo Jovanović, Director of the application service for PCR testing, and of services to companies and the public. MOffice for IT and eGovernment, re- then for vaccination on the eGovern- Serbia has in this way positioned itself as ceived the NALED annual special award ment Portal. How did you manage that? one of the five countries in the world with for exceptional contribution to the mod- For digitalization, it is important that the largest number of innovations during ernization of the public administration over the past three and a half years we have the Covid-19 crisis. in Serbia, which has greatly improved established the necessary infrastructure We had to respond quickly and ef- the efficiency of procedures between and developed many electronic services, ficiently to the need to immunize the government, businesses and the public. transforming the public administration population, so from 11 January 2021, we The digital vaccination system has been into an efficient service for business and enabled everyone to express interest in recognized as an example of best practice the public. Because of this, we have been vaccination against Covid-19 by filling out in immunizing the population and has able to create new platforms and elec- a simple questionnaire on the eGovern- ranked our country among world leaders tronic services at key moments practically ment Portal. in the use of digital tools to respond to overnight. These innovative solutions and the current crisis. electronic services have aimed to achieve You also hold NALED's annual rec- optimal coordination of healthcare, edu- ognition for establishing electronic At the beginning of the pandemic, cation and other key systems under the delivery of cadastral decisions through the Office for IT and eGovernment pandemic, timely and accurate information eSanduče. How does this service work immediately established an electronic for everyone and continuous provision and how far are we from getting other

24 | CorD | NALED | AGENDA 2021 important documents in our digital In the year of the pandemic, you application and obtaining the necessary mailboxes? managed to open the first state data permits for the part of the procedure for Delivery of cadastre decisions to elec- centre in Kragujevac. What does this which digitalization is complete. tronic mailboxes means a big change for mean for our country and economy? By the end of 2021, one hundred new the approximately 500,000 people involved The government has designated the administrative procedures for business in real estate transactions every year who construction of the State Data Centre in will be digitalized, in addition to all those no longer have to go to a counter at the Kragujevac as a project of special impor- already available on the web sites of state Geodetic Institute. The entire procedure, tance for Serbia. It is an infrastructure bodies – the Tax Administration, Cus- from submitting a registration request at facility of regional importance, which holds toms Administration, Ministry of Finance, the notary and electronic submission of a data and equipment of the state and local Geodetic institute, Business Register, tax declaration, has now been completed government, and where there is also room Social Insurance Registry – and on the with the electronic receipt of the cadastre for commercial users. Among the first are eGovernment Portal in a life event Starting decision, and with this success we can the American IBM and Chinese Huawei, but a Business. Until the complete digitaliza- develop e-delivery of other services. many Serbian companies and institutions tion of all 2,600 procedures, we have a I see the special recognition as con- have also signed commercial contracts. rather ambitious plan that envisages the firmation that these achievements have The Kragujevac centre has a capacity digitalization of the first step - submitting made a real impact on modernising the of almost 1,100 rack cabinets and is five applications electronically. So by the end public administration in Serbia. With times larger than the State Data Centre the programme for the development of in Belgrade. It has two buildings of about By the end of 2022 there eGovernment, the local tax administra- 14,000 square meters and meets the highest will be no paper form of tion portal, the delivery of decisions to standards for this type of facility - a stand- requests for permits, eSanduče on the eGovernment portal, ard that prescribes general aspects of the construction and commissioning of the facility and the infrastructure required to certificates, decisions state data centre in Kragujevac and support the operation of telecommunica- or other documents enabling cashless payment at municipal tions in data centres (SPRS EN 50600), one for which there is an counters, cities and institutions have standard (TIER 4) that ensures availability electronic version enormously improved the efficiency of and another (2N) that provides complete that can be submitted all the procedures that people and com- redundancy, a duplication of all processes. electronically panies have with the state. The vaccination information system was especially What are the first recommendations of 2022 there will be no paper form of emphasized, with the organization of of the NALED Grey Book that you see requests for permits, certificates, deci- the vaccination roll-out itself, which is as candidates for a quick solution and sions or other documents for which there recognized around the world as one of what are your priorities on the way to is an electronic version that can also be the best examples of good practice in further digitalization? submitted electronically. response to the coronavirus crisis. Many of the recommendations of the Grey Book contain solutions for the digi- If you were to rank the importance Electronic delivery is linked to another talization of administrative procedures, of services launched in collaboration project on which your office cooperates and we see them all as important. What with your Office, NALED and donors, with NALED and the EBRD, and that is will help us a lot in all of them is the ePaper what would you highlight as the service the eCitizen project where you work on project. Under this, a register of adminis- that was most beneficial to business? popularizing the use of electronic services trative procedures will be promoted on the Cooperation with NALED has always on the eGovernment Portal throughout eGovernment Portal by the middle of the been excellent. Their experience with local Serbia. Why is this important? year. The goal of the Portal is to establish government and with companies helps us Together with NALED and with the sup- a single point of information on the rights get a clearer picture of what we need to port of the EBRD, we have trained more and obligations of businesses in relation improve. They are a very important part- than 700 administrators to work on the to the state, easy navigation through ner for us, they supported us right from portal through promoting the electronic procedures and improved legal security the establishment of the Office for IT and delivery of documents to the mailbox on and certainty in the conduct of the public eGovernment and have been a tireless driver the eGovernment Portal. Our goal is to administration. The register envisages a of transformation and digitalization of the help our citizens, businesses and those list of all 2,600 procedures that businesses public administration, without which we who find it difficult to deal with the digital conduct with the state, with all informa- would be far from any results. I expect even environment to overcome the first obstacle tion related to each procedure – from the more intensive cooperation with NALED be- and join the group of over a million users of responsible authority to the procedure, cause we have large projects and successes e-Government services who have already deadlines, application form, required ahead of us, the wheel of digitalization has become eCitizens. documentation, all the way to electronic started, now there is no stopping it.

CorD | NALED | AGENDA 2021 | 25 DR GORAN STAMENKOVIĆ, ASSISTANT MINISTER OF HEALTH AND HEAD OF THE WORKING GROUP OF THE COORDINATION COMMISSION FOR THE SUPPRESSION OF COVID-19 Together With NALED, We Can Do Much Better

With the help of NALED, we have made a huge advance in reforming the inspection services, in Inspection was fully engaged in March, the way they work and April and May, the Territorial Sanitary in digitalization. A good Inspection spent two months at the border and the fight against the coronavirus atmosphere has been continued after May 2020. A special created and a high-quality Working Group was formed on 23 October foundation for further to coordinate the Republic inspections, progress and it later grew into the Working Group for the Coordination of the Work of We began Covid-19 with Republic and Local Inspections. When a large staff deficit, but amendments to the Law on the Protection territorial and 26 border inspectors at we managed to maintain of the Population from Infectious Diseases our disposal, but we mostly worked with the quality of our work. were adopted on 13 November 2020, about 70 inspectors from the Ministry it was given the task of supervision in of Health, 18 at the border and about 40 Digitalization is one of the special epidemic situations. inspectors from the Provincial Sanitary most important drivers of Local inspections, primarily the com- Inspection, who are separate from the better inspections, but we munal police and inspection, were given Ministry of Health. also need more modern the same authorization as the sanitary Digitalization is one of the most inspection, and then our joint work important conditions for even better and better equipment and gained momentum, effectiveness, ef- operational work, and for digitalization training for our inspectors ficiency, but also visibility in the field. we need even better and more modern equipment for inspectors. The Sanitary Inspection, for whi- r Goran Stamenković, Assistant ch you are directly responsible, was Reform of inspections began in DMinister of Health and Head of the among the first to implement the 2017. How do you rate the current co- Working Group of the Coordination e-Inspector system, and introduced operation with NALED and the EBRD? Commission for the Suppression of an electronic system for timely com- Based on all the data, reports and Covid-19, won NALED’s special team munication with people entering the experience of sanitary inspectors par- recognition this year for his contribution country. What are the results? ticipating in the reform since 2017, I can to reducing the negative effects of the In 2020, we held 217,771 office and say that our cooperation is extremely coronavirus pandemic. field inspections, almost three times successful. NALED has really turned more than usual. This is an exceptio- things around with the reform, crea- What kind of challenges have you nal effort because more than 150,000 ted an atmosphere and high-quality met in your work during the pandemic? decisions were issued in 2020 just for foundation for further progress. We Last year, Covid-19 completely home quarantine. have also taken part in all this, made a occupied the personnel capacities of the We began Covid-19 with a large great contribution, but I think we can Sanitary Inspection. The Border Sanitary staff deficit. Last year, we had 96 do much better.

26 | CorD | NALED | AGENDA 2021 MILAN PAŠIĆ, ASSISTANT MINISTER OF EDUCATION, SCIENCE AND TECHNOLOGICAL DEVELOPMENT Magic In The Hands Of Teachers

The innovation and sacrifice shown by our teachers deserves broad social recognition, and The greatest success was organising that is why the Ministry classes during and after the state of emer- has supported NALED in gency, when the immediate educational organizing a competition work was suspended. I don’t mean just for the best examples of the organisation of the process, but also remote learning in Serbia the enormous effort of all our colleagues - educators, teachers, principals, support staff, who supported children, students Thanks to the dedication of and families. The Ministry of Education, Science and Technological Development unique online database was created with teachers, it has been possible decided immediately to record classes to the best examples of remote learning and to broadcast thousands be broadcast on RTS2, RTS3 and RTS project teaching, and made available to all of hours of teaching and Planet. At the same time, teachers were educators in Serbia through the website supplements for children and prepared to record educational materi- www.jpd.rs. We would like to continue als at home. cooperation on this competition in future. students in our educational institutions. This would not The Ministry of Education supported Through the Public-Private Dialogue have been possible without the competition ‘Magic is in the Hands for Development project, NALED advo- the engagement of all our of Teachers’. Why is this competition cates project teaching and preparing important and what are your further our education for the 4.0 revolution. colleagues plans? How do you see the future of project In April last year, NALED and the organi- teaching in Serbia and the education zation for career development and youth system in general? n the first wave of the pandemic, Serbia entrepreneurship Connecting, supported In the past few years, the Ministry has Iswitched to online classes in a flash. One by USAID, launched the first national com- begun the digitalization and comprehen- of the winners of NALED's team award petition for the best examples of online and sive reform of education, which I think for its contribution to overcoming the project teaching in primary and secondary is felt parents, students and educators. crisis caused by the pandemic is Milan schools. Since the innovation and sacrifice Besides digitalization, the future lies in Pašić – Assistant Minister of Education, shown by our teachers during and after further capacity building of our educators, Science and Technological Development, the state of emergency deserves broad and in this we can do a lot in cooperation who made a major contribution to primary social recognition, the competition was with the civil sector and organizations such and secondary school students receiving supported by the Ministry, the Institute as Connecting and NALED. With them we quality remote learning. for the Advancement of Education, the have prepared a manual for project teach- Republic Secretariat for Public Policy and ing and distance learning, translated into What was the greatest success, and RTS. The results were impressive – more five languages of national minorities and what was the toughest challenge in such than 700 applications from teachers from distributed to all primary and secondary a massive undertaking? as many as 116 towns across Serbia. A schools in Serbia.

CorD | NALED | AGENDA 2021 | 27 DANIJEL NIKOLIĆ, ASSISTANT SECRETARY GENERAL OF GOVRNMENT OF SERBIA, DEPARTMENT FOR INTERNATIONAL AND DEVELOPMENT COOPERATION We Won With Our Hearts

Although it has been challenging, knowing that we are doing such an important job has made it easy to work from the heart. On behalf of all of us – a great thanks to NALED for recognizing our efforts and thanks for what for us is an devices and equipment, and how satisfied extremely important award are you with the results? It was a great honour and pleasure to receive this recognition, which actually belongs to the entire Air Coordination out an individual situation, I think it would team, which did a tremendous job together certainly be when we organized at the same Profound understanding, with the staff of the General Secretariat of time two freight trains of over 50 wagons expediency, compassion the Government, the national airline Air that came directly to Belgrade from Wuhan. and humanity are definitely Serbia, Milšped, UNDP Serbia, the Security At the same time we organized flights for the right words to describe Information Agency and the Ministry of goods that were urgently needed. The first Foreign Affairs. train had a special symbolism for us because the relationship between the Our work involved constant, almost it started from Wuhan - the city where the state and NALED, but also the twenty-four-hour coordination with the fight against the coronavirus began, and the entire Serbian business world Cabinet of the Prime Minister and the city that first defeated the virus. in the past year, and I think we Cabinet of the President of the Republic. We did everything in our power to realize Are donations still needed today, have shown that when we are the donations and procurement assured by and how much does your cooperation together, there is no crisis that the humanitarian efforts of the President, with associations like NALED mean in cannot be overcome the Prime Minister and members of the identifying needs and potential donors? government, with the help of our socially Donations are always welcome. Now responsible companies and friendly coun- things are slowly returning to normal, tries, first and foremost to help our heroes and I would say that at least from the or- t the beginning of the pandemic, socially – our health workers – to save our lives. ganizational viewpoint we have gone from Aresponsible companies showed great crisis management to a well-organized solidarity and readiness to help the state Which of the donations or assistance system that works. The Health Fund and in the fight against Covid-19. The General projects you have carried out have you the Ministry of Health regularly review Secretariat and Danijel Nikolić, Assistant been particularly proud of? the needs of our health system and suc- Secretary General at the Department for There were indeed challenging moments cessfully coordinate the procurement of International and Development Cooperation, when we had five planes in the air at the everything required, together with the played a key role in coordinating donations. same time. At a time when it was not work- Serbian Chamber of Commerce, which That is why our interlocutor deserves to be ing out for much larger and more developed during the crisis was the biggest partner one of this year's winners of the NALED team countries than ours, we transported medical in finding socially responsible companies award for joint contribution to overcoming equipment from several towns in China – ready to help their country. NALED has the crisis caused by the pandemic. primarily respirators, protective equipment made a major contribution by animating its and materials, both those that were received members to unreservedly support us and What did it look like in those first as humanitarian aid and those procured y by finding ways to ensure that no request months of the struggle for medical the Republic of Serbia. If I have to single for assistance remains unfulfilled.

28 | CorD | NALED | AGENDA 2021 STEFAN BADŽA, ADVISER IN THE PRIME MINISTER’S CABINET Dialogue With Industry

oon after the outbreak of the pandemic, during and after the state of emergency. Sthe Government of Serbia formed a Understanding and respecting the situation crisis committee with the task of design- in the field, he contributed to the efficient ing and coordinating activities to reduce creation and implementation of measures One of the exceptional the destructive impact of the pandemic. to preserve economic activity and jobs Stefan Badža, an adviser in the Prime during the crisis throughout the year. individuals in the public Minister’s cabinet, was a member of the NALED was among those who inspired administration who received economic section of the crisis committee, and advocated the establishment of a the NALED team award this which maintained a constant dialogue public-private dialogue between economic year for a joint contribution to with industry to find the best solutions. policymakers, industry, the civil sector and This year's winner of the NALED award the international community through the overcoming the challenging supported companies of all sizes in coping urgent formation of a joint expert group, to Covid-19 crisis is an adviser in with the challenges imposed by Covid-19 provide analytical and technical support to the Serbian Prime Minister’s through daily communication with busi- the crisis committee to eliminate possible cabinet, Stefan Badža ness associations, and assisted them harmful effects of infectious diseases on in overcoming administrative obstacles the economy.

CorD | NALED | AGENDA 2021 | 29 ILIJA CEROVIĆ, ACTING DIRECTOR OF SERBIAN TELEVISION AND EDITOR-IN-CHIEF OF THE RTS EDUCATION AND SCIENCE PROGRAMME We Achieved The Impossible! We are interested in continuing cooperation with NALED, the Republic Secretariat for Public Policies and other project partners, especially What was the role of RTS and what in promoting project were the results in the organization of teaching and distance distance learning during the pandemic? learning It was a great professional challenge for editors, journalists, production staff and technicians, the entire RTS community. to be further developed through the creation The educational and scientific programme of new and connecting the already existing suspended its regular production and audio-video material with the teaching units directed all available resources towards on the RTS Planet platform. What RTS and the My School project. Classes for primary the educational and scientific programme and secondary schools were broadcast on no other TV have, are series that in various RTS2 and RTS3. Furthermore, a repository ways support all participants in education, of educational video content for primary develop so-called soft skills like critical We learned on the go, and secondary school students was es- thinking, non-conflictual communication overcame obstacles, tablished on the free mobile app RTS My and teamwork, and provide models of School, on the RTS website and on the free good practice for educators to implement improved distance learning multimedia internet platform RTS Planet. teaching innovations.d the city that first and all with tremendous From 16 March to 15 June 2020, the public defeated the virus. support from teams of media service recorded, processed and the Ministry of Education, broadcast a total of about 2,280 hours for You cooperated with NALED on the primary and secondary schools, with test national competition Magic is in the Science and Technological analysis of two trial final exams for junior Hands of Teachers – are you planning Development and a great high school graduation. This success is any new joint initiatives? sacrifice from the teachers highlighted by the fact that in regular cir- RTS was the media sponsor of Magic cumstances the educational and scientific is in the Hands of Teachers, which was programme annually produces an average carried out by NALED under the project of about 700 half-hour show. Public-Private Dialogue for Development erbian Radio and Television provided to affirm the role and competencies of Sits production capacities to the Serbian How did your close work with teach- teachers as supporting pillars in the de- education system in an incredibly short ers influence your further approach in velopment of society. The educational time, so that under Covid-19, lessons would the development of the programme and and scientific programme contributes be available to all students in primary and your thoughts about the role of RTS in the training of youth, but also all of us, secondary schools via the RTS platform. promoting distance learning? for the coming age of artificial intelligence Ilija Cerović, acting Director and editor-in- The closure of educational institutions and machine learning. In this sense we chief of the RTS educational and scientific due to the coronavirus pandemic has are interested in continuing cooperation programme received this year's NALED shown the importance of digital media, with NALED, the Republic Secretariat for Recognition for the promotion of reforms the Internet and technology in education. Public Policies and other project partners, for his contribution to reforming the tradi- All this imposes the need for cooperation especially in promoting project teaching tional approach to education. between RTS and the Ministry of Education and distance learning.

30 | CorD | NALED | AGENDA 2021 ALEKSANDAR MILOŠEVIĆ, ECONOMICS EDITOR, DANAS Our Duty Is To Tell It The Way It Is

Media outlets who still believe in journalism need to actively take care not to fall into the trap of their real truth behind news, expose decep- own radicalisation tions, half-information and political spins placed by government officials. That is the main reason we are so focused on companies are actively discouraged and topics related to working conditions, even directly intimidated from advertis- abolishing bureaucracy, combating ing in independent media. corruption, equal rules for all, subsidies, protection of property rights, workers’ When you look at the recommenda- Our focus is on topics that rights and spending public funds. tions in the NALED Grey Book, especially the list of 10 priorities, what would you are essential for progress What are the key challenges facing highlight as most important and would in Serbia, especially social independent journalism today? you change anything on the list? and economic progress. So I think that the term ‘independent NALED’s first recommendation is to we concentrate on subjects journalism’ is actually a pleonasm. reduce payroll deductions, but I think You’re either a journalist or you’re a that the second recommendation is like working conditions, propagandist. There is no third option. more urgent, i.e. establishing a register abolishing bureaucracy, In that sense, the main issue Serbian of non-tax charges. Reducing payroll combating corruption and journalism is facing today is the attempt deductions is a complex issue that can’t equal rules for all (and a very successful one) to subsume be fixed easily, while non-tax charges are journalism under two polar opposites, more numerous and often completely with no middle ground. Either you are unjustified, they don’t serve the purpose for the government or you’re against they are intended for, and they are often leksandar Milošević, editor of the them. Media outlets who still believe in a tax burden disguised as a fee for a Aeconomics column in the Danas journalism need to actively take care not service that either does not exist or its daily paper, has won this year’s NALED to fall into the trap of their own radicalisa- value is overestimated with the funds award for his contribution to high quality tion. It isn’t our role to tell people what used for something completely different. reporting on reforms and initiatives to is wrong with our society, we are here Another key issue that NALED ac- improve working conditions in Serbia. to show them the way things are. Those knowledges has to do with wastewater are two fundamentally different things. treatment. I’d also mention the reduction When you look back at the accom- Practically, media outlets that try of harmful substances used in Serbian plishments of your editorial office at to stay independent face a series of thermal power plants, and establishing Danas, what are you most proud of? issues: from being completely ignored strict control mechanisms in mining and Although it might sound like a cliché, by institutions and government officials processing to prevent further environ- I am most proud of our team writing to being financially jeopardised, as they mental destruction that will have long- for the economics column at Danas. are banned from advertising public lasting consequences for our health and Those people work hard to expose the companies and institutions. Private our capacity for economic development.

CorD | NALED | AGENDA 2021 | 31 WE SUPPORT ECONOMIC GROWTH OF SERBIA

Most active members of NALED from the ranks of businesses, local governments, NGOs and academia, are gathered in six thematic alliances in order to work together on defining the regulatory agenda and building a better business environment with special focus on fair competition, e-government, food and agriculture, health, property and investments, and environment protection.

In 2020, only two out of 100 Grey Book recommendations were fully implemented, and only 11 were partially. Although institutions were working in extraordinary circumstances caused by the pandemic, the main challenges are essentially the administrative system’s lack of readiness and ability to implement the recommendations

he Grey Book is a great contribution for changes come from a wide variety of of society, and the objective limits within Tto shaping public policies to improve economic entities differing both in size which the country functions. That is the the business environment and reduce and scope of activity. They include small, role of NALED’s Scientific Council, which the cost of administrative procedures. medium-sized and large enterprises in is dedicated to understanding the true It transforms economic necessities into almost all areas of production and servi- nature of the issues and corresponding specific recommendations to the Go- ces, in all parts of Serbia. This ensures the recommendations, as per its mandate. vernment of Serbia, starting from the recommendations are reliable, objective The Council analyses the aims of authentic viewpoint of various economic and empirically obtained. economic initiatives from a suitable entities working under the existing legal When suggesting complex solutions, theoretical and analytical viewpoint and and institutional environment at all levels we should pay attention to effects they points to the systemic nature of certain of executive powers. Recommendations may have on the economy and the whole changes, i.e. identifying deep and complex

34 | CorD | NALED | AGENDA 2021 NALED Scientific Council supports the expert team of the Executive Office in carrying out research and analysis and devising regulatory reforms to measures). It should also be estimated contained in the economic recommenda- improve the business whether such initiatives should be carried tions. Simultaneously, such efforts should environment out in two stages, where the first would enable a better look at some crucial issues encompass identifying the nature of the and reduce the great cumulative load of the proposed solutions whose implementation recommendations that have become obso- is purposely postponed (for two or three lete during preparation or implementation. years) while the necessary analysis is In 2020, only two out of 100 Grey relationships between recommendations carried out and economic, political and Book recommendations were fully im- and their effects in a wider social context. social balance achieved. plemented, and only 11 were partially. This approach is vital for reaching The third group encompasses initiati- Although institutions were working in agreement between all the interested ves that must be preceded by a detailed extraordinary circumstances caused by parties, taking all kinds of economic, analysis of the technical and procedural the pandemic, the main challenges are political and social interests into account. steps. They require a software solution, essentially the administrative system’s The economic initiatives and recom- training on how to use it and the expansion lack of readiness and ability to implement mendations can be grouped in four cate- of institutional capacities of the state and the recommendations. gories. The first contains those that are all the participants to enable finalisation Among the 10 priorities in the 13th sufficiently precise and empirically and and implementation. Here, NALED often edition of the Grey Book, those aimed at theoretically well-founded. The proposed works with international partners on modernising the state administration, solutions in this group are supported by providing support for implementation. increasing transparency and reducing all interested parties and can be achieved For instance, this is the case with e-con- costs for taxpayers particularly stand by amending existing laws, regulations or struction permits, the e-system for hiring out (for example eAgrar – a register scientific analyses and enforcing the laws seasonal workers and the online calculator of agricultural holdings and incentives, where fiscal (budgetary), administrative for flat-rate taxation. electronic health records, cashless pay- and organisational effects confirm the Ultimately, the fourth and most comment of charges, unified certificates of justifiability of the suggested measures. plex group of explicitly or implicitly syste- paid taxes and modernisation of foreign The second group encompasses ini- mic recommendations requires additional exchange operations). The recommen- tiatives that are well-founded in legal empirical research and theoretical analysis dations include those related to reducing regulations and empirically obtained to review all the relevant economic and the workload, which would be welcome data but have asymmetrical effects on other effects and propose appropriate if properly executed, while this requires certain economic entities (or sectors, or modes of implementation. further analysis and consultation. regions) and therefore require additional NALED faces those challenges by con- Improving the wastewater management analysis and quantification of the effects, ducting analysis and implementing met- system is a very important recommendation and compromise between interest groups hodological guidelines. Those efforts are because it reflects both an urgent need of (the so-called political economy of the aimed at facilitating the quality solutions the public and European trends.

CorD | NALED | AGENDA 2021 | 35 IVAN MILETIĆ, PRESIDENT OF THE FAIR COMPETITION ALLIANCE Excess Bureaucracy Stimulates The Shadow Economy

The Fair Competition Alliance is among the oldest alliances in NALED. One of the key priorities of the Alli- It is the first example of ance for Fair Competition has for years institutionalised public- been cooperation with the Ministry of private dialogue through the Finance, the Tax Administration and Government’s expert group other institutions to carry out the Na- on the shadow economy. tional Program for the Suppression of The Alliance’s work has the Grey Economy. been crowned with some It should be no surprise that half of the great developments in priority recommendations of the Grey Book 13 are directly linked to the meas- carrying out the National ures of this strategic document. Every Programme, including flat step towards simplifying procedures is tax reform, a simplified Reducing income tax a small victory against the shadow econ- system for registering obligations and establishing omy because excessive administrative seasonal workers, a tax procedures inevitably force citizens and exemption system for new transparent and predictable companies to cut corners, encouraging fee collection policies through businesses, the eInspector illegal business practices. system, the national fiscal a public electronic register Reducing income tax obligations and lottery ‘Take the receipt and of non-fiscal charges are key establishing transparent and predictable fee collection policies through a public win!’, and several others. priorities of the Grey Book electronic register of non-fiscal charges and the entire economy are key priorities of the Grey Book and the entire economy. invoices, which we have been working ver since the black market for salt Besides offering financial relief for on in cooperation with the Ministry of Ein ancient China, states have been businesses to stimulate their operations, Finance. Furthermore, to continue im- trying to solve the problem of illegal we have a big task ahead in combating proving transaction transparency, we trade. But it is clear that this economic undeclared work. The Grey Book rec- must work towards cashless payments, anomaly, as old as the first taxes, can ognises the need to focus on regulat- primarily by card payment or instant hardly be completely eradicated. There ing flexible work forms, especially for payment of charges without proof of are however always ways to work to- online work for foreign employers as payment in paper form. gether to drastically reduce the scale Serbia is among the world leaders in gig As this year's tax exemption for and damage that this illegal activity workers, and on expanding simplified start-ups is focused exclusively on leaves on any market that strives for employment procedures for workers companies with innovative activities, equal conditions for all. in seasonal and temporary jobs, fol- the Grey Book suggests extending it to Zato je godinama unazad jedan lowing the example of a successfully all sole traders and other types of busi- od ključnih prioriteta Saveza za fer implemented reform in hiring seasonal nesses to help everyone start their own konkurenciju saradnja sa Ministarstvom agricultural workers. business legally. Besides, there are also finansija, Poreskom upravom i drugim The first recommendation of the new anti-bureaucratic recommendations, resornim institucijama na sprovođenju edition is to finish this year’s prepara- such as a unified system for collecting Nacionalnog programa za suzbijanje tions for the 2022 start of digital fis- payments from flat-rate traders and sive ekonomije. calization and the system of electronic uniform tax solutions.

36 | CorD | NALED | AGENDA 2021 JELENA RISTIĆ, COUNTRY MANAGER, MASTERCARD SERBIA, MONTENEGRO AND BOSNIA AND HERZEGOVINA We Are Embracing Digital Technologies

The MasterIndex study carried out by Mastercard showed that e commerce has boomed in Serbia with 81% of active online shoppers, of whom15% made web payments for the first time during the pandemic

n the battle against the shadow economy reducing income tax, regulating new Iit is important to develop the regulatory forms of work and reducing fiscal framework, reduce taxes to encourage busi- and para-fiscal charges? nesses to operate transparently but also - High taxes, corruption, high unemploy- to enforce a predictable inspection regime ment, and a poor tax culture among people and companies are the main causes of the Last year brought many changes, shadow economy. This is a highly complex including in Serbians’ financial hab- issue so there is no one-size-fits-all solu- its. What have we learnt, adopted, tion. The stick and carrot measures should rejected or embraced? be well balanced to support sustainable - With changes happening all around, one market development, but it is arguably thing is certain – we have embraced digi- more important to work on educating all tal technologies wherever possible. The members of society about the actual im- convenience and safety of e commerce plications of the shadow economy. When are why this form of payment is surg- you say that it equals 10 or 15% of lost ing across all categories, from settling GDP, it may not mean a lot to the average utility bills to ordering food. Online card person, but when you put in context and payments alone increased by 39%. In tell them it’s enough to pay the salaries physical stores, contactless payments by of all healthcare workers for the next six Seven years ago, NALED and socially card or mobile phone are booming, with years or build dozens of kindergartens and responsible companies started the around 75% of card transactions made schools, those are values that each of us Fair Competition Alliance of which by tapping. To accommodate a growing understands and can relate to. Mastercard is a member. Is it one of consumer preference, we increased the The next step is understanding that small the best examples of formalizing the limit for contactless payments without everyday actions matter, like choosing to public-private dialogue? PIN last year from 3,000 to 4,000 RSD. use cashless payments over cash, insist- - As a vice-president of the FCA, I would All these developments point to one thing ing on a fiscal receipt, refusing to shop say that it’s a platform for dialogue and – consumers are prioritizing practical, with unreported merchants or reporting action for both public and private sectors, multi-functional and safe solutions that unregulated labour. We need to under- and a string of successful reforms and save them time and organically fit their stand that the shadow economy is not improvements of overall market condi- lifestyle. Consumers recognize Master- an abstract concept – it is an issue that tions proves this. FCA members – major card solutions as giving them seamless directly or indirectly lowers the quality of corporate investors and employers, consumer experience, and we will con- life and work for all of us, so we need to technology companies with international tinue being there to support consumer adopt the mind-set that paying taxes is not expertise, local governments and NGOs, and market shifts in times to come an expense, that operating transparently provide valuable, real-life inputs that is not an option, and that all our actions help the government tailor policies so What are the best ways to counter and transactions are investments in the that together we reach our joint goal – a the shadow economy, in addition to local community. modern and competitive market.

CorD | NALED | AGENDA 2021 | 37 ŽELJKO TOMIĆ, PRESIDENT OF THE E-GOVERNMENT ALLIANCE Digitalisation Against Bureaucracy

No less than 40% of the recommendations in the new edition of the Grey Book envision moving our administrative procedures our ‘regulatory Bible’ envision switching into the digital realm to the digital realm. The Grey Book recommendations can help ensure that the conditions inspired a great number of positive for fully functional eGovernment are changes. Among other things, the Law met. Above all, this entails forming all on Archival Material and Archival Ac- the necessary electronic registers and tivity enabling permanent storage of ensuring greater use by companies business documentation in electronic and the public. This can primarily be form was adopted last year thanks to achieved through obligatory ID cards great efforts by the Alliance. According to Grey Book with a microchip and a qualified elec- The Alliance is particularly proud of tronic certificate and by motivating the eGovernment Programme for the recommendations, people to rely on the eGovernment period 2020–2022, adopted last year establishing full functionality portal more and become fully-fledged to create new electronic services. It of eGovernment entails eCitizens. We have been working on introduces an eOffice and eArchive completing all the necessary this in cooperation with the Office for to enable users to check the status of IT and eGovernment, with the support their submissions online, review the electronic registers, enabling of the EBRD. data on them collected by the public ePayment of services and Two years ago, the eGovernment Al- sector and request any modifications eDelivery of documents, and liance began by advocating the abolition if needed, with many other services to recruiting as many eCitizens of seals, and now we focus on cancel- ensure transparency and efficiency in ling other relics of the past such as the public administration. as possible payment slips, and enabling electronic Local governments are the first point payment options for all government of contact between the public and services (ePayment) whether online or companies on one hand and the public he eGovernment Alliance is the at counters. Furthermore, we argue for administration on the other, and we are Tlargest NALED working body with 70 eDelivery for all government services proud we can help them stay up-to-date members, including businesses, local and all proceedings before judicial with the world of electronic services. government bodies, public agencies, authorities, switching to eInvoices and We would particularly like to emphasise universities and faculties. Browsing establishing an integrated system for our contribution to the continuous through the new edition of the Grey issuing invoices, both for the public and training of clerks in city and municipal Book, it becomes clear why there is such private sectors. administrations in cyber security and a great interest in this topic among all Many companies and individuals who data storage, together with the Republic sectors of society. Since digitalisation have had the opportunity to experience Agency for Electronic Communications is so important in simplifying all the benefits of the eGovernment sys- and Postal Services RATEL, with the administrative procedures, no less tem, particularly during the COVID-19 support of the Ministry of Trade, Tour- than 40% of the recommendations in crisis, are aware that our Alliance has ism and Telecommunications.

38 | CorD | NALED | AGENDA 2021 VUKAŠIN RADULOVIĆ, CO-FOUNDER OF HELIANT D.O.O. Dedicated To Healthcare

Heliant first contributed to the Serbian healthcare system two decades ago, when the company created the healthcare information system. In the past year, Heliant was available 24/7 to be able to fulfil all the requests coming from Covid hospitals and centres.

ven though I’d like to believe that our Two months ago, Heliant became a Eengineers are the ones who make Heli- member of the National Alliance for ant great, the true power of the company Local Economic Development (NALED). lies in the fact that many smart people use Do you see this as another way to po- our system. Their useful feedback helps tentially contribute to the improvement us improve it. All we need to do is listen of the Serbian healthcare system? and acknowledge the user requirements - said Mr Radulović modestly. Data is a valuable resource, which further Although more than 200 health- gains importance if we care institutions in Serbia use your can share, exchange and software daily, it was not until the cross-reference it pandemic broke out that it became obvious how valuable it truly is. - Nowadays, information systems do not - When it comes to our NALED member- - We aim to further improve our depart- only serve as data storages but are also ship, we also regret not having joined ment of science to make Heliant an asset used to retrieve useful information. Our in much sooner. Anyone dedicated to for various experts and the entire scientific system is expandable and adjustable to bypassing excessive paperwork and community. For this purpose, we are different areas of medicine and, as we unnecessary administrative and bureau- already working on creating specialised have seen in the past year, different work- cratic procedures is our natural ally, and registries of medical conditions on the ing conditions too. Last year, at the very healthcare is the right place to focus on level of individual hospitals, as well as the beginning of the pandemic, it took us only achieving this. Heliant supported the entire country. Collecting raw information a day to connect the Laboratory of virusol- e-prescription project, thus helping to and data is not enough because they ogy and the Clinic for Infectious Diseases reduce the number of used paper copies have to be well-structured, which means of the Clinical Centre of Serbia. That way, by five million. Even though we should the information system is becoming the we made over 300 documents available always strive to improve all kinds of citi- expert information system. in digital form to avoid having to rely on zens’ rights, from passport issuance to We are witnessing a great transformation the potentially infectious physical copies. obtaining construction permits, there is in the area of medicine, which is switching We are currently developing registries for nothing more important than providing from traditional clinical studies to the so- different types of disciplines in specialized healthcare to the ones in need. If we man- called data-driven medicine. The aim is to medicine, mobile apps for patients and age to replace excessive administrative make relevant research data, previously our own data visualisation systems. We procedures in healthcare with technology available only to a limited audience, ac- have also expanded our department of and facilitate access to healthcare services cessible worldwide so that different pieces science upon realising we could benefit for millions of people, in cooperation with of information could be cross-referenced, from having an extra link between us and NALED and any other interested party, processed and compared. The time has the medical professionals. Heliant now we will have done a great thing. come to acknowledge the fact that data employs three doctors and two experts is a valuable resource, which further gains in biochemistry and pharmacy, and we How will medicine develop in the importance if we can share, exchange and regret not having hired them five years ago. forthcoming period? cross-reference it.

CorD | NALED | AGENDA 2021 | 39 CHEN CHEN, CEO OF HUAWEI TECHNOLOGIES, SERBIA 5G Will Change The World

Huawei has been operating in Serbia for 15 years, and we see a huge potential in the local market. Last year, we opened our Innovation Centre in Belgrade, with the goal of taking a key role in the digital transformation of the entire region.

For the past year we have uawei is working together with op- kept innovating to create consumer goods. This project has made Herators and partners to expand 5G to value for our customers, it easier for kids to transfer to online various industries, achieving new business to help fight the education during the epidemic. growth for all participating parties and pandemic, and to support Furthermore, we are opening ICT acad- building an open and diverse ecosystem both economic recovery emies at the best local universities. This is that thrives on shared success a cooperative undertaking where we train and social progress people in areas like wireless networks Is our market ready for all the ben- and artificial intelligence. efits of digital transformation, among in Serbia is improving? How could other things for the application of Huawei help further the digitaliza- How did Huawei cope with Covid19 5G? Is Serbia more or less ready tion of Serbia? over the last year? Did it affect your for 5G? I believe that Serbia has recently been daily work with customers? I am positive that 5G will undoubtedly creating an open business environment For the past year at Huawei, we've held change the world we know and make for the development of ICT infrastruc- strong in the face of adversity. We have it better. Huawei's 5G products are the ture, and that in this digital era we could kept innovating to create value for our world’s best. We have the highest level of together make this market the leader of customers, to help fight the pandemic, maturity in terms of commercialization eastern Europe. and to support both economic recov- and we are continuously and steadily We are also fully committed to CSR pro- ery and social progress. We also took developing our technology. We have in- jects and providing social value in Serbia. this opportunity to further enhance our vested over $4 billion in the development We organize the Seeds for the Future operations. As a result, our business of 5G technology over the past ten years. project every year, where we choose the performance was largely in line with To build a positive business cycle, we best IT students from Serbian universi- our forecast. must work on four elements: technology, ties. Traditionally, successful applicants As a member of the ICT community, we the ecosystem, standards, and the busi- fly to China for two weeks. They are first have been doing everything we can to ness model. The Serbian market is not immersed in Chinese culture and after support the ongoing fight against the much different from the rest of the world that they fly to Shenzhen, home to Hua- pandemic. We are working closely with and more than ready for new technology. wei's headquarters, for hands-on practice local governments, community organiza- including classes and experiments. tions, international organizations and our Are you satisfied with the speed with We also launched the Thousand Dreams customers and partners to protect the which the business environment project to help the youngest with our health and safety of the people we serve.

40 | CorD | NALED | AGENDA 2021 CorD | NALED | AGENDA 2021 | 41 PREDRAG MIHAJLOVIĆ, PRESIDENT OF THE EXECUTIVE BOARD AT OTP BANKA SRBIJA AND EXECUTIVE SPONSOR OF THE INTEGRATION PROJECT OF VOJVODJANSKA BANKA AND OTP BANKA SRBIJA, AND PRESIDENT OF THE BOARD OF DIRECTORS OF THE ASSOCIATION OF SERBIAN BANKS Leaders In Serbia And In The Region

As of May this year OTP banka and Vojvodjanska banka will continue operations as one large OTP banka, completing the most complex integration conducted in the domestic and regional financial market. This will confirm OTP Group’s strategic move to form the leading banking institution in Serbia

The 48-day state of orking on integration in the conditi- emergency led to an 80% overdrafts, mCard, insurance… We have Wons of a global pandemic is a great also introduced an important novelty for challenge which we have taken up primarily growth in the use of our our users of the IOS operating system in thanks to teamwork, the commitment of digital services compared the form of payment via APPLE PAY. all our colleagues and our continuous to the previous period investment in digital transformation, Mr Eliminating excessive red tape in fo- Mihajlović proudly points out which is supported by the fact that we have reign exchange operations is one of the approved more than EUR 259 million through ten priority recommendations of NALED’s The OTP Group in Serbia is operating the guarantee scheme to date. Grey Book. Why is it important that the through OTP Banka and Vojvodjanska National Bank of Serbia implements this Banka, which are being integrated. How OTP Group is recognized as a pioneer recommendation as soon as possible? difficult is it to achieve such remarkable in innovation and digitalization, which is NBS is in fact a generator of innovation results in a pandemic? one of the priorities of the Serbian Gover- in the banking sector, so without their We have increased our market share in nment. To what extent did this facilitate important role no bank would be able to all segments; at the end of 2020, total net operations during the pandemic and how introduce instant payments or IPS code loans of both banks stood at EUR 3.7 billion much did this mean to your clients? payments. So I think this recommendation, with an annual loan growth of around 15% It has absolutely facilitated and confir- which is important for our sector, will also which is a EUR 500 million increase over med as accurate our decisions to invest be implemented in the near future. And last year. We now have a market share ex- significant resources into digital transfor- this is important because an additional ceeding 17%, and our new integrated bank mation and encourage innovation. Within reduction of red tape in executing orders will be the first in Serbia in corporate and two weeks we managed to transfer more would enable the automation and shorte- retail lending. The retail operations segment than 80% of our staff to work from home, ning of the process, and the application realised an annual growth exceeding 17%, without decreasing efficiency at any point. of modern channels for receiving and with a 40% growth in housing loans on an The 48-day state of emergency led to an sending orders, i.e. digitalization in this annual basis and a market share in housing 80% growth in the use of our digital services domain of operations. The foreign exc- loans over 21%, while the market share of compared to the previous period. The num- hange segment would thus be adjusted cash loans is over 20%. Operations in the ber of our digital clients increased by over to bank clients with significantly greater corporate segment also achieved an annual 60% and the growth of online credit sales opportunities to apply the latest trading growth of 13%, while the market share in this by more than 40%. By using the m-bank methods and instruments, easier access segment is over 16%. What is important is and e-bank applications, our clients can to other countries’ markets and faster that we listened to the needs and strove to do much more than transaction banking, collection, which is the essential goal of provide all necessary support to our clients, have the opportunity to obtain cash loans, these recommendations.

42 | CorD | NALED | AGENDA 2021 JOVAN PURAR, PRESIDENT OF THE PROPERTY AND INVESTMENT ALLIANCE We Know The Road To The Top Of The Doing Business List

We have placed cancellation of the conversion charge for (eCounter) are the best indicators that we land use rights, which has should continue solving other problematic ‘locked’ 5,000 hectares areas and legal property-related issues of construction land, and obstacles. among the 10 priority The Property and Investment Alliance recommendation of the was formed to serve as an expert body that takes part in creating policies aimed new Grey Book at improving the business environment, solving problems of property relations and agricultural buildings, which deters potential suggesting reforms to improve investment investors in agriculture. conditions for a better position on the World The recommendation to speed up the Bank’s Doing Business index. The Alliance legalisation of illegally-built buildings by Our Alliance is focused on is rapidly expanding, it already has 50 extending the determined deadlines and solving property issues, such members from business, local government, simplifying procedures is equally impor- associations and academic institutions. tant. Besides, we are working on further as conversion and legalisation, We have placed cancellation of the charge improvement of the registration of property developing the eSpace for the conversion of land use rights among in the cadastre and keeping the cadastre platform and improving the 10 priority recommendations of the up-to-date. One of the useful measures in new Grey Book. The existing regulations that area would be free registration. Finally, procedures that boost have mostly failed to fulfil their purpose, our Alliance also proposes a digital solution Serbia’s rating on the World and have virtually ‘locked’ 5,000 hectares – the development of eSpace, a new system of construction land whose market value Bank’s Doing Business index that would enable electronic development is reduced because it cannot be built on, of urban and spatial plans, which would so production capacities are not being make the procedure simpler, faster and developed and new jobs are not being more transparent. btaining building permits and register- created. Property rights conversion with Among the Grey Book recommenda- Oing rights in the cadastre used to be the the obligation to pay a charge that was tions the Alliance will be working on are most complex administrative procedures already paid on purchase has proven to recommendations to improve the judicial in Serbia. They were expensive and time- be an unsustainable practice. system by automating the court adminis- consuming. Such obstacles to investment The Alliance has launched an initiative to tration, particularly by speeding up cases, and legal security demanded a speedy and reach a reliable interpretation of Article 95 of decreasing the costs and facilitating com- final solution. So on NALED’s initiative, the Law on Cooperatives to ensure equal and munication between the court, case parties comprehensive reform began. Digitalising consistent solutions for all property-related and lawyers. In this way, the parties will be the required steps has revolutionised this legal disputes, which for decades have been able to access things like case law, decisions area, so construction permits can nowadays preventing owners from enjoying their land. and model agreements. be obtained 2.5 times as quickly as before, The cooperatives want legitimately obtained For investment, we cannot skip the Grey while the costs are 18 times lower. Regis- private property to be confiscated, which Book recommendations for the Ministry of tering rights in the cadastre is now three has a negative impact on local economic Economy. In this area we would like to further times faster. Everything can be finished in development in many municipalities in improve bankruptcy procedures and the one place, and the cost is reduced by half. Serbia. As a rule, the requests are for the process of establishing economic entities, More than 600,000 resolved construc- highest-quality agricultural land, whose including important administrative steps tion permit requests since 2016 and almost market value lies between 5 and 15 thousand for founding a business, such as obtaining 950,000 requests obtained for registration euros per hectare depending on the location, an electricity connection, obtaining a loan, of rights in the cadastre since mid-2018 but the requests also encompass all other registering a pledge, etc. These steps are via the single-counter electronic system cooperative assets, such as business and tracked by the World Bank.

CorD | NALED | AGENDA 2021 | 43 JELENA GALIĆ, PRESIDENT OF THE EXECUTIVE BOARD OF AIK BANK Economic Support, A State Partner

Further positioning of AIK Bank as a financially stable and credible bank group in this part of Europe is a strategic commitment. AIK Bank was the first Serbian bank to enter the EU market, and its presence there is proof of its stable foundation and sustainable development, which forms the basis of its business operations.

e have implemented numerous and a low level of bad assets. What the negative effects of the pandemic on Wprojects intending to further is the situation like nowadays? the economy. The banks took part in all our digital transformation strategy, - The challenges we all faced last strengthen our digital brand and ex- year forced us to modify our everyday For the third year in a row, pand the base of satisfied clients - Ms activities and lifestyle in general. It’s domestic credit activity Jelena Galić proudly stated for the Cord important to point out that the pre- in Serbia has achieved Magazine. pandemic macroeconomic stability, as two-figure growth, which well as the measures the state intro- places it among the Banks were ready to face the cri- duced and continues to implement to sis thanks to a high level of liquidity this day, have contributed to reducing highest in the region

44 | CorD | NALED | AGENDA 2021 the support programmes responsibly to the banking sector in Serbia. help maintain the financial stability and Our banking group, with AIK Bank as mitigate the negative consequences. the lead member, is stable, with total Considering the strong capital and assets exceeding 4 billion euros. The liquidity position of the entire banking stability of our bank has been further sector, there is no doubt that banks proven by the activities carried out suc- will continue to be the mainstay of the cessfully in the specific circumstances economy and state partners in the task we were faced with in 2020 – the year of maintaining the achieved stability which has strengthened our teamwork and overcoming further challenges that and business operations in general, as may arise. In that regard, I can say that prudent actions of the banks are helping Our products and processes minimise future potential risks, and the are fully end-to-end achieved results in the area of microeco- automated, which means nomic and financial stability represent that requests can be a stable foundation upon which further approved very quickly growth and development can continue. we have managed to ensure trouble- The global crisis caused by the free implementation of all the activities pandemic has been going on for a and services offered to the clients. The year now. How is it reflecting on achieved business indicators, i.e. a high the banking sector and your bank level of the balance sheet total, strength- specifically? ening of the deposit base and maintaining - Even before the pandemic broke out, high profitability, testify to this. banks had been working on developing mechanisms to tackle potential crises. When the three-month mora- Those mechanisms, which helped banks torium on all types of loans was overcome challenges in this specific introduced, you welcomed it as a situation, include significant liquidity good move. Do you still think so a reserves, adequate risk management year later? and responsible credit policies. In ad- - Having in mind the complexity of dition, banks were able to adapt to the the circumstances arising from the specific characteristics of this particular COVID-19 pandemic, the undertaken set crisis quickly by encouraging clients to of measures to facilitate the settlement rely on online and digital services. Since of obligations of the economy, as well as the state introduced adequate support the citizens, and responsible credit risk measures, including the provision of management by financial institutions direct aid to businesses and incentives have directly contributed to mitigat- of the National Bank of Serbia, the banks ing the negative consequences of the How would you rate the economic were able to respond to all the busi- pandemic to the economy. measures the state has introduced ness challenges brought about by the In that regard, the announced new set and continues to enforce to aid the pandemic very well. According to the of measures taken by the Government of economy? data of the National Bank of Serbia, in the Republic of Serbia, the total value of - Mitigation of the monetary policy, the previous year, the total placement which is RSD 249.4 billion, entailing the approval of loans from the Guarantee of the available bank deposit potential provision of direct support to sensitive Scheme on favourable terms, primarily increased by 10.7% thanks to the invest- and vulnerable sectors and citizens and RSD loans due to to the preferential ment of banks into RSD corporate bonds, the extension of the Guarantee Scheme policy of the National Bank of Serbia in addition to a growth in credit activity. for the purpose of maintaining the liquidity reserve obligation, along with good It should also be pointed out that the of the economy, will undoubtedly not only cooperation with the banking sector, share of non-performing loans in the last enable us to further mitigate the nega- have ensured good financing conditions (pandemic) year was 0.4 per cent lower tive consequences but also to continue on the domestic credit market. For the compared to 2019. All of this speaks in providing support to the entire economy third year in a row, the domestic credit favour of the stability and strength of and the citizens’ regular activities. activity in Serbia has achieved a two-

CorD | NALED | AGENDA 2021 | 45 ous experience is another confirmation of the said strategy. In that regard, we are following the market trends related to potential further acquisitions, and we have a clear vision of our banking group and the direction of its further expansion in Serbia and the region.

You frequently introduce innovative services and offers to meet the increasing expectations of the clients. Do you intend to keep the focus on creating new products and services in the forthcoming period? - This year, we are continuing with our projects as per the adopted digital transformation strategy. This includes a high range of products available to the clients 24/7 through our network of branch offices as well as online – at digital communication channels. We are dedicated to creating new and improving existing products and services to boost the client experience. Our clients who use the mobile app can use QR codes and digital Master- card payment cards available on their figure growth, which places it among Our clients can also smartphones for payments at sales the highest in the region. sign digital documents points that enable this option. Also, Since the sector of small and medium electronically via a the clients can access their accounts enterprises was hit the hardest by the instantaneously via the web or mobile pandemic crisis, I believe that focusing smartphone, tablet or app, where they can transfer their funds, on direct measures to this area of the computer with a two- make fixed-term deposits or apply for economy was crucial for overcoming stage authentication, a loan, overdraft or credit card. These the difficulties caused by the pandemic which is a step toward products and processes are fully end-to- and maintaining the business operations quicker and paperless end automatized, which means that the of this sector. As one of the banks who business operations requests are approved very quickly. For took part in all the measures, we have instance, approved cash loans are avail- remained a strong supporter of small and able within 10 minutes upon request. medium enterprises in Serbia by offering - The acquisition of Gorenjska Bank in The mobile banking app enables the a complete set of products necessary Slovenia, completed in 2019, made AIK users to access mobile banking using for such businesses, including online Bank the first domestic bank to expand its biometric authentication. Besides, services for all kinds of financial transac- business operations to the EU market. By they can also sign digital documents tions and all kinds of loans for current strengthening our regional position along electronically via a smartphone, tablet assets, investments, agriculture, as well with the Gorenjska Bank, we have ensured or computer with a two-stage authenti- as loans within government programs to quality services for our clients within the cation, which is a step toward quicker support the economy and agriculture. EU. The expansion to the EU market is a and paperless business operations. confirmation of the bank's stable founda- Those are only some examples of the AIK Bank is the first domestic tion and sustainable development, which projects implemented so far, and we will bank to enter the EU market. What is the basis of its business operations. Our continue working hard on further imple- are the benefits of the expanded strategy entails further positioning as a mentation of our digital transformation cooperation through the regional financially strong and credible banking strategy, digital brand empowerment and approach? group in this part of Europe, and the previ- expansion of our base of satisfied clients.

46 | CorD | NALED | AGENDA 2021 MAJA ŽIVKOVIĆ, GENERAL MANAGER, STEEL IMPEX LTD Time Is Our Most Valuable Resource

Steel Impex is a regional leader in the waste management sector and a member of the NALED Fair Competition Alliance, which is composed of some of the largest domestic employers and taxpayers

ur suppliers know we can offer a there are either have small capacities Ocomplete solution for their waste, or purchase through their suppliers. whether it is steel scrap, non-ferrous, As a free market, there should be more plastic, paper, tires, etc. When you operators and transparency that will have the capacity to handle 100,000 bring improvement and quality on tonnes per year and no steady local all services, but when it gets hard to buyer, there is no other option but to export, says Maja Živković. By expanding the range of waste we handle we are Steel Impex is a regional leader in the increasing our presence waste management sector, despite unfair competition and the informal on the market, but also economy. How do you handle all the decreasing our fixed costs frustrating circumstances and are they the reason you're orientated export and payments are not secured You are a strong advocate of reducing towards export? with guarantees we are not developing the administrative burden on compa- We always strive to operate under the as a market. nies that operate legally. How and how rules of fair competition. It pushes us much does bureaucracy hamper your towards innovation, creativity and new Steel Impex is a member of the company's operations and slow your ideas. Even though it’s hard in our line NALED Fair Competition Alliance, growth and expansion? of business we are able to accomplish which is composed of some of the The world has changed, especially it by digitalisation of our daily opera- largest domestic employers and after the Covid-19 pandemic. We need tions, increasing awareness through taxpayers. Are you satisfied with the to be able to take decisions and execute our social media and always new and progress that has been achieved by them immediately. To do this, we need better conditions for our suppliers. By your work and engagement? Could a digital infrastructure that we can ap- expanding the range of waste we handle even better progress be achieved? ply to everything in our offices, to make we are increasing our presence on the As a member of NALED we are actively our meetings or attend our inspections. market, but also decreasing our fixed involved on the subject of Fair Com- This will also bring a certain transpar- costs. Our suppliers know that we can petition, sharing our experience, the ency. Time is now our most valuable offer them a complete solution for their problems we face in our sector and the resource and we cannot afford to lose waste, whether steel scrap, non-ferrous, misinterpretation of rules. This coopera- months obtaining a license, approval plastic, paper, tyres, etc. When you tion is very important, where straight or any kind of report from state institu- have the capacity to handle 100,000 from the field we are able to address the tions. At the same time our laws and tonnes per year and no steady local pros and cons of the recycling industry. regulations must follow the times we buyer, there is no other option but to NALED’s efforts and their dedication to live in, changes are necessary. Our export. Unfortunately there are limited fair competition is helping improve the inspectors from any institution still users of recyclables in our country, while situation, to establish a fair and equal require documentation on paper and for some there are none at all. Those approach for all, with no grey zone. not in digital form.

CorD | NALED | AGENDA 2021 | 47 ANDREJ BESLAĆ, PRESIDENT OF THE FOOD AND AGRICULTURE ALLIANCE Digitalization Of Agriculture Begins With eAgriculture

Although considerable progress has recently been achieved, we must ensure faster updating of domestic regulations to keep up with the submitted data one document at a time and typing the information in their rapid changes in EU food databases, which can sometimes lead regulations to untimely payment of incentives. The impact of these procedures on the development of agriculture is the key reason tain them. Leasing state land to organic why eAgriculture should be established producers must also be assisted. among the 10 priority recommenda- On the subject of food safety, there tions in edition 13 of the Grey Book. The is for the first time in the Grey Book a eAgriculture system would be a central recommendation to simplify the import online platform for registering agricultural of animals, and products and food of ani- holdings and distributing incentives. In mal origin. Import permits issued by our The introduction of addition to reducing farmers’ expenses country are unnecessary because such an online platform to by 85%, it would also connect more than food already possesses an international 20 public registers and facilitate planning veterinary certificate. This is a superflu- register agricultural and oversight of agricultural policy carried ous administrative practice, which only holdings (e-Agrar) would out by the Ministry of Agriculture. Bosnia and Herzegovina and Montenegro be the cornerstone of The Ministry of Agriculture is respon- still have in our surroundings. a digitalisation process sible for implementing the 10 recom- The Food and Agriculture Alliance, in agriculture, and we mendations of the new Grey Book, and which currently has 47 members including would like to work with the we would particularly like to emphasise companies, local governments and as- relevant ministry the importance of better legal regulation sociations, has defined several priorities of food donations. A rulebook for safe in establishing modern agriculture, with food donations after the ‘best before’ other initiatives in addition to improving n Serbia, there are over 400,000 active period has expired and fiscal relief for administrative procedures. We believe Iagricultural holdings. To register them, food donations would reduce food waste we must systematize the process of change data or exercise their right to at a time when vulnerable groups are in continuous harmonization of Serbian incentives, their managers have to go dire need of food. Food donations are regulations with EU law to facilitate trade through four counters and submit 90 regular practice in the EU. with the EU, provide legal protection different pieces of information contained The Grey Book contains two recom- in the food and agriculture sector and in over 10 documents. To obtain the re- mendations for improving conditions for create the necessary conditions for join- quired paperwork, they waste time and developing organic production. Initiatives ing the European single market. At the money. Furthermore, up to 60% of the launched by NALED through the Public- same time, EU laboratory results should paperwork is unnecessary or repetitive Private Development Dialogue project be recognised to facilitate the trade in because the state already has the re- supported by USAID contain recommen- food and agricultural products. Although quired data. At the same time, staff of dations to introduce incentives for small considerable progress has recently been the public administration waste a lot organic producers and livestock breeding, achieved, food import procedures are still of time processing requests, checking including simplifying procedures to ob- too time-consuming.

48 | CorD | NALED | AGENDA 2021 COCA-COLA HBC SERBIA Digitalization Of Agriculture Proven Trust Is A Solid Basis Begins With eAgriculture For A Long Lasting Partnership When we joined the market half a century ago, our aim was to bring the best taste to Serbia and provide supreme refreshment. All these years later, we have become an integral part of the local community and a generator of positive change in the local economy.

his is also confirmed by the results market conditions, the fight against responsible waste management and Tof our study ‘The Socio-Economic the grey economy and streamlining investing heavily in the latest technol- Impact of the Coca-Cola system in of cross-border trade exchange are ogy in wastewater treatment facilities. Serbia’. crucial for the business operations and We are the leader in the FMCG industry Our company has an enormous im- sustainable growth of any system, be it and a responsible company that plans pact on the local economy, which has large or small. In this context, NALED’s to stay in Serbia and record even higher been increasing continuously over the efforts focused on improving business growth. This is confirmed by the title of years. The business operations of the conditions are essential, and the Grey the most successful beverage producer Coca-Cola system, including Bambi, in Europe in 2020, according to the Dow create 291 million euros of added value, Jones Sustainability Indices. while direct and indirect taxes paid by The ambitious objectives set at the the system along its value chains stands corporate level for 2025-2030 will be at 159 million euros. The system also attained in Serbia if there is continued employs 1,700 people in Serbia and cooperation on implementing reforms supports an additional 14,400 jobs between public and private sectors, in related businesses and sectors, as the expert public and the entire com- shown in the study that analyses 2019 munity. While creating future plans and business data. incentives, 2020 should therefore not "Coca-Cola is a valuable contributor be forgotten. to the local economy in the countries The year behind us has demonstrated where it operates because it employs lo- the state’s willingness to help businesses cal people, generates income, supports and people, and the agility of the private market development and revenues for sector in supporting the local community the tax system", says Svetoslav Atan- where it operates. In partnership with asov, General Manager of Coca-Cola the Red Cross, the Coca-Cola Founda- HBC Serbia, adding: "The entire value tion provided aid for a total of 200,000 chain we create in Serbia is the result dollars for the most vulnerable and of exceptional cooperation with the donated our products to healthcare state administration and institutions, workers across Serbia. During the crisis, cooperation with customers, suppliers we have focused on supporting small- and partners, but also our commitment scale entrepreneurship, especially in to invest in the development of the Book is an excellent example of a con- underdeveloped areas of Serbia, as well community." structive approach: presenting not only as in the HoReCa sector, which suffered Predictable business conditions issues and challenges, but also offering serious consequences. and government responsiveness are proposals and sustainable solutions that The global pandemic and the new conditions for our company’s growth work for the benefit of all. reality demonstrated the incredible and development and for attracting As the company has been present in strength of the mutual partnership foreign investors in general. Serbia for more than half a century, the of the state and the private sector, The predictability of the regulatory Coca-Cola system actively contributes showing that PROVEN TRUST IS A and business environment, for all areas to environmental protection, lowering SOLID BASIS FOR A LONG LASTING of business from tax policy and legisla- our carbon footprint by using energy PARTNERSHIP and joint growth in tion on environmental protection to fair from sustainable sources, implementing years to come.

CorD | NALED | AGENDA 2021 | 49 JELENA KIŠ, PRESIDENT OF THE ENVIRONMENTAL PROTECTION ALLIANCE Simplifying Administrative Procedures Is The Least Expensive Task Almost all NALED activities in environmental protection are listed in the Grey Book Our partner in these activities is the recommendations, which German Development Cooperation (GIZ), which supports us on three projects. The proves their importance, and most recent is the project Increasing the wastewater management is Recycling Rate of Batteries and Bulbs in among the 10 priority aims the Republic of Serbia. In this project we are encouraging institutions to introduce incentives for recycling batteries, and establishing a more efficient system for producer responsibility system, consider- collecting such waste and increasing re- ing economic, social and environmental cycling by 20%. protection factors. In the project to improve food waste In the accession negotiations with the management, we are developing a food EU, environmental protection stands out as waste collection system. In the Grey Book, the area requiring the greatest investment. NALED’s youngest alliance we have suggested changing the regula- One of the long-standing recommendations is ambitiously dedicated tory framework to make it obligatory for of the Grey Book is to establish a functional to creating better anyone preparing more than 50 meals a Green Fund that would help projects at both conditions for collecting day to hand food waste to a food waste state and local level. and recycling different collector for safe disposal. The wastewater management system types of waste, improving In the project Glass Packaging Manage- will undoubtedly be the most expensive. wastewater management ment in the Western Balkans, we are aiming Through the Public-Private Development and reforming the tax and to increasing the glass recycling rate in Dialogue project supported by USAID, we fee system in the area of Serbia, Bosnia and Herzegovina and North have pointed to great investment needs Macedonia by 20%. In Serbia, the project for the sewerage network and wastewater environmental protection is implemented in Sombor, Niš, Kragujevac treatment plants, for which we shall have and Varvarin, where we have set up a total to reach out to international funds and ormed towards the end of 2019, the En- of 600 skips (bell-shaped recycling bins). work on cleaning up our own back yard Fvironmental Protection Alliance already We have provided guidelines for im- by boosting the inspection of wastewater has 46 members, including companies, local proving electric and electronic waste management and preparing companies governments and associations interested management in the Grey Book, by advo- and local governments for their future in systematic solutions in a very complex cating for a system of extended economic obligations. area – ecology. Reform of the tax and fee responsibility. Those who pollute most will face the system for environmental protection, waste Finally, our Alliance is actively engaged greatest financial burden. Current tax and management, wastewater management, in defining the best model for packaging compensation policies do not stimulate food waste and special waste and promo- waste management, and we are currently any efforts to reduce pollution. For this tion of the circular economy are among working on a study for which we hired a reason, we have prepared a strategy to its priority aims. Almost all of these aims well-known consultancy from Great Britain. stimulate polluters to make great efforts are listed in Grey Book recommendations, The study should come up with the best to reduce harmful emissions, particularly proving their importance, with wastewater combination for Serbia of a smart deposit for vehicles and poisonous gas emissions management among the 10 priority aims. return system and the existing extended from industrial facilities.

50 | CorD | NALED | AGENDA 2021 UNA LJUBIČIĆ, PRESIDENT OF THE HEALTHCARE ALLIANCE No Paper Copies For Doctor’s Appointments

Serbians spend 40% of their money in healthcare directly from their own pockets, among the highest percentages in therapies. From there, we will be only a Western Balkans, but that step away from further development of does not guarantee them electronic healthcare in Serbia, which the best service would ensure cheaper and more efficient The pandemic has solutions to the challenges people and companies face both in regular and emphasised the importance crisis conditions. of electronic access to Establishing electronic health records be optimised through improving the all health services. The has rightfully been placed among the network plan and using available re- condition to achieve this 10 priority NALED recommendations sources better. To this end the Grey in the 13th edition of the Grey Book. Book also contains a recommendation is the establishment of an It is one of many elements required for more efficient use of available funds eHealthRecord for the strategic approach to the de- by improving the centralised public velopment of eHealthcare currently procurement system. being prepared, since an initiative of At the start of the pandemic, the the Healthcare Alliance prompted the Healthcare Alliance gave a great contri- government to form the Coordination bution and support to the government. lthough at first glance you may not Body for Healthcare Digitalisation, in At the very beginning of the state of Aconnect the healthcare sector with which we will be working together on emergency in March, we suggested 15 improving the business environment, developing new electronic services. urgent measures for healthcare, and in the Grey Book has included more than It goes without saying that neither the June we defined 10 additional measures a dozen recommendations related to eHealthRecord nor related services will to mitigate the negative effects of the healthcare in previous years. Since the be complete without integrating public pandemic. breakout of the Covid-19 pandemic, the and private healthcare sectors. Connect- We may have been somewhat pro- importance of improving healthcare pro- ing the two systems is a longstanding phetic, since having identified the need cedures is no longer a mystery to anyone. Grey Book recommendation that now to modernise healthcare and prepare it Now, three years after paper pre- seems inevitable. Among other things for future challenges, we published the scriptions have become a thing of the it would enable more efficient use of first special edition of the Grey Book past thanks to ePrescriptions, there is taxpayers’ money. Private healthcare of Healthcare in February last year. It no reason not to replace paper health capacities available during the pandemic contains 50 recommendations to reduce records with electronic ones, so every could have significantly reduced the administrative obstacles faced by people doctor we visit, either in the state health- strain on public hospitals and improved and companies in the field of healthcare. care system or in private practice, will service quality. The pandemic that broke out a month be a click away from all the data on your To compete with the private sector, later forced institutions to place this previous examinations, results and the public healthcare system must publication high on their agenda.

CorD | NALED | AGENDA 2021 | 51 ROBERTO ROCHA, PFIZER GENERAL MANAGER FOR THE ADRIATIC REGION

No Shortcuts

Pfizer combined its state-of-the-art vaccine development, manufacturing might and distribution networks with BioNTech’s expertise in innovative mRNA technology to develop, manufacture and distribute large quantities of high-quality Covid-19 vaccine in record time

iven the urgency of the pandemic, tions and tribulations, while pharmaceuti- believe that our staff’s broad overview of GPfizer risked more than 2 billion dol- cal companies including Pfizer have been Serbian healthcare and the pharmaceuti- lars to run clinical development and in a somewhat better position, right? cal system can make a very efficient and manufacturing in parallel and at scale. Given the urgency of the pandemic, detailed contribution to the Grey book “I am happy to say our collaboration Pfizer risked more than 2 billion dollars for healthcare. between private and public sectors has to run clinical development and manu- been largely successful”, says Rocha facturing in parallel and at scale. Can the NALED Grey Book's recom- Patients and science were at the fore- mendations for healthcare support Serbia was among the world's first front of our efforts, and we took no short- the Serbian government in developing five countries to sign a contract and cuts but worked innovatively to conduct an online system of e-healthcare and receive Pfizer vaccines, and was one of key steps of the process in parallel rather optimise the network of healthcare the first to begin immunisation. Does than the usual sequential approach. As a this mean that the Serbian Government result, we were able to move at the speed In less than a year we found a way to accelerate everything of science and make the seemingly im- delivered a Covid-19 on the administrative side? possible happen: delivering in less than vaccine that was We knew early on that a safe and effec- a year a breakthrough Covid-19 vaccine authorized and tive vaccine would be essential to ending that was authorized and recommended the pandemic. Collaborating closely with in Europe and with authorities globally. recommended in Europe regulatory and health authorities around Making sure this breakthrough reached and around the world the world, including the EMA in Europe patients around the world demanded and the government in Serbia, we com- unprecedented collaboration between facilities? Is the importance of such pressed timelines that typically take years the private and public sectors – and I am reforms best demonstrated under ex- into months, and those that take months happy to say this collaboration has been traordinary circumstances like those into weeks. Conversations between Pfizer largely successful. of a pandemic? and the Serbian government had started NALED’s Grey Book holds several rec- by mid-year 2020 and we’re glad to say Pfizer is a member of the NALED ommendations for optimizing healthcare that since the first interaction, the Serbian Healthcare Alliance, which brings to- and its administration in Serbia. So-called government showed full understanding of gether stakeholders from industry and e-health with more intense digitalization the gravity of the situation and the need local government. What is the goal of will for sure create future healthcare for quick and straight decisions. this alliance? systems. In Pfizer we are glad to be part With its engagement in NALED, Pfizer of this innovation and to contribute our Most of industry has spent an entire wants to offer its knowledge and exper- knowledge, skills and experience for better year struggling with challenges, limita- tise in the healthcare environment. We health outcomes for patients.

From the acquisition of the most reputable and the oldest private healthcare institutions in the country to the gradual expansion of its service range, in just eight years, MediGroup has earned the title of the single largest private healthcare system in the country. Today, it is an example of good medical practice, but it is also recognised as a system that has recently achieved significant growth and development

or more about how it was formed, the noticed these trends and came up with the and state-of-the-art equipment? In your Fchallenges of corporate business, and idea of making MediGroup not just what opinion, what sets it apart from others? its future goals, CORD Magazine talks to it is today, but also what it will be in the All of these figures make us who we are. Dejan Pešić, CEO of MediGroup and coming years - at that time our goal was What sets us apart are the expert medical Vice-President of NALED's Healthcare to become the largest private healthcare teams and the most modern equipment, Alliance. system and we have succeeded. The in- thanks to which we will perform more tegration of institutions with the longest than 1,000,000 procedures this year. Did you model MediGroup on an exist- tradition in private healthcare in Serbia ing healthcare system? What was the with numerous new ones proved to be a You recently doubled the number of original idea in 2013 when you began success. This strategic goal enabled us to healthcare institutions and the number acquiring the oldest and most reputed fuse into a highly functional and efficient of users, compromising neither the private healthcare institutions in the system comprising hospitals, healthcare quality of services nor the satisfaction country? centres, laboratories and pharmacies, all of both patients and staff. You have In the first decade of the 21st century, under a single brand - MediGroup. succeeded where many others failed. the countries of Central and Eastern What is the secret of your success? Europe gradually started consolidat- MediGroup is the single largest health- Our team consists of carefully selected ing widely scattered privately owned care system in Serbia and the region. and highly professional medical and techni- healthcare institutions. The markets were What makes it so big? The fact that it has cal staff, with our professional management extremely fragmented and the only road more than 1,150 permanent staff, over focused on achieving the strategic goals to efficiency led through consolidation. We 1,000 consultants, 16 medical centres of MediGroup, which follow the principles

54 | CorD | NALED | AGENDA 2021 and high standards of best international practice. When you have such a team behind you - you can expect even greater success in the future. Our system has a structure composed of extremely high quality professionals. There is a shortage of staff in health management in Serbia, because our country in practice does not have a faculty that deals with this profession and that creates people who are professional enough to do that job. For that reason, it is important to choose the highest quality individuals who are polyvalent in terms of personal education, full of enthusiasm and as such ready to “jump in” to different contexts. Our team is made up of just such people - those who have the ability to quickly master a new context, to go deep into it and eventually pass it on to new people who also think in that way. All this allows us to develop a far-reaching view and strategy for our system where it is clear what our MediGroup continuously goals are and what exactly we need to do medical treatments they need without to achieve them. invests in system having to wait. For example: MR, CT, development, modern implantation of knee and hip endopros- As the vice-president of NALED's spaces and equipment, thesis, coronary angiography, are just Healthcare Alliance, what are its reform staff education, creating some of the procedures in which the priorities? the highest level of patient private health sector has the capacity First of all, it is my great honour and service. to engage without delay. pleasure to to have the opportunity to Our team consists of contribute to reforms by investing my carefully selected and MediGroup is one of only eight com- knowledge and experience. In the coming highly professional panies over the last 25 years to win period, the reform priorities of NALED's medical and technical the title Champion of Excellence in Healthcare Alliance are the development staff, as well as as much as five categories. What is of e-Healthcare and the establishment of a professional management your perspective on the accolades and permanent dialogue mechanism between prizes won for business excellence and the public and the private sector in this focused on achieving the quality services - have they become a area and finally, the integration of the MG strategic goals that norm for you? public and private healthcare sectors. follow the principles and The prizes are always a kind of a chal- These priorities have been set to make high standards of best lenge - besides being a pleasure, they healthcare services more readily avail- international practice. carry a certain responsibility, which is able, but also to improve the quality of precisely how I see all the recognitions healthcare services through technology working on developing the action plan for won so far. Naturally, Champion of Excel- and the unification of the systems. digitalization in health care and establishing lence is special and very valuable to us a single electronic health card. because of the fact that it is awarded by What is the current status of the a respectable institution - the Serbian planned digitalisation of healthcare In your opinion, is full integration of Chamber of Commerce. Preparation services through improved electronic the private sector into the healthcare for participation in the prize competi- scheduling of appointments, introduc- system possible in the next five or six tion demanded full commitment of the tion of electronic health records and years? What do you think, could it be entire team in the MediGroup system - electronic sick leave notices? the solution to many problems? all departments took part and with joint There is a great determination and Gradual, planned, strategic integration forces we succeeded in meeting all the readiness on the part of the Government of is something that can certainly be the requirements to be short-listed. Though the Republic of Serbia, which has allocated solution. Private healthcare capacities I cherish and value every award, this one resources for the digitalization of health are underused, and putting them to use is special as we believe it to be a reward services to really happen. We are actively would ensure more patients receive the for each and every one of us.

CorD | NALED | AGENDA 2021 | 55 MILOŠ RISTIĆ, EXECUTIVE DIRECTOR OF SOPHARMA TRADING We Are Creating A Modern Healthcare System

For Sopharma Trading, a member of the Sopharma AD Group, entering the Serbian market is the first phase of expansion in the Balkans and part of a strategy to expand international business. Serbia is a country with great potential and a deep long-term potential for company expansion

ccording to director Miloš Ristić, the After we acquired the Serbian company of the Šabac distribution centre; built a Astrength and distinction of Sopharma Lekovit, we introduced a successful busi- completely new distribution centre in Pu- Trading lies in its culture of company values ness practice that we had been developing kovac to provide maximum coverage of and people who are dedicated to building for years on the Bulgarian market. We set southern Serbia; increased the speed of a strong and recognizable regional group up an organizational company design and deliveries and almost doubled their number structure that has great potential for busi- compared to three years ago. Was the arrival of Sopharma Trading in Serbia a good business move? Has Our task is to ensure You once announced that your goal the investment paid off? everyday availability of all is to become market leader in Serbia Our results so far are excellent compared products on the market, and then use that development model to plans. In 2020, we achieved record busi- and in times of crisis, as the basis for regional expansion. ness growth as a result of investment and How is that going? setting up the organizational structure of the preserving the health We’re doing really well. By the end of company, and we are ready to multiply our of the population is the this year, we will almost have tripled our revenue many times in the next few years. dominant interest operating revenue, compared to the time Besides our shareholders and staff, our busi- before the acquisition of Lekovit. Besides ness partners and clients are also satisfied ness and revenue growth, we implemented revenue growth and overall business, we with a reliable and stable long-term partner. a new ERP system and selected SAP, with have also worked on the development of all the modules and adaptation tailored to our entire organization and distribution As an innovator and pioneer in doing a pharmaceutical company. As the first in capacity. We regularly supply almost all business in Bulgaria, has Sopharma Serbia, we installed the Hybris business pharmacies and hospitals in Serbia and we introduced new technologies and prac- platform, part of SAP’s B2B communica- are improving cooperation and increasing tices to the Serbian market? tion software; we expanded the capacity business volume by the day.

56 | CorD | NALED | AGENDA 2021 You acquired Lekovit, you opened a distribution centre in the village of Pukovac near Doljevac, you became the first healthcare company in Serbia to invest heavily in digital services. What are your further plans? Our further plans are connected to developing a new, fully automated distribution centre in Stara Pazova, developing marketing support to manufacturers to promote their products, registering new drugs and modern therapies that will be the future in the modern healthcare system, cooperating vertically in marketing, distribution, regulatory activities and product development with our production company in the Sopharma AD group and How can we make healthcare more with our partner manufacturers. The tech- competitive, effective and attractive? The Healthcare nology we are using and will install at our How to improve the availability and Association has achieved new distribution centre is the last word in efficiency of healthcare? considerable results, technology globally. The crucial conditions for competitive- so we are proud of our ness and effectiveness are free trade, membership of NALED Accumulated debts in health insti- transparency, openness of the healthcare tutions and pharmacies, bureaucracy, system, modern therapies in accordance lack of medicines and health services with global trends and respect for the laws by the quick reaction of all participants. are some of the biggest problems in of free competition on the market. Liber- Our task is to take care of the everyday Serbian healthcare. You are a member alization of business and greater competi- availability of all products on the market. of NALED's Healthcare Alliance, what tion, especially from foreign companies, In times of crisis, preserving the health solutions does it propose? removes some of the existing barriers to of the population is the dominant inter- The Healthcare Alliance has achieved a fair and free market supply, as opposed to est, so it is our social obligation to place lot and we are proud of our membership exclusive agreements between suppliers all our resources at the disposal of the of NALED. The results achieved in debt and one or a small number of distributers. healthcare system. In difficult conditions collection, regulation of the economic That process is still slow in Serbia, but it’s of limited movement, limited working hours framework, regulatory solutions in the changing every day. We are continuing to of pharmacies, special work regimes for healthcare system, constant efforts to invest in the Serbian market because we Covid dispensaries and hospitals, we have improve services in the overall healthcare see the perspective of European business found ways to deliver all the necessary system and product availability have been standards, with great future potential for drugs, medical devices and other products key goals of the Alliance. Business trans- the growth of the entire healthcare sector. in line with the needs of pharmacies and parency, a sustainable healthcare system, hospitals, and for the benefit of end users. support and partnership between private It seems that despite daunting ad- Night work, overtime work, daily disinfection and public sectors are key conditions for ministrative obstacles, we have coped of all warehouses and transport vehicles, the functioning of a country's healthcare well during the pandemic. How do you protective equipment for all staff, preven- system. Together we are building a modern explain that? tion and full compliance with government healthcare system that will respond to all The healthcare system in Serbia is quite measures to combat the spread of the challenges. During the pandemic, members well set up and the protection of people’s pandemic have been the axioms of our of the Healthcare Alliance showed unity and health during the pandemic was undoubt- company's sustainability, and at the same responsibility and assured the functioning edly a high priority for the Government. The time a contribution to maintaining and and supply of the entire healthcare system degree of adaptability and flexibility of the preserving the smooth functioning of the in difficult conditions. entire healthcare sector was confirmed healthcare system.

CorD | NALED | AGENDA 2021 | 57 BUSINESS FRIENDLY CITIES AND MUNICIPALITIES

The Business Friendly Certification of municipalities and cities in South- East Europe (BFC SEE) gives local governments a plan for reform and clear guidelines on how to create a good business climate and introduce internationally recognized standards of efficient and transparent administration. For businesses and investors, BFC SEE provides a stable and predictable business environment and helps identify places that offer the best conditions for investment and development.

ŠABAC Infrastructure

Metaloplastika, Šabac Fair, Tekeriški Towel, National Museum, the largest industrial zone in Serbia, the most modern wastewater treatment plant. The list of unique features of of Šabac is becoming ever longer, and the comprehensive development plans of the new management guarantee our city recognition as the most desirable business location in Serbia. ALEKSANDAR PAJIĆ, MAYOR OF ŠABAC NEW MOTORWAY, BRIDGE AND PIER We want to secure the position of economic development leader by completing the ENVIRONMENTAL most important infrastructure projects. First and foremost are capital investments, PROTECTION, HEALTH AND construction of the motorway Ruma–Šabac, a new bridge over the Sava and a fast EDUCATION road to Loznica to connect us with our most important motorways – Miloš the Great and Corridor 10. The drive to Belgrade will be shortened to 40 minutes. Besides this, Environmental protection in Šabac is the construction of a port is planned, which will make Šabac the second town on the also a priority of the municipal admi- Sava with international river passenger traffic. nistration and we have already taken Thanks to the vision of President Aleksandar Vučić and the willingness to make the first steps by setting up a mobile huge investments in road infrastructure, Šabac will open its doors to new investors automatic air quality control station in October 2023, when the works are expected to be completed, providing new jobs on the main square, and sizeable and a better standard of living through faster development. funds are being allocated so that the Public Health Institute can measure CHINESE BUILDING NEW FACTORY pollution at several points. We are That foreigners want to invest in Šabac is also shown by the announced opening also looking at the possibility of using of a new plant of the Chinese company Mint Automotive in the Northwest Indu- cleaner energy sources. As only 30% strial Zone, which will be the biggest investment for the city after the arrival of of possible users are connected to the Japanese Jazaki. Much attention is paid to shortening the time for obtaining the gas network, we see a solution in permits and removing barriers to investment. The unique administrative position reducing the connection fee. of the public administration enables efficient provision of services, as well as fast An important part of improving local and simple communication between business and municipality. life is investing in health care, which is Thanks to the support of the Republic, funds have been provided to expand the especially prominent in these difficult water and sewerage networks, for the construction of wastewater treatment plants times, and we do this from day to day, in the town, suburbs and villages of Šabac. both at the general hospital and the health centre. Furthermore, constant investment must be made in education to provide children with all the conditions for acquiring knowledge. We want an educated and professional workforce that will enable us to make Šabac a city of the future, in which young people want to live and work, and high-tech companies to invest.

60 | CorD | NALED | AGENDA 2021 Welcome To The City Of Entrepreneurs And A Great Industrial Tradition ČAČAK

The city of Čačak is the administrative, business, medical, educational and cultural centre of Moravica district and an excellent place for investment because it is surrounded by a growing market of 16 million consumers. We have a rich cultural and historical heritage, exceptional tourist potential MILUN TODOROVIĆ, and two faculties educating highly qualified experts. MAYOR OF ČAČAK WINNERS OF TRAFFIC AND BUSINESS CENTRE OF SERBIA BFC SEE CERTIFICATION The main characteristic of industry in Čačak is well-developed private entre- In April 2021, the City of Čačak met the preneurship, with the support of four business associations, the Science and criteria for the Certification Program for Technology Park and the City Economic Council. The crucial advantages of this Cities and Municipalities with a Favourable city with its century-old industrial tradition are its geographical position, good Business Environment in Southeast Euro- traffic connections, and the proximity of the Morava airport. pe (BFC SEE) and proved that it provides services of the highest international stan- A crucially important investment for the development of the city was the recent dards to existing industry and potential construction of Corridor 11 (E-763) connecting Čačak and Belgrade. Due to the investors. Also, the Local Economic De- imminent completion of works on the Preljina-Požega section, the beginning of velopment Program and the Employment construction works on the Preljina-Pojate motorway and the construction of Action Plan adopted by Čačak will contri- the rapid Mrčajevci-Kragujevac road, the position and importance of Čačak as a bute to economic development, opening traffic and business centre of Serbia is undeniable. In this context, the business new companies and jobs. Our goal is zones of Preljina, Konjevici and Cer will be increasingly important for attracting to position Čačak as a strong business both foreign investment and domestic business. centre in Southeast Europe, to encourage the introduction of new technologies and Beside business development, the city is actively investing in projects for water innovation in production processes and supply, sewerage, wastewater treatment, healthcare, education, youth activi- to increase exports. When we achieve all ties, culture, tourism and sport. that – and we will – our city will be an even better investment for business and life - announces Mayor Todorović. OVČAR BANJA AND NADEŽDA PETROVIĆ GALLERY Cultural heritage and natural beauty around the city make Čačak an exceptional tourist destination. Our most prominent landmark is close by - the famous Ovčar spa, Ovčarsko-Kablarska gorge, the lakes and meanders of the West Morava. The thermo-mineral springs of the spa and its healing effect in the treatment of rheumatic diseases, 10 medieval monasteries that brought this area the flattering name of the Serbian Holy Mountain, are a must-see for all tourists. The Tourism Development Programme of the City of Čačak for the period 2019- 2024 pointed to our great opportunities in this sector, and it is important that the Interdepartmental Working Group of the Government of Serbia consider the development of the tourist potential of the Ovčarsko-Kablarska Gorge. Another of our recognizable landmarks is the gallery of our famous painter Nadežda Petrović, whose work will be included on the UNESCO list.

CorD | NALED | AGENDA 2021 | 61 Come To The Largest

UŽICE Centre In Western Serbia

The approach of the Miloš the Great motorway to Užice will further strengthen the capacity of our city as a regional centre. We have contributed to this by creating a good business climate with the business friendly certification (BFC SEE), which has shown our commitment to continuous work on development and qualified us for the support of national institutions and donors. DR JELENA RAKOVIĆ RADIVOJEVIĆ, MAYOR OF UŽICE

A CALL FOR TOURISTS

Its natural beauty makes the Užice region one of the most appealing in the Balkans and carries a great potential STRONG BUSINESS SUPPORT for development based on tourism. We The formation of a single administrative location has made our administration pay special attention to rural tourism, faster and more efficient for the public and for industry, and we have paid special and our recognizable sights are of attention to supporting entrepreneurship. A business incubator has been developed great interest to visitors: Tara National which in 1,600 m2 is home to 15 companies with 120 staff. The activities supported Park, Mokra Gora - Shargan, Zlatibor by the incubator are productive, innovative and intellectual. Nature Park, Potpeć Cave, Cetinje River Canyon, the Old Town, a hydroelectric To stimulate entrepreneurship, we have reduced by 20% the municipal fee for power plant under the town – the first manufacturing and for promoting a company on its business premises, while for power plant in Europe built according to bread and pastry production it was reduced by 50%. Through subsidies, we are Tesla's principles – and the new legacy encouraging successful self-employment programmes in cooperation with the of the painter Mihailo Milovanović. National Employment Service. During the year, internationally renow- ned festivals are held in the municipality: MANY PLACES FOR INVESTORS Kustendorf Film Festival, Užice Sum- We offer investors plenty of space for business development. With the public-private mer, Native Days of Mokra Gora, Jumps partnership between Užice, the copper rolling mill AD Sevojno and Impol Seval AD, from the Old Railway Bridge, Žestival, the Užice Free Zone was formed, one of 15 in Serbia, with eight companies. There Yugoslav Theatre Festival, Licidersko are solid incentives such as duty-free import of equipment and raw materials for Srce, Zlakusa Colony, Suva Igla Bienale. products intended for export, and exemption from VAT on energy.

The city of Užice also has the commercial zone Krčagovo with a large number of businesses and we are planning to build a new industrial zone with more than 30 hectares of available land at Bela Zemlja, whose greatest advantage is access to important roads on the border of Serbia, BiH and Montenegro. The construction of the Miloš the Great motorway opens new perspectives for the whole Zlatibor district. Work will soon follow to make Ponikve Airport fully operational.

In our great work for the further development of Užice, we will use the tailwind of all the reforms, efforts and results undertaken at state level, but we are also ready to change and reform ourselves. The results will not be absent.

62 | CorD | NALED | AGENDA 2021 Best In The Region For Investment

When a city meets the highest international standards of LESKOVAC good business environment with almost maximum results, which makes it one of the most successful local governments in the entire region, then you know that starting a business there is a secure investment.

FOUR QUALITY AWARDS Since the establishment of the business friendly certification programme and its expansion to the region of Southeast Europe (BFC SEE), the City of Leskovac has confirmed that it has developed an administration that offers services to existing GORAN CVETANOVIĆ PHD, businesses and potential investors. This year, we obtained our fourth certificate, MAYOR OF LESKOVAC fulfilling over 96% of the criteria, and in six of the 10 criteria we had top marks. Together with the municipality of Gradiška in BiH, this is the best result in the ECONOMIC MEASURES SOFTEN entire region. LOCAL EFFECTS OF CRISIS

CITY OF THE AUTO INDUSTRY AND BEST BARBECUE National economic policies have had In 2012, Leskovac began to address its development systematically. A Local a strong impact on mitigating the Employment Action Plan was prepared and a functional office for local economic consequences of the pandemic, both development was established, in charge of communication with existing compa- throughout Serbia and locally. In that nies and potential investors. In attracting investment, the city was guided by the sense, it is important to point out recommendations of the BFC programme and we targeted investors from the the speed with which our economy industries in which we have the greatest potential. That is the reason why there adapts to new circumstances, and as is a number of investments in the automotive (South Korean Jura, British Aptiv a doctor, I would like to emphasize and Greek Autostop), textile (Turkish Jeans, German Falke and domestic Bim that Serbia takes the lead in vaccina- tex) and construction industries (IGM Mladost and Terastil). When it comes to tion. A measures that I think would be local investors, DCP Hemigal stands out. Another strong point of Leskovac is our relevant in these circumstances is a unique touristic offer – gastronomic events such as the great annual barbecue greater incentive for domestic inve- festival Rostiljijada, and local specialties such as barbecue and ajvar, in addition stors, primarily small and medium en- to famous sights: the small hydroelectric power plant in Vučje (the second oldest terprises, because it would contribute in Serbia), Caričin Grad, the Textile Industry Museum and many others. to economic activity and employment.

WELL-DEVELOPED INFRASTRUCTURE Large investments and a well-developed economy would certainly not have come about if the City of Leskovac had not created optimal infrastructure for business, with a special emphasis on the construction of a gas pipeline, the central wastewater treatment plant and city collector, the newly equipped industrial zone, the regional sanitary landfill at Željkovac and Barje water system. The strategic position of the city on Corridor 10 is also important, it is less than three-hour-drive away from Belgrade and Sofia by motorway, and four hours from the sea in Thessaloniki. To provide investors with the best conditions, the city can offer urban construction land free of charge, exemption or reduction of fees for preparing construction land, exemption for certain large, medium, or small legal entities and sole traders from paying municipal charges to establish a company.

CorD | NALED | AGENDA 2021 | 63 Strategic Position Is Our Main Asset BATOČINA

400,000 people live within a of 30 km radius of Batočina. We are located near Corridor 10, an hour from Belgrade and have two industrial zones. We know how to use such potential.

ZDRAVKO MLADENOVIĆ, MAYOR OF BATOČINA TWO INDUSTRIAL ZONES The key priorities of the municipal management are investment in infrastruc- STATE SUPPORT IS ture, especially in the construction of our own water supply system, sewerage IMPORTANT network and wastewater regulation. Also, in order to provide good conditions for investment to businesses and potential investors, we must think about Our task is to recognize the needs of our business infrastructure, or completing the equipment of our two industrial residents, and for the state to create an zones and creating an environment for attracting investment to reduce un- environment to provide them with good employment. Reducing unemployment is our top priority and my assessment living conditions. The state has really of the scope and speed of the implementation of reforms is positive, because made great efforts in recent years to they really enable investors to realize their investments easily. make both small and underdeveloped municipalities attractive for investment. IDEAL POSITION FOR BUSINESS DEVELOPMENT By supporting the equipping of indus- The municipality of Batočina has an excellent geographical position and it is trial zones and finding foreign investors, our main and so far underused asset. We are located on the largest road in the state can significantly improve the our country, exactly halfway between Belgrade and Niš and are practically an overall environment in a small munici- unavoidable stop when entering the regional industrial centre of Kragujevac. We pality such as Batočina. On the other are working on using our potential to build production facilities or distribution hand, investment in infrastructure, centres in one of our two industrial zones. One of our main promoters is the roads and public facilities should not be company Brzan Plast, the only waste plastic processor in Serbia. This family neglected, and the state has developed company founded on the territory of our municipality is a real example of how a strong mechanism of assistance to lo- quality businesses can successfully develop in our environment. There are also cal governments through the Office for companies such as Grah automotive, Aluroll, Polipak and others. Agriculture Public Investment Management. is our main occupation and we invest a lot through subsidies, and we see an opportunity in investing in tourism, culture and folk crafts.

WHEN IN BATOČINA, MAKE SURE YOU VISIT We will always direct anyone wanting to know more about Batočina to the village of Brzan to see the Church Brvnara, built in 1822 by Prince Miloš Obrenović. The church is a monument and was active for more than 100 years until the construction of a new one, and now it is a landmark for guests from Serbia and the inhabitants of Batočina. Also on the territory of our municipality you will find Jerina cave, formed in the Paleolithic era, around 25,000 BC. It is one of the oldest archaeological sites and one of the first places of ancient life in Serbia.

64 | CorD | NALED | AGENDA 2021 NALED MEMBERS OUTLINE AN AGENDA FOR THE GOVERNMENT

At the 13th Annual Conference on Economic Reform in Serbia, NALED members had the opportunity to outline the next year’s Government agenda to the Prime Minister and government. By choosing three crucial recommendations among 10 priorities, they showed the direction these reforms should take to improve business conditions.

GB# RECOMMENDATION TITLE RELEVANT MINISTRY VOTES

1.3 Reduce payroll deductions Ministry of Finance 56%

Ministry of Environmental Protection Improve the wastewater treatment and 13.16 Ministry of Agriculture, Forestry and Water 49% monitoring system Management

3.3 Establish electronic health records Ministry of Health 38%

Introduce non-cash payment of charges 1.24 Ministry of Finance 27% without proof of payment

Enable the issue of a consolidated certificate Ministry of Finance 13.4 19% on paid taxes IT and e-Government Office

An online register of agricultural holdings Ministry of Agriculture, Forestry and Water 7.1 18% and subsidies (eAgrar) Management

Eliminate redundant bureaucracy in foreign 14.1 National Bank of Serbia 18% exchange operations

Abolish the conversion fee for land property Ministry of Construction, Transport and 5.2 16% rights Infrastructure

Establish a public electronic register of 1.23 Ministry of Finance 14% non-tax charges

Extend the simplified registration of Ministry of Labour, Employment, Veterans 4.5 13% seasonal workers and Social Affairs

CorD | NALED | AGENDA 2021 | 65 JELENA BOJOVIĆ, NALED DIRECTOR OF REGULATORY REFORM Top Recommendations For The Day After

Solving just the 10 priority recommendations of the Grey Book 13 would revolutionise business environment in Serbia, and this is not an unattainable goal. For some of them, we have already secured financial donations and provided software. Some require just the will to change outdated regulation or IT creativity and engineering. Just a couple of them need extensive funding or in-depth analysis and delicate decision making

t first glance, the choice didn’t seem 2018 and 2020, this has not been enough form of health insurance, while just over Athat difficult, as our top ten recom- to eliminate the grey economy. Business half (55%) pay healthcare contributions. mendations directly affect both business leaders estimate that at least a quarter of This reform can be designed so as not and the public. They can reduce costs and all workers receive part of their payment place an additional burden on the budget facilitate administrative procedures, as they in cash. Reducing payroll deductions is a (5% of new beneficiaries), and it would eliminate unnecessary bureaucracy and particularly demanding reform, and we allow everyone to have health insurance, the need to submit documents in person. propose progressive taxation so that while businesses would get an incentive lower incomes are taxed less. We also they can really feel, to forge ahead with FINANCIAL RELIEF propose abolishing contributions for economic development. Reducing payroll deductions is both obligatory healthcare and introducing the most important business recom- the Beveridge model that would allow REGISTER OF NON-FISCAL mendation and the longest-lasting one healthcare to be financed from general CHARGES in the Grey Book. NALED research has taxes. This would provide healthcare Establishing a register of non-fiscal found that two thirds of business leaders for all Serbians regardless of their em- charges is another long-standing Grey think payroll deductions are the great- ployment status, increase our business Book recommendation. Passing the Law est obstacle to business and believe competitiveness with lower labour costs, on Fees for the use of Public Goods in this obligation is the one most often relieve the state administration, com- 2018 was the first important step towards avoided. This recommendation has been panies and the public as the validity of reforming them. But the scope of these one of the key measures of the National health insurance cards would no longer fees remained insufficiently defined, Programme for Suppression of the Grey need to be extended, and make it easier which still affects the predictability and Economy since 2015. Although burdens to control funds for crucial healthcare transparency of the fiscal system. A on net income have gradually changed, investment. The data indicate that more public, electronic register of non-fiscal coming down from 63% to 61% between than 98% of the population has some charges is needed, including all state,

66 | CorD | NALED | AGENDA 2021 provincial and local charges, with companies to fulfil their obligations, then conversion has blocked the use of a vast obligatory effect. This would mean that to strengthen the supervision to enforce area of construction land, as businesses a non-fiscal charge can be collected only if them. Finding the funds for investment feel they are forced to pay for the land a it is in the register. This would allow people would be the next step. The state has second time. Even when they start the and businesses to have secure knowledge provided support to build 28 more plants, conversion process, the final decision of charges, and increase income control signalling an awareness of the issue. can arrive years later or the fee to be paid for all beneficiaries of public funds. Over We are actively trying to extend the could surpass the initial cost of the land. the past year, with the help of KPMG and simplified procedure for registration of It is obvious that conversion fees have USAID, we listed almost 1,200 non-fiscal seasonal workers to new sectors: con- not served their intended purpose, and charges at the national level and scanned struction, tourism and hospitality, and now it is high time to abolish them and the system that collects administrative domestic work. With the help of minis- encourage investment. and utility fees at a local level. We are tries, we are trying to expand this system And finally, if we are looking for the preparing this reform and the registry, as we have seen the positive effect this champion among overly complicated as we want to present its appearance GIZ-supported electronic procedure has bureaucratic procedures, it would defi- and advantages to the institutions and had on agriculture, with 44,000 seasonal nitely be the Law on Foreign Exchange to the professional and general public. workers registered in two years and taxes Operations. Just the fact that this regula- Proposals to introduce non-cash pay- and contributions paid amounting to 590 tion is followed by 33 bylaws should say ment of charges and unification of tax million dinars. Workers who have been enough. These acts impose very restric- certificates is a good example of an anti- doing these jobs illegally for years or even tive obligations and short deadlines, most bureaucratic recommendation. It is evident decades will have the right to pensionable of them out of sync with contemporary that non-cash payments would save time employment and healthcare in case of an business operations. Every single Serbian and money for people and businesses. This occupational accident, and they would company doing business abroad would would also allow us to abandon another not lose their right to social benefits. Em- support such a reform. relic of the past – payment slips – that ployers would have a simple registration forced us to run back and forth between procedure, and the state would have less SUPPORT FOR bank and counter. The proposal to unify people working in the grey economy. The THE IMPLEMENTATION tax certificates issued by the central and importance of this recommendation was Solving just the 10 priority recom- local tax administrations would be a logical also highlighted by the IMF. mendations of the Grey Book 13 would step to digitalising their issue. The next revolutionise working conditions in Ser- step could be to merge the two documents DIGITALIZATION bia, and this is not an unattainable goal. into one, and receive them electronically OF AGRICULTURE For example, we have already secured without payment, which would eliminate Digitalising a traditional sector such as financial donations and provided soft- the hazard of one certificate expiring before agriculture is another priority. Registering ware for some of them: establishing you can get the other. or changing data about agricultural hold- the register of non-fiscal charges and ings proves to be a highly bureaucratic expanding the simplified procedure for PUBLIC HEALTH process, as it involves collecting and registering seasonal workers. To abol- Establishing an electronic health card submitting many documents, two thirds ish conversion fees or amend the Law is the most urgent priority. Again, this of which are already in the possession on Foreign Exchange Operations what recommendation has implications for of state bodies. An electronic system, is most needed is just the will to change everyone. The benefits are evident, as called eAgrar, would allow people to outdated regulation. data on health conditions, tests and finalise these procedures and apply for Establishing an electronic healthcare therapy would always be available, no subsidies from their homes. The scope card, non-cash payment of charges, eA- matter whether the patient is at a private of this reform is also important, involving grar and unifying tax certificates requires or state medical institution. Having to almost 400,000 agricultural holdings a lot of IT creativity and engineering, but repeat medical examinations, laboratory that would receive incentives faster and apart from the time necessary to design analyses, or return to health centres to more easily. and test the solutions, there is hardly any get referral letters would become another On the other hand, the importance of obstacle to these recommendations, not relic of the past. the recommendation to abolish fees for even amending laws and bylaws. This crucial recommendation for public land conversion to full property rights The construction of water treatment health and well-being could be coupled is primarily reflected in its potential plants sets a clear goal, finding billions with the recommendation for improving economic impact. From 2015 to 2019, of dollars in donations, as this is the es- wastewater treatment. Since there are the state collected only seven million timated price for the sewerage network currently only a dozen treatment plants euros for land conversion, but lost in- and plants. Until then, establishing a in Serbia, and we need over 300, it is vestment and jobs amounting to tens or functional model to reduce payroll deduc- evident that we are far from our goal. But even hundreds of millions (loss of fees, tions is the most delicate and long-lasting the first step would be to make it easier for income and corporate tax, VAT, etc). This recommendation in the Grey Book.