Strategic Foresight 2020

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THE Adriatic journal Corporate brief on geopolitics & living issue 8, January 2020 Strategic Foresight 2020

Geopolitics: Three Key Risks in 2020 | Once upon a time in…Serbia |

Business: compelling women from the Balkans | Interview with Jadran Lenarčič | Power of the national brand

Living: Fičo – a Yugoslav story | Emerging cities| World changers from the region tisk_telemach eon oglas_The Adriatic Journal 2020_a4+3mm.pdf 1 29/11/2019 15:54:09

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The Adriatic Journal: Strategic Foresight 2020 Corporate brief on geopolitics & living Issue 8, January 2020 AJ Mediji ISSN: 2630-4414

EDITORIAL

Editor-in-Chief Journalists Designer Tine Kračun Ana Potočnik Nenad Bebić Špela Bizjak Executive Editor Faris Kočan Front Page Jan Tomše Simona Drevenšek Ciril Horjak Klemen Košir Associate Editor Barbara Matijašič typeface Jure Stojan, DPhil Adriatic Journal Special Contributors Adriatic Body Managing Editor Nina Pejič Saj JY Gregor Vavdi Martin Pogačar, PhD Khand Milan Predan Merriweather Sans

Print Published by: DZS Grafik d.o.o. Institute for Strategic Solutions [email protected] January 2020 Parmova ulica 14 Visit our website: Number of copies 8,000 1000 Ljubljana www.adriaticjournal.com This magazine is free of charge Slovenia

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About the publication This is the Strategic Foresight edition of The Adriatic Journal, a corporate brief on geopolitics and living in Europe’s southeast region. The brief is the extended arm of the Institute for Strategic Solutions (ISR). For readers familiar with ISR’s prior publications, our subjects will come as no surprise: we endeavour to bring the latest news, analysis and facts from the region to expat and local community in Slovenia and the Western Balkans as well as to those with particular interest in this part of the world. TThe Adriatic Journal is based in Ljubljana, Slovenia’s capital, but our focus includes the politics and living in other regional centres of power: Zagreb, Belgrade, Sarajevo, Pristina, Skopje and Podgorica. Our expert analysis of political and financial developments helps our readers understand how various aspects impact investments as well as every day living in southeast Europe.

Corporate brief on geopolitics & living 5 ContentsTHE ADRIATIC JOURNAL THE ADRIATIC JOURNAL Corporate brief on geopolitics and living

Corporate brief on geopolitics and living

North Macedonia E a litmus test for EU’s credibility 40 Editorial Slovenia A word from the editor-in-chief A Tempestuous year for minority coalition To Strive for the Future, we must Appreciate the 44 Past 9 Strategic Foresight Methodology 48 Institute for Strategic Solutions Tangible past 10 48 g

10 geopolitics F The views from the past: misunderstanding Serbia Strategic Foresight 2020: Once upon a time in…Serbia Western Balkans 50 The new player in the Western Balkans Key Risks for 2020 14 China entering the Western Balkans: the long- term perspective 56 Introduction 15 View on the region Croatia A Word from Schengen Zone, Ivo Sanader trial and Coalition the Slovenian Government (in)Stability 20 62 Economic diplomacy serving the business community Bosnia and Herzegovina Where to look for the “icing on the cake” Political stalemate as the new normal 24 66

Serbia B Socio-political divisions between the “One of Five Million” and “the Future of Serbia” Business 28 Alternative analysis Montenegro How is the economy doing now, in real time? in the midst of civil unrests 72 32 The many qualities of Slovenia’s business environment Kosovo Prime location to invest New elections, old problems: in between the 76 internal and external dimensions 36 Country brand is more than just a brand French wine, Italian fashion, Serbian rakija … 80

6 the Adriatic Journal City reports

Between the vineyards and a ski resort High tech trends in the region Welcome to Maribor, the city of change! Rockets, robots and revolutionary sports cars 126 86 A city of unobtrusive diversity and progressive ideas Influential women in the Balkans Rijeka flows in its own way Power comes in many ways 134 88 A town with many faces Interview with the director of Jožef Stefan Institute Mostar – where past and present visibly Fear of robots is unfounded intertwine 96 142 E-mobility 2021 European Capital of Culture Future electric car will most probably be Novi Sad - The Pannonian melting pot designed in China 150 102 The sunny city of eternal stairs More than just a summer resort Herceg Novi - beloved by artists Another luxury gem to glitter on 158 Montenegro’s coast 107 North Macedonia's most seductive destination Ohrid - the spiritual capital 166 L Living Beletrina Literature among people Fičo – a Yugoslav story 178 An affordable necessity that became a symbol of the Yugoslav tragedy Gastronomy 115 There is a story behind every Slovenian dish 180 Great minds of the Western Balkans World changers Wine 122 Klet Brda – the cradle of Rebula wine 190

Corporate brief on geopolitics & living 7 Promo

Developing smart cities with sustainable management

Sustainable development, clean renewable energy and a lower carbon footprint are key issues in most cities, especially in those investing in its future development.

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COMPREHENSIVE ENERGY AND ENVIRONMENTAL SOLUTIONS FOR TODAY AND TOMORROW

At Petrol, we focus on the future, today. That is why we are transforming into a company that today co-creates sustainable development of regions, municipalities, public and commercial sector, industry and households, with comprehensive energy and environmental solutions. www.petrol.eu/sustainable-development, [email protected]

PetrolOglas_EIOS_210X70_mesto_ANG.indd 2 28. 11. 19 16:16 E

A word from the editor-in-chief To Strive for the Future, we must Appreciate the Past

Dear reader of The Adriatic Journal!

But to understand the future, perspective for the region and one must appreciate the past. there should be no alternatives. Thus, inside The Adriatic Journal Hence, building the future by 2020 you will find out that Serbia understanding the parallels of defied economic laws in the past the past while working towards and traded successfully. Success- increased cross-border connec- ful trading is a source of optimism tivity on present topics, is the we have been seeing in commu- only recipe for the region’s re- nication activities of companies warding tomorrow. operating in the region. There Enjoy our magazine and make is reason for optimism as new the most of the year 2020. technologies, such as e-mobility, The fact that you at are reading begin to impact people’s lives. this magazine means you have And also connect the past with an active interest in the Adriat- the future. The story of the Fičo ic region.T In the times of global is an attention-grabbing regional uncertainty, this region presents tale of the legendary Yugoslav car itself as an interesting niche for that some innovative minds at- doing business. The recent years tempt to revive its popularity by of economic growth and certain making it electric. signs of political stabilisation, Slovenia’s role in the region such as the Prespa agreement remains active as companies between North Macedonia and strive for more investments and Greece, make the economies the government tries to push the of Western Balkans even more topic of EU enlargement back to

worth looking at now and in the the top of the EU agenda. The Photo: DELO coming years. European perspective is the only Tine Kračun

Corporate brief on geopolitics & living 9 E

Institute for Strategic Solutions Tangible past

Quantitave history, also known as cliometrics (no relation with the small French car), can make the past come alive. A very tangible look into the Slovenes of 140 years ago.

current times. Our specialization is the use of advanced data analytics, which enables real-time decision makers to now have a direct insight into what is happening in their target markets and monitor business sentiment in their desired industries. Advanced data analytics enables us to analyze the hidden and less exposed messages by business players in their communication with the general and professional public The use of cliometry enables the and to identify trends and expectations removal of unknown facts from the about what is happening in the markets past. Better insight and understanding in real time - today, tomorrow, and how ourT ancestors lived, thus filling the in the coming months. It is a fully past with a new face. customized business analytics tool At the Institute for Strategic Solutions, that gives you, in real time, all the key we not only bring a new perspective information about what is happening in on the past, but also use the advanced the markets and understand it better data and analytical methods to provide than your competitors, which result in valuable business information for the better business decisions.

10 the Adriatic Journal THE NUMBER OF BABY GIRLS BORN IN CARNIOLA IN 1880 8,641

Among them,116 twin girls. And 9,186 baby boys.

Among them, 111 twin boys.

Source: STATISTISCHES JAHRBUCH 158 twins of mixed sexes.

THE NUMBER OF TELEGRAMMES SENT FROM THE LAŠKO STATION IN 1880

While 1,275 telegrammes were received. 726

Source: STATISTISCHES JAHRBUCH

Corporate brief on geopolitics & living 11 THE NUMBER OF HORSES IN THE CITY OF MARIBOR(WITHOUT THE SUBURBS) IN 1880 833 45,094 20 persons per horse PRIVATE CARS 21 persons if we include the suburbs REGISTERED IN MARIBOR MUNICIPALITY 105,730 PERSONS

2 Owned by 180 bourgeois. PERSONS PER CAR 2.4% in the suburbs. The proverbial “Top 1%”.

Source: SURS 2019

THE PRICE FOR 1KG OF BEEF IN LJUBLJANA IN 1880

EUR 11.80 0.48 Gulden IN 2019

Source: STATISTISCHES JAHRBUCH Elswhere in Carniola, 0.44 Gulden.

12 the Adriatic Journal THE NUMBER OF DEATHS BY POISON IN CARNIOLA IN 1880 2

No murderer used poison that year. Among the 8 female victims, 6 were beaten to death while 2 died by other means. Among the 38 male victims, 28 were beaten to death and 5 were shot.

2 females commited suicide by poison. That year, 9 women and 29 men took their own life

Source: STATISTISCHES JAHRBUCH

Corporate brief on geopolitics & living 13 F Strategic Foresight 2020: Western Balkans

Key Risks for 2020

New No Enlargement Corruption and State 1World Order 2in Sight 3 Capture The diminished prospect of European in- Captured political systems, the suppres- The changing geopolitical relations on the tegration, uncertainties in relation to the sion of independent institutions, political global scale are affecting the Western Bal- “mini-Schengen” initiative and bilateral influence over the judiciary, and weak law kan countries, which are confronted with disputes will determine the outcomes of enforcement are all features that accom- old ambiguities. The competitive autho- the much-needed structural reforms that pany corruption and reflect on underper- ritarianism deriving from the contested are prolonging the stagnation of both the forming state institutions, which is jeo- pluralism, far-right populism and nationa- socio-economic prosperity and EU acces- pardizing democratic consolidation that is lism, slowing economic growth weak in- sion process of the Western Balkan coun- crucial for the countries that aspire to join stitutions and foreign influence by Turkey, tries. the EU. China and Russia are having a negative effect on the Investment Environment in the region.

14 the Adriatic Journal Strategic Foresight Introduction

Western Balkans in the grips of competitive authoritarianism, weak institutions and foreign influence .

n the last three years, the illiberal key, China and Russia is having a nega- tendencies that emerged through tive effect on the General Investment En- populism, the rise of the far-right, vironment in the region. In addition, the Brexit and Donald Trump’s elec- diminished prospect of the European in- tion victory, are changing the tegration, uncertainties in relation to the structure of the international sys- “mini-Schengen” initiative and bilateral tem. This new world order is also affect- disputes will determine the outcomes of Iing the Western Balkan countries, which the much-needed structural reforms that are confronted with old ambiguities. The are prolonging the stagnation of both the competitive authoritarianism deriving socio-economic prosperity and EU acces- from the contested pluralism, far-right sion process of the Western Balkan coun- populism and nationalism, slowing eco- tries. nomic growth (from 3.9% to 3.2%), weak institutions and foreign influence by Tur-

Western Balkans the Adriatic Journal 15 On 18 October 2019, French President is not an exception but part of a broad- Emmanuel Macron vetoed the open- er drift that takes on a variety of prac- ing of the EU accession talks with North tices, depending on the regional context. Macedonia and Albania, diminishing the However, most institutions and analysts prospect of European integration for would concur that the notion of demo- the entire region. The Western Balkans, cratic decline that leads to competitive often termed as a ‘fragile region’, is yet authoritarianism has not occurred in the again faced with old uncertainties such region since those countries are not con- as competitive authoritarianism, power- sidered to be consolidated democracies. less civil society, underperforming state Moreover, the countries of the Western institutions, and limited capacities to act Balkans have remained hybrid regimes Even Serbia, who and react in unexpected circumstances. or unconsolidated democracies since the The assessment of the General Invest- mid-2000s, according to the Freedom was perceived ment Environment of the region in 2020 House, Betlesmann Transformation In- is dependent on five current trends or dex, and the Economist Democracy In- as a frontrunner processes that have been taking place dex. When looking at the country-based for democratic and that will, according to the analysts at trends, we could observe that even Serbia, the Institute for Strategic Solutions, de- who was perceived as a frontrunner for consolidation, is slowly termine the following year. These are: 1) democratic consolidation, is slowly but competitive authoritarianism; 2) slowing steadily overtaken by illiberal tendencies but steadily overtaken economic growth and increasing public of Aleksandar Vučić's Serbian Progressive debt; 3) underperforming institutions; 4) Party. While on one hand Bosnia and Her- by illiberal tendencies. Belgrade-Prishtina dialogue; 5) foreign in- zegovina and Kosovo can be character- fluence. ized with multifaceted decision-making, ethno-political exclusivism and contest- The global decline of democracy has ed pluralism, Serbia and Montenegro are been making headlines, with challenges lacking such democratic structural limits. to liberalism in long-established democ- On the other hand, North Macedonia and racies through populist candidates and Croatia are surrounded by the populism parties, such as Donald Trump's election and illiberalism in their neighbourhood. victory in the United States, Brexit, and This, together with the stagnation in the the rise of the far-right in Western and EU accession process, has negative influ- Central Europe. In this context, the dem- ence on the political climate in the region ocratic decline in the Western Balkans that is slowly but steadily moving from

16 the Adriatic Journal Strategic Foresight the soft power postulates established by also in Serbia, Bosnia and Herzegovina, the EU to the sharp power strategies by Montenegro and Albania. The cooling of the non-western actors such as China, the economic growth is coupled by ris- Turkey, and Russia. ing fiscal deficits that will be increased by 0.8% on average (from 1.2% of GDP to 2% Competitive authoritarianism is not of GDP). The largest increase is, accord- the only challenge the region has to tack- ing to the World Bank, expected in Bos- le. The economic growth is projected to nia and Herzegovina as a result of a new slow from 3.9% to 3.2%, except for North law on demobilized veterans in the BiH Macedonia where growth has continued Federation and higher public wages in

The economic growth is Rising fiscal deficits will be Regional labour markets projected to slow from increased by have reached the lowest unemployment rate in history 3.9% to 3.2%, 0.8% on average. except for North Macedonia. (15.8% on average). to pick up after a major slowdown in Republika Srpska. Fiscal deficits are also 2017, and Kosovo, where it is expected to expected to increase in North Macedonia remain strong at 4%. While investments (from 1.1% to 2.4% of GDP) and Albania are still adding to growth, the countries (to 2.2% of GDP). But fiscal rules are im- like Montenegro, Kosovo and Bosnia and mensely important for the countries in Herzegovina will see a drop in the invest- the region as their attempts to join the ments’ contribution to the government EU will fail if they do not adopt and com- purse because of delays in large public in- ply with EU’s fiscal rules. frastructure project. The Western Balkans countries, which have a large productiv- Regional labour markets, which have ity gap, have to primarily rely on services improved in terms of labour force partici- as the main economic driver. Those ser- pation and reached the lowest unemploy- vices are mostly reliant on tourism which ment rate in history (15.8% on average), is not a driving factor only in Croatia but remain strongly influenced by wide-

Western Balkans the Adriatic Journal 17 spread corruption (Vienna Institute for more, the bilateral dispute that turned International Economic Studies, 2019). into a multilateral dispute is harming Captured political systems, the suppres- the ongoing debates on establishing the sion of independent institutions, politi- so-called “mini-Schengen”, which can be cal influence over the judiciary, and weak understood as a consequence of blurred law enforcement are all features that ac- EU perspective. The “mini-Schengen”, company corruption and reflect on un- that has initially included Serbia, Albania derperforming state institutions which and North Macedonia, has the potential is jeopardizing democratic consolidation to function as a sub-regional block and that is crucial for the countries that as- excludes countries like Kosovo and Bos- pire to join the EU. This worrisome trend nia and Herzegovina, which are urgently is addressed in the latest 2019 report by need to become a part of something vis- the Freedom House, Nation in Transit, ible and tangible. Belgrade-Prishtina where Bosnia and Herzegovina, Kosovo, dialogue is the most and Macedonia are understood as ‘hy- The last trend the analyst at the In- brid regimes’, whereas Montenegro and stitute for Strategic Solutions evaluated important bilateral Serbia are considered to be ‘semi-consol- is the foreign influence, which was more idated democracies’. The root causes can visible in previous years due to the EU’s challenge for the be inspected through the prism of pow- non-existent strategy and the fact that erless civil society and anti-corruption the enlargement into the Western Bal- region. bodies, inadequate administrative capaci- kans has been postponed. Even though ties, and lack of transparency. An addi- the EU remains the most visible foreign tional problem in the region stems from actor and supports the democratic and the Belgrade-Prishtina dialogue which is economic transformation of Western the most important bilateral challenge Balkan societies, the presence and ac- for the region with potential to give an tions of other actors such as Russia, Chi- impetus to the Western Balkans coun- na, and Turkey cannot be undermined. tries in their EU accession process. How- One can argue that the Western Balkans ever, opting against the European Com- have become an arena where the EU is mission’s Stabilization and Association confronting other geopolitical actors that Agreement, Kosovo’s government de- harbour different intentions and agen- cided to impose a 100% tariff on imports das. Russia in particular, although lack- from Serbia and Bosnia and Herzegovina ing a coherent strategy towards the re- in 2018 which are still in place. Further- gion, contributes to its overall instability.

18 the Adriatic Journal Strategic Foresight Furthermore, one should not neglect Chi- For all the above-mentioned chal- na’s influence that is spreading through- lenges, the countries of the Western Bal- Even though the EU out the region with the 17+1 and Belt and kans will need to focus on the rule of law, Road initiative, which evolved into com- democratic transformation, implementa- remains the most plex diplomatic and economic platforms. tion of the EU acquis, underperforming China is present in practically all regional institutions and bilateral disputes that visible foreign actor, countries, namely: a) in Serbia with the have the potential to prolong the stagna- the presence and USD 1.5bn worth of investment for con- tion of the EU accession process. In the structing the railway that would connect following chapter, we look closely at the actions of other actors Belgrade and Budapest; b) in Croatia by developments in each country and pro- building a 2.4 km-long bridge connect- vide the assessment of the General In- such as Russia, China, ing the Pelješac peninsula and the village vestment Environment that will serve of Komarna; c) in Montenegro and North as a road map for where those countries and Turkey cannot be Macedonia in road construction projects; are heading and what the next year will undermined. d) in Tuzla with the project of building a bring to their political landscape, socio- thermal plant worth EUR 777m. Finally, economic conditions, rule of law, secu- Turkish influence in the region via de- rity situation and investment barriers. velopment aid, infrastructural projects, opening of universities and restoring mosques is something that should be monitored closely in the following years. Such instruments of soft power, which were originally perceived as an “EU way of doing business”, are sometimes hard to measure but are of strategic importance for Turkey’s position in the region.

Western Balkans the Adriatic Journal 19 F

Croatia Schengen Zone, Ivo Sanader trial and Coalition (in)Stability

2019 didn’t bring the snap elections that many had expected, but at the end of the year Croatia will elect a President for the 2020-2025 mandate period. The centre- right Croatian Democratic Union-led government, headed by Andrej Plenković, commands a very slim majority, relying on a varied coalition partners and on the external support of individual parliamentarians. This instability could change after the general elections in 2020 which would have a positive impact on the overall political climate.

20 the Adriatic Journal Strategic Foresight solution also needs to be emphasised as the shipyard carries a lot of sentimen- tal value for Croats and is being used for strategic (political) purpose. However, the improvement of socio-economic conditions is visible and can be monitored via new Minimum Wage Act, that has been in effect since 1 January 2019 (EUR 505), and the Commission for Monitor- ing and Analysis of the Minimum Wage. Furthermore, among noticeable changes are also proposed tax initiatives intended for employing the youth population; a Even though the general elections are reduction of the tax obligation by 100% scheduled for December 2020, the pos- and 50% for those up to 25 years of age sibility Eof early parliamentary elections and those between 26 and 30 years. This cannot be completely discounted since should not have a negative impact on the the government commands a very slim Croatian public finances as the Minister majority, relying on a varied coalition of Finance Zdravko Marić has emphasized and on the external support of individual the Government adopted a 2019–2021 parliamentarians. This instability, which public debt management strategy under was previously driven by the ‘Hotmail’ which the public debt will fall from 71.6% affair and lex Agrokor, is now caused by to 65.4% of GDP. the draft budget for 2020 that is not including extra allocations for educational sector employees. The education work- The improvement of ers have gone on strike demanding a 6% socio-economic conditions wage increase. The junior coalition partner, the Croatian People’s Party (HNS), is mostly due to the new insists on pushing the education wages Minimum Wage Act that issue on the political agenda. The in- has been in effect since 1 solvency problems with large shipyard January 2019 – group Uljanik and the inability of the Cro- atian government to find the appropriate EUR 505.

Western Balkans the Adriatic Journal 21 The most worrisome indicators to join the Schengen zone is something with potential impact on the general that could negatively affect the already investment environment are at least strained bilateral relations with Slove- threefold: Firstly, the long-term eco- nia. Slovenian government argues the nomic growth is becoming a key chal- decision was political and should be dis- lenge for Croatia, as well as necessary cussed after the new European Commis- investments in transport, energy and sion is formed. environmental infrastructure. The lat- This year’s assessment of the invest- ter corresponds with low level of capital ment environment shows that Croatia investment and can best be illustrated is going to stay moderately stable and with a much-delayed EUR 420m invest- will improve in terms of investment barriers. The latter corresponds with the proposed tax change to encourage employment of Croatian youth. Socio-eco- Government adopted nomic indicator is the most unstable, a 2019-2021 public debt as the government hasn’t done much management strategy to ensure durable economic growth. under which it will fall Analysts at the Institute for Strategic Solutions will closely follow the political situation in the country as 2020 will from to 71.6% be determined by the outcome of both presidential and general elections. 65.4% of GDP.

ment in Pelješac bridge. Secondly, the political climate is subjected to the biggest trial of the decade to determine the guilt of former Croatian Prime Minister Ivo Sanader and Hungarian industrialist Zsolt Hernadi, the Chairman and CEO of MOL Hungarian Oil, one of the largest foreign investors in Croatia. Finally, the EU Commission’s greenlight for Croatia

22 the Adriatic Journal Strategic Foresight Politics: According to the assessment of the analysts at the Institute for Strategic Solutions, the political risks indicator will improve in 2020. The biggest risk that could potentially have political implications are diplomatic relations with Slovenia in regards to Croatia’s aspirations to become a member of the Schengen area.

Security situation: The rule of law: Security situation in Croatia The indicator rule of law will remain the same in won’t change in 2020. Here, 2020. The analysts at we should mention that the Institute for Strategic Croatia didn’t adopt the Solution estimate that the reforms that would tackle migrant pressure on borders the corruption on systemic and their ill-treatment by level. Furthermore, the trial Croatian police forces is of Ivo Sanader will serve as something that could be the a litmus test of Croatian most visible. judicial system.

Investment Impediments: Socio-economic conditions: Investment Impediments will be less visible in In 2020, socio-economic conditions will be more 2020 due to tax changes that will encourage visible due to worse economic performance and companies and employers to hire Croatian higher inflation, which will determine the scope of youth. the much needed fiscal consolidation.

Moderately stable

Investment Enviroment Assessment

Uncertain Moderately uncertain Moderately stable Stable 2019 2020

See methodology on page 48 F

Bosnia and Herzegovina

Political stalemate as the new normal

In 2019, three years after Bosnia and Herzegovina’s (BiH) formal application for EU membership, BiH finally delivered its answers to the additional questions in the EU’s questionnaire. During the time in the ‘waiting room’ for the opening of the accession negotiations, BiH will have to break the deadlock and form a new government after the Bosnian general elections on 7 October 2018. As a result, the assessment of general investment environment for 2019 has worsened. The outcome of this stalemate will affect the political and socio-economic climate in BiH in the following year.

24 the Adriatic Journal Strategic Foresight One of many examples of intensified tensions happened on 18 April 2019, when the Republika Srpska parliament approved amendments to the law on public security to establish a 1,100-person reserve police force in order to fight against security threats such as Islamist extremists and migrants passing through BiH. Despite electoral distractions, where over 7% of more than 450,000 ballots were disqualified due to the possible voter fraud, BiH did little to ensure the functionality of its institutions and electoral In October 2018, BiH held its eight gener- framework. al election since the Dayton Peace Agree- The latter is a consequence of the failure ment, which Iwas marred by irregularities to adopt the amendments issued by the and mostly confirmed the positions of Central Election Commission in relation the entrenched nationalist blocks. Even to the election of delegates to the Federa- though Željko Komšić, a centre-left can- tion’s House of Peoples, which was de- didate for the Bosnian Croat seat of the clared as unconstitutional. presidency, won, the ruling coalitions at the state level and at the entity-level (Federation of BiH and Republika Srpska) remained uncertain. Despite electoral distractions,

The deadlock, mostly due to different where over of almost views on Euro-Atlantic integrations by 7% BiH political elites, demonstrates the half a milion ballots were continuation of divisions and tensions disqualified due to the possible among three constitutive nations that voter fraud, BiH did little to was also acknowledged in the European ensure the functionality of its Commission Report on BiH in May 2019. electoral framework.

Western Balkans the Adriatic Journal 25 Furthermore, BiH made little substan- However, in March 2019, Standard & tive progress in terms of public admin- Poor confirmed its long-term B sovereign istration reforms. Balkan Investigative credit rating for BiH and raised its out- Reporting Network (BIRN) revealed that look from stable to positive for the first BiH paid almost EUR 30m in provisions time since 2012. due to the delays of crucial infrastructural project, financed by different inter- Meanwhile, there were no noteworthy national institutions. reforms regarding the rule of law, efforts to tackle corruption and organised crime, and fundamental rights. This was also The inability to form the confirmed in the Organization for Secu- Government on both state and rity and Co-operation in Europe (OSCE) report issued in April 2019, that conclud- entity levels resulted in weaker ed the response of the justice system to economic growth forecast for corruption was insufficient on all levels (productivity, capacity, and efficiency). 2020 (from Finally, the unexplained death of David 3.6% Dragičević, a 21-year-old man from Banja to ). Luka, unravelled the broader institution- 3.1% al problems about policing, fundamental freedoms and the limited capacities of civil society to impact the socio-political The inability to form a Government on landscape. both state and entity levels resulted in weaker economic growth forecast for Analysts at the Institute for Strategic Solu- 2020 (from 3.6% to 3.1%). The World tions expect the general investment envi- Bank also expects the fiscal deficit to dip ronment to remain moderately uncertain further due to higher spending on vet- but should improve in 2020 as soon as eran benefits in Federation of BiH and BiH political parties form the new govern- higher wages in Republika Srpska. ment. In addition, the security situation in BiH will be closely followed as there are potential unrest risks due to the increasing migrant crisis in certain parts of BiH Federation, namely in Bihać and Vučjak.

26 the Adriatic Journal Strategic Foresight Politics: According to the assessment by the analysts at the Institute for Strategic Solutions, the political risks will decrease in 2020. Those estimates are based on the fact that political parties in BiH will form new government in the coming months. This will then also impact the political system, which could also be subjected to the new law provisions regarding the indirect election of the delegates to the House of Federation’s House of People.

The rule of law: Security situation: The indicator rule of law Security situation in BiH could won’t change in 2020 Here, potentially worsen in 2020 due we should mention that no to an increasing number of reforms were made in order migrants, both on borders and to tackle the corruption, and in certain cities in Federation that the OSCE, who delivered of BiH. Furthermore, the 24 recommendations to the decision by the Parliament of BiH executive and legislative Republika Srpska to establish authorities on all levels in a reserve police force in order 2015, released a report in to protect its citizens against April 2019 stressing that no security threats such as Islamist recommendation was fully extremists and migrants is implemented since then. something that could potentially lead into new inter-entity tensions.

Socio-economic conditions: Investment Impediments: In 2020, socio-economic conditions will Investment Impediments won’t change in improve due to the fact that the GDP growth comparison with 2019. The biggest issue in this is going to be higher (3.1%) than it was in 2019 regard is connected with the diplomatic pressure (2.6%). Furthermore, the unemployment rate is that could derive from the political stalemate. decreasing, and is at its lowest in over a decade This was already seen in October, when Recep (15.7%). However, gains in employment are Tayyip Erdogan (Turkey) urged BiH’s politicians to modest (1.2%), and remain lowest in the region. form the government as “they cannot efficiently continue with work” on the construction of Belgrade-Sarajevo motorway.

Moderately Uncertain Investment Enviroment Assessment

Uncertain Moderately uncertain Moderately stable Stable 2019 2020

See methodology on page 48 F

serbia Socio-political divisions between the “One of Five Million” and “the Future of Serbia”

In the past few years, Serbia has invested a lot of effort in the external dimension (EU integration) while neglecting the domestic-driven problems, which are now haunting Serbian political elites. The proposed cross-party dialogue between Serbian parliamentary coalition and opposition that is facilitated by the Foreign Affairs Committee of the European Parliament indicates that Serbian socio- political environment is at critical juncture. As a result, the assessment of the investment environment for both 2019 and 2020 has worsened.

28 the Adriatic Journal Strategic Foresight freedom, election rigging and corruption of the Serbian government, which has also been noticed by the US-based NGO Freedom House. The latter issued a report on February 2019 and downgraded Ser- bia from the category of ‘free’ countries to ‘partly free’, where it joins five other Western Balkan countries.

Furthermore, Reporters without Borders have argued the official Belgrade ‘utterly fails to meet EU press freedom stand- ards’, while the country’s ranking in the When Serbian president Aleksandar Vučić Press Freedom Index recorded a steep de- declared victory in March 2018 at the cline, from 66th to 78th place amongst of municipalW elections in Belgrade, the ma- 180 countries. jority of political analysts started warning In response, Aleksandar Vučić launched a the executive aggrandizement of the Ser- campaign “Future of Serbia” on 6 Febru- bian Progressive Party could potentially ary 2019, visiting towns throughout Ser- negatively impact the socio-political en- bia and championing his policies. This, vironment. Not long after, the ongoing however, did not stop civil unrests as antagonistic rhetoric aimed at opposition they were gaining momentum, leading parties culminated in an attack on Serbi- to the biggest protest to date only two an left party leader Borko Stefanović and months after Vučić’s campaign. In August two other opposition activists at a political meeting in the city of Kruševac. The incident sparked mass protests in Bel- The country’s ranking in the grade on a scale not seen since Slobodan Press Freedom Index recorded Milošević’s 2000 downfall. Every Satur- day since 8 December 2018, thousands a steep decline, from have taken to the streets in Belgrade and other Serbian cities. Serbas are protest- th to th place ing alleged autocratic rule, intimidation 66 78 of the opposition, attacks on the media amongst 180 countries.

Western Balkans the Adriatic Journal 29 2019, three months after the non-parti- The political developments affected Ser- san expert team concluded there are no bian economy. The World Bank reported conditions for free and fair elections in that Serbia will not reach originally pro- the country, Sergej Trifunović, leader of jected annual growth of 3.5% (2.8% in the the Movement of Free Citizens, wrote an first half of 2019) and that the perfor- open letter to David McAllister, the Chair- mance of industry decreased in 17 out of man of the Foreign Affairs Committee of 29 sectors by 2%. Furthermore, the infla- the European Parliament, asking him to tion has been declining in recent months consider facilitating a cross-party dia- after peaking in April 2019 at 3.1%, and logue. On 9 October 2019, the first round the trade deficit (-16%) has influenced of inter-party European Parliament-me- the increase of account deficit. Finally, diated dialogue in Serbia took place, while the medium-term growth projections is- the Alliance for Serbia refused to partici- sued by the European Investment Bank, pate, stating there isn’t enough time for the European Bank for Reconstruction their demands to be met before the next and Development, and the World Bank elections in April 2020. have concluded that Serbia’s economic performance is heavily dependent on the public sector to implement key structural reforms.

Analysts at the Institute for Strategic So- The World Bank reported that lutions find that the general investment Serbia will not reach originally environment will remain moderately projected annual growth of uncertain as the political climate in the country is at its lowest point since 2016. . The ongoing civil unrests, accompanied 3.5% by the opposition boycott of the parliamentary sessions, will affect the highly polarized and politicized socio-economic landscape in 2020, when the general elections will take place.

30 the Adriatic Journal Strategic Foresight Politics: Based on the assessment of the analysts at the Institute for Strategic Solutions, political risks will increase in 2020. This is mostly due to the upcoming general elections that will take place in the shadow of ongoing civil unrests and parliamentary boycott by opposition parties.

Security situation: The rule of law: Security situation in Serbia The indicator rule of law did not improve in 2019 won’t change in 2020. There due to ongoing civil unrests, no reforms introduced which will also determine the to tackle the corruption, security situation in 2020, while the European when the general elections Commission reported will take place. limited progress when talking about strengthening the independence of the judiciary.

Investment Impediments: Investment Impediments won’t change in Socio-economic conditions: comparison with 2019 even though the inflow In 2020, socio-economic conditions will not improve of FDI is strong (EUR 1.8bn). Furthermore, close as the Serbian economy will not reach originally bilateral relations with secondary and big powers projected annual growth of 3.5%. However, in 2019 such as Turkey, China and Russia is something the the average wage went up by 9.9% (in nominal terms), analysts at the Institute for Strategic Solutions which is encouraging since it is one of the lowest in will closely monitor, as this could be an important the region. element for strengthening Serbia’s FDI inflow.

Moderately Uncertain Investment Enviroment Assessment

Uncertain Moderately uncertain Moderately stable Stable 2019 2020

See methodology on page 48 F

Montenegro in the midst of civil unrests

In February 2019 protests began in Montenegro against the incumbent President Milo Đukanović and the Prime Minister Duško Marković-led government of the ruling Democratic Party of Socialists (DPS). Social resistance gathered under the slogan “Resist!”, drawing its inspiration from the Montenegrin protests in 1988-89, demanding Đukanović’s and Marković’s resignation, establishment of technical government, freedom of speech, and free and fair elections. This reflected in worsening of the general investment environment when assessing the Politics and Security situation indicators for 2020.

32 the Adriatic Journal Strategic Foresight Duško Marković and establishment of technical government that would prepare the conditions for free and transparent elections. The protests, which have been taking place since February 2019, support the observation made by the European Commission in their 2019 report that the political scene in Monte- negro remains fragmented, polarised and marked by lack of genuine political dialogue. Apart from the rising tensions and social unrests, the EU negotiations are advancing as expected. Montenegro has Not long after April 2018, when Milo already opened 32 negotiating chapters Đukanović won presidential elections and provisionally closed three of them. withN 54% of the votes and became a pres- In terms of governance, Montenegro has ident for the third time, Montenegro in- implemented a new law on the financing stalled a temporary parliamentary com- of local self-government that falls within mittee on reform of electoral and other the two umbrella strategies, namely the legislation in order to tackle the low level 2016–2020 public administration reform of trust in the electoral framework. The strategy and the 2016–2020 public finan- accusations of electoral fraud, which cial management reform programme. have been present since December 2016, resurfaced in the autumn of 2018 during the local elections in 11 municipalities. Montenegro has already and contributed to the establishment of the “Resist!” movement protests. The opened negotiating civic group that is organized as an in- 32 formal group of intellectuals, academics, chapters and provisionally NGO activists, journalists and supported by Montenegrin parliamentary opposi- closed of them. tion parties, marked socio-political envi- 3 ronment for the entire 2019, demanding the resignation of Milo Đukanović and

Western Balkans the Adriatic Journal 33 Supported by buoyant economic activ- It is important to note that Bar-Boljare ity, Montenegro’s GDP growth is esti- highway is perceived as a risk due to its mated at 3% in 2019, which positively public-private dimension, while the accu- impacted both the youth (20.7%) and mulated loss of the Montenegro Airlines overall unemployment rate (14.9%). Fur- (EUR 90m) threatens government’s fiscal thermore, inflation eased in the first half consolidation efforts due to the signifi- of 2019 (0.5%) and the government is cant state aid the airliner received. actively managing public debt. It issued a Eurobond of EUR 500m with an inter- This year’s assessment of the investment est rate of 2.55% and a ten-year maturity, environment shows that Montenegro is which was perceived by the World Bank going to stay moderately uncertain and as a positive step towards fiscal consoli- will worsen in terms of the political indi- dation. However, the construction of the cators. In addition, there will also be risks remaining phases of the Bar-Boljare high- in relation to the security situation. This way and the unsustainability of Monte- relates to the ongoing civil unrests that negro Airlines are something that the have the potential to last until the next economic analysts are closely monitoring general election in October 2020. due to the risks carried by both projects.

Montenegro’s GDP growth is

estimated at in 2019, which positively3% impacted both

the youth ( ) and overall 20.7%unemployment rate (14.9%).

34 the Adriatic Journal Strategic Foresight Politics: The assessment of the analysts at the Institute for Strategic Solutions is that the political risks will worsen in 2020. Those estimates are based on the fact that the ongoing “Resist!” civil unrest have the potential to cause snap elections.

The rule of law: Security situation: The rule of law indicator will Security situation in remain the same in 2020. Montenegro could potentially There were no reforms worsen in 2020 due to in order to tackle the ongoing civil unrests. These corruption. Also, the lack of could last for the majority of ability to pursue organized 2020 or until the demands criminal, which was are met and technical confirmed in the European government is installed. Commission report in 2019, is something the analysts at the Institute for Strategic Solution will monitor closely in the following year.

Investment Impediments: Socio-economic conditions: Investment Impediments will not be less visible in In 2020, socio-economic conditions will stay the same 2020. The economic growth in the first quarter of since Montenegro hasn’t introduced any reforms 2019 slowed because of fewer investments and a that would ensure the prosperity of its citizens. decline in industrial production, but the negative Furthermore, relatively robust economic growth in aspects were balanced by favourable labour market Montenegro is a big opportunity for further fiscal developments, such as increased lending and consolidation of a highly indebted country (78.6% of booming tourism. GDP in 2019).

Moderately Uncertain Investment Enviroment Assessment

Uncertain Moderately uncertain Moderately stable Stable 2019 2020

See methodology on page 48 F

Kosovo New elections, old problems: in between the internal and external dimensions

(Un)expected snap parliamentary elections in October 2019, when Vetëvendosje (Self-determination) party won most votes with over 25%, have brought the political change that has been hoped for since 2014. The creation of the new government with Democratic League of Kosovo (LDK) will mark the first full transfer of power after elections between previous governing and opposition parties since the establishment of the Assembly of Kosovo in 2001. The supposed consolidation of democracy in Kosovo and decoupling of public institutions will not function as an impetus towards the improvement of the general investment environment as the new Prime Minister could, with its populist rhetoric, further harm the bilateral relations with Serbia.

36 the Adriatic Journal Strategic Foresight option of the administration with external interests were punished, for the first time since 2001, at the snap elections in October 2019. This marked a new beginning for the whole political landscape, with far-right Albin Kurti (Vetëvendosje) and Vjosa Osmani (LDK) achieving important electoral results. Furthermore, as researchers from the University of Sussex argued, the former governing coalition was punished for their corrupt and inept governance that forced approximately 170,000 people to leave the country in Kosovo had a convulsive year in 2019, as the last four years. In regards to the obli- reflected in the European Commission’s gations the new government will inherit reportK . It has been noted that Kosovo, from the previous one, the international which is one of the economies with the community will mostly monitor the highest growth in the region, has made uncertainty over the establishment of some improvements in electoral pro- the Association of Serb Municipalities, cesses and civil society, while the fight against corruption stalled due to the lack of political will. The latter was not the The former governing coalition priority on Ramush Haradinaj’s political was punished for their agenda, who explicitly focused on the un- resolved status in the region and bilateral corrupt and inept governance relations with Serbia. This resulted in the that forced approximately ongoing 100% tariffs for Serbian and Bos- nin products (EUR 3,7m and EUR 1,8m of people to total imports in 2019). The ever present 170,000leave the country in the last semi-authoritarian appeals and the co- four years.

Western Balkans the Adriatic Journal 37 especially since Albin Kurti publicly re- inflation that accelerated to 2.7% due jected the proposal, saying that he will to the tariffs imposed on goods imports not permit the formation of the Repub- from Serbia and Bosnia and Herzegovina. lika Srpska in Kosovo. Tensions between Finally, it has to be mentioned the new Kosovars and Kosovo Serbs in this regard government will face an overall fiscal def- will intensify in the coming years. Srpska icit (2,9%) due to higher social protection List, which is supported and financed by spending as payments for war veterans official Belgrade, cemented its domina- are likely to be higher than planned. tion in Kosovo Serb majority municipalities, managing to increase its share of the This year’s assessment of the investment vote by 30% compared to the previous environment shows that Kosovo is going parliamentary elections. Apart from the to stay moderately uncertain but will im- socio-political environment, the eco- prove due to lower socio-economic risks. nomic developments in Kosovo are also The latter are connected with robust encouraging. Growth is expected to edge economic growth and lower inflation up to 4% in 2019 and 4.1% in 2020. Due rate. Analysts at the Institute for Stra- to higher capital spending and consump- tegic Solutions will closely monitor the tion, credit growth continues to be ro- dialogue between Prishtina and Belgrade bust and several large public investment as the new Prime Minister will follow a project (railway and regional road pro- different (populist) path from his prede- jects) are expected to advance. The most cessor, which could potentially harm the worrisome trend in this regard is the la- endeavours that were made in the last six bour force participation that continues to years. be low (29.8%) and the consumer price

Growth is expected to edge up to 4% in 2019 and 4.1% in 2020.

38 the Adriatic Journal Strategic Foresight Politics: Based on the assessment of the analysts at the Institute for Strategic Solutions, the political risks will worsen in 2020. Those estimates rest on the fact that populist Vetëvendosje will form a coalition for the next four years.

The rule of law: Security situation: The rule of law indicator Security situation in Kosovo won’t change in 2020. won’t change in 2020. Though some reforms were However, the analysts at made in order to tackle the the Institute for Strategic corruption and organized Solution will closely monitor crime, as noted also by the the situation in the Ibar European Commission in its Kolašin area as the new latest report, but nothing government could potentially has changed on systemic jeopardize the efforts that level. were made to establish the Association of Serb Municipalities.

Investment Impediments: Socio-economic conditions: Investment Impediments will stay visible in 2020 In 2020, socio-economic conditions will improve due to non-reform pattern in Kosovo. The other due to the encouraging economic growth and lower factor that could potentially affect the investment inflation rate. However, the fiscal deficit (2.9%) is climate in the country are the diplomatic pressures something that the new government will have to in relation to the Belgrade-Pristina dialogue and tackle. the imposed tariffs on goods from Serbia and Bosnia and Herzegovina.

Moderately Uncertain Investment Enviroment Assessment

Uncertain Moderately uncertain Moderately stable Stable 2019 2020

See methodology on page 48 F

North Macedonia a litmus test for EU’s credibility

On 12 February 2019, Macedonia officially changed its name to the Republic of North Macedonia in order to receive Greek support for its European Union and NATO membership bids. However, the French veto on EU accession talks diminished, for the time being, the North Macedonia’s EU prospect and negatively impacted the political climate in both the country and the region. France’s decision could harm North Macedonia’s already uncertain general investment environment in 2020.

40 the Adriatic Journal Strategic Foresight (3.6%) nor historically low unemployment (19.4%). The fiscal deficit, however, increased due to the 8.4% rise in spending on pensions, wages, subsidies, and healthcare. The improved socio-economic conditions in 2019 for North Macedo- nia where due to the increase of minimum wage from April 2019, while the real net wages were up by more than 2% y-o-y, as announced by the Ministry for Economic Affairs in June 2019. One of the main factors leading to economic growth is the government’s focus on the auto- The changed political landscape, culmi- motive industry, which is thriving due nating in the decision to adopt a new to the low corporate tax rates (10%) and name forT the country in February 2019, added value tax (18%). The success of the opened up possibilities for North Mac- automotive industry functions as a foun- edonia’s new government to pursue its dation for crucial structural reforms to long-term desire to become a member create favourable investment conditions of the EU and NATO. The European Com- mission report in 2019 observed that North Macedonia maintained a steady The robust economic pace of implementing EU reforms. The SDSM-led government - which in the past initiated several moves directed at growth is 3.6%, undoing VMRO-DPMNE’s capture of state and the unemployment institutions with the help of the “3-6-9” rate is historically low initiative - shifted its focus on the external issues in 2018 and 2019. This did ( ). not affect the robust economic growth 19.4%

Western Balkans the Adriatic Journal 41 for businesses. These include technologi- nomic ties and improve socio-economic cal and industrial development zones that conditions. “Mini-Schengen”, due to are offering pre-built industrial sites, fac- commence in 2021, is crucial for North tories and support services as well as tax Macedonia as it could function as an in- and customs incentives. The government strument to lower the possibility of civil has also reduced the number of steps for unrests, especially since ‘Zaev’s failure’ to business registration from twelve to four. ensure the EU perspective in exchange In 2019, uncertainties in North Mac- of changing the name of the country has edonia in 2019 were due to the ever- given rise in popularity of illiberal move- changing political landscape, culminating ment “For a Common Macedonia”. in France’s veto on EU accession talks, harming the North Macedonian efforts This year assessment of the investment in Euro-Atlantic integrations. This in environment shows that Macedonia is turn was an impetus for the countries going to stay moderately uncertain and in the region to advance cooperation by will worsen due to political and security initiating the formation of the so-called situation. This is due to the increased po- “mini-Schengen” in order to foster eco- tential for social unrests because of uncertain EU perspective and corresponding nationalists’ claim to reverse policy decisions by having snap elections. Analysts One of the main factors at the Institute for Strategic Solutions leading to economic growth will closely follow the EU-dimension as is the government’s focus this externally driven dilemma has the on the automotive industry, potential spill-over effect for determining which is thriving due to the low the socio-political environment in 2020. corporate tax rates (10%) and added value tax (18%).

42 the Adriatic Journal Strategic Foresight Politics: According to the assessment of the analysts at the Institute for Strategic Solutions, the political risks will be more visible in 2020. The elections are on table due to the failure to current government’s failure to start the EU accession talks. This could strengthen nationalist parties which would reverse all the advances made in foreign policy in 2018 and 2019.

Security situation: The rule of law: Security situation in The indicator rule of law Macedonia will worsen in won’t change in 2020. 2020 due to the uncertain North Macedonia reached EU perspective that could some level of preparation be used to push nationalist in addressing the ‘Urgent rhetoric that could, in Reform Priorities’ issued by turn, increase inter-ethnic the Venice Commission, but tensions (Albanians in has not yet implemented North Macedonia generally the new law on the Public supported the change of Prosecutor Office in order the name), and cause other to prevent the possibility of types of social unrests. having another “Wiretapping affair”.

Investment Impediments: Socio-economic conditions: Investment Impediments will be less visible in In 2020, socio-economic conditions won’t improve 2020 due to the name change agreement with even though the economic climate in the country is Greece. The level of diplomatic pressures will favourable. However, fiscal deficit and wage pressures decrease further, and the countries of the EU will are something that could potentially influence the be even more eager to establish and maintain the socio-economic conditions and should be monitored economic presence in North Macedonia. closely in the following year.

Moderately Uncertain Investment Enviroment Assessment

Uncertain Moderately uncertain Moderately stable Stable 2019 2020

See methodology on page 48 F

Slovenia A Tempestuous year for minority coalition

In 2019, the socio-economic landscape in Slovenia was subjected to numerous events that reflected negatively on the cohesion of the minority coalition led by Marjan Šarec. Collapse of Slovenian flight operator Adria Airways, trade labour demands that resulted in a EUR 300m deal, and the new amendment on the law regulation of the minimum wage negatively impacted the stability of the first ever minority-led government and the economic climate in the country. The government, led by the List of Marjan Šarec (LMŠ), will face new challenges in 2020. The inefficient public healthcare sector, mismanagement of state assets and weaker GDP growth projections could impact the preservation of the government stability.

44 the Adriatic Journal Strategic Foresight 23 October 2019, ignored the projections made by the Office of the Government of the Republic of Slovenia for Macro- economic Analysis and Development (UMAR) in September 2019, when it signalled the economic growth for 2019 is going to be weaker than expected and will stand at 2.8%. This was, however, taken into consideration by the Bank of Slovenia that has tightened consumer lending and caused some unrests both within the coalition and among the citizens. The decision, which came into force The decision to raise the minimum wage in November 2019 and affected around on January 2019 reflected in public sup- 300.000 people, could negatively impact port boostT for the coalition, with 60% of the consumption rate in 2020. people supporting the government. A deal worth EUR 300m, signed between the Government and the Civil Servants’ The government stretched Unions, was viewed with caution by the the budget by introducing the Fiscal Council. The latter signalled that Slovenia is heading, after two years of new tax reform that led to structural balance, towards the zone of structural deficit as the fiscal council EUR m loss of budget warned the public expenditures are too income.138 high (by EUR 270m).

The minority government, whose decisions relied on the prospect of strong and Prime Minister Marjan Šarec responded robust economic growth, has ignored the fiercely to the Bank’s decision and sig- warnings and further stretched the budg- nalled that the Government will prepare et by introducing new tax reform that led a new law that would enable the country to EUR 138m loss of budget income. The to function as a guarantee to those who decision, adopted by the parliament on would not be able to get the loan. In ad-

Western Balkans the Adriatic Journal 45 dition, the minority coalition was faced As in 2018, the Arbitration Agreement with another problem – the support of was again the most important topic in the Socialist party (Left) that functions as Slovenia’s foreign relations, but in 2019 it the external coalition partner. was coupled with Croatian aspirations to enter the Schengen Area. Slovenia’s focus on the Arbitration Agreement earned it a label of being a “one issue” country in The economic growth for 2019 terms of foreign policy. However, as the future of the EU enlargement remains is going to be weaker than uncertain, the endeavours made by Slo- expected and will stand at venia’s Ministry of Foreign Affairs and other relevant stakeholders, advocating . for Albania’s and North Macedonia’s EU 2.8% membership, could help Slovenia move away from being perceived as having The future of budgets for 2020 and 2021 only one focus beyond its borders. is dependent on the support of the Social- ist Left who want to abolish payments Analysts at the Institute for Strategic So- for supplementary health insurance. lutions estimate the general Investment The proposal to do so, however, failed Environment Assessment will remain and, hence, the minority government moderately stable as in previous years. no longer has the support of its exter- The biggest risks that could potentially nal coalition partner. This, alongside the impact negatively on the general Invest- accusations of interference by the coali- ment Environment Assessment in the tion parties in the Board of Managers in following year include the possibility of the largest energy and infrastructural snap elections due to the instability of companies, affected the public support the minority government; potential neg- for the minority government that was ative effects on the companies due to the lower than 50% for the first time since new tax reform, and the lack of political June 2018. In October 2019, the already will and power to address the problems strained relations between the coalition in pensions, healthcare, taxation system partners were subjected to the collapse of and housing policy. the only Slovenian flight operator Adria Airways, which employed 558 people.

46 the Adriatic Journal Strategic Foresight Politics: Analysts at the Institute for Strategic Solutions expect the political risks to remain the same in 2020. Those estimates are based on the fact that snap elections are possible due to the minority government being made up of 5+1 political parties. In addition, the future of the coalition will further be tested when the budgets for 2020 and 2021 will have to be approved.

Rule of Law: Security Situation: The indicator rule of law Security situation in Slovenia won’t change in 2020. There will most likely remain the were no reforms introduced same in 2020. However, to tackle the corruption. the issues surrounding Analysts at the Institute illegal migrant crossings are for Strategic Solutions worrisome and will be closely will closely monitor the observed by the analysts at developments regarding the Institute for Strategic the accusations of staffing Solutions. interference by the coalition parties in various public- owned companies.

Investment Impediments: Investment Impediments will be more visible in Economic-Social Conditions: 2020. The biggest issue in this regard is connected In 2020, Economic-Social Conditions won’t improve. with new tax reform as the taxation of rental The biggest concern is that the economic growth income and capital gains will be raised for 2.5%. is slowing down and the potential uncertainties Furthermore, new minimum wage (700 euros) in relation with new tax reform could lead to new from January 2020 could potentially function as a structural imbalances. potential barrier for improving investment climate.

Moderately stable

Investment Enviroment Assessment

Uncertain Moderately uncertain Moderately stable Stable 2019 2020

See methodology on page 48 F

Strategic Foresight Methodology

insight of the ISR analysis, namely, that it is the general economy, both formulate and politics that primarily move markets. The determine the attractiveness of the Invest- ambition behind the Assessment of Invest- ment Environment of a specific country or ment Environment is to support the inves- region. tors who operate multi-nationally, or wish The Assessment of the Investment to expand their operations to foreign mar- Environment methodology is based on kets. This product identifies and analyses the hypothesis that it is the socio-political five principle Indicators (Politics, Rule of factors which have the greatest impact Law, Socio-Economic Conditions, Invest- on the (in)stability of the Investment En- ment Impediments and Security Situation) vironment. The methodology can also be of a country’s Investment Environment. applied to the specific operations of par- On this basis, the model calculates the ex- ticular companies. Based on their business The Assessment of the Investment Envi- pected level of Political, Economic and So- model, the results show the company’s ronment – a model for the foresight of cial Uncertainties in a specific country. The weaknesses towards specific investment political, economic and social trends – has development of the Assessment of Invest- environment indicators and their exposure been developedT by the Institute for Stra- ment Environment considers a wide range to specific uncertainties. tegic Solutions. The methodology is based of variables that impact a country’s overall Our two-part analysis combines quali- on the proposition that the environments investment environment. These include tative and quantitative methods and ena- in which the companies invest are primar- Poverty, Unemployment, Public Opinion bles easy, quick and reliable comparison of ily influenced by social and political factors. and Trust in politics and institutions, Tax different investment environments. The As such, the assessment is primarily per- Burdens, respect of Rule of Law, Rigidity first part of the methodology is based on formed on political as well as social vari- of the Bureaucratic Apparatus, Transpar- 34 variables that are joined in five main ables and, secondarily, on the economic ency of all Branches of Power and various Investment Environment Indicators, while and financial variables of a specific country. Social Tensions within the society. These the second part integrates those variables The methodology is informed by the main groups of indicators, alongside figures on into 3 individual groups of uncertainties.

48 the Adriatic Journal Strategic Foresight the following indicators Analysed groups of Uncertainties are: are included in the Assessment of Investment 1. Political Uncertainties Environment: 2. Economic Uncertainties 3. Social Uncertainties 1. Politics 2. Rule of Law Each group suggests which of the analysed uncertainties of the Investment Environment 3. Economic-Social Conditions are likely to exist in a specific country and its potential impact. By identifying these un- 4. Investment Impediments certainties we can determine which one of the three can have the largest impact on the 5. Security Situation overall health of the investment environment and on specific operations.

ISR analysts regularly collect political, eco- The methodology enables us to divide the analysed investment environments according nomic and social data on the countries of to their stability in four groups presented in the table below. interest and convert them into variables. Each variable is scored. The higher the score, Uncertain Investment ronment have a relatively stable political the higher is the probability that a specific Environment system, where a change of government variable could present a problem to invest- Countries with an Uncerta- following elections does not provoke se- Uncertain ments, while lower scores highlight a lower in Investment Environment vere public riots or ethnic tensions. The possibility of problems. have an unstable political system, they Rule of law in these countries is conside- ISR follows the indicator variables daily. lack judiciary independence and are expo- rable, with the exception of some areas All the variables are sourced from various in- sed to public riots and ethnic tensions. In in need of reform. National legislation in ternational organisations, statistical offices these countries, corruption is widespread these countries is not discriminatory to and other relevant institutions. and national legislation is unfavourable to foreign investors. Investors in countries The results are represented graphically foreign investors. Government actions are face moderate levels of political, econo- in the form of a net, which is divided into often unilateral and arbitrary, which causes mic, or social risk. four sections – light green, dark green, yel- discriminatory decisions towards foreign low and red. If an indicator is in the light investors. Foreign investors in these coun- Stable Investment green circle, this means there is a relatively tries face political, economic, or social risks Environment small chance of obstacles in the investment that are considerable. Stable Countries with a Stable In- environment of a country. The more the In- vestment Environment are dicator graduates towards the outside lines Moderately Uncertain mature democracies with a long tradition of the net, the probability of a country’s in- Investment Environment of the rule of law and the free economy. stability increases. Moderately Countries with a Moderately Government actions are under severe su- uncertain The second phase of the Assessment Uncertain Investment Enviro- pervision of the media and of the judicial of Investment Environment consists of de- nment have a political system where snap system, which prevents official stakehol- termining the presence of three groups of elections and reconstructions of gover- ders from taking unilateral and arbitrary Uncertainties. The graph shows the level of nments occur often even though there is decisions. Public riots and ethnic tensions uncertainties in a specific category, its pos- a lower incidence of public riots and ethnic in these countries are prevented through a sibility and impact. The more the bubble tensions. The Rule of law in these countries tolerant dialogue between NGOs, the go- moves towards top right, the higher the is in a better condition than in those with an vernment, and other civil groups. Investors uncertainty. In a general assessment, the im- Uncertain Investment Environment, since face moderate levels of political, economic pact and the probability are modelled as line- some measures already being taken in the or social risk. ar. Non-linear specifications are possible and fight against corruption and for the effec- This Methodology also makes it possible may be required for specific company case tive contract enforecement. In some areas, to compare investment environments be- studies, since the assessment is adjusted to national legislation favours the domestic tween countries and to determine their incorporate data on the company’s specific companies since they are less competitive annual movements. The methodology business model. than foreign ones. Investors in face consi- enables us to predict if the stability of the derable political, economic or social risk. overall investment environment will improve, deteriorate or remain the same, as Moderately Stable well as to analyse how the three groups of Investment Environment Uncertainties (Political, Social and Econo- Moderately stable Countries with a Moderate- mic ones) will act within a predetermined ly Stable Investment Envi- time frame.

Western Balkans the Adriatic Journal 49 G The views from the past: misunderstanding Serbia Once upon a time in… Serbia

Sometimes, the past is indeed a different country. During the years 1843 and 1844, a stubborn Englishman named Andrew Archibald Paton, Esq., became one of the first Western tourists to stroll around newly independent Serbia (still spelled Servia at the time). One day, he set himself a goal hitherto unheard-of – of visiting Kopaonik.

AUTHOR: Jure Stojan, DPhil

50 the Adriatic Journal Kopaonik, mountain

lodge in 1939 Photo: ISR Collection

Corporate brief on geopolitics & living 51 Photo: Antun Mikasović

Today, of course, Kopaonik is a well- established tourist resort, a famous winter wonderland. Also, every March, proud host to Kopaonik Business Forum, where the region’s business, policy and academic leaders meet to discuss the pressing issues of the present. This event viv- idly demonstrates how today’s Serbia is a modern, successful economy. But it is also a country with deep historical roots – which continue to inspire today’s people. Serbian rich history is ignored at own As Paton proudly recounted in his trav- peril. Serbian history of the elogue Servia, the youngest member of It is also a history of how for a very early twentieth century the European family, it took a lot of will- long time now, the West has misunder- powerA on his part. to get to Kopaonik. stood Serbia. After all, in 1733, the Prus- offers some of the most ‘The plethoric one-eyed clerk, with more sian University of Duisburg granted one regard to his own comfort than my pleas- of the earliest PhDs in what today would interesting parallels ure, was secretly persuading the captain be called “Serbian studies”. The scholar that the expedition would end in a duck- was the now infamous Christian Frideric to twenty-first-century ing to the skin, and, turning to me, said, Van Delan, who submitted a Dissertatio “You, surely, do not intend to go up to De Vampyris Serviensibvs. The Latin ti- geopolitics. day, Sir? Take the advice of those who tle really says what it appears to be say- know the country?” – “Nonsense,” said I, ing – this was a dissertation on Serbian “this is mere fog, which will clear away in vampires. It should be noted, however, an hour. If I do not ascend the Kopaonik that this seat of higher learning was now, I can never do so again.” hardly among the most reputable and

52 the Adriatic Journal Photo: ISR Collection Kopaonik: industrial zone in 1912

shut down already in 1818. In other talised in the form of gold embroider- words, before some of the most inter- ies; and nothing will ever induce him to esting chapters of Serbian history even go into dependence,’ glowed the English took place. author. ‘There are no Servian servants. Belgrade must import from Hungary, The poor man’s paradise Austria, Germany, and even Italy. If you By the end of the nineteenth century, find servants of Servian race, you may Serbia’s developing economy had al- be sure that they are either foreign sub- ready found international admirers. The jects or have been recently naturalised.’ title of a 1897 tome, by a certain Her- With the obvious drawbacks, one bert Vivian, tells it all – Servia. The Poor might add. ‘There is little luxury in Man’s Paradise. ‘The Servian peasant Servian home-life, and the lack of serv- nearly always has more land than he can ants makes comfort out of the question. cultivate; he can boast of savings, either As Servians are too independent to en- banked in an old stocking, exhibited in ter domestic service, servants have to

the headgear of his women-folk, or capi- be imported beyond the Sava, and they Photo: ISR Collection

Corporate brief on geopolitics & living 53 Photo: ISR Collection Belgrade, old and new Royal Palace in 1912

possess or quickly acquire impossible suggests. In a nutshell, Serbia accom- notions or equality. I imagine it cannot plished what economic theory predicts be very much worse in America. And the to be impossible – it defied economic ladies of a Servian household spoil their gravity. Based on ideas borrowed from servants by doing much of work them- Serbia accomplished Sir Isaac Newton, this empirical regular- selves.’ ity suggests that international trade is what economic usually governed by the countries’ eco- Defying gravity nomic heft and the distance between Incidentally, it is the Serbian history of theory predicts to be them (mostly geographical but could the early twentieth century that offers also be cultural). some of the most interesting parallels impossible – it defied So, a country should carry out most to twenty-first-century geopolitics. The economic gravity. of its international trade with the biggest Commercial Treaty between Germany economy in the neighbourhood. Indeed, and Serbia of 1904 shows that diplo- Serbia conducted most of its trade with macy can indeed transform economic the regional hegemon Austria-Hungary, reality – or, that the so-called economic despite the growing political tension laws are less binding than their name between the two. In 1904, lands under

54 the Adriatic Journal Photo: ISR Collection Belgrade, Knez Mihajlova street in 1916

Habsburg rule were responsible for 60% with that country amounted to no more of Serbia’s total imports and absorbed Between 1905 and than 2.25% of the Monarchy's total for- 89% of Serbia’s total exports (16% by eign trade. For Germany, on the other 1907). To put the contemporary Brexit 1910, German exports hand, the treaty was a success. Between debates into perspective, in 2018, the EU to Serbia increased by 1905 and 1910, German exports to Ser- was the source of 53% of all UK imports bia increased by some 559% and Ger- as well as the destination of 45% of the man industry had succeeded in securing entire UK exports) some and a substantial share of the Serbian import The historian Horst M. Lorscheider 559% market. But in assessing the economic puts it succinctly: ‘As far as Austria- German industry had importance of the Serbo-German com- Hungary was concerned, the treaty was mercial treaty, it must be remembered partially responsible for the loss of the succeeded in securing a that even in 1910, Germany's trade with Serbian market. Though this loss was substantial share of the Serbia amounted to less than one per- painful for the Monarchy's industry, cent of her total foreign trade. Economi- it was by no means devastating, since Serbian import market. cally speaking, therefore, the treaty car- even in 1905, the last full year of Aus- ried vital and manifest significance only trian dominance in Serbia, the trade in Serbia.’

Corporate brief on geopolitics & living 55 B The new player in the Western Balkans

Western Balkans is becoming a key strategic region for investment from China’s perspective.

As a result of the Belt and Road China Initiative, China is emerging as a significant actor in the Western entering Balkans. The increasing number of strategic Chinese investments the Western in the region are beginning to Balkans: the put the EU on alert.

Nina Pejič, Centre of long-term International Relations, Faculty of Social Sciences, perspective University of Ljubljana

56 the Adriatic Journal

Photo: https://www.hbisserbia.rs/ vestment projects in the region, it is becoming evident that Western Balkans are emerging as part of China’s global ‘going- out’ strategy, welcomed by the Western Balkan countries.

The most recent Chinese projects that put the EU on guard were the acquisition of the Smederevo steel mill in Serbia (the biggest equity investment in the region), construction of Belgrade-Budapest railway and Pelješac Bridge in Croatia, as well as The Chinese presence in the Western Bal- the recent investment into Trieste port’s kans region has become increasingly visible infrastructure. In energy sector, China`s especially since the global announcement investments have been concentrated on It is, however, evident of the BeltT and Road Initiative by Xi Jinping hydro and thermal power plants, notably that China established in 2013. The initiative seeks to (re)connect in North Macedonia, BiH, and Serbia. It is, international trade routes, as once did the however, evident that China established a a particularly close ancient Silk Road. One of the first steps to particularly close relationship with Serbia. this goal that gained international atten- The country appears to take a special place relationship with tion was the acquisition of (later majority) in China’s strategy towards the Western shares of Port Piraeus, which China trans- Balkans, due to its central location and its Serbia. The country formed into one of the leading container position as region’s largest market. As such, appears to take a traffic ports in the Mediterranean. Serbia stands out as the main recipient of Chinese-funded projects. Since China–CEEC special place in China’s The increased regularity of diplomatic summit in Suzhou in 2015, Serbia is a leader visits (through frameworks like 17+1 Sum- among CEECs in implementing joint infra- strategy towards the mit), business delegations and business structure and energy projects with China. forums led to increased economic ex- The two countries also abolished mutual Western Balkans, due change between China and the countries visa requirements in 2017. More recently, of Western Balkans - investments in sev- countries’ Ministers of Interior signed the to its central location eral important sectors, such as transport Memorandum of Understanding, establish- and its position as industry, building materials and energy. ing joint exercises of special police units pa- As China continues to stack strategic in- trolling the streets of Belgrade. region’s largest market.

Corporate brief on geopolitics & living 57 China's investors plan to invest Usd 300m in Železara Smederevo by the end of 2021 Photo: https://www.hbisserbia.rs

Large Chinese SOEs that is primarily a cement producer, but at the Investments in the bring ‘the whole package’ same time a construction company that Some of the heavy players investing not is also building cement plants and then region are focused on only in Serbia but also in other parts of operating them, which is different from Western Balkans are PowerChina; China the European model. Hence, the leading transport and logistics Road and Bridge Corporation (CRBC); Chinese companies entering the West- infrastructure that can Shandong Hi-Speed Group Corporation ern Balkans market tend to integrate the (SDHS); Sinohydro Corporation Lim- ‘whole package’. This is largely a conse- ensure a more rapid ited; China National Building Material quence of Chinese policies aiming to low- Ltd (CNBM); and China Communications er domestic overcapacities in the sectors flow of Chinese exports Construction Company (CCCC). Some of connected to Belt and Road infrastruc- those companies have common char- ture goals. China has set two targets with through the Piraeus to acteristics: they are state-owned, but its eleventh and twelfth Five Year Plan in the Western European largely publicly traded companies that this regard: to eliminate waste and high specialise in several areas, as opposed to competition between the Chinese firms markets. just one, taking control of the large part with similar business structures and to of their value chain. For example, CNBM reduce the number of local enterprises

58 the Adriatic Journal China is looking to transform Greece's Piraeus port into the biggest harbor in Europe — making it the most crucial transit hub for trade between Asia and Europe

that are inefficient or too damaging to the environment. The Government’s national industry target for 2020 aims to concentrate at least 60% of Chinese domestic capacities for construction amongst the top 10 manufacturers.

These moves are questioned inter- nally, especially in the China’s Rust Belt where there’s fear of social unrest associated with the risk of job losses. However, Chinese companies that are also investing in Western Balkans with the ‘whole package’ are guaranteeing themselves enough projects around the world to use their capacity and avoid making redun- dancies at home.

“Putting its eggs in one basket’ by merging the biggest players that have a possibility to engage in large infrastructure projects, China has found a way to overcome its problems with overcapac- ity, reduction in infrastructure needs and a possible economic downturn. In the long term, improved efficiency means

the Chinese producers are likely to ben- Photo: Shutterstock

Corporate brief on geopolitics & living 59 efit from a massive increase in cash gen- way from Rijeka to Zagreb which would eration, giving them greater resources to eliminate the steepness issue for other- embark on further expansion around the wise very appropriate port, that is among world, including the Western Balkans. the deepest in this part of Europe. The land connections will improve also in New land route to Western Italy, through the reconstruction of parts Europe and reduced of the single-track main line between maritime costs Udine and Tarvisio, which will offer im- While economic potential of Western proved direct access to Austrian markets. Balkans is limited due to small markets With the newest investments and termi- and low domestic consumption, the re- nal leases in the Adriatic ports, combined gion has other attractive features for with the new construction of modern The current data shows China’s long-term ‘going-out’ strategy. railway connections, increased Chinese Investments in the region are focused cargo can be expected in the Western that Chinese are in the on transport and logistics infrastructure Balkans region. Western Balkans for the that can ensure a more rapid flow of Chi- nese exports through the Piraeus to the Perspectives ahead long haul. Western European markets. At the same The current data shows that Chinese time, the Adriatic ports gathered in the are in the Western Balkans for the long NAPA association provide a shorter route haul. While the EU bodies have already to the same markets that are reached via proposed screening measures to enforce Piraeus. The route is almost 2000 miles the protection of critical infrastructure shorter, taking 6 days less to reach West- and retain control over key assets, the ern European markets. Western Balkans still represent a less ‘burdensome’ and more flexible regula- NAPA ports can therefore be viewed tory framework for Chinese companies. as representing a Plan B to port Piraeus. Although the region’s leaders have in- However, this is only possible if there is creasingly attempted to use China as a a good land connection to the European bargaining power versus the EU, the EU markets. Koper is already in the process still represents the biggest investor and of improving its transport infrastructure trading partner of the region, while the through Divača-Koper second railway Chinese investments represent a poten- track. Port of Rijeka is still searching for tial risk of trade imbalance and depend- an alternative in building a lowland rail- ency.

60 the Adriatic Journal Promo

New capacities on the horizon

Over the past year, as Slovenia's only maritime cargo port, the Port of Koper has been rapidly building new cargo- handling and storage facilities in order to preserve its leading position as the northern Adriatic port with the highest annual throughput of containers and one of the largest automotive terminals in the Mediterranean.

In this way, the port has been preparing for the in- faster to load and unload cars from the wagons creased throughput volumes that will follow after and the new rail access will shorten the car trans- the construction of an additional rail line between port routes to loading points. the port and its hinterland. According to the state, The new garage for cars will have a ca- which is acting as investor in the additional rail pacity of 6,000 parking lots, completion is ex- line construction via the company 2TDK, trains pected at the end of 2020. The construction of the will travel on the new line already in 2026. There garage will meet the increasing demand of cus- are four major infrastructural projects currently tomers for covered storage areas, while increasing going on, focused at container and automotive the total storage capacity. segment: Container terminal extension is the Luka Koper is at the edge of Basin 3 build- port’s most important infrastructure project: un- ing a new RO-RO berth for car-carrier vessels. The til 2021 Luka Koper aims at increasing capacity new berth will significantly shorten the internal at the container terminal by extending it for 100 transportation routes and improve productivity. meters and installing two additional super-post- The new group of railway tracks cur- panamax cranes. rently under construction will make it easier and G

View on the region A Word from the Slovenian Government

The Slovenian Minister for Foreign Affairs, Miro Cerar PhD, and the Minister for Economic Development and Technology, Zdravko Počivalšek, lay forward their views on the countries in the Western Balkans and asses the region's strategic importance for Slovenia's economy. Photo: Leon Vidic/DELO Zdravko Počivalšek discussing risks and opportunities for the Slovenian economy at ISR’s annual event. From left: Aleksander Mervar – CEO ELES, Zdravko Počivalšek – Minister for Economic Development and Technology, Tine Kračun – ISR, Jure Stojan – ISR, Andrej Kren - CEO DELO

62 the Adriatic Journal MIRO CERAR, PhD The Minister of Foreign Affairs Slovenia Strongly Supports Western Balkans' EU Perspective

terms of trade in goods, services as well as investments in all perspective areas of economic cooperation. Economic forecasts in the region’s individual countries are also promising, with an average 3.7% expected economic growth in the year 2020. In 2018 the economic growth Miro Cerar delivering his was 3.8% and was mainly based on the keynote address increase in public consumption and net at the export exports. In addition to increasing the Slo- conference venian economy activities and deepening organised by Delo and ISR economic cooperation, we would like to see more connections between individual business entities and joint appearances on foreign markets.

Photo: Uroš Hočevar/DELO Practically all of Slovenia’s largest companies are successful in doing busi- conomic relations be- ness in the region. Recently, micro, small tween Slovenia and the and medium-sized companies that focus countries of the Western on niche products and are looking for Balkans are very good, new opportunities to expand their busi- many Slovenian business ness abroad, are more actively entering contacts are established the Western Balkan markets. The focus in the region, Slovenian is on energy and renewable energy, envi- goods are synonymous ronmental protection, infrastructure, ag- for quality, and the Slovenian brand has a riculture and the food industry, tourism good reputation. Although the Slovenian and digitization. It is precisely because of Eeconomy remains strongly focused on the these opportunities that I as a minister EU market, the countries of the region are engage in economic diplomacy. Slovenia Slovenia's second most important eco- strongly supports the European perspec- nomic partner in terms of trade. tive of the Western Balkans and is among It is expected that Slovenia's economic the most active member states in terms cooperation with the Western Balkan of the enlargement of the European Un- countries will continue to strengthen in ion to this region.

Corporate brief on geopolitics & living 63 Zdravko Počivalšek, The Minister for Economic Development and Technology Slovenia is Fully Engaged in the Business Environment in Region the coming years, the Western Balkans will become even more attractive. The opportunities for Slovenian companies in the West- ern Balkan markets are mainly in the areas of energy and renewable energy resources; Zdravko Počivalšek, ecological projects; infrastructure and con- The Minister struction; automotive; agriculture and food for Economic industry; tourism; trade and digitalization Development and of public administration. Opportunities also Technology arise in projects that are EU-funded. Some investments are undertaken with the help of international development funds of the Republic of Slovenia, obtained through the Centre for International Cooperation and

Photo: Leon Vidic/DELO Development. Regardless, it is necessary to mention he Western Balkans the caution that needs to be exercised by present an important Slovenian companies due to complicated economic region for bilateral relations between the region’s Slovenian companies. countries. One example is relations be- This is not only due to tween Kosovo and Serbia and the Kosovo’s geographical proxim- introduction of 100% customs duties on ity but primarily due Serbian imports in November 2018. to our competitive ad- Human and economic ties with the vantage in language skills and knowledge Western Balkan countries remain a good of the region. The region is attractive due basis for deep and versatile relations. The Tto relatively affordable and skilled labour, Western Balkans is of strategic importance free trade agreements with third coun- for Slovenia and we are particularly atten- tries, affordable land and real estate prices, tive to the region’s business environment. cheaper energy and available subsides. Slovenia takes an active part in strengthen- Opportunities for more cooperation ing institutions, promoting good govern- with Western Balkan countries exist in ance and in the fight against corruption and many segments. Due to expected economic organized crime, which are all important growth and increasing purchasing power in areas for a stable business environment.

64 the Adriatic Journal

Economic diplomacy serving the business community Where to look for the “icing on the cake”

It has long been considered that, for a diplomat, dealing with the economy is something less prestigious and even ethically controversial. Today, however, economic diplomacy for most countries, including Slovenia, is one of the key levers for asserting political interests, not the other way around.

Author: Milan Predan, Ministry of Foreign Affairs of the Republic of Slovenia

66 the Adriatic Journal War, good political and economic links with the Arab world established within the Non-Aligned Movement helped the country avoid the crisis. Although Yugo- slavia experienced its oil shock a decade later, due to a lack of foreign currency, the experience of the 1970s is worth mentioning as an example of how foreign policy can produce tangible benefits for a country, and it gives lie to the well- known cynical saying that “diplomacy solves the problems that would not exist In the early 1970s, as an eighteen-year- without diplomacy.” old exchange student in California, I was able to closely observe the shock that The Italian city-states already knew Americans wereI experiencing during the this in the 15th century, when they be- It was only later great oil crisis. Not only did the fuel pric- gan to establish permanent diplomatic es go up – even worse, you had to wait missions, mainly for the sake of trade, in history that in long queues at petrol stations to buy and they understood political relations diplomacy turned it. This was something unthinkable for as support for economic interests. It the American way of life. “How is it back was only later in history that diplomacy to strengthening home, probably even worse than here?”, turned to strengthening statehood as my American hosts asked me and – with its primary objective, putting economic statehood as its great disbelief – they took note of my aims behind political ones. Even in the answer that in Yugoslavia (so my parents minds of many diplomats, the notion primary objective, told me) there was no fuel shortage. prevailed that dealing with economic issues was something less prestigious, putting economic aims Today I would probably answer that even ethically controversial, because dip- behind political ones. we have had good economic diplomacy. lomats should not engage in commercial Unlike most of the Western world, the business. Although some of them are not former Yugoslavia really did not have a yet immune to such understandings of problem with oil supplies because, dur- economic diplomacy, for most countries, ing the greatest uncertainty in the oil including Slovenia, it again became one markets due to the 1973 Arab–Israeli of the key levers for asserting political

Corporate brief on geopolitics & living 67 interests, not the other way around, and However, these positive develop- above all a tool to maximise the prosper- ments also include the work of Slovenian ity of their country. If economic diploma- economic diplomacy, which is often less cy fails to achieve this goal, it becomes noticeable or even unnoticed, but is of- redundant. ten a great help to a company that finds itself in difficulty in a foreign market, and Many positive responses from the in many cases it can be credited for the Some important business world confirm that Slovenian decisive first contact with a potential for- companies have acknowledged the ef- eign investor. This is not about dealing foreign investments forts that the foreign ministry and the with “commercial business”, but about entire diplomatic and consular network opening doors to companies that may (or that recently entered have been making in recent years to pro- may not) lead to a business deal, gather- Slovenia would vide a dynamic and proactive service to ing information about investment oppor- the economy. Of course, the main credit tunities in both directions that can help certainly not have come for almost 85% of Slovenia’s GDP gener- potential investors take further steps, ated by export goes to all those bold en- and supporting Slovenian entrepreneurs about without the trepreneurs and companies that do not when they feel powerless in the face of fear foreign competition and tackle it local bureaucracy and need the support efforts of a wide range with great self-confidence and the qual- of their home country. All these tasks ity of their products. Moreover, some require economic diplomacy – above all of people supported by important foreign investments that re- from our 56 permanent diplomatic repre- the overall profile of cently entered Slovenia – Yaskawa, Mag- sentations throughout the world and the na, Knauf Insulation, Goodyear, and Kue- 23 economic advisers currently working Slovenia. hne + Nagel – would certainly not have at Slovenian embassies – to engage a come about without the efforts of a wide wide network of personal acquaintances range of people, from the state to the lo- and to be well placed in the governing cal level, supported by the overall profile circles of the host country. of Slovenia as a safe country with a high quality of life and with an excellent strategic location at the crossroads from the Balkans to central Europe.

68 the Adriatic Journal Photo: Ministry of Foreign Affairs he Republic Slovenia Session of the Mixed-Committee for Economic Economic diplomacy Cooperation between Slovenia and United cannot do without Arab Emirates in Abu political diplomacy, and Dhabi in October 2019 vice versa.

Corporate brief on geopolitics & living 69 The latter applies not only to more tions have travelled not only to European distant markets, but also to some nearby markets, but also to the Middle East (Is- ones where the impact of politics on the rael, Jordan and the United Arab Emir- economy is still strong. If political rela- ates), Asia (India and China) and Africa tions are good, Slovenian companies will (Ethiopia and Ghana). Mixed committees have easier access to these markets and for economic cooperation with Ukraine, may count on a friendlier business en- Egypt, Russia and the UAE have met, and vironment. Economic diplomacy cannot joint committees with Vietnam, Turkey, do without political diplomacy, and vice Turkmenistan, Belarus – and possibly versa. Therefore, especially in the case China – are in the pipeline. Some effects of non-European markets, the practice of joint engagement in markets outside of high-ranking political visits with ac- Europe are already evident because sta- companying business delegations ap- tistics from mid-2019 show that, for the Slovenia has to look for pears to be the right approach, which is first time, the growth rate of Slovenia’s the “icing on the cake” also important for reducing Slovenia’s trade with EU member states was lower export dependence on the markets of the than with non-EU countries. Slovenia in booming Asia and on European Union. The export numbers of will certainly continue to achieve its best Slovenian companies continue to be en- export results on the markets in its im- the African continent, couraging even in the current precarious mediate or wider neighbourhood; how- situation, created primarily by Brexit and ever, it has to look for the “icing on the with its enormous the US–China trade war. However, the cake” on the African continent, with its cooling of the German economy as our enormous needs and immense growth needs and immense most important foreign market reminds potential, and in booming Asia. growth potential. us that Slovenian exports need to be more diversified because as much as 80% This is why the Slovenian foreign of our foreign trade is with EU markets. ministry is seriously considering plans to open some new embassies, taking Thus, in the last two years, within the into account the economic benefits that framework of economic diplomacy and they could yield, and to expand the cur- in cooperation with others engaged in rent network of economic advisors. The internationalising the Slovenian econo- most recent step in this direction was the my – the ministry of the economy, the opening of the Slovenian embassy in Abu Chamber of Commerce and Industry, and Dhabi. business clubs – many business delega-

70 the Adriatic Journal Fostering international cooperation to further sustainable, economic and social development.

Since 2011

Strategic Consulting Insight & Foresight Investment Environment Assesment Scenario Development

www.isr.si

Institute for Strategic Solutions, Parmova ulica 14, 1000 Ljubljana, [email protected], + 386 599 26591 B

Alternative analysis How is the economy doing now in real time?

For decades, economists have simply passed on the above question to corporate executives.

Authors: Jure Stojan, DPhil, Gregor Vavdi

(the exact name, of course, varies among data providers). In recent years, however, people have grown increasingly wary of surveys. No need for despair, though. Modern data science, the subfield of text mining, has solutions. Namely, an alternative approach is to skip questions altogether and simply observe what the biggest corporations are saying publicly from a mix of media: from press releases to financial reports). In partnership with Press Clipping, Each month, they would conduct a sim- ISR has developed a range of indices that ple poll and average those results. These track both the sentiment of world’s lead- numbers where then widely used and re- ing corporations and the obsessions of ferred toE as a “sentiment index” of sorts economic journalists in regional media.

72 the Adriatic Journal Corporate Communications Indices 1

In May 2009, British politics was Balkan corporations have British corporations are quick to September 2016 shaken by the MPs' expenses scandal been toning down for years adjust communication strategies. brought a surge but the corporate sector had a surge and are approaching German This results in a rougher long in Balkan optimism. in optimism. levels of objectivity. term trend line.

2,00 2,00 Positive value simply optimism.

1,50 1,50

1,00 1,00

0,50 0,50

0,00 0,00

-0,50 -0,50

-1,00 -1,00

Negative value simply pessimism. -1,50 -1,50 Jun. ’11 Jun. Jun. ’17 Jun. Jun. ’15 Jun. Jun. ’12 Jun. Jun. ’13 Jun. Jun. ’16 Jun. Jun. ’19 Jun. Jun. ’18 Jun. Jun. ’14 Jun. Jun. ’10 Jun. Jun. ’07 Jun. Feb. ’11 Feb. Feb. ’17 Feb. Feb. ’15 Feb. Jun. ’06 Jun. Jun. ’05 Jun. Feb. ’12 Feb. Feb. ’13 Feb. Jun. ’04 Jun. Jun. ’09 Jun. Jun. ’08 Jun. Feb. ’16 Feb. Feb. ’19 Feb. Feb. ’18 Feb. Oct. ’11 Feb. ’14 Feb. Oct. ’17 Feb. ’10 Feb. Oct. ’15 Oct. ’12 Oct. ’13 Feb. ’07 Feb. Oct. ’16 Oct. ’19 Oct. ’18 Oct. ’14 Feb. ’06 Feb. Feb. ’05 Feb. Oct. ’10 Feb. ’04 Feb. Oct. ’07 Feb. ’09 Feb. Feb. ’08 Feb. Oct. ’06 Oct. ’05 Oct. ’04 Oct. ’09 Oct. ’08

Since February 2006, German corporations are There was a Brexit German confidence communication strategies have avoiding expressive language related pessimism collapsed in August been noticeably more up-beat in but have loosened up in shock in Febuary 2019. 2019. the Western Balkans. recent years.

WESTERN BALKANS Trend GREAT BRITAIN Trend GERMANY Trend

WESTERN BALKANS Signal GREAT BRITAIN Signal GERMANY Signal

Corporate brief on geopolitics & living 73 Corporate Communications Indices 2

The gradual decline in optimisim in US There was an optimism One month after the Communist Party and China begun even before the trade shock in China in Congress, there is a spike in corporate war, but American corporations have October 2016. optimism in November 2017. foundit easier to sustain an up-beat tone.

2,00 2,00

1,50 1,50

1,00 1,00

0,50 0,50

0,00 0,00

-0,50 -0,50

-1,00 -1,00

-1,50 -1,50 Jun. ’11 Jun. Jun. ’17 Jun. Jun. ’15 Jun. Jun. ’12 Jun. Jun. ’13 Jun. Jun. ’16 Jun. Jun. ’19 Jun. Jun. ’18 Jun. Jun. ’14 Jun. Jun. ’10 Jun. Jun. ’07 Jun. Feb. ’11 Feb. Feb. ’17 Feb. Feb. ’15 Feb. Jun. ’06 Jun. Jun. ’05 Jun. Feb. ’12 Feb. Feb. ’13 Feb. Jun. ’04 Jun. Jun. ’09 Jun. Jun. ’08 Jun. Feb. ’16 Feb. Feb. ’19 Feb. Feb. ’18 Feb. Oct. ’11 Feb. ’14 Feb. Oct. ’17 Feb. ’10 Feb. Oct. ’15 Oct. ’12 Oct. ’13 Feb. ’07 Feb. Oct. ’16 Oct. ’19 Oct. ’18 Oct. ’14 Feb. ’06 Feb. Feb. ’05 Feb. Oct. ’10 Feb. ’04 Feb. Oct. ’07 Feb. ’09 Feb. Feb. ’08 Feb. Oct. ’06 Oct. ’05 Oct. ’04 Oct. ’09 Oct. ’08

In March 2008, Chinese corporations adopted From May 2015, American corporations have In February 2019, a new policy regime of emotionless language chosen markedly more optimistic words even pessimism hit US following 10 months of experiments in though the long-term tone was already corporations really hard. conspicuous optimism. dimmer.

WESTERN BALKANS Trend CHINA Trend USA Trend

WESTERN BALKANS Signal CHINA Signal USA Signal

Press Clipping was Today, Press Clipping is mostly known for media monitoring established on April 14, 1994 and media analysis. We have our own regional network spread in Maribor, Slovenia, starting across the South East Europe, so we can cover media by with media monitoring and ourselves in the whole Adriatic region. 25 years of experience assessment of media reports. and over 4000 customers have enabled us to expand our

74 the Adriatic Journal Corporate Communications Indices 3

The October 2019 surge in optimism was not sustainable given the problems at South African Airways.

2,00 2,00

1,50 1,50

1,00 1,00

0,50 0,50

0,00 0,00

-0,50 -0,50

-1,00 -1,00

In November 2014, Russian mood President Jacob Zuma resigned in February grew cold. It became objective, as 2018. Succeded by Cyril Ramaphosa, sentiment far from optimisim as it is from starts improving in March and hits a new level pessimism. of high spirits (objectivity, really) in May 2019.

WESTERN BALKANS Trend SOUTH AFRICA Trend RUSIA Trend

WESTERN BALKANS Signal SOUTH AFRICA Signal RUSIA Signal

mission and offer several other services, including social of communication and information and aim to understand media monitoring, forensic analyses of existing or potential global and specific needs of companies and individuals. business partners, digitalization of documents, development of applications and PR services. We monitor every aspect

Corporate brief on geopolitics & living 75 B

The many qualities of Slovenia’s business environment

Prime location to invest Photo: Shutterstock

In today’s world, when competition is fierce amongst countries to attract foreign direct investment, what are the factors that make one country stand out? Its brand? Its location? The quality of its workforce? Tax incentives? Of course, it isn’t as simple as finding just one sole factor. It’s a question of having the right mix of qualities, some that can be created and nurtured and others that are nature given. So, where does Slovenia stand?

Author: Faris Kočan

76 the Adriatic Journal tradition, friendly business environment and talented people add to the country’s comparative advantage in many industries and explain its good trade relations with many countries. In addition, the combination of government incentives as well as skills and expertise of its labour force give a perfect foundation for Slove- nian-based businesses to thrive. Stable environment

Its political and macroeconomic sta- Undoubtedly the first thing that draws bility provides an additionally secure en- In 2018 Slovenian investors to Slovenia is its geostrategic vironment for investors. With the GDP position. Located at the heart of Europe, growth of 4.1% in 2018 and just below 3% export to the SEE it hasU access to the market of 500 million in 2019, economic sentiment in Slovenia consumers in the EU. Then, the histori- remains buoyant as private and public in- countries stood at cal connections and understanding of the vestments continue to increase and con- Balkan market add another dimension to sumers continue to spend. EUR billion. its advantage. As well as access to area 2.2 of 20 million customers. In terms of the Its focus on being open, export-ori- latter, the maths reveals all. In 2018 Slo- ented economy (exports represent 85% venian export to the SEE countries stood of its GDP), Slovenia has managed to dou- at EUR 2.2 billion. Slovenian outward ble its FDI stock in the less than a decade. foreign direct investments (app. EUR 6 Today, between and 4% and 5% of Slo- billion) were mostly in the Western Bal- venian companies have foreign or mixed kan countries: Croatia (32%), Serbia (16%), capital and FDIs now represent around Bosnia and Herzegovina (9%), North Mac- 40% of its exports. One of the reasons edonia (6%), Kosovo (3%) and Montene- is Slovenia’s openness towards FDI - it gro (3%). is perceived as the 3rd least restrictive But Slovenia’s location is not the sole country among OECD members based reason that makes the country the right on Regulatory Restrictiveness Index Da- choice for doing business. Slovenia, in- tabase. In addition, setting up a business deed, has a lot to offer. Its long industrial is easy – it takes only two procedures to

Corporate brief on geopolitics & living 77 In Slovenia there are more than 300 lakes and 30,000 kilometres of watercourses - the highest in Europe compared to surface area Photo: Shutterstock

register a company and maximum five Slovenian economy were Systemair (the days and EUR 7.500 to register a limited long-term presence category), Iscaemeco liability company. (the large enterprise category) and Swar- co Lea (the smart product and service de- Positive experience velopment category). Slovenia is th Slovenia’s experience with investors 30 from many countries has so far been Circular economy amongst the most positive. The investors seem to feel the In 2016, Slovenia committed to adopt same – those with presence in Slovenia principles of circular economy and sup- innovative countries in continue to expand their operations and, port innovative minds, determined to be- simultaneously, show the way to those come a leader in niche technologies that the world. who are not very familiar with its busi- provide smart solutions and look after ness environment. Some of the most re- the future. It has to. Slovenia has an enor- cent investment projects include global mous natural heritage and it has the re- giants like Yaskawa, Magna, Hasslacher sponsibility to protect it. More than half group (Lip Bohinj), Sumitomo Rubber In- of its land is covered by forests. There are dustries and Cargo Partner. more than 300 lakes and 30,000 kilome- Slovenia is proud of the many suc- tres of watercourses - the highest in Eu- cess stories created by well-known in- rope compared to surface area – that flow ternational companies and each year it in the country. recognises the importance of its FDIs by The figures already highlight its com- giving awards to the best ones. In 2019, mitment. Slovenia allocates 2% of its GDP the worthy winners who have produced to R&D; gives companies up to 100% tax exceptional results in the past year and deduction on R&D expense; has 4,200 contributed to the development of the researchers per 1 million people; and,

78 the Adriatic Journal impressively, Slovenian Office for Intel- lectual Property receives on average one patent application per day. All this and more has earned the country 30th place amongst the most innovative countries in the world. The trend is also set to continue with 41.2% of its students graduating with a degree in science and engineering in 2018, and 47% of its young people opting to go to university, whole 84% of its working population speaks at Why Green? least one foreign language. Because it’s not just it’s landscape that’s green, but because its economy is, too. A new brand for existing Economy that is committed to sustain- qualities ability, green technologies, corporate so- What about the Slovenian brand? How cial responsibility, committed to reduc- powerful is it? A strong trademark is ing the carbon footprint and caring for undoubtedly the best marketing tool the natural and social environment. for countries to stand out in an ever- increasing competition. While countries like the U.K., Germany or France have established brands in luxury, manufacturing, pharmaceutical, automotive and financial sectors, small and young countries like Slovenia have to adopt a holistic strategy when promoting themselves. Undoubtedly, in the past Slovenia had poor recognisability beyond the neigh- Why Creative? bouring countries. To change this, Slove- Because its economy is also creative. It Slovenia launched a nia launched a public call in 2006 for a recognizes and promotes human talent public call in 2006 for slogan and logotype that would best rep- and the creativity of professionals who resent both the country and its citizens. create added value in companies. a slogan that would So, I Feel Slovenia was born. The brand represents everything Slovenia stands What about Smart? best represent both the for: sustainable development, niche eco- Well, the numerous efficient, high-tech nomic orientation of Slovenia and circu- globally recognised Slovenian solutions, country and its citizens. lar economy. In 2019, I Feel Slovenia got services and products that help compa- a backing with a launch of the country’s a nies gain a competitive edge in the world So, I Feel Slovenia was new international communications cam- market make for a smart economy, too. born. paign - Green. Creative. Smart. The cam- And the campaign. paign’s main goal is to help companies get that global recognition, help them enter global value chains and find foreign business partners.

Corporate brief on geopolitics & living 79 B

Country brand is more than just a brand

French wine, Italian fashion, Serbian rakija …

The world is becoming a gigantic supermarket and having a brand that stands out attracts the consumer’s attention. In recent years it has become clear that not only products, but places, regions and countries need a strong brand if they are to succeed in attracting attention.

Author: Klemen Košir Photo: Shutterstock

80 the Adriatic Journal Great branding is eternal Do you recognize the I ♥ NY slogan? Who doesn’t. T-shirts with its logo and countless variations of it are probably the most common motif on T-shirts around the world (although the city of New York has filed thousands of lawsuits against imitators). It is one of the best if not the best branding and advertising campaign of a city in the history of marketing. And when was this phenomenal logo con- The power of a country ceived? In the seventies! It was in 1977 brand is closely linked Over the past two decades, there has when New York State Department of been a growing awareness around the Commerce hired and advertising agency to the commitment world that country’s image and recog- to come up with an idea that will at- nitionO have a huge impact not only on tract more tourists. And despite the fact of different state tourism, but also on economy and qual- that Milton Glaser, the designer of the ity of living; it is felt in every pore of life, logo and slogan, thought it will be just a structures, economy, be it in business or in personal. short-lived promotion campaign and did There have been a few imaginative the work pro bono, his art is still sold on tourism, cultural and and memorable branding campaigns that every corner of the world where tourist scientific institutions. stood out and delivered a lot of positive roam. attention. But for a great country brand individual campaigns are not enough; Great branding is GREAT systematic work is needed in all areas. One of the most ambitious global mar- We can influence the perception of a keting campaigns of a country is the one country even though we cannot totally that UK started in 2012; the GREAT Brit- control it; but the more we leave it to the ain campaign aimed to showcase the very outside elements, the less likely it is that best of what Britain has to offer in order the perception of the country will be the to encourage the world to visit, study way we want it to be. and do business with the UK. Its final

Corporate brief on geopolitics & living 81 Building a strong nation’s brand can help its economy tremendously.

goal is not only to attract the tourists, but to accelerate economic activity and job growth. The cost was tremendous – over GBP 100m went into the campaign, but their estimate is that it has paid off more than tenfold; especially the part of marketing the country as a place to visit: according to their data, for every pound sterling they spend overseas, overseas visitors spend GBP 23 in Britain. Sometimes just a simple slogan or a catchy phrase can do a lot to attract at- BLED - A vision of paradise tention and history has its share of exam- and a staple of ples. It could be said that when Erik the Slovenian brand Red named Greenland ‘a block of ice’, it was a marketing attempt to attract more settlers. But managing a country brand is much more than that – it has to capture its true identity, emphasize its strengths and most of all be consistent not only over different communication channels, but also over different sectors and over time.

82 the Adriatic Journal Corporate bri ef ongeopolitics&living

Photo: Shutterstock I Feel Slovenia commitment of different state structures, Slovenia tried a few different approaches economy, tourism, cultural and scientific to country branding. In the last decade institutions and the population to use it. it has been building a brand around the That is why we invest a lot in motivating campaign I Feel Slovenia. “At the Gov- all relevant stakeholders to join our large ernment Communications Office, where I feel Slovenia family in creating and tell- we are the custodians of the I feel Slo- ing positive stories.” venia brand, we invest a lot of energy in Štembal explained that the brand managing the brand,” says Mateja Malnar tries to convey the message of a coun- Štembal, Head of Division for the Promo- try that has got everything: “The visitor tion of Slovenia. “We are aware of the does not have to travel many kilometers utmost importance of involving differ- to see the sea, mountains, hills and low- When building a ent stakeholders in the process of addi- lands. In terms of safety and ecology, the national brand, tional brand strengthening. The power of quality of life in Slovenia is above the the British put a lot of a country brand is closely linked to the average of other countries. It seems only emphasis on their rich normal to locals that we feel safe and can history, that is why the Queen is a strong drink tap water instead of bottled water. national brand But this is not taken for granted in many other countries. Slovenians also have a respectful attitude towards nature and are ecologically minded.” Great branding helps the economy Building a strong nation’s brand can help its economy tremendously. It has long been observed that the most successful brands come from countries that are successful brands in their own right. Made Photo: Shutterstock in Germany conveys a different message then Made in China for example. Countries of the whole region of Western Balkans had tried in the last few years to brand and rebrand themselves.

84 the Adriatic Journal I feel Slovenia brand

Photo: www.slovenia.info, foto: Nino Verdnik is green. The ‘Slovenian green’ expresses a balance between the calmness of nature and the diligence of the Slovenian people

Serbia is on a similar path to Slovenia, changes in its brand, and thereby also although it is still searching for the true more favourable positions in global rank- Positive change of a foundation of the brand. But as Drago ing. Thus, the national branding is not country and society Cvijanović, Nataša Simić and Svetlana the sole goal. The strategy of branding Vukotić pointed out last year in their ar- Serbia in fact should be understood as will make the positive ticle Creating a State Brand: a Brand and the strategy of its socioeconomic devel- Branding of Serbia published in Serbia’s opment, whose results should reflect on changes in its brand, publication Ekonomika, the brand needs its populations’ general well-being.” to be connected to reality. Or as they And that is the final goal for every and thereby also more wrote: “Branding of a country shouldn’t branding of a country – to help enrich be underestimated but should be treated the lives of its citizens. Branding cannot favourable position in as a final moment. The efforts invested do it on its own but can definitely help. global ranking. in branding a country alone cannot solve But as Štembal pointed out, we should the problems. Positive change of a coun- not forget that “nation’s branding is a try and society will make the positive process that never ends.”

Corporate brief on geopolitics & living 85 B

High tech trends in the region Rockets, robots and revolutionary sports cars

The region is becoming a prime location for high-tech developments and there are quite a few examples of cutting edge technolgoies making their mark on the global business environment to prove this. We highlighted a few bright examples.

Author: Jan Tomše

Photo: Shutterstock Dewesoft RRimac Dewesoft isD Slovenia-based company A Croatian company Rimac Automo- specialising in software and measuring bili is specialised in electric sports car instruments for the most demanding development and production. Founded technical measurements in automotive, a decade ago by Mate Rimac, a passion- aviation, transport, electrical and other ate innovator who conceived his first industries, as well as for civil engineering electric supercar at the age of 20. Rimac and energy sectors. Dewesoft cooperates Automobili gained recognition due to with ginats like NASA and Honeywell in YYaskawa successful completion of several electric turret testing, missile and rocket engine Yaskawa is the world’s leading manufac- car models. In 2011 Rimac’s Concept tests, aviation power tests, satellite at- turer of robotic and propulsion tech- One, an-all-electric battery-powered titude controller tests and other applica- nologies, best known for Motoman line sports car with 960 kW power output tions. Dewesoft’s technology went to of industrial robots. These eliminate the was presented. The vehicle could reach space recently as they developed a mod- time lost due to machine failure, enable 100 kilometers per hour in 2.6 seconds. ern real-time telemetry system capable a high return on investments, reduce The production version of the Concept of monitoring several hundred thousand labor costs and can work 24 hours a day One was introduced in 2016. Later on, parameters in real-time for NASA. In throughout a year, while the system the Concept S, a more powerful and the aerospace engineering the company may be adapted to rapidly changing pro- aerodynamic model with better speed also cooperates with Honeywell and duction requirements. Yaskawa boasts performance was introduced. In March European Space Agency, and its prod- more than 330,000 robots installed at 2018, the Rimac C Two, a semi-autono- ucts are used and incorporated in the world-renowned companies such as mous all-electric sports car with a power technologies of Caterpillar, General Mo- Audi, BMW, Grammer, Fuji, Volkswagen. output of 1,408 kW was unveiled, with tors, Harley Davidson, Airbus, Yamaha … In Slovenia, Yaskawa is operates from the ability to reach 97 kilometers per Dewesoft is present in over 50 countries two locations, one of them being the hour (60 mph) in just 1.85 seconds, its and achieves EUR 20m annual revenue. first European robot plant and the robot- top speed being 415 kilometers per hour. ics development center recently built in Despite the price set at almost EUR 1.8m Kočevje. An investment worth EUR 25m for a car, the limited number of 150 has become the main pillar of Yaskawa vehicles in total was sold out in three robots production for the European weeks after the launch. The first deliver- market. Its capacity is 10,000 robots per ies are expected to take place in 2020. year, using Slovenian hands to construct In 2017, Mate Rimac was named one of the robots and Slovenian innovativness the Top 30 Under 30 entrepreneurs by to make them smart, increasing the Forbes Magazine. added value of Yaskawa’s production in Japan and China. B

Women may not rule the Balkans, but they hold some powerful positions Power comes in many ways

Women in power is not what would first cross one’s mind in association with the Balkans – a traditional society where most important functions are still held by men. But change, albeit slow, is taking place and there are some ambitious females in the region that command quite a bit of power. Two of them were included on Forbes' 100 most powerful women list. At the Adriatic Journal we looked at who are the Balkan women that stand out in this male-dominated region.

Author: Ana Potočnik

88 the Adriatic Journal Photo: Shutterstock

MARINA ABRAMOVIĆ Marina Abramović is a performance artist slashed her skin. "If you leave it up to the known for her use of pain and physical audience, they can kill," Abramović said limits as a form of expression. Even after after the performance of an inherent hu- four decades in the “business”, she still man cruelty that she sought to expose. continues to create new work, exploring In 2010, her popular retrospective The the relationship between herself and her Artist is Present was exhibited at The audience, and transforming both through Museum of Modern Art. The work was her performances. Born in Belgrade in inspired by her belief that stretching the 1946, Abramović went on to study art length of a performance beyond expec- both in her hometown and in Zagreb, de- tations serves to alter our perception of veloping an early interest in performance time and foster a deeper engagement in art, including experiments with sound the experience. Seated silently at a wood- installations. Her arguably most provoca- en table across from an empty chair, she tive work, however, is 1974's Rhythm 0, a waited as people took turns sitting in the If you leave it up performance in the Italian city of Naples chair and locking eyes with her. Over the in which Abramović directed the audi- course of nearly three months, for eight ”to the audience, ence: "There are 72 objects on the table hours a day, she met the gaze of 1,000 that one can use on me as desired." The strangers, many of whom were moved to they can kill. objects included razor blades, knives and tears. a loaded gun, while the artist sat motion- less as people cut open her clothes or

Corporate brief on geopolitics & living 89 Photo: Shutterstock Photo: Shutterstock

DUA LIPA RITA ORA The London native Dua Lipa started her From humble roots as a Kosovo refugee musical career by posting covers of her in London to being one of the biggest pop favourite songs on Youtube before hit- stars in the world, Rita Ora has come a ting the big time. Dua Lipa, whose first long way. Rita Sahatçiu Ora rose to fame name means love in Albanian, was born in in 2012 when she featured in a single Hot London to Kosovo Albanian parents. She Right Now by DJ Fresh – the single reached signed with Warner Music Group in 2015 number one in the United Kingdom. Her and soon released her first single New debut album Ora was released in August Rita Ora has 2 studio Love. Ever since then she’s been a promi- 2012 and debuted at the top of the UK Al- nent chart topper. Her success was further bums Chart. The accolades followed. Ora albums and 20 singles, confirmed by winning three Brit Awards was nominated for Best New Artist, Push and two Grammy Awards. But, like her Artist and Best UK/Ireland Act at the 2012 while Dua Lipa has 1 fellow chart topper Rita Ora, Lipa hasn’t MTV Europe Music Awards. After a string studio album and 15 forgotten her roots. In 2016, she and her of UK hits in 2014 and early 2015, Ora father set up the Sunny Hill Foundation wanted to be released from her contract singles. in Prishtina to donate to the causes that with the Roc Nation and ended up filing a will benefit the citizens of Kosovo. When lawsuit against the label. Roc Nation filed the earthquake struck Albania in late 2019, a counter-lawsuit against Ora for breaking Lipa appealed to her fans for support and her recording contract, but the two sides donations to help the relief effort. reached a settlement in May 2016. Later that year she performed in a concert at the vigil for Mother Teresa's canonisation at the Basilica of St. Paul Outside the Walls in Rome, alongside other Albanian artists, accompanied by the Kosovo Philharmonic Orchestra.

90 the Adriatic Journal Photo: DELO NATAŠA ČAGALJ Nataša Čagalj is one of the most promi- of the best female students at the school nent Slovenian fashion designers, who that taught the likes of Alexander Mc- Čagalj's precision has been pushing the boundaries of Queen, John Galliano and others. All her prestigious fashion houses such as Cer- qualities - precision workmanship, so- workmanship, ruti, Lanvin, Stella McCartney and Ports phistication and careful design of details sophistication and 1961. The fashion designer Peter Movrin as well as perseverance, focus and, above said Čagalj is not only a big name in the all, teamwork ability - have been recog- careful design of world of fashion, it is also the heart that nized by the world-renowned fashion everyone wants to have in their studios. houses such as Cerutti, Lanvin, and Stel- details have been Čagalj enjoyed creating from a young la McCartney, as well as Ports 1961, the age: she sent her first sketches of fash- Canadian luxury fashion brand, where recognized by the ion dresses to the Croatian magazine she was a creative director for five years. world-renowned Svijet at the end of primary school. Her She has recently left the company and big ambition was to attend postgradu- is working on setting up her own brand. fashion houses. ate studies at Central St Martin’s College in London and she credits her husband for helping her fulfil that wish. “I really wanted to study there. And I have to say, if it wasn’t for my boyfriend (and now husband) Mitja, who sold his car so we could go to London, I wouldn’t have done it myself.” She was considered one

Corporate brief on geopolitics & living 91 Photo: Shutterstock http://www.teaobreht.com/author.html

ROKSANDA ILINČIĆ TEA OBREHT Roksanda Ilinčić is a Serbian designer Tea Obreht, a successful American au- whose creations have been worn by thor, has true Yugoslav roots, having some of the most beautiful women in been born in Serbia to a single mother the world, including the Duchess of Cam- whose parents are of Slovene and Bos- bridge Kate Middleton, Michelle Obama, niak origin. Her father, who did not take Cate Blanchett, Emily Blunt, Kristen part in her upbringing, was a Bosniak, Each in their own Stewart, Amy Adams, Kiera Knightley and too. After graduating from the University even Melania Trump. Ilinčić set up her of Southern California, Obreht received a right, both Ilinčić and own label in 2003 and debuted at London MFA in fiction from the creative writing Fashion Week in 2005 with a small col- program at Cornell University in 2009. Obreht succeeded lection of dresses. She has since become The Tiger's Wife, her debut novel, won a staple on the fashion show and has the 2011 Orange Prize for Fiction and in penetrating the added swimwear, childrenswear, hand- was a 2011 National Book Award finalist. bags, jewellery and sunglasses to her ec- Obreht was named as one of the twenty market of the United lectic collection. For her designs she has best American fiction writers under 40 State of America. also won numerous awards including the by The New Yorker. Inland, her second British Designer of the Year at Elle Style novel, was released in 2019. Awards in 2016;. Business Woman of the Year at the Harper's Bazaar UK Women of the Year Awards in 2014; the Red Carpet Designer award at the British Elle Style Awards in 2013 and in 2012 the Red Car- pet Award at the British Fashion Awards.

92 the Adriatic Journal Photo: Uroš Hočevar/DELO Photo: Tomi Lombar/Delo IZA LOGIN TANJA SKAZA Iza Login came to prominence after co- Tanja Skaza is the co-owner of the fami- creating the Talking Tom mobile app. ly-owned company Plastika Skaza, which She founded the company Outfit7 with manufactures innovative and sustainable her husband Samo. Since selling the products made from recycled and bio company in 2017 to a Chinese group, plastics that are kind to the environment. the couple have continuously topped In 2018 Velenje-based company sur- »Have fun. Work as the Slovenian rich list. After selling the passed EUR 40m in total revenue for the talking cat, Login did not rest on her lau- first time in its more than 40-year histo- a team,« is a motto rels, but together with her husband and ry. Today, Skaza boasts the flattering title children founded a new company, the of Best European Manager, which she re- that Iza Login sticks to Liechtenstein-based Login5 Foundation, ceived for an almost impossible achieve- which focuses on developing solutions ment – in 2008 she pulled Plastika Skaza when doing business, for humanity’s problems across the globe out of the crisis and placed it among the whereas Tanja Skaza (using the slogan Clean Air. Clean Water. five fastest growing tech companies in Clean Consciousness.). Login is also the Central Europe. The company is now well stresses dedication director of Matea Benedetti Limited, an known for quality and innovative prod- ethical and sustainable fashion brand as- ucts, which are also found in internation- and hard work as a sociated with the concept of beauty, lux- ally renowned multinationals such as ury and innovation. The Login couple are Ikea, Gorenje, Landis & Gyr, and ABB. She formula for success. major philanthropists and regularly pay has recently left the director position at back to society. They support the initia- the company and will continue her busi- tive the Giving Pledge, where they invest ness journey within the framework of the majority of their time and resources her own Skaza Institute where she wants in non-profit environmental projects. to devote herself to inspiring people.

Corporate brief on geopolitics & living 93 Photo: Shutterstock Photo: Jože Suhadolnik

Kolinda Grabar-Kitarović ANA BRNABIĆ Kolinda Grabar-Kitarović is Croatia’s first Ana Brnabić is the Serbian Prime Minis- female president. She previously served ter, the first woman and LGBTQ person in her country in many other high-ranking Serbia to hold such position. Brnabić at- positions, including as a diplomat and an tracted attention of the Serbian public in assistant secretary general for public diplo- August 2016 when the then Prime Minis- macy at NATO. At the age of 46, she was ter Aleksandar Vučić revealed he knew of In history there was elected Croatia’s president on January 11, her sexual orientation when he nominat- 2015, becoming the country’s not only the ed her for the minister of public admin- no place for women first female president but also its young- istration and local self-government. After est. She was also the first woman in Europe Vučić resigned as Prime Minister in 2017 in politics, especially to defeat an incumbent president running to become president, he made Brnabić for re-election, while she is the second the new Prime Minister, the post she still in the Balkans. These woman in the world to do so, after Violetta holds today. In 2019 Brnabić became a Chamorro of Nicaragua in 1990. In 2017, parent after her partner Milica Djurdjič two are changing that Grabar-Kitarović was named as one of the gave birth to a boy. She is believed to be pattern. 39th most powerful woman in the world the first prime minister in a same-sex by Forbes. She won the hearts of many af- couple whose partner gave birth while ter the 2018 FIFA World Cup held in Russia, the prime minister was in office. Brnabić where she attended the quarter-final and is the fifth openly LGBT head of govern- final matches, reportedly travelling to Rus- ment in the world, and the second female sia at her own expense in economy class LGBT head of government overall. In and watched the games from the non-VIP 2019, Forbes 100 most powerful women stands. According to the analytics company list ranked Brnabić at 88th place. Mediatoolkit, she was the "country’s star of the tournament" with "25% more focus on her in news stories about the final than any of the players on the pitch."

94 the Adriatic Journal Photo: Shutterstock

Melania Trump reer, Trump was also a businesswoman Melania Trump is the current first lady of who launched a jewellery line in 2010 the United States, as wife of 45th presi- and a caviar-based skincare line in 2013. dent of the United States, Donald Trump. In 2017, she became the First Lady of the She is only the second US First Lady to United States. Since moving to the White be born outside the US. Born in Slove- House, she has devoted her time to pro- nia’s Novo Mesto, Melania Knavs started moting the public awareness campaign modelling at the age of 5. She moved to Be Best that focuses on well-being for America in 1996, where she continued to youth and advocates against cyberbully- work as a model. She forged a succesful ing and drug use. career and is known for her appearances in Sports Illustrated, Vanity Fair, Vogue, Harper's Bazaar and GQ. She also posed nude for magazines, including a British GQ photo spread in 2000. In Septem- ber 1998, Knauss met Donald Trump at a party and the couple married in 2005. In 2006 she gave birth to her only child Barron. In addition to her modelling ca-

Corporate brief on geopolitics & living 95 B Exclusive interview with Jadran Lenarčič, PhD, director of Jožef Stefan Institute Fear of robots is unfounded

96 the Adriatic Journal AUTHOR: Špela Bizjak Photo: Uroš Hočevar/ DELO

Jožef Stefan Institute, ranked among the most prominentJ scientific and research institutions in Europe and the world, cel- ebrated its 70th anniversary last year. With over 1,000 employees, the Institute is research-oriented in the field of robotics, automatics, biorobotics and modern production technologies. In an exclusive interview with The Adriatic Journal, the In- stitute’s director, Professor Jadran Lenarčič, PhD, shares his views on the world of robotics – through the lens of an engineer.

In your opinion, what are Jožef Stefan Institute’s most important achievements in recent years? What would you highlight as being the most significant? A scientist competes with his colleagues around the world and wants The Institute publishes close to 900 re- to discover something unknown, while the economy wants to create search articles in international scientific journals, which means 900 achievements capital. Although these are two different worlds, they must exist in per year. It would be unfair to mention just a positive conflict. It is therefore necessary for a country to put in one, though there are some that resonate place instruments that make it easier to connect the two worlds, says more in the general public and partially in Professor Jadran Lenarčič, director of Slovenia’s Jožef Stefan Institute. the professional circles. An example are micro lasers and their incorporation into a living cell; the discovery of a ferromagnetic

Corporate brief on geopolitics & living 97 has already been discovered somewhere else. You can turn a discovery to benefit the society. This can be done in cooperation with the economy, but not solely. There are other social activities that require scientific discoveries and the assistance of researchers in putting them into practice. The economy is extremely important because it creates added value and invests in social development. The added value is based on knowledge.

How can we achieve closer integration of science and economy? The investment in R&D is too small. From the beginning of my professional career, for more than 40 years, I have been living fluid that may be the basis for a develop- and working on the border between pure ment of a new type of liquid crystal. It is science, one that is only based in research also important to point out the research in and discovery, and the one that works for the field of quantum physics where eve- users. This has changed over the years. rything is about making a computer with Science and the economy are two differ- the fastest memory. There are a number ent worlds. A scientist competes with his of other equally important discoveries. It colleagues around the world and wants is difficult to determine which criteria is to discover something unknown, while The fact is that today more, or less, important. It takes 20 years the economy wants to create capital. Al- companies are more for this to become evident, just as the cur- though these are two different worlds, ” rent Nobel Prizes are awarded for achieve- they must exist in a positive conflict. It aware than ever of ments from decades ago. is therefore necessary for the country to put in place instruments that make it the importance of You have repeatedly pointed out that easier to connect the two worlds. fundamental scientific research and collaborating with the integration of science with the What potential does Slovenia have in science. economy are crucial for Slovenia's implementing smart technologies in future development. the region? This connection is extremely important. As an engineer, I hate the label "smart Science has two different sides. One is ex- technology" because it has been trivial- ploring to discover something new, which ised. If you have a washing machine and is important for further exploration. The you have to switch it on with a switch, it other side is whether what you discovered is not smart, but if you switch it on with

98 the Adriatic Journal your phone, it becomes smart. It's still the it accordingly. Today you have an abun- same washing machine. That is why I am dance of information that we can use in a little sceptical of the expression and all our daily lives. Twenty years ago, when the euphoria that is being created about you didn't have GPS, you came to a city smart technologies. It is primarily about and were lost. Today navigation takes introducing sensors into production pro- you to your destination, and you know cesses and also into everyday life, which exactly what the hotel you are staying in means that you get information on what will look like before you get there. This is is happening to certain appliances in the certainly an achievement. house, in the city, in factories, etc. This is It's similar to a factory where machines an area where Slovenia has a traditionally make things and you don't know why good position - our Institute in particular. some products are faulty. These digitaliza- In the field of artificial intelligence alone, tion processes help you identify where is we have three research departments, while the source of error. It's about the quality of in the field of robotics and automation we the products, the quality of the customer have two more research departments, and research, the market, the integration with at least three more in the field of commu- the markets and customers. It's comput- nication technology and computer science. erization. Every second billions of data are Slovenia is accumulating on our devices worldwide. All fortunate to What advantages do smart factori- of it is written down somewhere and we have started to es and smart processes bring to the don't exactly know what to do with that explore artificial business environment? information. Even businesses do not know intelligence Certainly this is more about digitalization what to do with most of the data they have. at its very beginning, in than anything else. This means that you On the other hand, data collection also has the pioneering obtain data from individual devices, be it ethical and other concerns. times. It is one in factories or everyday life, and then use of the most automated countries in Europe

Corporate brief on geopolitics & living 99 The Jožef Stefan Institute is the leading Slovenian scientific research institute, covering a broad spectrum of basic and applied research. The staff of about 1050 specializes in natural sciences, life sciences and engineering

Companies that have The use of robotics is on the rise, We often hear that in the future, ro- especially in the automotive indust- bots will replace humans and do our more robots in the ry. In what direction will the future jobs. What are your thoughts on that? development of robots go? That fear is unnecessary. If you are look- factory are more Robotics basically started in the automo- ing at whether a robot will replace a spot tive industry - the first 20 years of robotics welder or someone who lacquers floors automated, more were all about welding. Other procedures eight hours a day, I hope it will. I hope followed. These were the robots that, until jobs like that cease to exist. flexible and therefore recently, had to operate behind a guard rail. What is interesting is that nowadays earn more money in The new direction for robotics is collabora- robots in factories enter workflows, they tive robots that can interact with humans. enable the production of certain products the market and create However, these robots are still slow. But ro- which wasn’t available before. Robots con- bots will gradually transition into everyday tribute to the workplace, they don’t take more jobs. life. We had robotic vacuum cleaners for a it away. There are, of course, some excep- long time and they work, but are not per- tions. But in such cases, it is actually better fect yet. If they run into a chair, they can't for humans. For example, computer vision move. If it gets stuck on a rug, it can't keep can count the number of products within a going; if it gets to the stairs, the vacuuming tenth of a second, which has not been pos- ends. This is the current level of robots and sible until now. the situation is not better in the industry Robots in industrial environments will either. Robots can do something, but they only contribute to additional jobs, bet- are not as nearly comparable with humans. ter quality of work, greater humanization,

100 the Adriatic Journal higher standard, less discharge, which is im- we create new ones. He wanted to say that portant for the economy, so that the added new technologies are constantly evolving, value is raised and the value of the product and if there is fear that artificial intelligence on the market is higher than the cost of the could take over our minds, we will develop product. Robots contribute to all of this. technologies that will combat this.

How do you see the society in the So, do you give humanity advantage future in terms of automation and over robots in the future? robotics? I often give this example: if I make a deci- Ten years ago, I predicted that factories sion, everyone questions it. Everyone asks of the future will be like a park where why I decided the way I did and what if I humans and robots work together. It will made a mistake. If the computer makes also be a pleasant environment where ro- a decision, we all agree. But in reality, the bots and humans will share information computer made that decision based on al- and learn from each other. However, this gorithm and information that was input should not be understood in such a way by humans. It is like a black box that has that the humans will be subordinates to no idea what it is. We believe the box and robots. They won't. Man, as a living crea- think it will control us. But it cannot con- ture, has its biological characteristics, the trol us because if we change the algorithm adaptation of genetic changes. Robots are or input different information, the result a pile of iron. The robot is nothing more will be different. than a sewing machine. A sewing machine Robots are just tools that help us. The changes your life but you do not depend- computer can handle a huge amount of Slovenians live in the ent on it. You can throw it out of the win- data and is basically autistic because it can't ” dow and it’s gone. Robots are the same. forget, because it doesn't use emotions in part of Europe that The other issue is the area of digitaliza- its decisions, it doesn't take into account tion of the society, especially the collection some other elements that people consider. has strong cultural of huge amounts of data. As I move from Even the mathematicians say, "This equa- and technological one room to another with my phone, my tion is beautiful." Man uses many more device registers my movement. There is an functions than a computer. In some seg- traditions and we are ethical component of collecting informa- ments, however, the computer overtakes tion about people. They present potential us. A computer can easily remember ten not far behind. We have dangers to our free society. But again, this phone numbers, while for me it is harder. is not about the technology taking over the But this is not my weakness, it is my advan- nothing to fear. world. Technology is exploited by man to tage. Based on emotions and experience, take over the world. My Japanese colleague nature has made us forget trivial data and says old technologies hurt the world, thus give weight to what is more important.

Corporate brief on geopolitics & living 101 B

E-mobility Future electric car will most probably be designed in China

Technological advances and societal changes have triggered a drastic evolution in mobility. Electric mobility is gaining momentum and could help the EU to achieve its goals of reducing greenhouse gas emissions, air pollution, noise and dependence on oil. But in Slovenia, due to highly dispersed settlement, electric vehicles as individual means of transport could further increase the number of cars on the roads.

Author: Simona Drevenšek

Photo: Shutterstock

102 the Adriatic Journal electric vehicles by 2020 and 200,000 by 2030. Is this just wishful thinking? Miha Valentinčič, Director of Innovative Busi- ness Models at Petrol, would argue it is going to happen. We are already witnessing a fundamental transformation of mobility. The main disruptive forces driving it are alternative powertrains, connected and autonomous vehicles, and on-demand mobility services. Brand new markets are now appearing, whilst others are converg- ing or even disappearing entirely. The ones We have infrastructure but that will stay in the game are those able to no electric cars implement the right innovation at the right Global sales of new electric cars have been time and secure the correct partnerships. growingW significantly in recent years, large- And Petrol has been on this path for nine ” ly driven by the mass expansion of this years already. “Slovenia is certainly among mode of transport in China. Despite its the most advanced countries in the Adriatic rapid growth, the EU market for such vehi- region in terms of e-mobility. Petrol was Photo: Petrol Miha Valentinčič, Director of cles is still small, and largely dependent on among the first to establish a very good Innovative Business Models at support policies. According to data on new- and wide network of charging stations for Petrol ly registered vehicles, at the end of Febru- electric vehicles. At present, Petrol provides ary 2019, there were 1,233 M1 electric cars 46 high-speed chargers and over 120 clas- (passenger cars) in Slovenia. Also, about sic AC chargers. In the coming years, more 450 plug-in hybrids and more than 120 than 300 charging stations will be available Slovenia is certainly N1 (light-duty) vehicles are in use accord- in Ljubljana alone,” says Valentinčič. ing to the Ministry of Infrastructure. How- among the most ever, Slovenia is still below the European Petrol offers e-cars as advanced countries in average of e-cars. In the first three quarters service of this year 2.9% of newly registered cars The number of charging points in relation the Adriatic region in were electric in the EU and EFTA countries; to the number of electric cars ranks Slo- in Slovenia it was below 1%, slightly lower venia high above the European average. terms of e-mobility. than in 2018. However, the Electromobil- A good charging infrastructure is a pre- ity Development Strategy foresees 6,100 requisite for developing e-mobility. As a

Corporate brief on geopolitics & living 103 result, Petrol has included an electric car build its future electric cars. Other manu- as a service in its offer. “This enables com- facturers are following by electrifying their panies, public sector entities and domestic existing car models. costumers to easily enter into e-mobility,” says Valentinčič. Among the subscribers We need to see a bigger to this service are also Knauf Insulation picture and Pivovarna Laško Union, which recent- All this is a step into the right direction, ly updated their fleet with electric cars. as the transport is the biggest polluter and The cost of such service varies according contributes to the majority of greenhouse to the e-car; from EUR 350 per month to gases. Thus many are advocating making EUR 550 per month. “This is a new model the sector “greener”. And electricity sup- that will allow many companies to simul- posedly runs better than fossil fuels. But taneously optimise and electrify their ex- climate change we are witnessing is more isting fleet,” says Valentinčič, adding they complex and cannot be combated with are developing a multimodal platform, cars only. Dr. Karin Kneissl, Austrian Min- e-taxi, e-shuttle … With this and other ister of Foreign Affairs between 2017 and ” projects which are underway (in Slovenia, 2019, has been following e-mobilty and northern Italy and Croatia) Petrol aims to decarbonisation for decades. Kneissl ar- Photo: Roman Šipić be a primary provider of e-mobility in the gues the geopolitical implications of such Dr. Karin Kneissl former Slovenian market and in selected markets transformation are omitted in the cur- Austrian Minister of in the region. rent debate. “Unfortunately, the debate Foreign Affairs Valentinčič expects that in 2020 e-mo- is reduced to preventing global tempera- bility will reach a new threshold: “A num- tures to rise more than 1.5C or 2C. And ber of new e-car models of different brands everything else is linked to this, includ- If we could substitute are coming to the market and trends indi- ing minimizing carbon emissions from cate it will be difficult for automakers to transport,” says Kneissl. But Kneissl points coal with other energy, provide e-car production to the extent that out that there are other changes that are current demand forecasts.” According to contributing even more to climate change we would reduce not the forecasts of the largest European car- than thought. One such change is reloca- makers, the future is definitely in electric tion from the cities to the outskirts due only CO2 emissions but cars. Daimler has announced the termina- to raising real estate prices. In the village tion of the development of internal com- 50 km off Vienna where Kneissl lives, to also the emission of bustion engines, Volkswagen has already reach Vienna with public transport is diffi- sulphur dioxide. introduced a new platform on which it will cult, therefore people use own cars. “Con-

104 the Adriatic Journal sequently, the carbon emissions rise.” China most electricity is produced by coal. Therefore, she argues there needs to be Same goes for Poland. Slovenia has a mix a much more realistic, holistic, compre- of hydro, thermal and nuclear energy, but hensive and linked approach to this issue. would it be enough to charge all the cars? Without addressing public transport, we “The biggest polluter is still coal but many will not curb carbon emissions from the countries rely on thermal power. If we transport, agree Kneissl and Valentinčič. could substitute coal with other energy, Kneissl also says that e-mobility de- we would reduce not only CO2 emissions bate is often out of touch with reality. In but also the emission of sulphur dioxide,” the European Union and EFTA countries says Kneissl. And in the time when Ger- In certain markets (Norway, Switzerland, Iceland), 383,000 many is phasing out coal power plants and (Ireland, Netherlands, new electric cars were sold and registered nuclear, more EU countries are willing to this year (Q1 - Q3 2019), which is 38.2% import LNG from the USA. “We are forget- Romania), sales of more than in the same period last year. In ting that shale oil and shale gas are pol- certain markets (Ireland, Netherlands, Ro- luting the environment more than con- electric cars increased mania), sales of electric cars increased by ventional oil and gas. Shale gas and oil are more than 100% compared to last year. produced with fracking, which consumes by more than However, e-mobility needs technologies much more water than conventional oil and commodities which are currently dis- and gas production,” says Kneissl. compared to rupting markets. “It needs lithium as well Nevertheless, we ought to think 100% as iridium which can be found in a handful about how e-cars will change the auto- last year. of countries, among them in Bolivia and motive industry, which is the last key Chile. We have overlooked that in many industry in Europe and whose disappear- aspects Chinese owe the majority of these ance could trigger numerous upheavals, commodities,” says Kneissl, adding that since it affects approximately 5 million the car of the future will most probably employees. “The automotive industry is be „designed in China and assembled in a big employer in Europe, especially in Africa“, paraphrasing the Apple products: Germany, France, and Italy. Slovenia as designed in the US, assembled in China. a subcontractor plays a role in this chain as does Slovakia. It is an important factor What energy sources will in terms of keeping jobs. Europe can lead power cars? and compete with Asian partners, but Then there’s the question of what kind of betting everything on the electric car is electricity will power the cars. In India and not a right way,” says Kneissl.

Corporate brief on geopolitics & living 105 106 the Adriatic Journal B More than just a summer resort Another luxury gem to glitter on Montenegro’s coast

Montenegro continues to realize its vision as Europe’s luxury tourist destination. On 1 August 2019, the country’s prestigious new marina – Portonovi – opened its doors to the public.

Author: Ana Potočnik Photos: Portonovi Photo: Roman Šipić

Corporate brief on geopolitics & living 107 PortoNovi officially opened its doors to the public in August 2019

those that are yet to be discovered,” says Adrijana Husić, the resort’s marketing and communications manager. Located at the entrance of the Bay of Kotor, near Herceg Novi, Portonovi resort spans 26 acres and 1.8km of exclusive coastal area, with 214 residences that are available to prospective customers as part of the first opening phase. Portonovi is synonymous with the highest level of service and unobtrusive luxury of world-renowned brands such as the first One & Only hotel in Europe, with “The slogan under which Portonovi pre- the Espace Chenot Health Wellness Spa, sented itself to the world – Portonovi and the D-Marina with a capacity of 238 MontenegroT Essence – symbolizes the berths and the ability to accommodate most wonderful moments and opportu- ships up to 120m in length. It is planned nities that Montenegro as a country has that the marina be in use throughout the to offer, both those already known and year, both for yachts and super yachts

108 the Adriatic Journal The marina has 238 berths and will be able to accomodate ships up to 120m long

owned by users of villas and apartments restaurant. The Portonovi training studio in the resort itself, as well as those who is also opening soon, and there are plans In this magical place, would like to make a short stop on long for a Montessori kindergarten. cruises. A border crossing is also planned no two experiences within the marina. Keeping the local are alike, neither do The first guests already enjoyed loung- architecture ing on the sandy beach at the Beach Club, Portonovi’s architecture has been in- any two stories where the sand was brought in all the way spired by the authentic charm and char- from Turkey and Egypt. Maison du Monde, acter of traditional Boka Bay villages, and repeat themselves. the first cigar and cognac bar to open in is strongly connected with the sea and Montenegro, as well as the Perla Square the bay, explains Husić. restaurant and the Italian Godo Gelate- “In this magical place, no two experi- ria, are already serving the first patrons. ences are alike, neither do any two sto- Throughout 2019 and 2020, new brands, ries repeat themselves. At any time of new venues, and services will continue to the year, in every part of the day, visitors enrich the Portonovi experience, for both will be able to discover something special: the residents and other visitors. The resort from culinary specialties, special, and un- will soon offer the first Belgium pub in the explored places, to different people and country, a Winery, and an Eastern Cuisine cultures from all over the world.”

Corporate brief on geopolitics & living 109 Guests can enjoy lounging on the sandy beach at the Beach Club, where the sand was brought in all the way from Turkey and Egypt. To cool down, visitors can taste local home made ice-cream flavours at the Italian Godo Gelateria

110 the Adriatic Journal The resort plans to host art exhibitions, festivals and sports events to attract visitors throughout the year

So, Portonovi is not just a summer resort, adds Husić. “We are going to host festivals, art exhibitions, sports events and many other happenings that will keep the resort alive throughout the year.” Husić adds that the resort is also con- veniently located close to other attractive centres in Montenegro. The skiing centre in Žabljak is only an hour’s drive away, as are the resorts offering rafting on Tara river. When Azmont Investments, the resort’s investor, entered the Montenegrin market in 2012, its contractual obligation was to invest €52m in the resort in the first four years, or € 258m over eight years. As of June of 2019, Portonovi’s investor has already put €469m into the development, while the total investment will be close to €1bn when all work is completed, Husić said. On an average day, as many as 1,560 workers are engaged in all segments of the project. “As a major investor, Azmont Invest- ments firmly believes that what makes Montenegro truly magical are its people, its untouched nature, long tradition and vibrant culture that makes all visitors, world travelers, nature lovers, artists and cosmopolites feel welcome,” concludes Husić.

Corporate brief on geopolitics & living 111 Adriatic Journal top business events in the region in 2020 THE MANAGERS’ ASSOCIATION OF SLOVENIA International Conference Conventa Podim Conference 2020 of executives in Slovenia since 1989 Ljubljana, Slovenia on Information Society and Maribor, Slovenia The largest association More than a simple trade show, Conventa Techology The Regional Startup Ecosystem Epicenter. provides a business platform for the sales & Kopaonik, Serbia Podim connects 800+ brilliant startups, in- marketing sector, positioning itself as the most The 10th edition of International Conference vestors, corporations and other stakeholders important business-to-business event in the on Information Society and Techology is open with global minds and leaders, serving as an meetings industry in South East Europe. to all scientific contributions to the different effective platform for investing in the most 22 Jan – 23 Jan 2020 areas of ICT. It also welcomes technical papers promising startups from the region. with case studies and demonstrations of novel 19 May 2020 Central and Eastern Europe ICT technologies and approaches in industry and society. It hosts research communities editerranean onference on Carriers and Enterprises dealing with the areas of information systems, M C Conference model-based software engineering, e-govern- Embedded Computing – MECO Opatija, Croatia ment, big data, biomedical engineering, seman- 2020 Central and Eastern Europe Carriers and tic web research and since recently, IoT. Budva, Montenegro Enterprises Conference is one of the leading 8 Mar – 11 Mar 2020 The focus of this international scientific conferences in South-Eastern Europe related forum is on the leading achievements in the to telecommunications, information security RISK 2020 modelling, analysis, design, validation, and and digital transformation, already in its ninth Laško, Slovenia application of embedded computing systems edition and aiming at a much wider audience and related fields. MECO 2020 will provide RISK 2020 will bring together CIOs, CTOs, bank this year. an opportunity to discuss new ideas and CSOs, retailers, telcos, government, system work-in-progress in these exciting techno- 22 Jan – 24 Jan 2020 integrators, IT consultants and the world’s top logical areas. Internet security people. It will host interna- International Conference on tionally renowned and acclaimed speakers, 8 Jun – 11 Jun 2020 Future Cities offering first class training. Split, Croatia 18 Mar – 19 Mar 2020 ENERGA The conference addresses the next frontier of Sarajevo, Bosnia and Herzegovina research focused on the evolution of cities. It International Architectural A must-go event for the region, ENERGA is assesses the state of academic and practice- the place to learn about new technologies, Design Conference corporate achievements, new energy policies based knowledge related to future cities and Dubrovnik, Croatia attempts to establish a global research agenda and strategies, renewables, energy markets, Architectural Design Conference is coordinated based on joint identification of key gaps by the and the inevitable technological transition of by DAKAM (Eastern Mediterranean Academic academic, practitioner and urban policymaking the energy sector. Research Center) and will be organized by communities. 9 Jun – 11 Jun 2020 BILSAS (Science, Art, Sport Productions). 26 Jan 2020 € 3 Apr 2020 Bled Strategic Forum Bled, Slovenia Women Economic Forum Sarajevo Business Forum 2020 Ljubljana, Slovenia A platform for high-level strategic dialogue Sarajevo, Bosnia and Herzegovina A three-day event on the Power of the Pack: among leaders from private and public The annual investment conference is organ- Creating Women trustfully supporting Women. More sectors on key strategic issues facing the 32% of the entire revenue of the Slovenian economy ized by Bosna Bank International (BBI) in than 200 women, supportive men and young region and the world. cooperation with international partners. leaders are expected to take part in the two- Sep 2020 Companies led by members Mission The 11th Sarajevo Business Forum will cover day conference, with over 150 speakers from of the Managers’ Association Responsible leadership and professional management business and investment opportunities across more than 30 countries. of Slovenia*: for common progress. seven countries in South-Eastern Europe: Kopaonik Business Forum 2020 6 Feb – 8 Feb 2020 Bosnia and Herzegovina, Albania, Croatia, Kopaonik, Serbia The Kopaonik Business Forum, organized • have a 26% higher added Vision FYR Macedonia, Montenegro, Serbia and value compared Using cooperation to turn opportunities into successes International Tourism Fair Slovenia. by the Serbian Association of Economists, to the Slovenian average; and situate Slovenia amongst the top 15 most Belgrade, Serbia 8 Apr – 11 Apr 2020 is held in the first week of March at the Kopaonik Convention Center. Over the developed countries in Europe. The International Tourism fair aims to pro- • create a 42% higher vide a considerable scientific contribution in last years, the patron of the concept of the Geobal Canica International Forum has been the Prime Minister of the revenue per employee the domain of marketing and management than the Slovenian average; regarding tourism destination competitive- Scientific Conference Republic of Serbia. ness, with an emphasis on the Serbian mar- Ohrid, North Macedonia Dec 2020 Sixth International Scientific Conference will • create a 48% higher profit per employee ket, and further broadening of knowledge than the Slovenian average; necessary for better understanding of the be held in the halls of the Metropol Lake Re- key concepts related to the area of destina- sort, Ohrid. Congress Center features an excellent interior space and technical prerequisites • have a 23% higher average salary per employee tion competitiveness. compared to the average Slovenian salary; 20 Feb – 23 Feb 2020 for organizing this type of meetings. 22 May – 24 May 2020 • the companies that are members of the Managers’ Association of Slovenia collectively create 32% 112 the Adriatic Journal of the entire revenue of the Slovenian economy. * Bisnode 2018 www.zdruzenje-manager.si/en THE MANAGERS’ ASSOCIATION OF SLOVENIA The largest association of executives in Slovenia since 1989

Creating 32% of the entire revenue of the Slovenian economy

Companies led by members Mission of the Managers’ Association Responsible leadership and professional management of Slovenia*: for common progress.

• have a 26% higher added Vision value compared Using cooperation to turn opportunities into successes to the Slovenian average; and situate Slovenia amongst the top 15 most developed countries in Europe. • create a 42% higher revenue per employee than the Slovenian average; • create a 48% higher profit per employee than the Slovenian average; • have a 23% higher average salary per employee compared to the average Slovenian salary; • the companies that are members of the Managers’ Association of Slovenia collectively create 32% of the entire revenue of the Slovenian economy. * Bisnode 2018 www.zdruzenje-manager.si/en 114

the Adriatic Journ al

Fičo –aYugoslav story L Yugoslav writerandliterarycritic, have. AndthatYugoslavsdeserve wrote inanessayfeaturedhis Mythology ofEverydayLifethat each nationgetsthecaritcan the Fičo.Hewas,ofcourse, In late1970sIgorMandić,a referring toZastava750.

Photo: Mare Mutić the official policeman vehicle and loved and vehicle policeman official the ble, buteasilyrepairable;notleast,itwas ing ontheAdriaticshore;itwasunrelia- enough to fit a family of four going camp- from 1955to1985.Itwastiny,butbig Zastava (Red Star)factoryinKragujevac,erbia Crvena by produced was Fičo F became a symbol became asymbol of theYugoslav An affordable necessity that tragedy Author: Martin Pogačar,Ph D

Corporate bri ef ongeopolitics&living Photo: Mare Mutić long industrialisation andmodernisation.Along on thewheels,readytoembarkapathof to smithereens during the war – was finally ian withscarceindustry,whichwasreduced in theinterwarperiodpredominantlyagrar- of thefactorytwoyearslater,country– FIAT 600in1953.Asthecarsstartedrolling with theItalianFIATtoproducelicenced the war-torn countryand signed a contract Yugoslav leadershipdecidedto motorise After the end of the A promising star and forthepeople. womb. of origin:wheretheyemergedfromthe and, foraluckyfew,itwastheveryplace had ever they car first the was it goslavs by postmenandvetsalike.FormanyYu- In all, it was a car of the people econd World War, Second World War, t

115 A symbol of hope…and collapse The car and its cultural lives went through various phases. In the beginning it was considered, Mandić again, as “the first expensive object of modern psychology of consumption, the first magic lantern that served as a road sign showing the way out from years-long backwardness, it was an Ariadne’s thread showing us the way out of the domain of cottages, mud, san- Photo: Mare Mutić dals and village fetes towards the wide asphalt roads, motels, self-service shops, the way, Fičo was becoming the stuff of striptease and beat music.” Over time, Fičo can be seen as a memory for the generations that grew up however, the sentiment transitioned constant reminder not in Yugoslavia and witnessed the life of the from adoration, hopes and promises of a car unfold in front of their eyes; and who better future, to a marker of political and to look at Yugoslav have witnessed the transformation of the economic decline and, finally, collapse. country reflected in the rear-view mirror. It became a historical burden hidden in history as a uniform The Fičo, a car once barely affordable yet sheds and garages with no apparent value somehow cute, grew over time so obso- other than demolition: my mechanic told blob of failure and lete and outdated that it became a laugh- me they would cut off the roof and use it ing stock at best or ended up dumped in a as a raft on a nearby river. torture. ditch at worst. As Mandić points out, “some believe that Fičo has long since played its In any case, Yugoslavia sported a role and they turn their backs on it. Just like rather well-developed automobile indus- one might turn their back on poor relatives try and a number of car factories, includ- who made significant sacrifices for our pro- ing IMV in Novo mesto (Slovenia) that gress, but get in return from us indifference later became Revoz (producing Renaults) and shame”. In this sense, Fičo can be seen to IDA in Kikinda (Serbia) that produced as an allegory of the collapse of the state, Opels, while TAS from Sarajevo was mak- but also a constant reminder not to look at ing the famous Volkswagen’s Golf. Per- Yugoslav history as a uniform blob of fail- haps most well-known among them was ure and torture. Zastava from Kragujevac bought by Fiat-

116 the Adriatic Journal Photo: Lisa Rodd

Fićo at the French Riviera

Chrysler just a few years ago. And how car into the moving picture was the critical could it not have been? moment when the car was no longer just a means of transportation. It was also be- Becoming a myth coming a myth. Cinema provided a crucial In the period 1955–1985 a total of 923,487 opportunity for the car to become, again cars was produced of which some 20,000 in Mandić’s words, “a new medium that are allegedly still on the roads of former ‘shook’ the obsolescence and tininess of Yugoslavia - clearly, Fičo was no Mercedes, city shopping centres, expanded streets and In the period but for some just as desirable. For nearly avenues, changed the appearance of travel 20 years, before the just as famous but and traffic arteries, and traffic regulations”. 1955–1985 a total of less mythic Zastava 101 hit the roads, Fičo was an important product of the Zastava The ascendance to myth, however, cars factory that procured parts through a net- hardly exerted a positive influence on the 923,487 work of over 200 subcontractors around Fičo. Perhaps it was because of it riding the were produced. the country. During the 1960s, the time of wave of fame that the car, neglecting the liberalisation and opening of the country to developments in the industry, somehow the West, the production grew significantly got stuck in time. Having failed to modern- and the factory invested in new facilities. ise and adjust to the changing driving con- By the end of the decade, Fičo became a cult ditions and the shifting social meaning of a vehicle, a regular appearance on TV shows car as status symbol, Fičo was no match for and in popular films. The entrance of the modern cars.

Corporate brief on geopolitics & living 117 From cult to obsolete across the former Yugoslavia. A material By the late 1980s and early 1990s, it was remnant of the past, Fičo was one of nostal- a nearly forgotten object of the past and a gia’s prime vehicles with enough room to symbol of a country everybody was hast- fit some rogue memories in the trunk. Or ily trying to forget. It was mostly driven on the roof. Or under passenger’s behinds. by the poor and youth, but it found an intriguing role as a working vehicle on Mending broken friendships many Adriatic islands doubling as a car, Once Yugoslav past was safely neutralised, a tractor and a horse. Regardless, it be- both in its emancipatory and totalitarian came a symbol of the Yugoslav wars. It aspects, and when even musical taste was was at the beginning of the war in 1991 in deemed a political statement, Fičo offered Osijek, Croatia, when the Yugoslav Army one of the channels of mending broken tanks rolled into the city and a brave citi- friendships. Although Zastava and Fičo fan Fičo became one of the zen parked his red Fičo in the middle of clubs existed already during Yugoslavia, the the street hoping to stop the tanks. The post-Yugoslav fascination is unprecedent- objects of unwanted car was crushed and the war raged on. ed. In the context of denying cultural value heritage, along the to all things Yugoslav, the car provided an Before long the red Fičo and many oth- object one can work on. Many specimens obvious Tito’s busts ers across the country rose out of the de- were in dire need of repair. This forced Fičo- bris of their own meagre existence in their fans to indiscriminately source spare parts. and the red star, that former motherland’s nightmarish afterlife. With many cars in the ditches or at the They slowly and humbly drew out of sheds bottom of the sea, spare parts have always somehow retained and garages fuelling the just discovered been a scarce commodity that necessitated, the appeal across the fascination with everything Yugoslav. This and legitimated cooperation across the new phenomenon soon became known as Yu- borders. Soon enough fans would start to former Yugoslavia. gonostalgia, a specific type of nostalgia that organise gatherings attracting Fičo-fans came to life after the collapse of the state from all over former Yugoslavia. in response to the nationalisation of once multinational pasts and the realisation that Interestingly, the participants were not the promised West looked much more bril- just people who had first-hand emotional liant as an unreachable destination. Fičo be- ties to the “real” thing. Instead, for many came one of the objects of unwanted herit- younger post-Yugoslavs, taking care of a age, along the obvious Tito’s busts and the Fičo was an opportunity not only to gain or red star, that somehow retained the appeal improve mending skills but also to engage

118 the Adriatic Journal 1 After the exhaust was lost …

2 At the welder’s in London

3 Nature and technology – Who wins? Photo: Lisa Rodd with the car’s history. This invariably en- tails at least passing mention of Yugoslavia. 1 Thus perhaps purely technical fascination became a cultural one; and in some cases political. Several Fičo-fans I spoke with talked about their experience of the car also as an opportunity to discuss present-day politics, the precarity of the post-socialist everyday and the flaws of the regime change. In addition to Fičo-fans welding and fiddling with carburettor and tuning ignition, one man I met deems the car a relevant enough artefact to maniacally collect over 300 of them, while another one decided to make and sell half a million new ones. If only 1:43 diecast models. The car is thus an object that stirs the imagination of a number of post-Yugoslavs,

Photo: Hannah Marshall but also allegedly untouched foreigners. One brave girl took a little orange Fičo from Ljubljana all the way to London. The journey involved a lost exhaust pipe, getting lost in Milan, and a train ride from Nice to 2 the final destination – a West End welder. After an exhilarating farewell rally in Sicily, the car found a new owner somewhere in France. It was sold for one euro. Preserving heritage The countries that emerged in the wake of the socialist Yugoslavia do not appear to share the passion for the car. Although an odd specimen can be found in respective technical museums, private and public, a Photo: Mare Mutić

Corporate brief on geopolitics & living 119 At the bottom of the sea Photo: Tomaž Alauf Photo: unknown Fičo and Vučko, 1984 Sarajevo Winter Olympic mascot wider societal appreciation of socialist in- among them the Zastava’s millionth car, dustrial and technical heritage is barely ex- the Zastava 101 from the Tour d’Europe istent. So, it is down to enthusiasts to pre- 1973–74 rally, and the last Fičo from 1985. serve heritage. The reasons vary, but it is After the collapse of Yugoslavia in 1991, likely the difficulties in nationalisation of a these cars were kept by the Institute. But once relatively common history. Although during the 1999 NATO bombings, the cars it was made in the then Republic of Serbia, were moved outside the building, to pre- Fičo was a Yugoslav car. Another reason vent the potential damage from bombing. may be the general neglect or disregard of Alas, the 20-year sojourn outdoors let the the historical value of socialist industrial elements do their job. The rain, the snow, heritage, which is often seen as inherently the heat, the cold. The time. Today, behind one of flawed and irrelevant. Martin Pogačar, PhD, is a research fellow the factory buildings By historical chance Fičo’s birthplace at the Research Centre of the Slovenian Kragujevac also became its end. Where Academy of Sciences and Arts. His re- a fine selection of search interests include media memory once there was a Yugoslav factory is now studies, technology and memory in Zastava cars are rusting an multinational company, where once post-socialism. He is also interested in there was a factory with its own automo- the future of Yugoslav popular music, and rotting. bile institute employing engineers who de- archiving in the digital age and Yugoslav veloped and designed new products, there automobile heritage. His recent publica- is today an automobile cemetery. Behind tions include Fičko po Jugoslaviji: Zvezda one of the factory buildings a fine selec- domačega avtomobilizma med cestami tion of Zastava cars are rusting and rotting, in spomini (Založba ZRC, 2019).

120 the Adriatic Journal Two regimes of old against entropy

Corporate brief on geopolitics & living 121 L

GREAT MINDS OF THE WESTERN BALKANS

World changers Photo: Shutterstock Scientists, inventors, passionate researchers in their selected fields and tireless seekers of new, previously unthought of solutions. With pioneering discoveries, they paved new paths and pushed the boundaries of the possible, changing the world and lives of people. We present important personalities from the Western Balkans who have made an imprint in their period and beyond.

Author: Jan Tomše

122 the Adriatic Journal Nikola Tesla (1856 - 1943) David Schwarz (1852 - 1897) One of the most important inventions by Nikola Schwarz, who has been interested in the mechanics and constructi- Tesla, a New York-based scientist, is a multi-pha- on of aircraft since a young age, is considered to be the discoverer se induction electric motor operating on the of duralumin, which is still used today in aircraft manufacturing. principle of alternating current. Its AC system has In 1896, with the help of the then German government, David made it possible to remotely transmit electricity Schwarz assembled an airship in order to make it safer than the in more efficient manner. The first hydroelectric hot-air balloons of that time. The 48-meter-long and 13.5-meter- power plant on Niagara Falls was built based -wide airship could steer itself well on its first take-off, although the on his design. Tesla was active in many fields: structure was only one meter off the ground. Though he did not rotating magnetic fields, remote control, solar receive credits for inventing the first aircraft, the fact remains that energy, radio… Life magazine ranked Nikola Tesla Schwarz is the world’s pioneering aircraft designer. Schwarz did among the 100 most important people in the not live to see his invention flying 464 meters above ground in its last thousand years. second take-off. The plans for his airship were later purchased from his widow by a German general, Count Ferdinand von Zeppelin.

Herman Potočnik Noordung (1892 - 1929) Herman Potočnik Noordung initially worked as an expert in bridge and rail construction, but in his final years he devoted himself to man’s penetration into space. An educated expert in rocketry, in his book The Problem of Space Traveling - a Rocket Engine, that is considered one of the foundational parts of the first generation of space explorers, he described a plan for space exploration, the building of a permanent space station for Earth observation, and highlighted the potential for research that could be performed from space. Pundits characterize the book as the fundamental work of man’s existence in space, and Potočnik’s ideas have underlined the American, Russian and German space exploration.

Corporate brief on geopolitics & living 123 Ivan Vučetić (1858 - 1925) Mihailo Petrović Alas (1868 - 1943) Regarded as the father of dactyloscopy, Vučetić was a seeker One of the greatest Serbian mathematicians and inven- of solutions for more effective crime detection. He introduced tors, a world-renowned expert in differential equations a procedure of person identification through a method based and phenomenology, he is globally known as the author on the knowledge that fingerprints are unique. Vučetić devoted of the prototype of one of the first analogue compu- himself to the study of papillary lines and significantly upgraded ters to operate on the basis of hydraulics. At the World the identification methods used up to that point, which were, Scienece fair in 1900, he received a special award for in the second half of 19th century, all incomplete to a certain the hydro generator, his most important invention. He degree. In practice, he proved the value of his invention by sol- was also active in many other fields, including as a writer ving the case of a mother who blamed her lover for the murder of laws and interstate agreements, and a musician. As a of her children, but it turned out that the bloody fingerprints passionate traveler, Petrovic visited over 50 countries, in- found at the crime scene were hers. Vučetić has published cluding the North and South Poles. He summed up travel several books about his findings, he was also a member of the impressions in several books. French Academy.

Mihajlo Pupin (1854 - 1935) He is recognized as the father of modern telephony, who contributed to the invention of remote telephony. The collection of inventions by Mihajlo Pupin is rich and extends from discoveries such as transmission of radio signals through the transmission of transmitters, development of radio and radio technology, and modern wired and mobile communications. His discoveries on transmission of radio waves were identified by UNESCO as extremely important inventions that contributed to the functioning of modern telecommunications. His findings paved the way for the Internet, without which we can no longer imagine life today.

124 the Adriatic Journal Ivan Vukić (Ivan Blaž Lupis) (1813 - 1875) Janez Puhar (1814 - 1864) After retiring and returning to Rijeka, Lupis, a longtime of- Puhar, as an inventor, has put Slovenia on the world map for the ficer in the Austro-Hungarian navy, designed an unmanned development of photography. He based his invention on a previou- vessel that could attack an enemy vessel from a greater sly known daguerreotype, except that he used glass plates instead distance. His meter-long model was filled with explosive of expensive copper plates. His photography method reduced the and could be steered offshore, being able to crash and sink camera’s exposure time to only 15 seconds, a record low for that an enemy vessel after the collision. His invention is conside- period. He later refined the process, and to this day his original red the forerunner of the modern torpedo. He upgraded approach is still baffling his mimics, as no-one has been able to the invention in collaboration with British engineer Robert replicate it. Puhar’s invention is oftentimes considered being in Whitehead, who later developed a new naval weapon based many aspects better than the official worldwide invention of pho- on Lupis’s invention. In the aftermath, the Rijeka plant tography attributed to Frenchman Louis Jacques Daguerre. Unlike became the world’s first torpedo maker, and Lupis received Daguerre’s, Puhar’s photography was also reproductive. the noble title for his merits.

Eduard Slavoljub Penkala (1871 - 1922) Penkala is best known for inventing an automatic mechanical pen and a fo- untain pen. As a prolific inventor, author of more than 80 inventions useful in everyday life, industry, transportation and other fields, his name is linked to the invention of thermal bottle, rotating toothbrushes, anode batteries, anti-rheumatics, and he also patented a turntable needle with extended shelf life.

Corporate brief on geopolitics & living 125 L Between the vineyards and a ski resort Welcome to Maribor, the city of change!

126 the Adriatic Journal Photos: Shutterstock

Corporate brief on geopolitics & living 127 bition, vision, and strength brought the city back to life and continued to open up new avenues for development. Today, the modern face of Maribor promotes co-living of generations, a city in harmony with itself and its people. Saša Arsenovič, the new mayor of Maribor, says: “We want to make life in our city better for everyone. Our wish is to make the quality of living in Maribor attractive to all generations and, at the same time, meet modern trends in the field of sustainable development.” Maribor is Slovenia’s second- If there was a single sentence that could encapsulate Maribor, it would probably fresh energy in the town biggest city, and the economic read something like this: the central city centre of the StyrianI region of Slovenia, nestled The regulation of traffic is critical because and cultural centre of north- eastern Slovenia. The city’s rich among the green Pohorje Mountains and of its impact on the quality of life – par- roots stretch as far back as the sunny wine-growing hills. As a city with ticularly since it seeks to promote mobil- rich historical and cultural roots, it natu- ity at the same time as a cleaner environ- Middle Ages when the city first rally offers top-notch cultural events and ment. The key objectives for the city are to began to flourish. Also known a wealth of festivals. Its winemaking tra- improve traffic flow while also increasing as “the city of wine,” Maribor is dition is epitomised by the world’s oldest safety for drivers, pedestrians and cyclists. famed for its long winemaking vine growing in the heart of a city sur- A newly-constructed road-rail underpass rounded by vineyards and wine roads. on Ljubljanska cesta (open since Novem- tradition. Its current goals of The riverbed of the Drava River, which ber 2019) will meet both objectives. Fur- becoming a booming city and dissects the city, plays an exceptional role thermore, the Main Square (Glavni trg) robust regional centre, however, in Maribor’s identity, economy, and tour- and Koroška Street (Koroška ulica) are to are thoroughly modern – thanks ism. Historically, the river was an impor- be redeveloped as a common traffic area in tant shipping route. Even the roots of the which pedestrians and cyclists are treated to new development plans, Old Vine stretch into the river basin. The on equal footing as motorised traffic. As promising projects, and dynamic city’s wine industry, therefore, has grown explained by city hall: “By regulating traffic ambition. on water carried by Drava. flow, we wish to moderate motor traffic in Over the years, Maribor has experi- the medieval city centre and preserve our enced highs and lows, but each time, am- cultural heritage.“ Author: Barbara Matijašič

128 the Adriatic Journal home tomerchants Maribor usedtobe Main squre in Corporate bri ef ongeopolitics&living Postcard Graz, whichdepicts the futurelookof by F.Knollmüller, from1918 Maribor

Photo: ISR Collection

129

Photo: Shutterstock 1

1 Lent. A beautiful walk along the banks of the Drava river that reflects dreamlike shapes, while local delicacies are available from strands scattered along the walkway during the festival in June

2 Stadium Ljudski Vrt (People's garden): Maribor's natural, cultural, architectural and sports landmark. Ljudski Vrt was built 1961

3 The oldest vine in the world still grows in front of the Old Vine House. “Žametovka” or “Modra Kavčina” vine is over 400 years old

2 3

130 the Adriatic Journal 4 4 The National Liberation monument, also known as “Kodžak” among locals, is the prefect place for a cup of coffee

5 The Old Bridge, also called the State Bridge, the Main Bridge and the Drava Bridge, was completed in 1913. During WWII, it was damaged and later rebuilt

The revitalisation of the medieval core – the Court Tower (Sodni stolp) and Mili- tary Square (Vojašniški trg) – will comple- ment already-exciting tourism activities and help Maribor maintain its role as a cultural and tourist centre. The project includes the renovation of the former guesthouse “Tri babe” (“Three wenches”) 5 with the addition of a new pavilion, which will benefit the cultural institutions in this neighbourhood - the Puppet Theater (Lut- kovno gledališče) and the Minorite Church (Minoritska cerkev). The re-establishment of the Vineyard Museum (Vinogradniški muzej) will offer a shining new frame to the city’s old masterpiece of nature, the Old Vine, further emphasising Maribor’s history as a wine-growing area. According to Slovene Statistics, Mari- bor received almost 202,300 tourists in 2018, up 13% from 2017, and the number of nights tourists spent in the city reached a record 451,610, an increase of 36%. This trend highlights the opportunities for further investment in the leading tourist at- tractions, as well as the need to strength- 6 en cooperation with partners both within Slovenia and abroad.

Another vital revitalisation project is the refurbishment of the riverfront area. The banks of the Drava River present a remarkable opportunity for building on Maribor’s identity, economy, and tourism. The rejuvenation of Lent (one of the oldest and largest open-air festivals in central Europe), and the establishment of a new river recreation zone will also

Corporate brief on geopolitics & living 131 132 13 the Drava promenadewillbea and cyclingpathbetween Adriatic Journ -kilometre longwalking Maribor Islandandthe Malečniški bridge. al

sides of the Drava, where children play, sides oftheDrava,wherechildrenplay, most). The promenade will connect both land and the Malečniški bridge (Malečniški path andacyclebetweenMariborIs- Promenade, a13-kilometrelongwalking of theDravaRiver,so-called will arrange both theleftandright banks improve thequalityofstayinourcity.We potential. city centre,tofurtherimproveMaribor’s provide spacesforsocialisinginthewider Saša Arsenovič adds: “This will help to to help will “This adds: Arsenovič Saša and frequentroadaccidents. attraction intheageofhellishcongestion an hourandahalf!Thiswillbemajor centre-to-city-centre, willbereducedto from thecapitalLjubljanatoMaribor,city- structure arecompleted.Thetrainjourney of 2020,whenupdatestorailwayinfra- ness, pitchers,benches,newavenues,etc.” fit- outdoor parks, skate be will there and nother milestone is due by the end Another milestone is due by the end shaped road”(Srčkasta Slovenia isthe“heart- romantic One ofthemst cesta) inŠpičnik spots in

Photo: Shutterstock Green development action of the city, and will also attract tourists plan who will be able to explore the city and its The new mayor’s team sees it as its duty surroundings,” added Saša Arsenovič. to preserve both the city’s cultural her- As part of its sustainable development itage and natural environment. Maribor strategy, the city of Maribor has (in co- can boast with extremely rich cultural operation with public partners) set itself life, fascinating medieval history, and the the goal of becoming the Green Capital glorious Pohorje Mountains so close they of Europe in 2022. Thus, the efforts of the can be reached by a regular city bus line. city have moved towards reducing harm- The city is following the development ful emissions and promoting more green trends of modern capitals, and the mu- spaces, which will simultaneously raise Photo: Simon Koležnik Saša Arsenovič, the nicipality has a strong desire to protect the quality of life in the city. Trees are be- mayor of Maribor the environment from traffic fumes and ing planted in the city’s parks, and green energy-wasteful buildings. When asked belts are expanding. The drinking water about the green future, the Mayor said: from the city’s supply system is of such a “The only right course of development high quality that several public fountains is green and sustainable, by keeping the are being planned. conservation of nature and environment in mind.” The future is bright Maribor might be the centre of north- “This will be achieved by actively pro- eastern Slovenia but it is far from being moting sustainable forms of mobility – In the only one. Drava River and Pohorje Our wish is to make addition to the use of city buses, the de- Mountains offer potential to the whole velopment and renovation of the cycling region, which could become a leading the quality of living in network is a priority for the development European destination that connects cul- Maribor attractive to of municipal transport infrastructure in tural, culinary, wine and sports offerings. this area. In October 2019, the city began The relaxed and pleasant atmosphere all generations and, at to redesign cycling routes, with the goal of of Maribor is the fruit of its diverse his- establishing a long continuous cycling link tory. In this amazing city, everyone can ”the same time, meet between the city's neighbourhoods and find their own story. local communities. We are convinced that modern trends in the a good cycling connection between the city and its surroundings will help foster field of sustainable the conditions for modifying travel habits development.

Corporate brief on geopolitics & living 133 L A city of unobtrusive diversity and progressive ideas Rijeka flows in its own way

134 the Adriatic Journal Corporate brief on geopolitics & living 135 Rijeka 2020 making of promo video

A city that flows, port of diversity, Balthazar city, rainy It has developed its power of acceptance throughout its turbulent history. In the city. Those are just a few of last 100 years, this city and the people have the nicknames Rijeka received lived in seven different countries. The city during its many transformations. kept its artistic spirit with an alternative For some it might be just touch. If other seaside towns in Croatia are represented as pearls of Adriatic and another port city, but it is luxury tourism destinations, then Rijeka is much more than that. It is a a working-class port city which happens city of unobtrusive diversity, to be a birth city of the current Croatian a symbol of inclusivity and president Kolinda Grabar-Kitarović. openness, situated between Rich architecture reflects Mediterranean, Central European Rijeka, the center of the Primorsko-goran- rich history and Eastern European influence. ska municipality and the largest Croatian Rijeka, or Fiume in Italian, has a rich histo- port, Ris a vibrant blend of the cold indus- ry due to its strategic location. To this day, try and the magnificent splendor of fine it remains one of the most important and Author: špela bizjak architecture with the influence of Austria, biggest ports in Croatia. With the popula- Photo: Borko Vukosav Hungary, Italy and Yugoslav modernism. tion of around 150,000, Rijeka is the third

136 the Adriatic Journal Rijeka Fish Market is beautiful from the outside, but the interior hides a real gem - a largest city in Croatia, handling millions of ing up the 561 stone stairs. Petar Kružić gallery through tons of cargo and 250,000 passengers per built the staircase for pilgrims as they which light reaches year. Rijeka’s harbor is a popular meeting walked to the Church of Our Lady of point for friends going for a drink in one of Trsat. The church is one of the oldest many bars along the promenade. in Croatia and was visited by Pope John Rijeka is a city of incredible history, Paul II in 2003. In his memory there having been a part of seven different coun- is his statue in front of the church en- tries. This is noticeable in the architecture trance. An indispensable part of the and in the way of life of Rijeka inhabitants. Shrine of Our Lady of Trsat is the Chapel Due to the industrial look and the port city of Vows. Trsat sanctuary has received atmosphere, it was the inspiration for Pro- thousands of gifts by pilgrims as a sym- fessor Balthazar's animated film series, the bol of gratitude for all their answered most psychedelic cartoon for children cre- prayers or miraculous healings. Many ated by animator Zlatko Grgić. seafarers also left a gift there as a thank- you note or a good-luck before they Best views are free headed on a long sea journey. These Trsat is a place to go and enjoy the best gifts are collected in a special chapel and panoramic views of Rijeka. Located are decorating all the walls and every above the city, it is accessible by walk- corner of the chapel.

Corporate brief on geopolitics & living 137 1

2 1 2 Rijeka Carnival is one of the oldest and largest cultural manifestations in the surrounding area and is one of the largest carnivals in the world

3 Sunset in the largest Croatian port

138 the Adriatic Journal 4 4 Rijeka's main street Korzo is the main promenade and meeting point for Rijeka citizens

5 Ctiy is a vibrant blend of the cold industry and the magnificent splendour of fine architecture influenced by Austria, Hungary, Italy and Yugoslav modernism

6 Molo Longo - Rijeka's longest pier

5 Once a year Rijeka carnival takes the lead The Rijeka Carnival is one of the oldest and largest cultural manifestations in the surrounding area and is one of the largest carnivals in the world. This year it will take place from January 17 until February 26 and will present an introduction to the Rijeka 2020 – the European Capital of Culture. Every year thousands of people dress up in creative masks, march the city streets. And compete for the most original, witted, and colorful masks title. The big parade is like a reunion of traditional and urban carnival and always strives to reflect the current social and political events. During carnival period the city is basking in colorful decorations. The or- ganisers say it is difficult to describe the 6 carnival in words or fully capture it in photos or television broadcasts. It must be lived and experienced! Welcome to Rijeka, the European Capital of Culture The European Capital of Culture project was launched in 1985 at the initiative of Greek Minister of Culture Melina Mer- couri and has since been carried by many European cities inlcuding Graz, Liverpool, Genoa, Amsterdam, Porto, and many others. Rijeka is the first Croatian city to take this title.

Corporate brief on geopolitics & living 139 Former industrial complexes are being transformed into art spaces where colourful and On 1 February, 2020 Rijeka will offi- migration that relate to the identity of Ri- dynamic cultural cially become the European Capital of Cul- jeka, but also current situation in the wider programs are put together ture (ECOC) with a grand opening that will European environment. The city will use take place in the port of Rijeka, the city’s use part of the finances it received from identity point. Preparations are in the final the EU funds to reconstruct the Galeb mil- stages that included transforming former itary vessel, which served as the floating industrial complexes into art spaces and residence of Yugoslav president Josip Broz putting together a colorful and dynamic Tito during his official trips abroad. The cultural arts program with over 600 indi- vessel will become the first Croatian mu- vidual events, with about 300 partner and seum ship, with plans to set up a perma- On 1 February 2020 associate organizations involved. nent exhibition devoted to the role of Tito The program of Rijeka’s ECOC project in the Non-Aligned Movement, that made Rijeka will officially is based on the city’s four core values: Yugoslavia a significant political player on courage, difference, progressiveness and the global stage at that time. become the European ambition, and the topics are intertwined, In 2020, two million tourists are ex- creating a “port of diversity”. It has been pected to flock to the area of Primorje- Capital of Culture. developed within a framework that sets Gorski Kotar. Things are starting to look a out three main themes: water, labor and bit different in Rijeka indeed!

140 the Adriatic Journal Stairs with a portrait of Josip Pičman, innovative Croatian architect

Corporate brief on geopolitics & living 141 L A town with many faces Mostar – where past and present visibly intertwine

142 the Adriatic Journal Photos: Shutterstock

Corporate brief on geopolitics & living 143 The interior of Muslibegović house, which was once a harem (women's) section of the largest homestead built for a Turkish judge in 16th century. It is hidden behind tall walls and is now under UNESCO protection

Divided city, City of Hatreds, City with no Reconciliation. Those are just a few nicknames and expressions that determined Mostar since 1995. For years, the capital of Herzegovina has been riddled by reductive and gloomy vocabulary where the focus on division has been an omnipresent fixation for journalists and researchers. However, Mostar is so much more than just a city with two phone networks, two electricity companies, two school systems and two universities – it is a Mostar is named after the bridge keep- city of balance between east ers (mostari) who in the medieval times and west, a city of multiethnic guarded the Old Bridge over the Ner- etva river, which is one of Bosnia and cultural heritage, and a city Herzegovina’s most visited landmarks of vibrant cultural events and due to its architectural variety of styles. festivals. The latter echoes cosmopolitan awareness and exposure to foreign aesthetic trends, which were carefully amalgamat- Author: Faris Kočan ed with indigenous styles. Illustrations M of these integrate the Italianate Francis-

144 the Adriatic Journal A Street in Mostar leading to the bridge can church, the Ottoman Muslibegovića began in 1557 and took nine years. Lit- house, the Dalmatian Ćorović House and tle is known of the construction of the an Orthodox church that was built as a bridge, and all that has been preserved in gift from the sultan. Since the end of the writing are memories, legends and the Bosnian War in 1995, great progress has name of the builder, Mimar Hayruddin. been made in the reconstruction of the an apprentice of Mimam Sinan who built city as over USD 15m has been disbursed many of the Suleiman the Magnificent’s on restoration. The most monumental buildings in Istanbul and around the em- venture in that regard was the refurbish- pire. This architectural masterpiece was ment of the Old Bridge, which was in July deliberately destroyed on 9 November 2005 inscribed into the World Heritage 1993 during the Bosnian war due to its List by UNESCO. “strategic importance”. But the bridge held little strategic value, and Andras The Old Bridge Area Riedlymayer termed the destruction as The 17th Century Ottoman explorer Ev- an act of “killing memory”, in which evi- liya Celebi wrote: “The Old Bridge is like dence of a shared cultural heritage and a rainbow arch soaring up to the skies, peaceful co-existence were deliberately extending from one cliff to the other”. In- destroyed. The importance of its recon- deed, the construction of the Old Bridge struction lies precisely in this – the Old

Corporate brief on geopolitics & living 145 1

1 Old town of Bridge area, with its pre-Ottoman, east- Mostar is always full 2 ern Ottoman, Mediterranean and west- of people, shops and ern European architectural features, is cafes an outstanding example of a multicul- tural urban complex. The reconstruction, 2 Destroyed which took place in 2004, is a symbol of buildings from the reconciliation, international cooperation 1992-1995 war are and of the coexistence of diverse cultural, still telling stories from the past ethnic and religious communities.

3 Colorful souvenirs are giving From Military Site to the streets of Mostar Innovative Green Design vibrant vibes 3 Centre At a deserted former military site, a hoary and impaired building anticipates new life. The new building, branded as the Green Design Centre, will become an educative civic information centre in Southeast Europe, showcasing new concept and technical solutions for the realization of lively and green building concept, supporting circular use of materials and energy within the built environment. The project, supported by the Horizon2020 Framework Programme of the European Union, will be developed as a demountable/replaceable configu- ration demonstrating waste reduction

146 the Adriatic Journal 4

4 5 6 Typical houses from the Ottoman era can be seen in the old part of the city. Their character and identity are visible through a combination of stone and wood of 60% and the reduction of the use of virgin materials by 50%. The Green De- 5 sign Centre will be a resourceful centre bringing together sectors who aspire to affiliate themselves with construction innovation and Reversible Building Design. Mostar is Becoming Bosnia’s Veritable Silicon Valley In 2011, Mostar has established its first Technology Park called INTERA (INovaci- jski i TEhnološki RAzvitak), which quickly became one of the generators of development and business success in Herzegovina. In 2018, INTERA helped 30 entrepreneurs to start their own business, generated 115 jobs and educated more than 1,300 people. Four years after the launch of INTERA, Mostar has profited from another platform called SPARK, which specializes as an advanced technology platform dedicated 6 to IT, business, and digital professionals. This initiative, which now functions as an umbrella platform for IT start-ups under the name of SPARK Group and employs 250 workers, boasts the IT company NSoft that was recognized by Deloitte as one of the top 10 fastest growing tech companies in Central Europe. SPARK Group, which unites more than 10 IT start-ups under one roof, is not just a business platform, but is also becoming a recognized player in education sector. Their educational programs, which are known as SPARKrea- tors, have taken care of 352 schools and associations for teachers in BiH and do-

Corporate brief on geopolitics & living 147 "Don't forget" message in Open Street tourist market in the old town

nated 700 mBot robots, an educational art gallery. Mostar has no deficiency of tool for learning about robotics, automa- uninhibited, bullet-riddled constructions, tion and programming. Currently, INTERA but the old bank, one of the tallest in the and SPARK, which have been cooperating area, is haunted by its especially incendi- closely since 2017, are organizing their ary function during the Bosnian War. The fourth Hackathon labelled Together, we main entrance has been bricked up, but are achieving more. that hasn’t stopped graffiti artists from sneaking in and making it a popular site Less Known Spots for urban consideration and art. Each of Mostar’ Old Bridge usually outshines the 10 floors has been ornamented by other hidden city gems, but they really the many artists who’ve made their way should not be overlooked. First, the Mo- inside. The drawings are various levels of star Sniper Tower, a former bank seized disturbing, inspirational and pointblank as a sniper vantage point during the Bos- bizarre. nian war, which is now a secret graffiti Second, Partisan Memorial Cemetery,

148 the Adriatic Journal a surreal memorial/cemetery looking like May 2013 and it is still a target of various puzzle-shaped headstone, was built to complaints as both Bosniaks and Bosnian honor the Yugoslav partisans who died Croats believe that the statue is a provoca- during World War II. The strange ne- tion as it is pointing towards their area in cropolis, which was planned by Bogdan a fighting stance. Bogdanović, looks like an abandoned fan- tasy kingdom that has fallen into severe A Place of Cultural Events shabbiness by the 1990s, with debris and Undoubtedly, Mostar is the place for cul- INTERA helped graffiti all over the cemetery. Third, Mostar ture and cultural events, spanning from 30 Aircraft Hangar, which was once a top- vibrant music to film events. Probably entrepreneurs to start secret facility hidden next to the Mostar the most famous one is the festival called airport, today lies abandoned in complete Melodies of Mostar (Melodije Mostara) their own business, blackness with debris and broken glass that became one of the leading music everywhere. This high cement ceiling is festivals in the region. It was first held in generated jobs molded into a charming curve, creating 1995. The festival is followed by Mostar 115 a massive solid hollow filled with noth- Summer Fest, one of the most vibrant and educated more ing but garbage and ricochets with exits music festivals that lasts three days and on either end and oversize blast doors ly- gathers the biggest regional names from than people. ing within the hangar. Finally, in happier different music genres. Here, we should 1,300 times, during the 1970s and 1980s, the also note their mission: “To unite all Yugoslav youth had a peculiar obsession: people of positive vibrations with mu- they devoured “kung fu” movies from sic as a universal language to encourage Honk Kong, and Bruce Lee as a symbol of them for greater social engagement and “kung fu” quickly became a hero for the the need for their own activation for the young Yugoslavs. This obsession never benefit of society as a whole”. Finally, if ended, In November 2005, Croatian sculp- one believed that Sarajevo Film Festival is tor Ivan Fijolić followed the idea of design- the only film festival in Bosnia and Her- ing Bruce Lee statue that was dissemi- zegovina, he was wrong. In 2007, Octavia nated by Mostar Urban Movement youth Theater and Film Association organized a group and unveiled it in Zrinjski City Park film show called Mostar Film Days that on the western side of Mostar. The sculp- grew into the Mostar Film Festival in ture was, due to the ill-treatment by the 2016. locals, removed and moved to Zagreb. It was brought back to Mostar at the end of

Corporate brief on geopolitics & living 149 L 2021 European Capital of Culture Novi Sad - the Pannonian melting pot

150 the Adriatic Journal Photos: Shutterstock

Corporate brief on geopolitics & living 151 Main square with the monument of Svetozar Miletić in the middle, casted in bronze. Together with the marble stand the statue is seven meters tall

the big smoke”, as well as “having a vibe Settled between Belgrade and that is overall more liberal than in other Budapest on the banks of the Serbian cities”. Lonely Planet says that river Danube, Novi Sad is one of “Novi Sad isn’t nicknamed the Athens of Serbia for nothing: its history as a vi- Serbia’s most beautiful cities. brant, creative city continues today in Also nicknamed the Serbian its established galleries and alternative Athens, is the first city of an EU music scene”. candidate country to be ever Down the history lane named the European Capital of Like many towns in Serbia, Novi Sad has Culture, the prestigious title it had to endured more than its share of will hold in 2021. destruction, strife, and foreign rule, all Novi Sad is the second largest city in of which visible throughout the town’s Serbia and capital of the autonomous buildings and squares. It was founded in Author: Ana Potočnik provinceN of Vojvodina, with a popula- 1694, transforming over the centuries tion of just over 250,000. It has been into an important trading and manufac- characterised as “a chipper town with turing hub as well as a centre of Serbian all the spoils and none of the stress of culture. The city suffered devastation

152 the Adriatic Journal Žeželj Bridge connects Novi Sad’s city area and Petrovaradin. It was originally designed by engineer during the 1848 revolution but was sub- Calling card attraction Branko Žeželj in late 1960. After sequently rebuilt and restored. Ruled by Novi Sad’s major landmark is the famous being destroyed by Austria-Hungary until the end of WWI, Petrovaradin fortress, built by the Hab- NATO bombing in Vojvodina joined the Kingdom of Yugo- sburg dynasty between 1692 and 1790. 1999, the brid- slavia in 1919. During the 1999 NATO Located on the right bank of the river ge was rebuilt in 2018 bombing of Yugoslavia, the city suffered Danube, the fortress stood as a the last significant damage when all three of defence of the Austro-Hungarian empire its bridges across the Danube were de- against Turkish invasions. The imposing stroyed, but they have been rebuilt since. structure still dominates the landscape Today, along with the Serbian capital city from 40 meters above the river stream. of Belgrade, Novi Sad is an industrial and In fact, it is also one of the largest for- financial centre of the Serbian economy. tresses in Europe, with 16 kilometres of Nowadays, it is home to people of vari- catacombs winding beneath it. Today, ous ethnicities, whose cultural, ethnic, the fort is home to the city museum and religious made Novi Sad’s open- but is still remembered as the prison mindedness one of key features of the that had briefly housed the Yugoslav city. Always willing to give a fair hearing president Tito (at the time still a humble to new things and ideas. Indeed, the city locksmith and a communist activist). A is so diverse it has six official languages! special feature of the defensive wall is

Corporate brief on geopolitics & living 153 1

1 Trg Slobode (Liberty Square) is the largest city square, built in the 2 18th century

2 Novi Sad’s charming promenade with its famous souvenir shop

the clock tower, which, unusually, has its hands reversed so that fishermen and guards can better tell time from a long distance. Today, the fortress also gives shelter to artists' studios, restaurants, clubs, as well as a hotel. Not to mention the beautiful view of the city.

Below the fortress, on the banks of the Danube, is the Strand (the German word for beach) which stretches 700 me- tres and is packed with sunbathers in the summertime.

154 the Adriatic Journal 3

3 old town with new buildings

4 Dunavska street is the oldest street in the city, lined with houses in neo-baroque style

5 Catholic Cathedral located in the city centre is its largest church

Corporate brief on geopolitics & living 155 The treasures in the city stitution (originally founded in Budapest centre in 1864 but later moved to Novi Sad). Novi Sad’s historic city centre is a treas- Matica Srpska also has the second larg- ure trove for architecture lovers - it est library in the country with over 3.5 abounds in buildings of different sty- million volumes, while the gallery keeps listic periods, including the gothic, ba- around 500 art pieces from the 16th to roque, secession and neoclassicism. 20th centuries that provide deep insight The inspiringly named Freedom square into Serbian heritage and traditions. is encircled by the neo-gothic Catholic Novi Sad was named cathedral and the neo-renaissance town First among equals hall, with a statue of Novi Sad’s great- Among 200 cultural events taking place 2021 European Capital est politician, Svetozar Miletić, erected in Novi Sad each year, EXIT festival of Culture, making it in the middle. ranks the first among equals, being the At the end of the Zmaj Jovina street, a laureate of the 2018 Best European Fes- the first city in a EU short walk from the square, lies the Bish- tival Award. The famous music festival op’s Palace. One of the city’s most im- has been taking place during the sum- candidate country pressive architectures, the art-nouveau mer months inside the Petrovaradin Synagogue building is also nearby. And walls since 2001, attracting thousands to ever hold the there is no shortage of museums and gal- of music lovers from across the globe. prestigious title. leries either. Since inception, it has grown from being The city’s oldest orthodox church, the the biggest festival in south-east Europe baroque style St Nicholas’s church, was to being one of the biggest in the whole built in 1730 and is the oldest Orthodox of Europe. The list of famous names that church in Novi Sad. The original decora- have performed at EXIT over the years tions were destroyed in the 1849 shell- includes Guns N’ Roses, Snoop Dogg, Pet ing of Novi Sad. In this church, Albert and Shop Boys, and The Prodigy. Mileva Einstein baptized their two sons Other major cultural events include – Albert Junior and Eduard – in 1913. the International Book Fair and Art Expo, Museum of Vojvodina is one of the the International Street Music Festival, oldest museum complexes in all of Ser- and the Novi Sad Jazz Festival, which due bia, while Matica Srpska is the oldest in November. Serbian literary, scientific and cultural in-

156 the Adriatic Journal EXIT festival is an award- winning summer music festival which is held at the Petrovaradin fortress

European capital of the Union.” The preparations are in full culture swing. In August 2019, Novi Sad mayor Novi Sad was named 2021 European Cap- Miloš Vučević announced that the city ital of Culture, making it the first city in would benefit from a new € 127m grant a EU candidate country to ever hold the to construct three bridges, as well as prestigious title. Following the decision redevelop the Karadjordje stadium and to award the honour to Novi Sad, the the Spens centre. Also planned, amongst European Commissioner for Education, others, a new music and ballet school, Culture, Youth, and Sport Tibor Navrac- a City Centre Hall, a pedestrian bridge sics said that “the opening of this pres- connecting Štrand with the little Ribarac tigious European programme to those lake, as well as a network cultural sta- (candidate) countries seeking full mem- tions across the city. Novi Sad was also bership is a way to bring them closer to the European Capital of Youth in 2019. and reinforce their cultural links with

Corporate brief on geopolitics & living 157 L The sunny city of eternal stairs Herceg Novi - beloved by artists

158 the Adriatic Journal Photos: Shutterstock

Corporate brief on geopolitics & living 159 Herceg Novi, a stunning coastal town by the Boka Bay at the foot of Mount Orjen, was the most popular holiday destination in Montenegro prior to the break-up of Yugoslavia in 1991. Spanning centuries, its history witnessed the split of the Roman Empire, the domination of both Western and Byzantine Empires, as well as of the Serbian Kingdom, Ottoman Empire, Venice, and France. In 1918, it became part of the Kingdom of Serbs, Croats and Slovenes. Though it has been overshadowed by Kotor and Budva since the 1990s, ongoing projects promise to put Herceg Novi back on par with its southern neighbours.

Author: Ana Potočnik Getting lost in the narrow streets of Herceg Novi

160 the Adriatic Journal bay later became part of the Kingdom of Slovenes, Croats and Serbs (the state was officially renamed Yugoslavia in 1929). A place where different civilizations met Exposed to many conquerors and cultural influences, Herceg Novi took something from everybody. Its landmarks bear vis- Settled on a steep hill that leads all the ible witness of its abundant history. To way down Sto the sea, Herceg Novi is the name just a few must-sees: Forte Mare cas- biggest coastal town in Montenegro with tle, whose construction started in the 15th just over 30,000 inhabitants. Despite be- century and continued under Venetian rule; ing one of the youngest towns on the Clock tower, built by Austrians in the 19th Adriatic, Herceg Novi has a very turbu- century; Kanli Kula fortress, built by the lent history, and each of its numerous Turks around 1539; and the Serbian church conquerors had left a mark on the city, Sveti Mihailo, located in Belavista square. making it one of the most picturesque Herceg Novi’s many nicknames – towns on the Montenegrin coast. Green city, Sun city, and City of artists – exist for a very good reason. Due to its Long and varied history southern location, encased by both the sea Founded 600 years ago by the Bosnian and the mountains, Herceg Novi has been Stairs leading King Stjepan Tvrtko I, Herceg Novi has to Sahat Kula clocktower repeatedly changed masters over its long history. The Turks conquered the city in 1482 and ruled it for two centuries until 1687 (with the exception of a short period of Spanish occupation between 1538 and 1539). After the Turks, Venice held control of the city until 1798, when Herceg Novi was first annexed by Aus- tria but soon ceded to Russia, which officially occupied Herceg Novi between 1806 and 1807. Passed on to France the same year, it formed part of Dalmatia until 1809, when it was annexed to the newly-formed Illyrian Provinces. Herceg Novi, alongside the rest of the Boka Ko- torska, was taken by Montenegrin forces in 1813, only to be expelled a year later by the Habsburgs who ruled until 1918. The

Corporate brief on geopolitics & living 161 1

2 blessed with an unusual micro-climate. 1 Old gates The annual average temperature is 16.2° leading to the scenic lush C, the same as the Mediterranean cities of garden Naples and Lisbon. The coastline at Her- ceg Novi might be only 6 kilometres long but is bustling with numerous beaches, 2 Herceg known for the small pebble that delights Novi is also colorful during children and parents alike (who do not the sunny need to worry about sand stains). The winter days city’s location is ideal for day trips by boat, either around the bay or into the open sea. With 200 sunny days per year, it should be easy to avoid July and August crowds, and still make the most of summer. Throughout the region, Herceg Novi is also revered as a spa and health destination. The nearby village of Igalo is rich in heal- ing sea mud and mineral water springs (the late Yugoslav president Tito owned his own personal spa there, today a popular tourist

162 the Adriatic Journal attraction). Loved by artists for its unique atmosphere and peacefulness during the winter, Herceg Novi is host to many cultural events throughout the year, such as Mimosa Festival, Montenegrin Opera Festi- val, Days of Music, Guitar Art Summer Fest, Film Festival, and many more. In recent years, some major construction projects have been approved and com- menced, promising to put this Boka-Bay jewel back on the luxury-destinations map. Turning old army barracks into a luxury marina The flagship development project of recent years – not just in Herceg Novi but in Montenegro overall – is the Portonovi luxury yacht marina. Once completed, it will employ a total of 1,500 mostly local workforce. In a city with just over 30,000 inhabitants, this will show. The project’s lofty ambition is to re- define maritime luxury itself, encompass- Clocktower ing an estate of 26 hectares and 3.5 km of is one of the coastline, unprecedented in a geography ments, charming villas, impressive town symbols of Herceg stingy with space. The marina will be able houses, and sleek penthouses. Read our Novi to shelter 250 yachts but also includes a article on Portonovi on page 106. boutique hotel of 120 rooms, the Che- not Health Wellness Spa. The hotel will Turning concentration be member of the One&Only family, the camp into luxury resort first European network of five-star hotels. Already in 2016, plans were approved to Moreover, the estate will also host the convert a former concentration-camp Espace brand, a collection of 275 diversi- island fortress into a luxury high-end fied properties that includes stylish apart- resort. The Mamula Island Resort is lo-

Corporate brief on geopolitics & living 163 Forte Mare is now used for film screenings on warm summer nights

cated on the uninhibited Lastavica is- ers. The plans to redevelop one of Her- land, known for the fortress guarding ceg Novi’s most popular tourist attrac- the very entrance to the Boka Bay, wil- tions has angered the locals but the dely considered to be among the most Swiss-Egyptian investor, Orascom, has beautiful bays in the world. The historic pledged to preserve the island’s unique With 200 sunny days fortress was built by the Austrian Ad- heritage, and to comply with conserva- miral Lazar Mamula at the end of the tion conditions set by the Institute for per year, it should be 19th century. The main function of the the Protection of Cultural Monuments. easy to avoid July and fortress was to stop enemy ships from "We will create a museum with the entering the Boka Bay. However, dur- best restaurant and the best hotel on August crowds, and ing both World Wars it was used as a the Mediterranean,” Orascom president concentration camp – over 2,300 were Samih Saviris said after his plans were still make the most of imprisoned between the spring of 1942 approved by parliament in 2016. The and the autumn of 1943, while 130 were company was given a 49-year lease of summer. killed or starved to death. the island and has pledged an initial in- Most of the fortress has been pre- vestment of €15m for the development served, including the old prison cells of a museum, 23 to 28 hotel rooms with that held concentration camp prison- a reception, four hospitality facilities, a

164 the Adriatic Journal 3 Lastavica island is known for its Mamula fortress which 3 takes up 90 % the island’s surface area. During WWII it was a concentration camp infamous for torture and cruelty to prisoners

4 Herceg Novi’s famous Mimosa festival takes place every year in February

5 Walking along the panoramic road by the sea offers fantastic views of the bay

spa and wellness area, and the supporting infrastructure. The resort is due to 4 be completed in 2020. Sorting out the rest of the city Apart from the two headline projects, there are several smaller schemes under way that address other biting issues in and around the city, including the poor state of public roads and water access on Luštica peninsula and Žvinje. The municipality has outlined 15 priority investment projects, of which as many as 11 relate directly or indirectly to tourism development. The list includes the Re- sort Njivice Lookout, a “Sport inn” hotel with its own football pitch in Igalo, the Porto Bono Tourist Complex in Luštica, a cable car line between Njivički put- Ilinica, a City bypass, the Zelenika-Rose 5 ferry line, as well as the revitalization of a narrow-gauge railway line through Herceg Novi. With such ambitions, it seems the years Herceg Novi spent in Kotor’s and Budva’s shadow are finally coming to an end.

Corporate brief on geopolitics & living 165 L North Macedonia's most seductive destination Ohrid - the spiritual capital

166 the Adriatic Journal Photos: Shutterstock

Corporate brief on geopolitics & living 167 168 North Macedonia,nicknamedthe Ohrid, acharmingtownbyoneof the oldestanddeepestEurope's far fromtheGreekandAlbanian nature conservationvaluesand for itsculturalheritagevalues. lake, istheeightlargestcityin Balkan pearl.Ohridisalsoone of 28siteswithamixedWorld North Macedonia.Locatednot borders, itisconsideredtobe p Hist Ohrid lake located bythe Heritage protection–forits a the mostromanticplacein

rt the orical oftownis Author: ŠpelaBizjak Adriatic Journ al

of light.ItwaslaterrenamedOhridprob- where itwascalledLychindos–thecity mentioned inGreekdocumentsfrom353BC first was town The importance. tination butaplacewithhugehistorical Ohrid isnotonlyapopulartouristdes- O ian flatworms, snails, crustaceans and 17 and crustaceans snails, flatworms, ian 200 ofthem,includingalgae,turbellar- still beingdiscoveredtoday.Asmanyas tat to1,200species,withnewspecies logical activity,itprovidesanichehabi- graphic isolationanduninterruptedbio- rich biodiversity.Asaresultofitsgeo- rare exampleofanancientlakewitha Lake Ohridisanaturalphenomenon, A museintheopen the firstSlavicuniversities. in the9thcenturyitbecamesiteof came aculturalandeconomiccenter During theByzantineperiodOhridbe- lake inEurope(threemillionyearsold). tablished aroundLakeOhrid,theoldest es- was town The hill. the on or cliff the ably fromtheworldvohridimeaningin

Photo: Shutterstock The ancient greek amphitheater with a view of the old town and the lake endemic species of fish, do not live any- cause of the 365 churches and monaster- where else in the world. That’s why the ies, including the oldest Slav monastery, lake is also branded as the Museum of that are scattered in and around Ohrid. Living Fossils, a Theater of Evolution and The churches where built during the Byz- the Balkan Galapagos. The natural beauty antine era and in the Middle Ages and are of the lake is, however, vulnerable, par- home to more than 800 Byzantine-style ticularly due to changes in water quality, icons of worldwide fame, dating from the and there is evidence of growth in nutri- 11th century to the end of the 14th cen- ents that threaten the oligotrophic ecol- tury. ogy of the lake. Monastery Saint Naum of Ohrid, named after its founder who is buried in Jerusalem of the Balkans the church, is located just above the cliff Settled on the lake’s shores is town Ohrid, above the lake, close to Albanian border. one of the oldest human settlements in In the 16sth century it was also a Greek Europe. Ohrid’s architecture represents school. Church of St. John at Kaneo is the best preserved and most complete overlooking the lake, providing visitors ensemble of ancient urban architecture with magnificent views. Built at the end of this part of Europe. The town was of 13th century, the church is a mixture nicknamed Jerusalem of the Balkans be- of Armenian and Byzantine architectural

Corporate brief on geopolitics & living 169 1

1 Lake styles. It is considered to be one of the Ohrid is one most beautiful churches in North Macedo- of Europe's nia as well as in the whole region. deepest and The whole town is like a museum in oldest lakes the open, surrounded with ancient walls and gates. Narrow streets and squeezed 2 Saint Naum houses in Ottoman architecture with of Ohrid, small yards feel like travelling back in fresco in the time. Ohrid was always a cultural and reli- Church of Saint Paraskeva of gious center but never an important trade the Balkans center. It is evident in the size of its bazaar - small and simple, along a single street. It starts at a small square where a thousand- year-old tree has made home., ending at the main square. Up on the hill above the town lies King Samuil fortress with great views over the lake. The fortress was heavily restored in 2003 with the addition of entirely new battlements where none had survived.

170 the Adriatic Journal Ohrid detail captured through city fortress. Ohrid is both a Cultural and Natural UNESCO World Heritage site

Corporate brief on geopolitics & living 171 View from the ruins of the old fortress watchtower with Lake Ohrid in the background

The Pearl of the Balkans the “recipe” - Talevi and Filevi families. Amongst Ohrid’s many nicknames, Pearl The pearls, protected with a Designation of the Balkans is the least obvious one. of Origin, were gifted to the late Yugo- The name is not due to its cultural and slav president Tito whenever he visited historical importance. And there are no Ohrid. oysters in the lake, either. But there are The pearls, protected pearls in Ohrid. And they happen to be Festive Summertime with a Designation of Ohrid’s trademark. The pearls come from Since 1961, North Macedonia’s most im- an endemic fish species that only live in portant music and drama festival has Origin, were gifted to lake Ohrid waters…kind of. The pearl is been held in Ohrid during the months of made using the scales from the fish to July and August. The international festi- the late Yugoslav create an emulsion, covering the surface val attracts artists and performers from of the pearl which is made from ground over 40 countries. Though no longer the president Tito shells. The emulsion gives the pearl a practice, concerts used to take place in- whenever he visited beautiful colour and shine, but how the side the old churches. Indeed, the festi- coating is exactly made remains a secret. val’s first concert was held in the church Ohrid. Indeed, only two families in Ohrid know of St. Sophia.

172 the Adriatic Journal 3

3 Church of the Holy Mother 5 of God Perivleptos (Sv. Kliment)

4 Girls in traditional clothes posing by apple orchard during the Prespa apple picking festival

5 Picturesque street shop with Macedonian national clothes on a sunny summer day

6 souvenir shop with local crafts - jewelry made from Ohrid pearls

Ohrid also attracts visitors during the Swimming Marathon where the best swimmers from all around the world participate to swim a 30km route from the St Naum monastery to the lake’s shore. One 6 of the most exciting and colorful events is the Balkan Folklore Festival featuring folk dances and music from different countries. A festival offers the possibility for participants to present their culture, tradition and cultural diversity through dance and traditional clothing.

Corporate brief on geopolitics & living 173 Adriatic Journal top events in the region in 2020

The European and Mediterranean Film Festival

Piran, Slovenia The European and Mediterranean Film Festival was established in 2010. From the very beginning, the main purpose of the festival was to bring quality European film to Slovenian audience, especially in Primorska region. Every year, the festival offers the viewers latest hitsfrom the world’s biggest film festivals, such as Berlin, Cannes, Venice, Toronto, Karlovy Vary, Sarajevo. 29 Jan–1 Feb 2020

Snow Queen Trophy Kustendorf Film Festival

Zagreb, Croatia Drvengrad, Serbia Snow Queen World Cup alpine ski race in Held in the fantastical, purpose-built village of Dr- Croatia. The men’s and women’s slalom vengrad, this festival is hosted by award-winning races take place on the Medvednica moun- director Emir Kusturica and showcases films from

Ja nu a ry taintop Sljeme. across the world.

Photo: Shutterstock 4 Jan–2 Jan 2020 10 Jan-18 Jan 2020

Mimosa Festival Kurentovanje International Carnival

Herceg Novi, Ptuj, Slovenia Montenegro The festival is held in the oldest Slovenian town, Ptuj, which celebrates 1,950 While many parts of years since its first written historical mention. Kurentovanje is Slovenia’s Europe are still under main cultural and ethnographic festival in springtime, the richest interna- the snow, people in tional Pustovanje (Shrovetide celebration) in the land. Ptuj has a unique Herceg Novi celebrate carnival legacy, deeply rooted in the mystical pagan character of Kurent. the blossoming of the 15 Feb–25 Feb 2020 mimosa flower. This year marks the festival’s 51th anniversary which Rijeka 2020 – Grand Opening of the European it will celebrate in tradi- Capital Of Culture tional style with dance, carnivals, masquerades Rijeka, Croatia and lots of fish! On 1 February Rijeka will officially become the European Capital of

a ry F e bru 19 Feb Culture (ECOC) with a grand opening that will take place in the port of Rijeka, the location that is this city identity point. Photo: Borko Vukosav - 26 Feb 2020 01 Feb 2020

Planica – Ski Festival of Lights Fabula Festival Jumping World Zagreb Cup Ljubljana, Slovenia Zagreb, Croatia Fabula – Literature of the Planica, Slovenia The intention is that the Festi- World is the biggest and most Slovenia’s biggest sports val of Lights in Zagreb becomes visited literary festival in event, hosting the best a perennial tourist product with Slovenia and the wider region. ski jumpers in the world the aim of generating greater Founded in 2003, it has hosted every year. For decades, tourist traffic at this time of many modern classics. 18th the valley under the year. The theme of the festival World Literature Festival - the Ponce mountains has is the spring that symbolizes festival’s focus is placed on the attracted the greatest the awakening, growth and power struggles among literary heroes of ski jumping. renaissance, therefore each of and political circles in both personal and public relationships. 19 Mar the locations will try to evoke the springtime through light 26 Feb – 22 Mar 2020 – 21 Mar 2020 performances that will be held

ch from 6 to 11 pm. 18 Mar – 22 Mar 2020 M a r Photo: Sanjin Katelan

Serbia World Music Festival

Gornji Milanovac, Serbia Gornji Milanovac town knows how to throw a party - it has been hosting the World Music Festival since 2008. Musicians and artists from across the globe take part in the festival. The audience can enjoy a variety of music styles, including gipsy, Balkan, ethno, jazz and folk music. NA

Belgrade Marathon Zadar Night Run

Belgrade, Serbia Zadar, Croatia The Belgrade Marathon is one of the big- Zadar Night Run is an annual event where over gest sporting events in Serbia. A group of 1,500 athletes compete in the race. This is the enthusiasts came up with a plan to restore biggest and most demanding race of this type in the race from Obrenovac to Belgrade that this region. Runners can choose to run for 2.5 km, existed in 1910 and was 23km long. 5 km or 10 km. April 26 Apr 2020 16 Apr 2020 Photo: www.zadarnight.run

Druga Godba Ocean Lava Montenegro

Ljubljana, Slovenia Kotor, Montenegro Druga Godba is one of the most prominent Ocean Lava Montenegro is more than a race – it world music festivals in Central Europe, is a movement! The triathlon is held in Bay of with a concept and approach that sets it Kotor and consist of three consecutive stages: apart from other festivals in this part of swimming, cycling, and running. You can register the world. at www.oceanlava.me/register/ if you’d like to 13 May – 14 May 2020 participate. 17 May 2020

Sergej Ćetković

Ljubljana, Slovenia Sergej Ćetković is one of the most popular singers in this part of Europe, and his music is par-

a y ticularly appealing to female audiences. After the sold-out concerts, Sergej will make his first appearance in Ljubljana in spring. M 19 May 2020 Photo: www.oceanlava.me

Festival Lent Baskerfest

Maribor, Slovenia Skopje, North Macedonia The story of Festival Lent is that of eve- Baskerfest, an international street festival, is nings filled with the scent of summer, the characterized by spectacular open-air events. This starry skies, under colourful lights, sounds, audio-visual festival transforms Skopje with the rhythms. The banks of the Drava river are creative energy of young artists. Street artists, transformed into a magical place. acrobat dances, live music, various performances, 26 Jun – 04 Jul 2020 pantomimes, dancers, art exhibitions, a craft bazaar and workshops provide excellent entertainment and promote new artists. Celine Dion 15 Jul 2020 Zagreb, Croatia French Canadian pop singer, known for her vocal prowess and her passionate showmanship. One of her most famous song “My Hearth Will Go On” from the movie Titanic won multiple awards and people’s hearts. J un e

Photo: Shutterstock 5 Jun 2020 September August July

Photo: DELO Photo:Bakir Ganic Photo: Shutterstock P midnight. votes areannouncedat Sarajevo, theaudiences’ the NationalTheatrein award ceremonyheldat Following theofficial on SouthEasturope. festival hasaspecialfocus This internationalfilm S to offer. Days Festival.LocatedinTolmin,thefestivalhostsbestartistsandbands themetalgenrehas Every yearinJuly,12,000metalfansfromover70differentcountriescome M will andadesireforgreatrelaxedsummervacationrightbythesea. Seasplash Festivalisoneofthemostlong-lastingCroatianfestivals,idealforeveryonewithagood S Novi Sad’siconic18th-centuryPetrovaradinfortress. Now worldfamousEXITisaSerbianrock,indieandelectronicmusicfestival held eachsummerin EXIT F dan stadiuminBelgrade. in 2020attheTashmaj- perform onSeptember1 Beneath TheEyrie,will the acclaimednewalbum who recentlyreleased American bandPixies, The world-famous F – 21Aug2020 and Herzegovina arajev easplash estiv ixies NoviSad,Serbia Belgrade,Serbia Sarajevo,Bosnia Tolmin,Slovenia Šibenik,Croatia et 1Sep2020 14Aug 26Jul–01Aug2020 16Jul–192020 9Jul–122020 al al D o estiv F ays F ilm estiv al

al 2020 ning beaches,allinthecompanyofsomeourfavouriteartists. gust topartyalongclearbluewaters,secludedwoodlandandstun dance gems,DefectedbringstogetherjustafewthousandeachAu the idyllicCroatianshores.RegardedasoneofCroatia’shidden summer, bringingwithitasunshineline-upofhouseanddiscoto Defected CroatiatakesoverTisno’sbeautifulGardenResorteach D dances, musicandinterestingnationalcostumes. The festivalbringstogetherdifferentculturesthroughsongs, B event, celebratingtheendofgrazingandtouristsummerseason. Cows rulethemountainsandpasturesinBohinj.Uniquetraditional C especially fromtheBalkans. fusion withethnictraditionsfromdifferentpartsoftheworld, The jazzfestivalinNišpresentstraditionalformstogetherwith N udv ows efctd Tisno,Croatia Budva,Montenegro Bohinj,Slovenia Niš,Serbia išville 17Sep–212020 13Sep2020 13Aug–162020 06Aug–112020 a B F all est C

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Photo: Shutterstock Photo: Roman Šipić/Delo Photo: Roman Šipić/Delo Photo: Shutterstock Photo: Shutterstock Photo: http://vw-ljubljanskimaraton.si/en – 28Oct2020 F Yugoslavia. first ofitskindinthen film, BANJALUKA71,the first festivalofanimated 1971, thecityhostedits back tothe1960s.In with filmanimationgoes Banja Luka’sloveaffair I A Herzegovina Bosnia and tional filmproduction. European andinterna- the bestandlatestin tural lifebypresenting the city’sautumnalcul- LIFFe, addsvibrancyto tival, betterknownas International FilmFes- Every year,theLjubljana F caterers enrichtheatmospherewiththeirChristmasgastronomicoffer. ber, DecemberandthefirsttwoweeksofJanuary,withcolourfulstalls. Rijeka’ where variousculturalandentertainmentprogrammesareheldduring Novem- Christmas andNewYearholidaysareespeciallycheerfulonRijeka’sKorzo, A L this partofEurope. imaginative Christmaslightsdisplays in city centre.Donotmissoneofthe most held inthefestivelydecoratedhistorical mas marketandcountlessfreeevents has avibrantatmosphere,withChrist - During theadventseason,Ljubljana always Slovenia I F nterna nterna estiv estiv estive jublana BanjaLuka, nima Ljubljana,Slovenia Rijeka,Croatia Ljubljana, dvent 24Oct Nov 2020 Nov 2020–Jan 2021 Dec2020–Jan 2021 al al ted D

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L jublana renamed toLGBTFilmFestival. was knownatthattime and LesbianFilmFestivalasit In its30thedition,theGay December –WorldAIDSDay. theque, traditionallyaround1 place attheSlovenianCinema- Slovenia. Filmscreeningstake international filmfestivalin at thesametimeoldest film festivalinEuropeand Festival. ItistheoldestLGBT in 1984aspartoftheMagnus The festivalwasfirstorganized LGBT F cast aspotlightontheagentsofimaginationandcreativity. explore theblurredlinebetweenimaginationandrealitybutalsoto 2020 OctoberSalonisTheDreamers,expressingthecurators’willto art professionalsfromdifferentcountries.Thechosentitleforthe festival alsowideneditsscopetointernationalinfluences,inviting influential arttendenciesinSerbia.Overthelasteditions, the biennialeventwhichbetterrepresentsemergingormost Founded bytheCityofBelgradein1960,OctoberSalonis O recreational runsofvaryinglengthsanddegreesdifficulty. marathon (42km)andahalf(21km),areaccompaniedby streets ofLjubljana.Thetwomainracesheldasparttheevent,a is mostlyduetoitshighlyattractivecourse,runningthroughthe Slovenia’s largestrunningevent.Itsgreatinternationalrecognition L jublana Slovenia Belgrade,Serbia Ljubljana,Slovenia ct 19Sep–01Nov 2020 25Oct2020 NA ober S ilm M alon F ara estiv up inthehistoricLibertySquare. the country.Around50woodenchaletsareset dina, isthe firstandoldestChristmasMarket in Serbia andthecapitalofProvince ofVojvo- Winterfest in NoviSad,thesecondlargestcity N NoviSad,Serbia o thon Dec2020 vi al S ad N ew G thaway, andStevieWonder. idols NatKingCole,DonnyHa- favourable comparisonstohis soul material,Porterhasearned well asmorecontemporary A giftedsingerofstandardsas brand ofjazz,soul,andgospel. his earthy,cross-pollinated to acclaiminthe2010swith vocals, GregoryPorterrose Known forhiswarmbaritone Y Ljubljana,Slovenia regory 9Nov 2020 ear F P air s or ter The Days of Poetry and Wine Festival brings together wine and poetry lovers Photo: Matej Pušnik

The Adriatic Journal in cooperation with Beletrina Literature among people

In 2020 many interesting events in the region will take place that are worth visiting. Beletrina has been one of the most ambitious publishers in Slovenia since its beginnings. It offers a superb literary and humanistic literary program and boasts publishing both classics and the most influential contemporary literary voices. Publishing, however, is not Beletrina sole focus. It is also intensely interfering with life and seeks to keep literature alive among people. The case in point are the two festivals Beletrina organises – Fabula, World Literature Festival and Poetry and Wine Days. Both events bring together eminent guests from across the world to Slovenia. Beletrina strives to bring as much world literature to Slovenian readers and find it important to bring Slovenian literature into the world. Many of Beletrina's authors have been translated into several foreign languages, regularly appearing on international tours and in foreign media.

178 the Adriatic Journal The Days of Poetry and Wine Festival The Days of Poetry and Wine Festival is held in Ptuj and many other cities in Slo- venia – in 2020 it will take place from 25 to 28 August. For the past 20 years, the largest and most recognizable international poetry festival in this part of Europe has been successfully combining the poetic word with the promotion of the highest quality Slovenian wines. In the last week of August every year Po- etry and Wine Days hosts many poets The World Literature Festival - Fabula is from around the world and selected local the largest literary festival in Ljubljana, winemakers. The Korean phenomenon attractingT some of the most prominent Ko Un, the American poet C. D. Wright names in contemporary world literature and the Swedish Nobel Prize nominee since 2004. Through the festival, Beletrina Lars Gustafsson are just some of the dis- succeeded in bringing star-studded au- tinguished names that rook part in past thors to Slovenia - from the most famous festivals. The main focus - poetry and contemporary American novelist Jona- wine - is joined by a thoughtful program than Franzen, whose novels were read by in the field of music, visual, photography, US President Barack Obama even before film and other arts for all age groups and released, through the Nobel Prize winner interests. Since 2014, the Days of Poetry for literature Herte Muller, to the infa- and Wine have been a member of the Eu- mous Michel Houellebecq, renowned for ropean poetry platform Versopolis, sup- his modern classics. The festival attracts ported by the Creative Europe program. almost 5,000 visitors each year, and with All festival events are free of charge, held its accompanying program caters to eve- in Slovene and English and attract more Photo: Matej Pušnik ryone - from the youngest non-readers to than 8000 visitors each year. the most demanding readers. In 2020, the The festival is attracting festival will take place in Ljubljana from more than 8000 visitors February 28 to March 8.

Corporate brief on geopolitics & living 179 There is a story behind 180 every Slovenian dish the Adriatic Journ the latestandmostimportant todate.However,asthefutureEuropean gastronomy hotspot Sloveniahasto putmoreeffortinemphasizingthattopSlovenian culinary numerous awardsandaccolades,withEuropean RegionofGastronomy2021being Slovenia hasexcellentcuisineandgastronomy, whichhasbeenconfirmedby al

creators uselocalingredients fortheirculinarymasterpieces. Agriculture, Forestry andFoodof cooperation withtheMinistry of the RepublicofSlovenia The Adriatic JournalIn L

Photo: Shutterstock Gastronomy in2021. Slovenia’s bidfortheEuropeanRegionof 2019-2023 andsuccessfullycompleted Marketing ofGastronomicTourismin Action PlanfortheDevelopmentand implemented therecentlypresented mary tourism product. The which includesruraltourismasthepri- Growth of Slovenian Tourism 2017-2021, tion of theStrategyfor of tourismwereoutlinedwiththeadop- foundations forthefurther development dustries. In2017and2018,keystrategic opment of products that link the two in- as wellagreatpotentialforthedevel- tainable useforagricultureandtourism, resents a tremendous potential for sus- surface. Alargepartoftheseareasrep- represents 80%ofthecountry'stotal by ruralareasandforests.Itscountryside The Slovenianterritoryislargelyshaped T Strategy also Sustainable Corporate bri ef ongeopolitics&living

181

Photo: Matevž Kostanjšek Food production after 2021 The Slovenian Ministry of Agriculture, Forestry and Food has prepared a strategic document resolution, Our Food, Rural and Natural Resources after 2021. Central to the resolution is food. The society per- ceives agriculture primarily through the concept of safe and quality food. Having a highly preserved natural environment, Slovenia has a key advantage to enable high quality and safe food production as well as an opportunity to increase its added value. Lack of promotion

Photo: Matevž Kostanjšek Though Slovenian agriculture and tourism offer tremendous potential for the development of unique tourist stories through creative, traditional or contemporary cuisine and gastronomy, thus far the two sectors haven’t been sufficiently interconnected. The basic ingredients for food and prepared dishes are yet to find enough convergence points with Slo- venian gastronomy. There is a lack of promotion for ingredients in Slovenian gastronomic stories. This also applies to beverages like wine and beer. Sloveni- an quality is reaching the European and perhaps the world peak, yet this is not reflected in the promotion of Slovenia’s achievements. This is why the 2021 strategy focuses on linking agriculture, gas-

Photo: Dean Dubokovič tronomy and tourism.

182 the Adriatic Journal Photo:Tomo Jeseničnik Photo: Terme Snovik

Excellent conditions With the adopted strategic focus, Slove- About IGCAT nia presents itself as a country which, in a IGCAT is a non-profit institute working small but specific area of green, unspoiled with regional stakeholder consortiums and surface specific land, offers excellent in the fields of gastronomy, culture, arts and tourism. It counts on the expertise conditions for the production and prepa- of a worldwide network of experts and ration of authentic food flavours. As such, works in partnership with specialised Slovenia has what it needs to present it- intergovernmental organisations. IGCAT self as a green destination. Through its aims to empower local communities by developed gastronomic products it can raising awareness of the importance to offer guests a combination of flavors safeguard and promote distinct food, from untouched nature, whose added culture, arts and sustainable tourism value is based on sustainable production assets. This is essential to balance against globalised food trends that are and processing, included in creative culi- impacting on our planet, health and nary and gastronomic art and traditions. local economies. Through the various systematic measures created and promoted by the Ministry of Agriculture, Forestry and Food, farms have the opportunity to develop various complementary activities, either by pro-

Photo: Terme Snovik ducing higher value-added products or by

Corporate brief on geopolitics & living 183 Photo:https://www.vilapodvin.si/ Uroš Štefelin (Vila Podvin), one of Slovenia’s best chefs, who, with modern techniques and creativity, transforms traditional dishes into culinary delights of Slovene Nouvelle Cuisine

“For Slovenia, European Region of Ga-

Photo: Jošt Gantar stronomy 2021 award is a challenge for the focused and cohesive action of all players in the field of gastronomy. At the same time, it is a challenge for setting up a development-oriented system that will connect at the destination level (connec- developing tourism services. Via activities newal, adequate settlement and entrepre- ting caterers, producers, artists, craft- and measures aiming to incentivize this, neurial opportunities for Slovenian rural smen, schools) and the state. over 450 tourist farms now offer accom- areas, where the agricultural landscape modation and excursions are possible to is intertwined with forests and well-pre- Tourists are looking for authentic, local almost 500 farms, with around 5,800 beds served ecosystems. Based on the safe and experience, and are interested in tradition. and 36,000 seats. quality ingredients from Slovenian farms Involving growers and local ingredients in and the specific and cultivated landscape the restaurant’s menus strengthens the Beneficial outcomes of Slovenian countryside, gastronomic community, deepens understanding of our roots, and shows that we care about Gastronomic tourism activities with sus- tourism also offers immense potential for the future. Only by connecting we will tainable management have many positive creating unique tourist stories and prod- preserve our identities and have some- outcomes, including the creation of new ucts characterized by rich flavors in tradi- thing to share with our visitors. Through jobs in rural areas. In the long term, these tional and modern culinary creations. connection we learn new stories and keep activities also affect the generational re- them for the future.”

184 the Adriatic Journal lovenian food with gastronomy (hotels, Slovenian foodwithgastronomy(hotels, tively connect producers and processorsof riculture, ForestryandFoodstartedtoac- terpieces. use localingredientsfortheirculinarymas- sizing thattopSlovenianculinarycreators empha- in effort more put to needs venia future Europeangastronomyhotspot,Slo- ous awardsandaccolades.However,asthe numer- by confirmed been has tronomy With thatinmind,theMinistryofAg- Slovenia’s excellentcuisineandgas-

Photo: Dean Dubokovič Small Businessoflovenia(tourist-hospi- Chamber ofSlovenia;Craftand Food Enterprises;TourismandHospitality of clude ChamberofAgricultureandForestry of Gastronomy2021),whosemembersin- sectoral workinggroup–EuropeanRegion rial advisorybodywasestablished(across- processed foods.Tothisend,aministe- promote theuseoflocallyproducedand sive cooperationcanenableprogressand restaurants, inns,catering),asonlyinten- Slovenia; Chamber of gricultural and Agricultural and

Corporate bri ef ongeopolitics&living Photo: Dean Dubokovič Photo:Tomo Jeseničnik environment. with theurban connect ruralareas sufficiency, and support localself- gastronomic tourism, encourage sustainable has variouseffectsthat of Gastronomyaward The EuropeanRegion

185 Photo: Terme Snovik Predrag Canjko, general manager at Terme Snovik, the highest-lying spa in the heart of Slovenia

“Locally sourced food is one of our key stories as it represents one of the pillars of the offering and is also linked to Kneipp’s philosophy. Honey, marma- lade, milk, cheese, bread, everything,

Photo:Tomo Jeseničnik and more, we offer our guests, prepared according to traditional recipes, produced in the immediate surroundings, fresh and delicious. In the spa in our own garden, we also cultivate herbs that guests taste About the European Region of Gastronomy award on their plates and feel at massages, European Region of Gastronomy award is part of the European Region of Gastronomy picking fruits in our orchard and enjoying platform that connects awarded gastronomy regions, guided by IGCAT, with the aim to their juiciness. contribute to improving the quality of life. It includes educational opportunities on he- althy and nature-friendly living, and sustainable development of gastronomy. The Europe- We are self-sufficient, and locally grown an Region of Gastronomy award is more than a mere tool of promoting national cuisine and processed food is a special experience and gastronomy. The award has various effects that contribute to sustainable deve- for our guests. It is an important part of lopment of the world, encourage sustainable gastrono- the high quality of our services, it brings mic tourism, support local self-sufficiency, and connect additional income to the local community, rural areas with the urban environment. The award also and emphasizes the Slovenian identity. highlights the importance of nutrition for one’s health and supports small and medium-sized enterprises. Local food is a global trend, not only in tourism. At Terme Snovik, we are proud to have been a cocreator of this trend since 2001, and we are also proud to be a part of the European Region of Gastronomy 2021.”

186 the Adriatic Journal Photo:Tomo Jeseničnik

tality section); Tourist Farms Association increasing the share of the use of of Slovenia; Cooperative Union of Slove- quality Slovenian food to raise the profile Gastronomic nia; Faculty of Agriculture and Life Sciences and quality of local cuisine to the gastro- (University of Maribor); Faculty of Tourism nomic level, tourism activities Studies – Turistica (University of Primor- identifying current obstacles and with sustainable ska); Ministry of Economic Development problems with local foods of Slovenian ori- and Technology; and National Education gin in the hotels, restaurants and cafés sup- management have Institute Slovenia. ply chain (HORECA) and catering establish- The task of the working group is to pro- ments segments, and adopting measures to many positive vide opinions for major decisions regarding address and improve them, the integration of Slovenian foods in the coordination of the promotional outcomes, including offer by Slovenian caterers, hoteliers and activities between the members and the other catering establishments, especially in Ministry of Economic Development and the creation of new regards to: Technology in the Slovenia - European Re- jobs in rural areas. gion of Gastronomy and 2021 project for the period 2019-2021.

Corporate brief on geopolitics & living 187 Aleksandra The Ministry of Agriculture, Forestry and Food the Republic Slovenia Pivec, Minister of Agriculture, Forestry and Food of the Republic of Slovenia Photo:Tomo Jeseničnik “Slovenia has established a few food- -related regional and local brands, which have achieved a certain level of success, Slovenian quality is but further work is necessary in terms of promotion (both within Slovenia and reaching the European internationally), drawing special attention to organic farming. In addition to food- and perhaps the stuffs and dishes, this applies especially to alcoholic and non-alcoholic drinks. These world peak, yet this involve mainly (boutique) wines, which are already garnering deserved international is not reflected in the success, although the promotional investments are rather modest. The European promotion of Slovenia’s Region of Gastronomy award will undoubtedly enhance the national promotion of achievements. cuisine and gastronomy, and create syner-

Photo:Tomo Jeseničnik gy with local environments and cultures.”

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The Adriatic Journal in Cooperation with Klet Brda Klet Brda – the cradle of Rebula wine

Rebula – wine of many faces. Modern for its directness, simplicity, and purity. Popular for carrying a cultural tradition established through centuries of taste history. Internationally appreciated because the best Rebula comes from Brda region.

190 the Adriatic Journal Corporate bri ef ongeopolitics&living

191

Photo: Marijan Močivnik Photo: Marijan Močivnik Barrique barrels in the cellar

alla dates back to the Middle Ages, when the name was used in a purchase and sale agreement concluded in 1336 in the village of Višnjevik. Back then, the term referred to the method used to produce the best white wines. LOCATION The Brda region always straddled the country borders. Despite the changes that this land underwent with the pass of centuries, despite the clashes and alliances of different nations and the rises and falls Several historical sources state that Re- of different rulers, Ribolla Gialla was al- bula or RibollaS Gialla has been present in ways a constant and reliable companion the Brda region for many centuries. It was of Brda people. Since it thrives in hilly and brought here by the Romans, who called marly areas, it remains the main variety it Helvola. The first mention of Ribolla Gi- of vineyards in Brda. It is grown in 22%

Bottles of Rebula Wine from 1957 in Brda wine cellar 192 the Adriatic Journal

Photo: Marijan Močivnik of all Brda’s vineyards, which amounts to rels, it develops more complex and fuller approximately 400 hectares. Klet (Cellar) notes. Ribolla Gialla is the perfect base for Brda is the world’s largest producer of Ri- sparkling wines but is also excellent as a bolla Gialla, which represents 28% of the still wine according to several oenological winery’s white wines. Every year, 1 to 1.5 interpretations. million litres of Ribolla Gialla are produced Klet Brda vinifies Ribolla Gialla in various at the cellar. ways – as a sparkling wine, a fresh distinctly varietal Ribolla Gialla, but also as WINE OF MANY FACES more mature and complex wine, and even Ribolla Gialla is a mineral and distinctly as wine produced from dried grapes and varietal wine. It is characterised by its with the use of ancient methods. fresh and fruity aromatic profile, which Ribolla Gialla can therefore become a re- includes citrus fruits, apple, linden flowers, freshing sparkling wine – Peneča Rebula; and cedar. As the wine matures in the bar- a fresh and fruity still wine – Rebula Quercus; or a rich and complex barrel-ma- THE BEST REBULA COMES FROM tured wine – Rebula Bagueri. In addition, BRDA due to its sociable nature, this variety is The marly terrain, the sunny steep perfect in various blends (Krasno White, A slopes, almost exclusive manual labour, plus - White). although contributing to less produce, And then there is Motnik, a very particu- provides the best results for this va- lar Rebula, produced based on a medieval riety. These conditions make for the method, which involves smoking barrels world’s best Ribolla Gialla. Bearing wit- with local herbs. Klet Brda’s winemaker ness to that are several international Darinko Ribolica and cellarman Igor Sku- recognitions and awards presented to bin have perfected this procedure espe- Ribolla Gialla wines by wine producers cially for Rebula. from Brda (on both sides of the border). Indeed, Klet Brda annually receives sev- FOODPAIRING eral recognitions for its Ribolla Gialla Sommeliers agree that Ribolla Gialla pairs wines. In 2018, Rebula Bagueri 2013 re- well with various dishes. It is great in com- ceived the highest platinum trophy at bination with white meat, mild cheeses, the international competition Decanter and summer salads. Furthermore, it is a World Wine Awards, scoring 97 points good aperitif with cold snacks and it goes out of 100. well with asparagus, herbal omelets, and several fish and seafood dishes.

Rebula cluster Photo: Marijan Močivnik

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