The Chamber of Commerce has an important role in order to rebuild the economy, as well as its industries and companies. How are you looking to increase your relevance and your input for your members?
I was appointed as a President of Chamber of Commerce after October 5th as a man who wished for changes in this country. Being in private business for 30 years in Yugoslavia, I accepted this role out of desire to transform the Chamber of Commerce into a Chamber of Commerce that works like other Chambers in developed European countries.
In the past year a lot has been accomplished, but I am still not satisfied with the economic situation in Serbia. Our country was in a very difficult position for the past ten years, and our economy is destroyed. To be the head of the Chamber of Commerce in this time is a very tough position, because it takes a longer period of time to rebuild our country.
Specifically, we have contacted a number of foreign investors, companies, and countries as well, and everyday a many people are going through our offices, informing themselves about possibilities for investments. One of the first delegations here was the American delegation last year.
The Serbian Chamber of Commerce also participated in development, adoption and promotion of all relevant legislation enacted in the Republican Parliament, which are in function of development of Serbia.
On the October 5th we had political changes, but this year we have started significant economic changes as well. A beginning of those economic changes is taking place thanks to the privatisation law, which states that in 4 years there will not be any state or public owned property. During that transition time for the companies, of course, there will be still some left as a burden on our economy until companies finish the privatisation process. Besides of the privatisation law, many other laws were enacted to be similar to European laws.
We have created opportunities for investment in Serbia, even though we have had unfortunate circumstances of being in an unstable political situation and war: such as problems with relations between Serbia and Montenegro, problem of Kosovo within Serbia, and war in Macedonia.
We are intensively making contacts with republics that used to be part of former Yugoslavia; Bosnia and Herzegovina, Croatia, Slovenia, and with other surrounding countries as well. We consider cooperation with our bordering countries very important.
For example, last week we have organized a visit and a meeting of business people from here in Pula, Croatia, and this was the first time after 10 years that a Yugoslavian plane landed on their airport. Chamber of Commerce and businessmen are going ahead of politics. Due to all the reasons and the regime it is difficult to communicate with other republics, but we are trying.
We have done a lot to reorganize the Chamber from inside and we are preparing for a serious reorganization of Chamber system. We prepared the law about reorganization of Chambers in Serbia, which should be passed in ten days by Parliament.
We consider the Chamber as a very important factor in reorganizing and transforming the companies in Serbia. The Chamber of Commerce is the one that is negotiating with the government and the unions; it suggests the laws that are significant for the economy, and it helps directly to companies in making business plans and in education.
You have many different companies in different sectors and many different regions, yet do you speak a common voice for the reforms that have to be taken, and perhaps the lay-offs that have to be done?
We represent 18 different areas within the Chamber of Commerce, and for each area we have different indicators, and suggestions of how things should be done.
We have to separate people who are working and who are not working in companies. We have people in companies that are there and that are not actively employed. All the employees that are extra and are not working have to be laid off and transferred to social funds. It is inevitable.
The government has to provide funds to help the ones who will stay without employment. The companies should be ready to create certain funds for these programs as well.
The State has to provide a normal banking system ready to support and credit our economy through regular market conditions. Right now, our banking system is in a situation where our currency, dinar, is stable but our interest rates on credits are 5-6% a month, which is not the case in Europe. If you are taking credits in foreign currency, like in USD or DEM, the interest rates are 6-12% annually, but I believe it is still high, and funds available by those interest rates are very limited. We have to have more of those funds, including Dinar funds with normal interest rates.
Serbia has a lot more private companies and its position is better than most other Eastern European countries. Until 1970, it was allowed to have one employee in private sector, until 1980 one could have 10 employees, until 1990 that number was 20 employees. I had two workshops with 20 employees each, and in 1989 when the Company law was enacted, I founded the first company in Serbia. Today, my company has around 200 employees and represents 40 different foreign companies. From the American region, we represent Snap On, Hilt and ESSAP, and many more. | How is the Chamber of Commerce positioning itself for investors?
We have the list of all, significant, big and small investments needed in Serbia. Our members are submitting us programs for investments and they are asking for partners. We process the programs and forward that information to the government and other Chambers, so one can find the same information in several different places.
The Board for Foreign Economic Relations covers specific countries, and they can provide precise information to individual investors. They can also receive the CD with the complete list of companies in specific areas including telephone numbers, fax numbers, e-mails, and contact persons. We have a huge database of our clients.
This is the moment to invest in Yugoslavia. A lot of people would ask: "Is it stable or secure enough yet?". Yet we are done with the old system and old regime, and are in better relations with Europe and the rest of the world every day. The ones that are investing now in Serbia have a bigger risk, but they will also be ahead of all the others who will come later.
Together with Croatia, Bosnia and Herzegovina, Macedonia, Bulgaria -- our surrounding countries -- we are drafting an agreement of cooperation in custom free trade. We also have this agreement with Russia, and we are working towards an agreement with Romania as well. Serbia is in the centre of the Balkans, a region with 60 million inhabitants. So whoever comes to Serbia could market their products in a much wider area.
Small companies are basically the cells of future development, yet they do not have enough of capital. They should be given the funds, and together with foreign companies they can be bearers of development, purchase of large systems and companies. They are good local partners for taking over larger systems. Financial companies that are ready to finance small private companies here, capable for take over of the larger system will also have success in Serbia.
If we look at the near future, you have been here for one year. What will be the most pressing challenges for next year?
Next year is the beginning of more significant economic developments in Serbia.
This year has passed a period of questioning, bringing up new programs and new plans and getting to know the possibilities, and finding our ways in new conditions, in both business and politics.
Many contracts with foreign companies have been signed and the beginning of their realization is planned for next year. I am expecting that all the funds from the Donation Conference will be in function within the next year and that economic development will increase.
I am hoping for a reduction of political tensions in this region. The interests are now in different regions, so hopefully they will forget about us. I believe that water is restless where someone else is making it restless. For ten years, we had quite enough, and I would wish for more peaceful waters with the world.
Before 1991, I was in business with all former republics. Fifteen years ago I was the representative the whole private sector within the Chamber of Yugoslavia, and as businessmen, we never had any problems about nationalities or cooperation.
The world helped the ones who were nationally oriented to start what happened... We are not the only guilty part for what happened in this region. The world has played a role in all this, but unfortunately, we are the ones who have lived through a big misfortune. As a person oriented towards the West, I feel that we suffered a lot for no reason and we are not as bad as they represent us in the media. Some of our politicians were very respected in the world for a long time, and the world negotiated with them and never judged them until the last two to three years.
What is your final message to the readers of Forbes Global?
For all the businessmen who would like to invest in new markets, I would say that they should come here, visit us, get to know us and see what we have to offer. We need to cooperate, we need knowledge, technology -- it is not all about money.
We still live in an area where the workforce is of high quality and low cost. So one can achieve success here easily if he or she has the knowledge and technology.
The secret of our economic success will take form in the coming period. I am an optimist, and I believe that we will recover economically very fast, considering that in economic terms, a period of 5 and 10 years is a sign of rapid and productive change.
Note: World Investment News Ltd cannot be held responsible for the content of unedited transcriptions. |
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