Belgrade Comes Out of Hibernation
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1 It was recently selected as Southern Europe s City of the Future by The Financial Times. Belgrade lives up to its worthy title, which is reflected in its economical and social advancements. A city with Belgrade Comes Out of Hibernation by Sanja Lucic multiple identities and a surging urban dynamic. Serbia s capital has become fertile ground for direct foreign investments and many multi-national corporations have chosen Belgrade... Contrasto
2 T oday, Serbia s capital is a huge construction site under a wide open sky: investments in infrastructure, transportation and above all the increase in land development and building sites will bring 100 million euros into the city this year alone, compared with a meagre 10 million back in the year These figures, together with the high level of foreign investment (788 million euros in 2004), good quality human resources, the development of IT and telecommunications companies as well as new schools and hospitals, earned Belgrade the title of Southern Europe s City of the Future for the year 2006/2007. The honour was awarded by FDI Magazine, a specialised publication concerning direct investments and published by The Financial Times, providing potential investors with both a guarantee and a recommendation. Belgrade s candidacy for the international award was sponsored by SIEPA the Serbian Investment and Exportation Promotion Agency and by USAID the United States Agency for International Development based on its economic potential (demonstrated by the 8.6 % increase in its GDP during 2004), prospects for tourism and cultural offerings, not to mention quality of life: all factors that impart a high level of security for foreign investments, and are substantiated by a promotions strategy aimed at attracting direct investments. But what does it really mean for Belgrade to be Southern Europe s City of the Future? To potential investors, answers Natasa Vujovic of SIEPA, Belgrade offers not only an attractive location that is well-connected to the rest of Europe by highways and secondary roads, an airport and two large rivers, but the opportunity to take advantage of a large economic and political centre as well. Many multi-national corporations have chosen Belgrade as their headquarters in the Balkans. The city has a population of almost Contrasto_Anzenberger
3 BELGRADE COMES OUT OF HIBERNATION two million: it is the largest city in the region, 42.3% of its citizens speak English and there are thirty-one university faculties with more than 71,000 students. Belgrade, as borne out by European statistics, is also a metropolis on the leading edge when it comes to the safety of its citizens. It enjoys continued growth in foreign investments, especially from Italy: in 2004, at the first Italy in Belgrade meeting there were 500 participants and double that number in following years. The enormous interest that Italian companies have in this city is evidenced by an increase in the exchange of goods of more than 40% in 2005, a trend that has continued throughout 2006 as well. Italy is Serbia s most important trade partner: notable organizations such as UniCredit, Findomestic, Banca Intesa and Assicurazioni Generali have all established their presence in Belgrade. Italian companies in the city are also at an advantage with an abundance of cheap labour. And the fact that many of them have decided to transfer their production processes from China to Serbia proves that it is a welcoming environment for small to medium size enterprises. For the third year in a row, the OECD (Organisation for Economic Co-operation and Development) has awarded Belgrade the title of Best Greenfield Investment in Southeast Europe. This year it was for the Belgrade City Airport project, which had a total expenditure of 120 million euros, most donated by the Africa Israel Corporation and the Israeli company, Tidhar Group Ltd. In previous years the award was given for investments in the area by the Ball Corporation (U.S.A.) and Metro Cash & Carry (Germany). In 2005 the Serbian capital was chosen as the venue of the annual shareholders meeting of the European Bank for Reconstruction and Development. Furthermore, in the field of transportation, the Nikola Tesla Airport was named the Best Regional Airport for 2006 by the British Institute for Transport Management. Among the new projects to be embarked on is the construction of the largest cargo terminal in this part of Europe. In its first year alone, the logistics centre is expected to generate a 700% increase in freight traffic, and will result in the creation of five hundred new jobs that could conceivably grow to 10,000 by the year Members of the IPI (International Press Institute), an international organisation for the development of the profession of journalism will hold a convention in Belgrade in June of 2008, in conjunction with its 57th Annual Meeting. Additionally, from the 12th through the 26th of August 2009, the city will be the stage for the 25th Annual Universiade ( for the occasion, work has already been started on the Block 67 section of New Belgrade for the construction of the village and sports facilities that will host student athletes from 170 different countries. Olivera Lazovic, the director of Belgrade s Tourism Board told us there is a lot of interest in investing in the tourism sector: Belgrade got its first private hotel thanks to collaboration between Serbia and Greece. Now there are ten hostels that weren t previously available as accommodation in this city where an average night s stay costs euros. Last year, Belgrade was the chosen destination of 300,000 foreign tourists with more than 700,000 overnight stays. Italian guests represented 18% of that total. The city has a unique geographic configuration: it has two rivers, two mountains and two forests all within the city limits. This provides enormous potential for tourism development. The presence of foreigners has been increasing by about 20% each year. Last July, Belgrade hosted 7,181 tourists for cruises on the Danube. By 2007 the City Card that has been created in cooperation with the ECT (European Cities Tourism) will be ready. Even low-cost airlines like Germanwings and Centavia are entering our market, opening the city up to European citizens and weekend tourists. The venture called General Plan for Belgrade 2021, which was developed by the city s urban planning institute and launched on the initiative of the City of Belgrade with technical and financial support from the European Agency for Reconstruction (EAR), _Project Belgrade envisages the recovery of large empty spaces on the left bank of the Danube or the banks of the Sava river, where new commercial districts could be built 166
4 gives support to investments in the city s infrastructure with help from the office of project management JUP and collaboration from Danish consultants Cowi S/A, and has helped with the start-up of some important projects, among them: a new water purification system, planning and re-organizing main roads, cultural and sports centres and the port on the Danube, a new bridge over the Sava River, a plan for the Light Rail subway system which is expected to be ready in 2012, redevelopment of the city s waste disposal system, a study for a new model of city traffic patterns with both internal and external beltways. Olycom The Minister of Finance and the mayor of Belgrade have undersigned a national plan for investment that includes projects of critical importance to the city and which are scheduled to be completed by the end of 2007, for a total of 531 million euros. During the 1990s, many young people left the country in search of a better life: today, it s the exact opposite. Many have returned to the city and with their new ideas and high levels of education they represent the true fortune and heritage of Belgrade. One example is Milos Milovanovic, Coordinator of Project Belgrade (which can be seen at the Biennale of Venice from 12th September through 19th November 2006). His words succinctly describe what the citizens of Belgrade envision their city will be like in the near future: Our projects involve wide open spaces along the left bank of the Danube and the banks of the Sava River where new commercial districts could arise, as well as many areas of the city centre that are excellent prospects for revitalization. Clearly, the fulfilment of these plans depends on the amount of investment they receive, but we believe that Belgrade s potential will be recognized and its nomination as the City of the Future is confirmation that we are on the road to success. Our idea is to make it a thriving metropolis, where innovations in city planning and architecture can be implemented. The cost of labour in Belgrade is three times less than in other European nations and with 167
5 BELGRADE COMES OUT OF HIBERNATION the transfer in loco of their production branches, companies from all over the world can benefit from significant savings. Microsoft, for example, has opened a development centre in Belgrade, just as it did in China and India: we expect other companies will follow their example. Belgrade can furnish qualified and educated personnel that cost a lot less than their similarly qualified counterparts in other countries. It offers a pleasant atmosphere, good quality infrastructures that are undergoing constant expansion, and exciting events and activities at any time of the day or night. The Belgrade Plan tries to encourage personal responsibility and education for the new generations that will build a new city. Belgrade has the necessary human resources: in fact, that is its most promising characteristic and it is therefore necessary to invest in people as well as their formation and education. Belgrade is a city of a thousand identities, with an exciting urban dynamic that connects cultures, with all their social contrasts and cultural differences, an architectural chaos: it is a kind of multidisciplinary phenomenon. With its rapid development and economic growth it offers an excellent quality of life where there is time for everything, without hurry or stress. Natasa Vujovic of SIEPA reminds us of the city s strong points: 192 monuments; Kalemegdan Park; the beaches along the Sava River; Ada Ciganlija, or the Sea of Belgrade ; Skadarlija, the Bohemian section of the city; more than 40 churches, 47 museums, 30 theatres, 74 libraries and many more festivals; the horse racing track and above all, a booming nightlife that offers thousands of meeting points, discos and an entire street filled with outdoor bars and cafes. Marina Kosanovic, Managing Editor of the fashion magazine Elle-Serbia (it s the 38th Contrasto_Laif
6 spin-off edition of the publication and celebrated its one-year anniversary in 2006) says that the city is unique because human relationships still exist and people are not cold and detached, as they can become living in a big city. With regard to fashion: Belgrade boasts frequent single brand store openings of international repute. The Serbian capital is also becoming a party city where life is a big adventure, something is always happening and boredom never sets in. Belgrade has a positive energy that moves through everything, rendering it a city full of charm and making visitors want to breathe it all in. It s a city waiting to be discovered. Dejana Milovic, a journalist with the wellknown radio station B-92 believes that with _No fewer than 192 monuments, the beaches along the Sava river and a lively nightlife with myriad nightspots make Belgrade an as-yet undiscovered city of many charms a few more hotels, good infrastructure and investment, Belgrade could become the perfect city to live in. Radio B-92, with its transmissions and independent, investigative reporting, is also trying to make Belgrade an attractive city for foreign investments. The city s mayor, Nenad Bogdanovic, is convinced that within three years Belgrade will construct one and a half million square meters of living and working space and that the average salary will be 500 euros per month (Serbia s Institute of Statistics estimates that the median net monthly income in July 2006 was 21,774 dinars, equivalent to 250 euros). After the 1.5 billion euros acquisition of the Serbian mobile phone carrier Mobi63 by Norwegian company Telenor, the government predicts that foreign investments for this year will top 3.5 billion dollars. At this rate, Belgrade will earn the title of City of the Future once again next year and not just in Southern Europe. Contrasto
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