Serbia a "black hole" on land restitution map

Belgrade - After World War II, the communist regime in Serbia confiscated a house and some 30 acres of land belonging to Dragan Djokic's grandfather to build a school and a school yard.

The family was later compensated for the house, but not the land. The school was built without a yard.

Djokic is one of thousands of people in Serbia waiting for the government to adopt a restitution law and begin the return of the properties confiscated or 'nationalized' after the war.

Serbian officials however argued that restitution would be an expensive undertaking, costing taxpayers millions of dollars at a time when the economy, weak since the break-up of the former Yugoslavia, is being battered by the global economic crisis.

But since the country aspired to join the European Union, Belgrade began working on a restitution law, which it planned to adopt by the end of last year.

State secretary in the Finance Ministry Slobodan Ilic said he would resign if the law is not passed by the end of 2009.

The law has yet to reach Parliament and Ilic has not kept his promise amid speculation fuelled by the secrecy surrounding the proposed law.

According to the unofficial reports, the government is to propose the return of the actual property or its value in bonds.

The owners of confiscated properties suspect the government is deliberately dragging its feet with the restitution law because most of the property in question is now state-owned. Political parties obtain money through the lease and sale of such properties, often at low prices, to business tycoons.

The original owners reject compensation in the form of bonds because the country has no cash to pay them. They are demanding that the properties be returned or, in the case where the land now houses public buildings, alternative land must be provided.

Serbia is 'a black hole' on a map of former communist countries with restitution laws, says Milivoje Antic coordinator of The Network for Restitution in Serbia.

'A data base with records of confiscated properties, made in 2005, shows the majority of the confiscated property is in the hands of the state and only one fifth of all that was nationalized is now being asked for,' Antic told the German Press Agency dpa.

Since Serbia is more than 20 years behind with restitution compared to other ex-communist countries, many of the original property owners have died or lost interest in restitution, he says.

Antic dismisses the government's assessment that restitution would cost the country millions.

'The problem with restitution in Serbia is corruption and the law on planning and building,' he says. Often the ownership of land is transferred to those leasing land and building on it, with the previous owners bypassed, he says.

The law on planning enables parties in power to hand the nationalized land over to tycoons in exchange for financial support, he added. 'That is how political parties are being financed.'

That law, which allows 'all investors whether local or foreign, to buy the land directly from the state or municipalities', is a thorn in the side of people waiting for restitution.

Those campaigning for restitution point to the 2007 sale of bankrupt retail chain Robne kuce Beograd as an example. The government sold two buildings that were nationalized in the 1930s along with it, without compensating the original owners or their descendants.

The planning law also 'enables the state to handle the properties which are waiting for restitution but are not protected,' according to Dragana Milovanovic from the League for the Protection of Private Property.

'This way, instead of protecting those properties and returning them to old owners, the state would be able to sell them while old owners will get bonds which they would not be able to cash in because the state is broke,' she told the daily Danas newspaper.

'The problem is that tycoons who already bought some firms and got the rights to use the land would now, under the protection of government, be able do buy the land under their own terms,' Milovanovic added.

'The story of restitution is the story of whether we will see better days, whether we will grow stronger economically, whether we are truly for European integration, whether our state is a regulated one,' says Antic.

Djokic is determined to see justice. 'I'm still waiting for the restitution of my grandfather's land and I will not give up.'

Source:monstersandcritics.com/

Leading Boston Companies to Participate in Trade Mission to Serbia

Prominent companies travel to Serbia to discuss potential investments
BELGRADE, Serbia & BOSTON--(Business Wire)--
Rasky Baerlein Strategic Communications, with its client, the Serbian Investment
& Export Promotion Agency (SIEPA), is conducting a trade mission to Belgrade
from November 1-5, 2009. As the global recession recedes, Serbia has begun to
show promise as a key country for foreign investment, given its low wage base,
skilled workforce and pro-business, European-styled government. Despite the
downturn, Serbia has resisted raising taxes on businesses or individuals and the
country continues to provide generous incentives to foreign companies that set
up operations there.

The five-day mission will be attended by members of the management teams from
four U.S. companies, including three from the Boston area. The U.S. companies
will meet with key government officials in the Serbian government, will tour
potential manufacturing sites and will consult with officials at U.S. companies
that have already made the investment in Serbia.

"We are proud to organize this trade mission and are pleased by the enthusiasm
these companies have shown toward investing in Serbia," said Larry Rasky,
Chairman, Rasky Baerlein Strategic Communications. "Serbia is a compelling
target in Europe for companies exploring opportunities for foreign investment,
and we`re delighted to work with SIEPA to show these companies all that Serbia
has to offer."

Among the trade mission participants are:

* Boston-Power, Inc., an award-winning provider of next-generation lithium-ion
battery technology.
* PharmaSphere, LLC, a biotechnology company that utilizes TerraSphere
technology to produce high-value, plant-based biocompounds for pharmaceutical
and nutraceutical markets.
* Metric Engineering, a leading provider of transportation engineering services.

* Milenko Beslic, a successful Boston-based entrepreneur who co-founded
CheapToday.com and CheapFlights.com, plans to open a technology development
center in Serbia, called Teknuvo.

"We are honored by the attention these businesses are showing Serbia," said
Vesna Peric, Director of SIEPA. "This is tangible evidence that our country is
an extremely competitive target for foreign investment. Serbia`s highly-educated
workforce, economic incentives and strategic location in Europe makes Serbia a
natural fit for strong U.S. companies that are looking to expand into new
markets. I would also like to encourage other U.S. companies to take advantage
of this momentum and the strategic advantages that Serbia is offering to foreign
investors, in order to make their businesses more profitable."

Serbia, like Boston, has a reputation for its expertise in the IT, biotech and
cleantech sectors. Serbia`s leadership in these fields stems from its
outstanding pool of intellectual capital, attractive labor costs, excellent
worker skills and a good communications network.

About Rasky Baerlein Strategic Communications

Rasky Baerlein Strategic Communications is a nationally recognized public and
government relations firm with more than a decade of experience providing
exceptional client service to organizations that operate at the intersection of
business, politics and media. With offices in Boston and Washington, D.C., the
firm offers a comprehensive range of services, including ballot initiative
management, corporate communications counsel, community relations, crisis and
reputation management, government relations, grassroots organizing, investor
relations, media and presentation training, litigation support, lobbying, and
public sector business development. For more information, please visit
www.rasky.com.

About SIEPA

Serbia Investment and Export Promotion Agency (SIEPA) is a government
organization dedicated to effectively helping foreign investors and buyers,
while raising Serbia`s profile in the minds of international business
decision-makers. Created in 2001 by the Government of the Republic of Serbia,
SIEPA`s mission is to support foreign companies seeking to set up or expand in
Serbia and Serbian companies when doing business worldwide.

Rasky Baerlein Strategic Communications
Marissa Goldstein, 617-443-9933 x357
Mgoldstein@rasky.com

Source:reuters.com