SERBIA: EXPERIENCE ENGAGING DIASPORA COMMUNITY

UNCLAS BELGRADE 001094

SIPDIS
SENSITIVE
DEPT FOR S/GPI AND S/P

E.O. 12958: N/A
TAGS: EAID OEXC OIIP PGOV PREF PREL SCUL SMIG SR
SUBJECT: SERBIA: EXPERIENCE ENGAGING DIASPORA COMMUNITY

REF: STATE 86401

SUMMARY
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1. (U) The Serbian diaspora community in the United States is
geographically disparate and not unified on policy issues. The
community has not yet made substantial investment in Serbia or been
successful in interacting with the host country on political issues.
End Summary.

SERBIAN DIASPORA COMMUNITY
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2. (U) The Serbian diaspora in the United States is diffuse, except
for concentrated communities in Chicago, Cleveland, Pittsburgh and
Los Angeles. Official figures put the number of Serbs in the United
States at 600,000, but unofficial estimates are as much as 1 million.
The Serbian Unity Congress (SUC),headquartered in Washington, DC,
is the largest diaspora organization. The SUC maintains a regular
newsletter and a Facebook group. There are also several
organizations focused on Serb-American business: The U.S.-Serbia
Business Council, Serbian-American Business Council of New York, and
the Serbian American Chamber of Commerce. The Serbian Orthodox
Church plays an important role in maintaining the cultural heritage
of the Serbian diaspora. In Washington, information is shared
through online groups such the Yahoo group "DC_Balkan," which has
approximately 300 members.


3. (U) The diaspora community engages with the host country through
financial support from remittances and through direct participation
in country affairs. In 2008, remittances from the Serbian diaspora
amounted to an estimated 11% of GDP, and in 2009 remittances are
expected to reach $5 billion. Serbian diaspora members also seek to
influence Government of Serbia (GOS) policy on restitution of
property seized after WWII by the communist regime and Kosovo issues
(both cultural preservation and Serbia's opposition to its
independence). The GOS recently passed a Planning and Construction
Law, which effectively closes the door on in-kind restitution,
despite strong opposition from international restitution claimants.
Some Serbian diaspora members have also advocated that the GOS take a
constructive approach to Kosovo issues and focus on Serb minorities
living in the area. In that vein, the Serbian Orthodox Church in
North American has engaged in humanitarian relief efforts related to
Serbian refugees coming from neighboring states in the aftermath of
ethnic conflicts that engulfed the region.

BUSINESS TIES
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4. (U) Despite large remittances to Serbia, the diaspora has not yet
made substantial, targeted investments in Serbia. The Ministry of
Diaspora (MOD) claims that since 2000, Serbian diaspora members have
invested more than $500 million in 380 Serbian companies which employ
10,000 people, but this data cannot be confirmed. Many diasporans
have scientific backgrounds and are looking to increase ties between
scientific institutions, but these efforts are not yet on a large
scale. Some members of the scientific community are filtering back
into the country (after leaving to avoid conflicts in the 1990s) and
starting businesses, but these have generally been individual
efforts.


5. (U) Three primary reasons explain lackluster diaspora investment
in Serbia: poor investment climate, diaspora investor mistrust of
local beneficiaries, and lack of contacts. Both the World Bank's
"Doing Business" guide and the World Economic Forum Global
Competitiveness report score Serbia low on investment climate
compared to Serbia's neighbors. In addition, post believes that the
mistrust by diaspora members (stemming from several high profile
investments by diaspora investors held up in legal battles) is the
prime impediment to larger scale investment. However, this mistrust
is mutual and local beneficiaries are also skeptical of promises made
by potential investors because prior commitments by diaspora
investors have not been realized. Finally, most unsolicited requests
post receives from the diaspora community are requests for contacts,
indicating that the diaspora community lacks their own network in
Serbia. Post believes that there are opportunities for cooperation
with the diaspora and continues to explore ways to encourage possible
investment efforts.


SERBIAN GOVERNMENT OUTREACH
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6. (SBU) The Serbian government created a Ministry of Diaspora (MOD)
in 2004 to reengage the diaspora to support political, economic and
cultural efforts. The current Minister of Diaspora, Srdjan
Sreckovic, is vice president of Vuk Draskovic's Serbian Renewal


Movement (SPO),and takes a pragmatic, pro-Europe approach to policy
issues. However, MOD administration tends to be more nationalistic,
causing a divide in the Ministry. Given the somewhat fractious
political nature of diaspora communities and the history of
GOS-diaspora relations, the Ministry has so far not been as
successful in mobilizing diaspora groups to support its initiatives.


7. (U) Indications of MOD strategy and priorities for relationship
building with diaspora community can be found in the Bill on diaspora
and Serbs in the Region (expected to be passed by Parliament in
October),although MOD is hesitant to discuss specific strategy until
after the bill passes. The bill addresses legal issues, better
direction of remittances into Serbia, preservation of cultural
identity and funding for diaspora organizations. In addition, the
bill proposes a Council for Serbs in the region, suggesting a
holistic approach to Serbian communities in neighboring countries.

US GOVERNMENT OUTREACH
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8. (SBU) Several sections at post have made efforts to reach out
proactively to diaspora community members. USAID has made
presentations on US assistance to diaspora groups, sought ways to
partner with Serbian-American business owners and has used its
ongoing activities to bring Serbian-American technical experts to
Serbia. Study tours and trade show participation in the United
States usually include meetings with Serbian diaspora business
people. In addition, Foreign Commercial Service participated in an
Information Technology summit held by SUC this spring. FCS assisted
by counseling SUC how best to proceed, finding a speaker, and sending
a domestic representative to attend. FCS observed that SUC lacked
the capacity to recruit entities outside their membership for
commercial events. SUC needed to strengthen its management and
institutional capacity to become a more effective diaspora
organization to influence policy and investment in Serbia.

COMMENT
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9. (SBU) The disparate interests and experiences of the Serbian
diaspora has limited the communities' ability to organize around
common interests both in Washington and in Serbia. The diaspora
community could play a constructive role in advancing Serbia's
economic and political development, but without further coalescing of
diaspora interests the efforts will remain isolated. End Comment.
PEDERSON