VZCZCXYZ0000
RR RUEHWEB

DE RUEHBW #1094/01 2661738
ZNR UUUUU ZZH
R 231737Z SEP 09
FM AMEMBASSY BELGRADE
TO RUEHC/SECSTATE WASHDC 0239

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 
------- 
 
¶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 
-------------------------- 
 
¶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 
------------- 
 
¶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 
-------------------------- 
 
¶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 
---------------------- 
 
¶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 
------- 
 
¶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