Cleveland - Group 100 Formed at Croatian World Summit of Business Leaders
Diaspora investors, Croatian government officials meet in Cleveland, Ohio
By Frank Vinko Mustac

The first-ever meeting of Croatian entrepreneurs and business people from around the world, totaling about 300 in all, assembled in the Cleveland suburb of Eastlake, Ohio, to take part in the Croatian World Summit of Business Leaders.

While many if not most of the attendees make their homes in United States and Canada, a few others traveled from as far away as South America, South Africa and Australia.

Numbered among the ranks of participants were about 100 millionaire business owners and professionals, drawn to the three-day conference, June 25-27, by a common interest--investing in Croatia and doing business with Croatian companies.

The conclusion of the summit on Sunday, June 27, saw the establishment of the Group 100, a formal body consisting of elected officers and board members from Croatian Diaspora communities across North America and other parts of the world.

Prior to the Sunday elections, a less formal version of Group 100 along the Cleveland-based American Croatian Business Association and the Croatian government organized the summit event.

Group 100's agenda, as laid out by its president Pero Novak, a Cleveland-area businessman who is also an ownership partner in the Dubrovnik Hotel in Zagreb, Croatia, is an ambitious one.

During remarks he gave addressing summit attendees inside the banquet hall at the Croatian Lodge in Eastlake on June 25 and 26, Novak called for the creation of an investment bank.

"We should have a Group 100 bank formed by the Diaspora," Novak said. "I think having our own bank is really a center piece."

"I'm going to put my whole body and soul into it," he said.

Novak said he would also like to see Group 100 open a branch office in Zagreb, where the organization could provide professional management services, resources for interpretation of Croatian laws for foreign investors and assistance with due diligence.

The office could also offer conference facilities and provide foreign language translation and secretarial services, he said.

Novak was obviously pleased with the support the summit received from the Croatian government, evidenced by the attendance at the event of a number of ministers and other officials from Croatia, most of whom gave presentations.

Among them were Croatia's development minister Božidar Kalmeta, the ministers of the economy, Branko Vukelić, of agriculture, Petar Eobanković and of finance, Ivan Šuker.

Also attending were Nadan Vidošević, the head of the national Chamber of Economy; Ante Babić, State Secretary for the central state administrative Office for Development Strategy; and David Sopta, assistant foreign minister.

"This is the first time the Croatian government is working with entrepreneurs jointly, together as brothers," said Novak in an emotional tone of voice.

According to Novak, based on the cumulative wealth of the Croatian Diaspora population around the world, the potential Diaspora investment in Croatia could total as much as $1.5 billion (USD). By some other estimates, initially at least, that sum may be significantly less, although still substantial.

One of the many successful business people from the Croatian Diaspora community to address the summit was Jure Šola, the CEO of Sanmina-SCI Corp.

Based in San Jose, California, Sanmina-SCI is a major contract electronics manufacturing firm producing products for the automotive, communications, computing, defense and aerospace industries. The company employs more than 45,000 people worldwide.

Sola offered a challenge to the Croatian government of Prime Minister Ivo Sanader of the Croatian Democratic Union (HDZ).

"Our government has to change its laws," Sola said. "We don't need to invent something new. We can copy the best processes out there."

"Croatia has to be one of the easiest places to do business."

"Without government help, without government direction, we're going to fail."

"I think we emigrants have a lot to offer Croatia. I think Croatian emigrants are one of Croatia's most important assets."

"I think the Croatian government has to pull them in. No one else but the Croatian government can do that," Sola said.

Croatian deputy foreign minister for economic diplomacy, David Sopta, offered some reassurance.

"Croatia is interested in investment," Sopta said. "All investment coming from Croatian people is especially welcome."

Croatian State Secretary Ante Babic offered some concert examples of progress being made by his government.

He explained that a Trade and Investment Promotion Agency has been established to assist foreign investors in making negotiations with government and local authorities, utility companies, and real estate sellers more streamlined. The beginnings of a type of "one-stop-shop."

"There is no such thing as one-stop-shop" right now, but it's a concept," Babic said.

A presentation slide from that agency, described an Investment Promotion Law passed by the Croatian government in 2000 giving tax breaks to investors who invest a minimum of $650,000 (USD) in existing or new companies. Additional tax breaks are given as the investment sum and number of people employed by the company increase.

In the final analysis of the first Croatian World Summit of Business Leaders, if nothing else, it provided a venue and a meeting place for business people of Croatian descent and origin to exchange ideas and formulate their own investment and business plans in Croatia, and perhaps even among themselves outside Croatia.