Week 1 (Intro)

Definition of Cultural Policy

Promotion or prohibition of cultural practices and values by governments,
corporations and individuals
Why policy for culture?
Culture has a value for society:
- social + cultural values = economy: realising values in order to foster quality of
life
- policy necessary to steer, stimulate, foster, correct.
Culture is part of a market failure (Failure to allocate goods efficiently)

- Market failure: Caused by

public goods and services: non-rival; non-excludable (also quasi-public
goods); CV
Pure public goods: very rare
It is possible to limit access (excludability) congestion = Impure public goods
Risk of Free riding: BUT there can be voluntary private provision of public goods
(e.g. voluntary jobs)
externalities: (Actions of one individual or firm affect other individuals or
firms)
- external social benefits of consumption. Social impact. E.g. El Sistema
- externalities from production (spill overs). Economic impact. Cost-Benefit
Analysis (CBA) E.g. European Capital of Culture
Positive Externalities
Benefit upon others without being
rewarded
Apple orchard neighbouring
beekeeper
Restored building in a degraded area
Quantity produced < optimal
quantity

Negative externalities
Imposes a cost on others without
compensation
Chemical plant discharges chemicals
in a river
Car without pollution control device
Quantity produced > optimal
quantity

Information asymmetries
- Experience goods: Necessary to have information to consume a good but
difficult to obtain it (E.g.: Cultural goods, Health )
- Role of gatekeepers
Equity vs. efficiency
- Necessary to allow everybody to benefit from the cultural sector to
provide (equal income and access)
Merit goods
- goods and services that the government feels that people will underconsume, therefore should be subsidised or provided free
- Individual may not act in his/her own best interest
- Paternalism = consumers preferences
- How does the government decide? (Public choice theory)
Cultural products
- Different from other products? Specific characteristics?
- Cultural value vs. economic value
Baumols cost disease (Rise of wages but no rise in productivity)
- Production costs in the cultural sector do not diminish
- Artistic production more expensive than other sectors

WHAT does cultural policy intend?

Aims:
- To ensure the existence of the arts and heritage (How they contribute to a
civilised society)
- To enable access for all to them (How more people could be introduced to the
benefits of artistic consumption)
- To raise and maintain quality (How the arts content of education systems and
the media could be improved) (Towse 2010, 14)
Cultural policy players:
- International governments
- National government (ministries or arms length bodies)
- Regional governments
- Local governments
- Individuals
How are responsibilities divided?
Centralised / decentralised
Arms length organisations
which level of government is responsible? Central vs. (regional and) local
Ministry of culture - other ministries
How is the private (profit/non-profit) sector involved?
Domains of cultural policy

Arts
Cultural industries
Heritage
Urban issues
Tourism

 Education
Intellectual property

Theoretical approaches
(Cultural) economics
- obtaining and deploying public funds for cultural purposes
- Specific approach
- Welfare economics (Externalities, Merit goods)
- Analysis of the reasons behind a specific organisational setting / policy, e.g.
public choice theory
Sociology
- Neo-institutionalist approach
History
- Specific focus on the formation of cultural policy in NL
Economic approach
- Dominance of public intervention (yes/no)
Reasons?
- Analysis of institutions responsible for cultural policies
- Different organisational schemes
- Relationship among different actors (politicians, bureaucrats, experts, citizens,
arms length bodies, NGOs, )
- Tools adopted
- Involvement of the private sector
- Role of international organisations (UNESCO, EU, UNCTAD, United Nations, )
HOW is cultural policy implemented?
Direct expenditure (conditions and control by government)
Subsidies/grants
Direct provision
Voucher
Total government expenditure
- Public expenditure per level of government
- Cultural expenditure by sector
- Cultural expenditure through arms length bodies (N.B. Problems with data)
Indirect expenditure (no control by government)
Creation of a favourable fiscal environment through tax incentives for culture
provides extra funds for culture
N.B. Indirect expenditures = subsidies
Tax exemption/deduction and special rates for cultural institutions
Tax deductions and credits for companies and individuals donating or investing
in the arts
Different VAT rate on cultural products
Pros
More involvement of the people
(democratisation)
Role of governments as facilitators

Cons
Difficult to account for it
Importance of the legal definition of
sponsorship vs. donations
Costs for the whole society

Regulation
Hard regulation: Laws, lists, constraints, copyright,
Soft regulation: Conventions, treaties, agreements, .

Cultural policies = media policy + trade policy + industry policy + labour market
policy
Trends in cultural policy
Process of decentralisation and privatisation
-> Responsibilities from the state to the second and third spheres
Reduction of resources
-> Need to justify the use of resources (social, cultural, economic effects)
Globalisation (< Info and Com Tech (ICT)): global market place (capital and
labour)
- Homogenization of culture
- Emergence of global marketplace
- Internationalization of communication (internet)
Cultural policy or industrial policy?
Fear that focus on creative industries leads to
- further economisation of the cultural sector,
- moving further away from the origins (the arts) and
- reduction in public support for the arts.
Rhetoric where culture and the arts have become a means towards an end
(Sznt, 2010)
Effects of these trends

Innovation: new expressions of

culture
Changing nature of cultural
consumption: active co-creation
Improved information and marketing
services
More efficient management systems
(collections, ticketing)

Greater competition
Illegal downloads
Cultural policy becomes more and
more an instrument of economic
policy (creativity -> economic growth)
Arts become more demand-driven?

Ways of analysing cultural policy

Cultural
Cultural impact /
capital (participation,
enjoyment, success?,
quality of life indicators,
innovation).
Survey

Social
Social impact.
CVM: Contingent
Valuation method
(sample survey, WTP) for
externalities of
consumption

Economic
Economic impact
(unearned income).
Cost-Benefit Analysis
for externalities from
production of the arts
(spill overs).

Week 2 (WHO: The Organization of Cultural Policies)

Cultural Goods and Services

3 characteristics:
- input of human creativity in production
- vehicles for symbolic messages to those who consume them
- intellectual property thats attributable to indv. / group producing the
good / service
Experience Goods
- increased present consumption = increased future consumption (demand
is cumulative)
May not be fully measurable in monetary terms
Sub-set of creative goods and services (advertising, software)

Value and valuation

Value = worth, to an individual or a group, of a

good/service/activity/experience, with an implied possibility of a ranking of
value according to given criteria
Valuation = estimating, ascribing, modifying, affirming, denying value
Valorization = value is imparted to some object as a result of deliberative
action / external event
- (Ex.) Heritage sites added to World Heritage list = increase in value
Notions of econ value must be introduced, reference to econ
consequences of alternative strategies
Cultural goods and services -> Mixed Goods
- Goods that have both private-good and public-good characteristics
3 sources of non-market benefits for the arts:
- EXISTENCE VALUE: valued because of its existence
- OPTION VALUE: retain option tht may consume in the future
- BEQUEST VALUE: think its important for future
Importance of Culture
measured with
Economic Terms
- Efficiency (by increased quantity and
quality)
- Equity (by distribution cultural
output among different classes of
beneficiaries)

Cultural Terms
- Excellence (commercial value it
might possess, artistic quality)
- Innovation (extend art form in new
directions) - Access (participation,
advocacy)
- Define cultural identity
- Celebrate diversity
- Ensuring continuity (heritage,
education)

Direct intervention (how to allocate resources)

Quality Access
> Support to quality: support to production (subsidies)
> Support to access: support to consumers (voucher)
> Support to artists and cultural companies focus on both quantity and quality:

 Increased quantity against market failure -> provision of socially optimal

quantity
Increased quality support to target a specific genre or specific quality
requirements
Throsbys Concentric Circles

Policy Process

Identification of products and activities

Identification of objectives
Allocation of responsibilities
Policy coordination
Choice of policy instruments
Implementation of policy measures
Monitoring and evaluation of the effects of the policy

Policy tools
Fiscal policy
- government expenditure / raise public revenue thru taxation
- direct (subsidies, grants)
- indirect (tax concessions, vouchers, donors, VAT etc.)
Regulatory policy: intellectual property law, cultural rights (moral right for artist
to exercise their work methods, extend freedom of speech), media policy (min
requirement for certain types of programmes), heritage policy
Industry policy: creative clusters, business start-ups, cultural tourism strategy
Labour market policy: pension arrangements for artists, minimum wage
legislation, vocational training and skills development

 Trade policy: export promotion (Where culture leads, trade follows), import
control

Tracking Econ. Outcomes

Variables to be monitored:
Observable levels of output
Measures of output value
Level of exports/imports of cultural product
Rates of growth
Price levels for cultural goods and services
Income levels of creative workers
Tracking Cultural Outcomes
Harder to evaluate due to:
- no acceptable unit of account by which cultural value can be measured
- evaluation of cultural impacts must rely to a significant extent on
subjective judgements
Objective Evaluation: quantitative and qualitative indicators of outcomes
Subjective Evaluation: subjective opinions of indv who are doing the
assessing
Who Decides?
International
National
Regional
Local

International institutions / government

national / federal government
provincial / regional government,
counties, prefectures
Municipalities

Stakeholders

Cultural workers: artists, support staff (back-office), teachers

Commercial firms: architecture
Not-for-profit firms: mainly artistic objectives
Public cultural institutions
Education and training institutions
Government agencies and ministries
International organisations: UN, UNCTAD, UNESCO, EU, World Bank,
Consumers and consumer organisations: omnivores and univores

What do public and private sectors decide about?

Industry development
Labour
Trade
Education
Urban / regional development
Environment
Information technology and media

 Legal affairs: intellectual property

Social welfare: social cohesion, cultural pluralism

International Level
Public
- UNESCO
- European Union
- World Bank

Private
- NGO s
- Trusts
- Foundations

United Nations Educational Scientific and Cultural Organisation

(UNESCO)
Legal instruments to enable states to protect more effectively all forms of
culture
Elaborates legal instruments in the form of declarations, recommendations or
conventions
=> adopted by UNESCO's member states
Examples:
Protection of the World Cultural and Natural Heritage (World Heritage List
1972)
Safeguarding of the Intangible Cultural Heritage (2003)
Protection and Promotion of the Diversity of Cultural Expressions (2005)
European Union (EU)
Importance of culture and of its role in guaranteeing the respect and
promotion of diversity of cultures within the Union (art. 128, Maastricht Treaty)
Subsidiarity principle:
- decisions are taken as closely as possible to the citizen
- EU does not take action () unless it is more effective than action taken at
national, regional or local level
Culture = tool to favour economic growth and social development
Importance of programs of cooperation among EU/EU and EU/non EU countries
National Level
Grouping of (Western) countries according to the dominance of PUBLIC or
PRIVATE sector
PUBLIC SECTOR = IT, FR
PUBLIC + PRIVATE SECTOR = UK, NL, Nordic countries
PRIVATE SECTOR = US
Shift towards the combination public/private sector (e.g. IT)
Differences in organisation of the public bodies influencing national cultural
policy:
CENTRALISATION
DECENTRALISATION
ARMS LENGTH BODIES (E.g. NL, UK, Nordic countries)
Decentralisation
Power is delegated to lower levels of government
Depending on the institutional organisation:
- Ministry can still play a coordination function (e.g. Italy towards Sicily; France)
- No Ministry (e.g. Germany Lnder, Austria, federal systems in general)
Local levels of government can play an important role even when there is no
devolution (E.g. UK: Local authorities big spenders)

Arms Length Bodies

The government finances culture at arms length = through the intervention
of different institutions and bodies that act to filter government influence
Various institutions, funded by the state, have (supposedly) a certain degree of
independence when deciding how to use resources for cultural scopes
Idea: prevent political interference
Arms length bodies: not necessarily subordinate to cultural ministers or
departments; they can work in partnership with them
Private Intervention
Non-profit (3rd sphere)
Trusts, foundations, associations
Focus on foundation

Business (2nd sphere)

Companies

Different forms and different treatments:

Donations
- Support without returns
Patronage / Maecenatism
- Support with some return (sometimes)
Voluntary work
Sponsorship
- Commercial sponsorship: Companys objective is to derive a direct benefit (=
enhanced sales or image)
- Sponsorship: Support with returns (the sponsor receives something in return,
directly or indirectly)
N.B. Role of the public sector as facilitator
Legal systems
- Shift towards decentralisation
- Shift towards an increasing involvement of the private sector

Week 3 (HOW: Tools for cultural policies)

Broad objectives of cultural policy and their tools
Industry assistance measures to encourage development of specific industrial
sectors
Cultural industries:
- Support to start-up
- Industry development strategies (tourism, cultural/creative clusters)
Trade policy (Subsidies to domestic film producers, Quota on foreign products,
control on import, Promotion/support to export)
Labour market intervention
Effects on cultural employment:
- Grants
- Subsidies
- Pension arrangements
- Health insurance
- Training and skills development
Policies
Stimulating innovation
Promoting entrepreneurship
Supporting creative entrepreneurs to get capital
Facilitating international market development (boost export)
Facilitating access to funding (need to raise banks awareness about the
potential of Centre of Cultural Innovation (CCI))
Tools / measures
Fiscal measures
Direct provision
Subsidies to producers
Indirect provision (tax incentives,
Subsidies to consumers)

Regulatory measures
Legal system = impact on the
cultural sector
Intellectual Property, copyright,
moral rights (indigenous people)
Media policy: avoid concentration,
control on content, quotas on
programs, control over transmission
Heritage policy: listing, constraints

FISCAL MEASURES
Direct support / expenditure
Direct provision, Subsidies, Support to the industry, Matching grants,
Voucher.
Public to pubic or Public to private (profit or non-profit?)
Privatisation
Public ownership + private management (e.g. arms length principle)
Private ownership (privatisation)
Effect to improve efficiency of the public sector
- Outsourcing BUT need of control from public institution
- Change of legal status of institutions: () Rijksmuseum

Private support
Sponsorship: commercial agreement quid pro quo: the sponsor gets
something in return, directly or indirectly
Philanthropy (donation): support without returns
Patronage: support with some return (sometimes)
N.B. Public sector as a facilitator: regulation and tax incentives can stimulate the
private sectors participation (crowding in or crowding out).
Indirect expenditure
Increase the amount of resources available
More involvement of the (potential) consumers (democratisation)
- Role of governments as facilitators
Difficult to account for
Importance of the legal definition of sponsorship vs. donations
They are costs for the whole society
Risk of paternalism (public choice)
Risk of crowding-out:
Donors reduce their donations if public support increases OR governments
reduce funding as cultural organisations get enough private funds
Risk of crowding-in:
Donations go especially to publicly funded organisations -> quality ensured

Tax
Incentive
s

Reductio
ns

Indirect Taxes (VAT)

Income Tax

Non-Profit Orgs
Artists
Charitable Donations
Gifts and Bequests

Capital taxation and national heritage

Preserve and protect national heritage for the benefit of the public
Buildings, land, works of art and other objects that qualify under the scheme
are exempt from Inheritance Tax and Capital Gains Tax providing that certain
conditions are met

REGULATORY MEASURES
Regulation
Hard
Laws
Lists
Constraints and conditions
Intellectual property

Soft
Conventions
Treaties
Agreements

Intellectual Property
Copyright: e.g. art work ownership
Trademark: or brand ownership in CCI
Patent: exclusive right to exploit an invention
Copyright LAW:
- protects creators of original art works from unauthorised use of their work
- covers the form that express ideas
Copyright

Possible to identify owner of

copyright
No high negotiating costs
(transaction costs)
Possible to deter and pursue
infringment of rights

Creation of monopolies
Increase of price

Fair use / fair dealing

Appropriation (homage or plagiarism?)
Work for hire employer owns the right (not the creator)
Secondary rights: copying, broadcasting
Neighbouring rights: e.g. interpreatation of a musical / dance performance /

Droit de suite (resale of work of art)

Moral right
Changes due to technology / digital reproduction (piracy)
International agreements (WIPO) (World Intellectual Property Org)
Importance for developing countries

Collecting societies
Too expensive for individual artists to administer rights themselves
Costs for users
rights holders will join a collecting society as members and instruct it to
license their rights
PROS:
- Increased efficiency
- Distribution of bargaining strength
- Simplification for users
CONS
- Increase of costs
- Administration costs
Direct / indirect support to artists
REASONS:
Income level lower than other sectors
Variability of artists earning
Importance of non-pecuniary motives (intrinsic motivation)
TOOLS:
Commission of works
Social welfare, unemployment benefits
Support for the realisation of new work
Support to education and training
Tax incentives

Task of
Art
Policy

Balance Between:
Excellence and Access
Quality and Quantity
Efficiency and Equity
Econ and Cultural Value

Monitoring and evaluation

Control of economic, cultural and social effects of policies
Are the objectives (going to be) attained?
How to assess the results?
- Economic outcomes: artwork sold, numbers of visitors, value of output (CCI),
import/export: CBA
- Income levels, occupation levels: CBA
- Cultural / social outcomes: hedonic pricing, CV

 Risk: too much focus on extrinsic values

Economic, social and cultural impact
Neglecting intrinsic values of the cultural sector
[N.B. need for data as it is difficult to use quality to justify public financing, tool
for advocacy]
Throsby 2010: () need to focus on both the transcendental purposes of
culture as its capacity to contribute to community life, improve tolerance,
enhance understanding, stimulate creative thinking, provide income and
employments .
Monitoring and evaluation
Conceptual shift
European Arts Index
European Cultural Vitality Index (ECIX)
- vitality: development and sustainability
- broader concept of culture going beyond arts sectors
- broader geographical scope beyond EU boundaries
- 4 pillars or ideal indicators: participation, financing, governance, cultural
expressions

Week 4 (WHAT: The objectives of cultural policies)

Tourism (Chp 8)
Cultural Tourism
Focuses on bth MASS (high vol. low yield) and NICHE (low vol. high revenue
yield) tourism
(MASS) Superstar attractions Have to deal with pressure of visitor no. daily
(NICHE) Specialised experience, primarily or solely for cultural purposes
Econ Aspects of Tourism
Tourism as Industry
Core of industry: Those who heavily depend on tourism (Tourist guides, Package
Tour Co.)
Others: Integral parts of tourism industry (Hotel, Transport)
Partial dependence: (Restaurants, museums)
= Multiplier Effect
Contribution to economy can be measured with:
- Direct effect (Tourist expenditures on goods and services -> output, input)
- Indirect effect (Initial expenditures)
- Input-Output Analysis, Equilibrium Models
Impact Studies
Generation of revenues and employment for cultural institutions
Outside tourists: net gain for local economy
Local tourists: transfer from alternative lines of expenditure, risk of
displacement of flows
Sustainable Tourism
Avoid short term practices, favour long term solutions for tourism
Reconciling possible conflicting objectives of tourism developers and

conservationists
Requirements for sustainable tourism tht relies on tourism as primary income
(Maintaining heritage sites):
- Economic Sustainability: stable and predictable future net econ benefits, market
+ non market effects
- Ecological Sustainability: natural and cultural capital
- Cultural Sustainability: maintanence of cultural capital stocks, cultural diversity,
balance of cultural ecosystems
Cultural tourists
Tourists: those who spend the night in the heritage city
Day trippers: come just from the day from the place of residence
False excursionists: choose alternatives and cheaper places where to stay
Indirect excursionists: have chosen another destination and visit the
heritage place for the day
Mass tourism
Potential economic effects (revenue)
BUT
Costs (Congestion and physical
damage)
Adverse cultural consequences
(flood of visitors)
Threshold carrying capacity (max no
of visitors per day to lower risk of
damage), control
Instruments: admission numbers
pricing measures, regulatory controls,
and information/marketing/education
campaigns.

Niche market
More attention to the places
Less pressure
BUT
Still possible adverse impact
Indigenous tourism: respect local
culture, not disrupt communitys
cultural lifestyle
Commodification of the experience
Competition among destination
(inter-island comp)
Unequal distribution of revenues

Cultural tourism policy

Marketing campaign: promote industry both at home and abroad;
Regulation: Number control, zoning, opening time
Pricing measures: To limit access
Revenue raising measures: Occupancy taxes, arrival/departure taxes
Expenditure measures: assistance to tourist-related small businesses (arts
groups, organisations)
Information provision: city guides
Education campaign: raise awareness of positive and negative aspects of
tourism development
Arts Education (Chp 11)
Connection education-culture
(Schultz and Becker) Notion of human capital
- Physical capital (buildings, machines)
- Education = investment in this capital asset (human skills) that will generate
output for the economy
(Social/Econ) Increased productivity of an individual from new ideas -> Higher
earnings

 (Indv) Cost-benefit analysis

- Initial investment = capital cost
- Payoff = discounted net value of increase of life time savings
Private & social benefit -> Public investment in education
- Strong edu system -> High level of literacy and numeracy amongst population
- increase social cohesion, more efficiency in markets, less crimes, less welfare
costs
Edu is important distribution of income -> break out life cycle poverty
Public investment in edu: guided by cost-benefit
- Rate of return of investment guided by social and econ benefits it brings
Private and public sources of finances: balance of public and private benefits
accrued
- Determined more by politics than econ
Arts education in school
Insufficiently recognition -> Art as luxury rather than necessity
Effects on children: enjoyment, new way of thinking, capacity to cooperate,
sensibility, social interaction
Effects on schools: foster creativity to create creative work force, diffusion of
creativity thru econ, long term benefits for future generations
Arts in all school curricula (kindergarten to senior high), provision of resources
to school, teachers training, partnerships with cultural orgs
Cross-ministerial responsibilities: cultural budget + edu budget + private
budget
Education/training of artists
Effects on individual & on society
- Society: deploy training not just in the core but also wider industries
- Individual: investment in human capital (cost-benefit) (investment in training +
benefits and returns in the future)
- Problems: artists earnings can be small and unpredictable, non-pecuniary (no
money) motives
Effects on creative & arts-related income
- Creative income: core artistic practices of creating original works
- Arts-related income: professional work within artist reform but not deriving from
core creative work (teaching)
- Arts edu affects arts-related more than creative
- Training, on the job learning
Education to stimulate cultural consumption (Demand for cultural goods and
services)
Taste development: Family background & Cultural consumption
Education = income
- Education influences taste formation
Ways in which art support is delivered, reinforce art strategies, indicate
extension for adults
Conclusion
Cost-benefit analysis useful input into policy formation for arts education

Week 5 (Sociology of Cultural Policies)

Historical formation of cultural policies (Institutional Arrangement)
The neo-institutionalist perspective in sociology (1980s/1990s)

Rejecting of the basic assumption of neoclassical

economics: Homo Economicus/Goal Rationality (that individuals aim to
maximize utility of their behaviour by making the most rational choices in
situations of scarcity) > bounded rationality

Focusing on the role of institutions in structuring human behaviour

Institutions: webs of interrelated rules and norms that govern

social relationships > e.g. marriage

Understanding and explaining how and why institutions arise

Key-concepts:

Institutional Isomorphism: tendency to resemble each other,

mimicking each others strategies or structures -> institutions
become similar

Path dependency: historical track of a given institution constitutes

the occurrences (such as the policy objectives) of an institution in
the present -> investigate its historical formation over time.
History matters!

Neo-institutionalism applied to cultural policy (Toepler & Zimmer, 2002)

History, traditions and institutional arrangements > economics (economic

justifications for arts funding differences)

Comparative approach, aiming to discern explicit policy patterns or ideal

types

Cultural policy is path-dependent (history matters) & product of

isomorphism > (countries learn from each other) family of nations

Three families of nations

1) Continental European Family (France, Spain, Italy)

The Bureaucratic Top-Down Approach:

Central government plays a dominant role in the production of high

art
- agenda-setting and high levels of (direct) public spending

Using culture as a synonym for nationhood

Strong tradition of centralization (parisienisation)

Role of private sector is relevant to public sector

Path dependency:

Historical Influence of the Ancient Regime: aristocratic patronage as

the basis for centralized cultural policy

Historical influence of the post-war socialist doctrine, focussing on

1) using art as a tool to modernize society, and 2) battling negative
effects of mediatisation

2) Scandinavian Family (Nordics)

The Corporatist Approach to Cultural Policy:

Corporatism = the socio-political organization of a society by major

interest groups

Historical roots in aristocratic patronage and in ideological conflicts

between the state and popular movements

Early forms of government intervention as the product of such

ideological conflicts (adaptation of civic driven change) (PUBLIC
FUNDING)

Strong roots in social democracy (New Cultural Policy):

Accessibility and social and economic equality (give people

opportunities to engage in creative activities of their own;
make more allowance for the experiences and needs of
disadvantaged groups)

Counteracting negative effects of commercialization

Path-depency:

Because of social movement, not just high art only but also pop and
folk art

Government = big spender as a result of protection; spending =

direct support of (high) arts

Government protection resulting in no clear tradition to promote

collaboration between commercial life and culture (Lack private
support)

Decentralization and greater institutional variety of the cultural

sector (e.g., National Cultural Council) as a result of ideological
battles and corporatist arrangements between the state and private
organizations

3) Anglo-Saxon Family (US, UK, Germany)

Dominance of the Private Sector

Decentralization: government supporting art only indirectly (Indirect

subsidies: tax reductions & exemptions)

Lack of clear overall agenda (no real high culture tradition)

Lack of high-culture tradition and broad popular base for highcultural activities

National Endowment for the Arts (1965)

- independent federal agency that supports the arts
- aims to increase artistic excellence, accessibility, and the creation
of a decentralized public support system

Path dependency:

No feudal-aristocratic heritage (Less connection with state and

cultural sector)

Puritanical beliefs (Art is unnecessary luxury)

Strong republican tradition of limited government (take care of

necessary infrastructure not agenda setting)

Recurring trends and patterns

Art and culture as part of the policy arena during golden area of the
welfare state (post-war period)

Art and culture as a new policy arena during heydays of social

democracy (mid-1960s - late 1970s)

Merit good-argument as one of the most important rationales for

funding the (production and consumption of the) arts: focus on
quality, availability and equality

Paradigm shift from the social-democratic doctrine in the 1960s and

1970s towards a more liberal doctrine fostering the idea of publicprivate partnership (1980s-present)

Stronger embeddedness of cultural institutions in their local

communities (community projects museums)

Instrumentalization of arts and culture: art as a means to an

(economic and social) end

Strong focus on arts education: fostering cultural capital

Neo-institutionalism in NL

Warna Oosterbaan-Martinius - Schoonheid, Welzijn, Kwaliteit (1990)

Legitimization paradox:
- Lack of collective support for the arts (in the Netherlands) is both an
argument:
- (For CP) market failure
- (Against CP) no sufficient demand or collective support, for the arts in the
first place

Historical formation of Dutch cultural policy

Before WWII: Republican tradition of limited government intervention

- Lack of tradition of caring for arts, Anglo-Saxon
- Weak forms of patronage, Important role private sector, Forerunners of
cultural policy
- 16th/17th century: no fully developed aristocratic patronage (exception:
sovereign Prince of Orange Frederik Hendrik (1584-1647))
- 18th/19th century: Johan Rudolph Thorbecke (1798-1872) and the
hegemony of his
liberal doctrine: Government is no judge of art and science
- Victor De Stuers (1843-1916): Catholicism, Focus on heritage
- Emanuel Boekman (1918-1940): Cultural socialism, Focus on
contemporary art

After WWII: hegemony of social-democratic doctrine, focusing on

supporting high arts and promoting social and geographic distribution (of
high arts)

- Hegemony of Social Democracy (1948-1982)

- Support production (BKR)
- Support consumption: high arts as a tool to modernize society
- Social and geographic distribution
- Double government position, also due to emerging professionals (Raad
voor Cultuur)
- Wet of specifiek cultuurbeleid (1993): focus on quality
and social and geographic distribution

Historical formation of art worlds

Autonomization process:
- production and consumption of art is increasingly based on aesthetic
rather than ethical (moral, political) criteria
- production of art becomes an autonomous field in comparison with other
social fields (such as the political and religious field), a process which
influences both the way art is produced, organized and consumed

Style awareness and diversity of styles (stijlverscheidenheid): more

room for personal expression

Transformed into a statement and becomes a burden

The birth of the modern avant-gardes

Taste uncertainty (smaakonzekerheid): no fixed, rules of the game due

to disappearance of guiding institutions (Catholic church, courts)

From central institutions towards schools, styles

Dynamics of western art world = constant search for authenticity (equals

restlessness, uncertainty, nihilism)

Consumption of modern art becomes something special and thus

something for specialists/experts (= birth of cultural elite)

Pierre Bourdieu, La Distinction (1979): aesthetic disposition (appreciate

and evaluate objects aesthetically)

However, having an aesthetic disposition is socially determined (People

who make cultural policy r higher educated, not involving masses)

La Distinction-experiment:

Genesis of aesthetic disposition due to autonomization process is

constitutive of market failure

Government and professionals (=elite) promote artistic excellency,

whereas the majority fails to decode artistic excellency due to their
functional disposition and despite efforts in social distribution

Government has to assure everyone can increase cultural capital despite

where they live

Ever since early 1980s, focus on:

Cultural entrepreneurship

Arts education

Instrumentalization and marketization of cultural policy

Week 6: Culture governance as a part of cultural policy & Economic

analysis of / towards cultural policies
Why Culture Governance?
Culture works with (mixed) public and private financing.
Organisations are responsible for risk management; financers require
supervision and accounting.
Governments, audience, sponsors, membership organisations and other
stakeholders require effectivity and efficiency of the organisation -> TRUST
among stakeholders and public support.
Governance Code Cultuur (NL) is an instrument for good management,
administration and supervision in the cultural sector. 9 principles build a
normative frame for cultural governance: recommendations for practice.
APPLY OR EXPLAIN!
Culture governance in practice
Governmental and public funds require accounting for the application of the
Code publically -> TRUST.
Good governance and supervision is characterised by:
- clearness about the governance model and its responsibilities;
- acting with integrity and transparency, taking the stakeholders interest into
account;
- expertise and effective in governance, management and supervision;
- effective realisation of mission and goals as well as efficient use of (public)
resources.

No
Direction

3 Board
Models

Directors
+
Direction

Trustees
+
Directors
+Directi
on

9 principles of good culture governance

The Board is:
Responsible for complying the Governance Code Culture.
Makes a well-grounded choice for a governance model.
Responsible for the organisation. Clear about the tasks, powers and ways of
working, internally and externally.

 Decides carefully about the legal position and payment of the board and
communicates as open as possible about this.
Trustees lays down its tasks, responsibilities and way of working, and acts
consequently.
Responsible for its composition; it guarantees its expertise, diversity and
independency.
Makes clear on forehand which efforts are expected from the trustees and
which possible payment they will get for their efforts.
Avoid all ways of conflict of interest. The board of trustees supervises this.
Responsible for financial policy and risk management by sound internal
procedures and external control.
Economic approach of cultural policy
Dominance of public intervention (yes/no)
- Reasons?
Analysis of institutions responsible for cultural policies
- Different organisational schemes
- Relationship among different actors (politicians, bureaucrats, experts, citizens,
arms length bodies, NGOs)
- Tools adopted
- Involvement of the private sector
- Role of international organisations(UNESCO, EU, UNCTAD, United Nations, )
etc.
Sound cultural policy is based on reliable data on
- volume and value of the cultural output
- levels of employment
- cultural consumption and participation
- public and private funding..
Goals of cultural statistics:
- present or past policy: comparing, monitoring, evaluating; OF
- future policy: underpin policy formation. TOWARDS
Statistics are SECONDARY SOURCES !!
Types of cultural statistics
Three sources of cultural stats:
- Government
- Independent Bodies: Cultural observatories, uni
- International Orgs: UNESCO Institute of Stats
Cultural industries:
- Problems:
> Definition: cultural? Creative?
> For policy or other interests: can be extracted from econ wide stats
- gross value of production, contribution to GDP/GNP, value added, prices, trade
and employment
International trade in cultural goods and services
- Classification systems
> workable product classification system

> harmonised system

> Extended Balance of Payment Services (EBOPS)
Cultural employment
- labour force stats for the cultural sector
- cultural or non cultural? professional (contribute most) and amateur; multiple
job-holding
- labour force census
Problems:
> based on main job at time of census
> does not distinguish professional and amateur
- special purpose surveys
> more detail than general data surveys
> problems: costly, depends on usefulness, cannot establish overall size of
artistic population
Cultural consumption: demand, expenditure (household expenditure surveys),
attendance/ participation/involvement
Asset valuation: stock of cultural capital and flow of services
- Micro: value of cultural capital held, museum collections, balance sheet
- Macro: nations physical capital stocks, historic sites, tangible and intangible
heritage
Cultural funding
- National and sub national (states, municipalities) funding
- Problems:
> diff places use diff classification systems
> fail to account for indirect measures (tax concessions)
> fail to account for direct private support
Cultural indicators
- used to make sense of, monitor, evaluate some aspect of culture
- fully grounded in theory
Cultural diversity
- creativity index
Satellite a/c of culture
- accounting data for particular field (more detailed than usual national
accounting)
Statistics on cultural domains
Framework for designing own classification system
Six domains:
Cultural and natural heritage
Performance and celebration
Visual arts and crafts
Books and press
Audio -visual and interactive media

 Design and creative services

And two extras:
tourism, recreation
Transverse domains:
intangible cultural heritage
education and training
archiving and preservation
equipment and support materials
provides coherent basis for development of national cultural stats
Non-use values
Optional value
Existence value
Bequest value
Prestige value
Aesthetic value
Identity value
- Possible to identify them, but how to assess / evaluate them?
- How to determine peoples willingness to pay / accept / travel?
- Role of critics
Ways of analysing
Contingent Valuation Method (for public goods)
- Estimates the value of individuals attribute to non-tradable goods (no market
mechanism)
- Survey WTP / WTA / WTT for qualitative and quantitative increments/ decreases
in non-market goods
- Goal: estimate the demand curve and the consumers surplus
(+) : discovering non-use values
(-) : credibility and reliability of responses
Cost-Benefit Analysis (for non-public or lesspublic goods)
Hedonic pricing (cf. composition of house prices)
Cultuurindex Nederland (Boekmanstichting) Overview Indicators
Labour market
Practicing arts / handcrafts
Visits
Competition international
Competition national
Culture consumption
Support (volunteering, private donations)
Infrastructure
Incomes(excl. subsidies)
Turnover creative industries
Enterprises / institutions
Tax expenditures to culture (direct, indirect; subsidies)

Week 7: Changes in cultural policies, Culture in economic

development
IDENTITY
Recent sources of changes in cultural policy
1. Globalisation: world-wide and quick information, internationalisation
2. General economisation since 1980s:
- the arts importance for economy (economic impact studies?!); measuring the
arts
3. Trends in public sector management: more efficiency and accountability in the
public-service delivery, e.g. Radio & TV
Way of assessing the artistic activity in the creation of public value -> funding
criteria
Globalisation -> international economy of culture

Trade of cultural products

Labour movements (artists)
Cultural exchanges (touring companies, circulation of works of arts)
Trade of intellectual property rights (TV, digitisation, movies)
Cultural diplomacy
Cultural tourism

TRADE ISSUES
Cultural exception
International market failure
Conflict between economic and cultural values while making decisions
- Producers: opposition to limitations
- Importing countries: foreign > local cultural industries
- Screen Quotas (France)
- Generalize all Trade and Services (WTO)
treat cultural goods differently
ethics, ideology, economy, culture

Not just commercial, but symbolic

messages in cultural products
National identity
Cultural diversity
Unfair competition frm dumping of
cheap imports
Infant industry protection

Market distortion + Econ inefficiency

Rent seeking
Against freedom of choice
Cultural diversity (Too open)
Cover ideological ideas (Anti
American, Anti Islam)

Cultural trade
Cultural diversity and trade
Convention on the Protection and Promotion of the Diversity of Cultural
Expression (UNESCO 2005)
Protection (taking care of something regarded as valuable) vs. protectionism
(automatic resort to trade restrictions to shield domestic from foreign)

 Safeguarding vulnerable cultural expressions

What?: Items/experiences/processes leading to a service
Threats: -> NEED OF SAFEGUARDING

Movement of culturally significant artefacts (public interest):

- public interest is exported
- limit export of national treasures
- repatriation of cultural objects -> FOR THE SAKE OF CULTURAL IDENTITY
() British museums have a lot of Egyptian artefacts, Egypt wants them back
Non Trade Issues
Cultural exchange
Touring companies, circulation of works of arts
International cultural diplomacy (Develop cultural tourism) and cultural
relations
Culture is a key component of SOFT POWER VS HARD POWER (Politics, War)
Social, cultural & economic benefits by intercultural dialogue
Intercultural dialogue (common ground) vs. multiculturalism (preservation)
Importance to spread knowledge, develop friendship and peace, improving
spiritual and material life
Real interaction amongst people
Role of various actors: national & international
Risks: misunderstanding, understanding too well, know too much
Culture and development
Role of culture in developing countries
BUT

 Lack of rules and institutions

Recognition of the importance of arts & culture for community life, identity,
development
Role of governments + UNESCO + UNCTAD to support this sector
Economic growth = central for development (GDP)
- Shift-development = human centered process
- New indicators: nutritional levels, literacy levels, educational access,
- Development is human capability expansion (Amartya Sen, 1990)
- Role of cultural industries
UNESCOs how:
- culture contributes to poverty reduction and economic growth,
- enlarges peoples choices,
- ... offers a sustainable means of achieving other key development goals +
Millennium Development Goals
UNESCO Indicator Suite focuses on three key axes:
- Culture: part of econ sector
- Culture: set of resources -> development
- Culture: social cohesion n peace
Effect of cultural industries
Brings cultural and economic development
Industries based on creativity, traditional knowledge, and cultural practices
(stories, dances, poetry, symbols, images etc.)
Transformed into goods and services = Cultural values + Economic potential
Sustainable Development
Meets present needs without interfering with the futures goal of meeting own
future needs
Cultural diversity = rich asset
Protection, promotion and maintenance of diversity = essential
Benefit for present and future generations
Need to integrate culture in development policies
Foster protection and promotion of diversity of cultural expression
Intergenerational equity: protect and enhance cultural capital
Intragenerational equity: access for all
Importance of diversity: social, cultural, economic development
Precautionary principle: risk of irreversible loss
Interconnectedness: holistic approach: economic, social, cultural and
environmental systems
Need to justify expenditures for culture (Economisation, Notion of public value)
Creative economy

Culture/Ar
ts
Econ
Benefits

Creativity

Innovation

Combination of policy measures

Involvement of different institutions
Culture = part of a broader economic development agenda
Policy delivers and distinct cultural & economic benefits
Attention to the needs of cultural organisations, artists and cultural heritage
Long term investment in infrastructure:
- physical: cultural production, distribution and consumption
- institutional: public instruments and agencies
- legal: copyright
- financial: provisions
Long-term capacity building within communities: devolution
CCI & Growth
Econ

Demand
Supply
Employment
Transfer of knowledge

Cultural
Per capita production/consumption
of cultural goods
Accumulation of cultural assets
Expansion of cultural value