donderdag 4 november 2010

Why the Dutch government shouldn’t subsidize the arts and culture industry

Since the word ‘art’ has been included in the dictionary its definition has always been a problem. Philosophers, artists and policymakers have, through millennia of civilization, all struggled to define the indefinable.
Indefinable, because even now there are still many different definitions of the word ‘art’. Just as there are many definitions of the arts and culture industry…
In recent years the European Union has initiated research on having a cultural policy on a European level. The research resulted in a Green Paper that is filled with questions, one of which is the question from the European Parliament to the Commission "to clarify what constitutes the European vision of culture, creativity and innovation and to elaborate political measures (…) in order to develop European creative industries, incorporating these in a genuine European strategy for culture." (European Commision, 2010)
If we look at the subject of this paper, the subsidizing of the arts and culture sector, we have to look at some different aspects: What are we subsidizing? Why are we subsidizing? And who and how are we subsidizing? If all these questions could be answered they would justify a government cultural policy of subsidizing art and culture. But as we can see, the first question, a definition of the cultural sector, is already unanswered. The question of the European parliament shows that there is a need for a clear definition in order to incorporate a strategy, which is still lacking.
For the sake of trying to answer the other questions I will accept that there is a sort of general definition of what the creative industry is, although it will differ per country. (In the UK, for example, there is much debate about the overlap of the creative and entertainment industry)
(Tribal, 2010)

The second question is about the reason of subsidizing the arts. Is there a real need for subsidies or could the sector do without? Is the subsidizing, through taxpayers, legitimized?
If one would look, for instance, to America, one would see a cultural sector that is functioning perfectly with a minimal amount of subsidy funds. Subsidies account for only around 15 percent of the American art institutions.  (Kauffman, 1990)
Comparing this to the 63 percent that cultural organizations in the Netherlands need from the government, the conclusion should be that there are more possibilities in looking at other sources of income. (Berenschot, 2010)
Private and corporate sources are the real benefactors in the United States. And this makes sense as well, because the people that are interested in art, pay for it. The government in The Netherlands has, for decades now, trying to reach out to the public, to let them participate in a wide and qualitative cultural offer. This has not been a success. Art and culture is still used, in a majority, by a high-educated, white, middle class.
(E-quality, 2007)
If only an elite and small part of Holland is using it, we shouldn’t let everyone pay for it. Instead, people could pay less tax and decide for themselves if they want to support the art and culture industry.
Mark Harbers, Dutch parliament member for the VVD and supporter of the proposed cutbacks, states in an interview: “people now donate their money to charity. These people could be stimulated to donate to art and culture as well.” (Harbers, 2010)
Generating more income from the private and corporate sector will ask some initiative from the cultural organizations, but as seen in America there are lots of creative ways to market or finance your product.
Just one example is the site Trust Art, founded by Seth Aylmer and Jose Serrano-McClain. The website makes it possible for individuals to become shareholders of public art that has yet to be build. Completed projects are auctioned and any profits are shared between artists and shareholders.  (Trust Art, 2010)
Next to that, there are already a lot of organizations in The Netherlands that are profit-based and are sustainable without any subsidizing from the government.

The third and final question that has to be answered, to justify government subsidies, is the matter of how you decide on who to give the money to. This might even be the most difficult one of the three subjects, the one that the Dutch government itself has been struggling with the most. Because you cannot really judge if art is good or not.
The government has outsourced these decisions to specialists who manage the cultural funds, but these are still only humans with their own tastes and opinions. The conditions that are stated are about diversity and quality, but these conditions are still subjected to opinions.  (Ministry of Education, Culture and Science, 2010)
If there aren’t any clear conditions to base the subsidies on, the danger is that other factors come into play. Gust Meyer, professor Popular Culture at the department Communication Sciences of the Catholic University Leuven, writes in his book ‘Why culture isn’t important and culture subsidy even less’: …”For the subsidy network the term corrupt might be overstated, but the term incestuous, however, is not.”  (Meyer, 2010)
If the grounds for subsidizing an organization in the cultural sector are too vague we simply cannot justify the spending of public money on it.

In my opinion there is a definite need for art and culture in our society, but there are just too many questions unanswered to decide on subsidies and the need for it. Cultural organizations should look more for healthy ways of sustaining themselves then stay addicted to cultural funds. The public, in return, will show their appreciation for the expressions they decide on. This will make sure that the organizations that carry support in the whole of society will live on, instead of the ones that are being supported by so few.

Why the Dutch government should subsidize the arts and culture industry

Currently, the discussion about subsidizing the cultural sector is very vivid in The Netherlands. A new government is proposing cutbacks ascending to more than €200 million in the year 2015 on their annual budget. This is a substantial amount of the around €900 million that has been the state budget in former years. (rijksbegroting, 2010)
The proposed cutbacks have caused a lot of negative reactions from cultural organizations and entrepreneurs stating that these cutbacks will cause a dry up of the cultural climate in The Netherlands, and will make it impossible for them to survive. (De Pers, 2010), (LAgroup Leisure & Arts Consulting, 2010)
I think there lies a definite responsibility with the Dutch government to invest in a healthy cultural industry. The justification of subsidizing these arts lies in different facets, both social and economical.

An important aspect to start with is that Dutch cultural policy states that art and culture should be available to all people, both rich and poor. (Ministry of Education, Culture and Science, 2010) This is not possible without some kind of investment from outside players. If cultural organizations would have to base their income on revenue from sales, the price of, for example, an opera ticket would become unaffordable for the average Joe. This has to do with the costs of fine and performing arts. Where other industries have made progress in efficiency, during the industrial revolution, making more in less time and with less people, an orchestra still needs the same amount of musicians and time to be able to perform. The same goes for a painter or a sculptor. The comparison with other sectors that flourish without subsidies from the government cannot be made, because of this fact.
An argument that is often made against subsidies is that the cultural sector should look more to the private sector for sponsorship to cover their costs. But what will become of the autonomy of an artist when he or she will have to deal with the commercial benefits that a private organization will demand for its (substantial) investment?
Granted, there are some opportunities in sponsorship, but this can never cover the average amount of 63 percent that is now invested by the government in the cultural sector. (Vinkenburg, 2010), (Berenschot, 2010)

This being said, the cultural sector doesn’t only cost money. Though subsidies are needed to make art affordable for every individual, the cultural industry actually has a positive economic effect.
Gerard Marlet, director of the spatial-economic research institute Atlas, writes in his book ‘Music in the city’ about the important role that the cultural industry has in the Dutch economy. He calculates that in 2008 €16,9 billion directly and indirectly are grossed by the creative industry. This is the result of purely economical factors, but also of social and social-economical factors; people like to live in cities with a blooming cultural climate, thus companies will also settle and invest in these cities.  (LAgroup Leisure & Arts Consulting, 2010), (Marlet, 2010)
In a more recent research Bastiaan Vinkenburg, member of consultancy agency Berenschot, also recognizes the returns of the creative industries. In his presentation for a debate on art and culture subsidies he mentions the significant economical impact of the arts and culture sector on related industries. The turnover of related industries, like tourism, hotels and restaurants, add up to €70 billion. The state, provincial and municipal subsidies of €5 billion can be justified with these numbers. (Vinkenburg, Kunst & cultuur, het investeren waard?, 2010)

Looking at the economical factors there already is a clear justification of subsidies, but that on itself doesn’t do justice to the importance of art and culture. In a way, art and culture can be seen as a right to express and experience society and its values. Without subsidies a lot of these experiences will not survive. Cultural organizations all around Holland are already struggling with their budgets. Future prospects are grim.
If the government would turn around and again acknowledge the important social and economical role that the creative industry has, it could save an industry that simply can’t function fully on its own.
As Anne Berk stated, art critic for the Dutch Financial Paper: “How could Van Gogh, who didn’t sell even one painting during his life, have survived without the support of his brother?” (Berk, 2008)
I would say that the art and culture industry could still use a little help from big brother.