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PUBLIC SUPPORT OF CULTURE

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1. FINANCIAL SELF SUFFICIENCY OF CULTURAL ORGANIZATION


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Financial self-sufficiency
•Key factors of self sufficiency
•Financially self sufficient areas
–Popular culture
•Financially dependent areas
–Traditional culture
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•

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2. ARGUMENTS FOR AND AGAINST PUBLIC SUPPORT OF CULTURE


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Dominant arguments for public support of culture
•Equality of opportunity
•Positive externalities
•Culture as a public good
•Support of new forms of art
•Culture as a symbol of prestige
•Merit good
•Multiplier effect
•Low productivity of area of culture
•

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Dominant arguments against public support of culture
•Redistribution from poor to rich
•Deformation of market by public subsidies
•Low multiplier effect

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Dominant arguments against public support of culture


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3. ALTERNATIVE MODELS OF PUBLIC SUPPORT OF CULTURE


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Alternative models of public support of culture
•Hillman-Chartrand model of relationship:
•Role of government as:
–Facilitator
–Patron
–Architect
–Engineer
•

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Alternative models of public support of culture
•FACILITATOR
•Government doesn't intervene in the process of production
•The position of artists is mostly dependent on income from production(ability to attract
audiences)
•Important role of donators
•Homogenization of culture
–little space for artistic experiments
•E.g. USA
•

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Alternative models of public support of culture
•PATRON
•Creation of Arts Councils
•Support of high culture production
•Distance between state and art
•The role of state is to decide about the volume of support
–The concrete distribution of support is managed by councils
•Focus on self-sufficiency
•E.g. VB

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Alternative models of public support of culture
•ARCHITECT
•Support of art through state institutions (ministries)
•Artists are often employees of cultural institutions
•High dependence on support from public funds (mainly subsidies)
•Risk of artistic stagnation, moral hazard
•E.g. France

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Alternative models of public support of culture
•ENGINEER
•The aim may not be an artistic experience, but a political goal
•The government owns all funds for support of culture
•The government form a resolution about
–Size of support
–Supported activities, institutions and artist
•Artist are absolutely depended on state support
•Membership in artists' unions - enforceable, censorship
•E.g. the Czech Republic before 89, totalitarian regimes (North Corea, SSSR…)

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4. WHAT DOES INDIRECT AND DIRECT STATE SUPPORT MEAN?


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Government intervention in market of cultural goods and services

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Indirect support
•-Indirect support is represented by activities which support those who are supporting directly
some culture activity
•-main characteristic is that the support doesn't directed to concrete culture organization
•Tax  reduces for donators
•Social contributions
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Direct support
•Money from sales revenues
•Foundations and foundations funds
•Other founds (e.g. state fund for Czech cinematography)
•Communal obligations to support local organizations
•Donations and sponsorship
•Lottery and bets
•Public collections
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5. HOW DOES STATE LOTTERY WORKS?


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State lottery
•Long tradition several countries
–UK
•20% of profit come into culture
–Finland
•Profit is divided in sport and cultural activities

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Finland state lottery
•

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6. MISSION OF MINISTRY OF CULTURE


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Ministry of culture
•Competence of the Ministry
•State administrative body for
–the arts;
–cultural and educational activities;
–cultural monuments;
–matters relating to churches and religious societies;
–matters relating to the press, including publication of the non-periodical press and other
information means;
–the preparation of draft laws and other legal regulations in the area of radio and television
broadcasting;
–implementation of the Copyright Act;
–production and trade in the area of culture

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Ministry of culture
•Expenditures of ministry
•448 mil euros
•1 % of state expenditures

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7. FINANCING OF RELIGIONS


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Financing of religions
–In Czech Republic are religion independent to state since 2012
•Due to act no.428/2012 about religion property settlement
•Religions  will receive property which belongs to it before 1948
•Religions  will receive financial compensation for the property that can not be reversed
•Government has no duty do financially support religions

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Financing of religions
–Options of relation between state and religions
•Religions are independent Cultural services
•USA
•Czech republic (since 2012)
•Religions are part of public sector
•Germany-tax for religions
•Czech Republic (before 2012)
• Religions are semi independent
•Italy – tax assignation (0,8 % of personal revenue tax)
•Spain – tax assignation (0,52 % of personal revenue tax)

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CONCLUSION


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Conclusion
•Culture can be financing by market, private support, public support
•Most of culture segment are not self-sufficient
–They are dependent on the support
•State support has two forms
–Direct (sponsorship,  lotteries, communal obligations, founds and foundations funds…)
–Indirect (tax reduction, social contribution )
•Government spend 1 % of total expenditures for culture

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Usefull links
•(1)
• http://web.ccsu.edu/faculty/harmonj/atlas/definitions.html
•http://www.yourdictionary.com/high-culture
•https://dictionary.cambridge.org/dictionary/english/pop-culture
•(5)
http://minedu.fi/documents/1410845/4150031/The+State+supports+arts+and+culture/bb45a827-60ba-4c16-8
cda-3882fc74fe97
•(6)
http://ec.europa.eu/eurostat/statistics-explained/index.php/File:Mean_household_cultural_expenditur
e_by_expenditure_purpose,_2010.png
•
•(7)
https://ec.europa.eu/eurostat/statistics-explained/images/8/8f/Total_general_government_expenditure
_on_recreation%2C_culture_and_religion%2C_2016_%28%25_of_GDP_%25_of_total_expenditure%29.png
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