Krisztina LászlóKrisztina LászlóPhD student, University of PécsPhD student, University of Pécs

The cultural industry of the EU The cultural industry of the EU in the light of the economic in the light of the economic

crisiscrisis

28.10.201128.10.2011

What is cultural industry?

UNESCO definition:cultural industries include publishing,

music, cinema and audiovisual production and multimedia, crafts and design

creative industries:including architecture and different artistic categories: visual arts, performing arts

One of the most dynamic sectors of the economy

Financing arts and culture in the EU An overview

3 main kind of systems:1.Top-down and state driven system

- Disadvantages: no room for lobbying, arts may be influenced by state

2.British system- Funding is coming from the state, but it is not

the state’s body that distributes it

3.Down-to-up method- Independent art councils gives expert advice - The financial decision is made by the

Minister of Culture

Cultural expenditure by sector (before the crisis)

Public cultural expenditures– Museums: 27%– Performing arts: 24%– Libraries: 17%– Music: 7%– Other: 25%

Private invention– Profit-oriented organisations– Non-profit organisations– Individual donations

The economic crisis

Gross Domestic Product (GDP)

Level of employment 2008-2009: 2.1% The number of nights spent in

hotels: 5.1%

The spatial contagionReference: Spatial

Contagion of Global Financial Crisis. 2009.

Cultural sector in 2009Employment in the cultural sectors as a

share of total employment

(Cultural statistic 2011)

3.6 million people were employed in 5 main cultural sectors (EU27) – 1.7% of total

employment

Percentage of persons having part time job

(Cultural statistic 2011)

Part time employment was more frequent in the cultural sector

Cultural sector in 2009

Percentage of persons employed working at

home(Cultural statistic 2011)

Working at home or having more than one job: – working at home is twice

as high (26%) as in total employment

– holding multiple jobs 6% in cultural sector - 4% in total

Cultural sector in 2009

Financial Crisis and its Effect – Surveys Overview

CultureWatchEurope Survey in 2009:– 21 countries: overall reduction – 1 country: partial reduction

SICA publication in 2010– None of the countries is currently in a

position to provide a full picture of the impact of the economic crisis on cultural budgets

– General expectation: the subsidised sector would see only limited effects

Governments on Culture Budgets Survey 2011 (21 countries): – The impact of the crisis on public

budgets for culture is less uniform than expected

– Between 2009 and 2011: • 9 countries decreased their budget by 4% to

26%• 9 countries reported increase from 5% to 38%• 3 countries budget remained the same

Financial Crisis and its Effect - Surveys

PUBLIC RESOURCES FOR CULTURE– EU Structural

Funds– Central

government budgets

– Regional level– Municipal level

Table: Change of cultural budget in the central

government

Effects on Culture

Effects on Culture

PRIVATE RESOURCES FOR CULTURE– Cultural habits and expenditure of

citizens– European Capital of Culture title?– Individual donation – Corporate sponsorship

Effects by Sector– Performing arts

• less exposed to sponsorship and donations

– Festivals• decisive actors in the cultural life of countries

– Museums• top museums did not reflect circumstances of a global crisis

– Built heritage• show a very diverse picture

– Books• only anecdotic evidence of crisis’ effect

– Audiovisuals– Art trade

Conclusion

Short time has passed Main factors take longer to be

realized Needs to be done more survey on

this matter

Financial crisis cannot be taken as an excuse for above-average cuts in the cultural industry

Thank you for your attention!