CHOROS INTERNATIONAL PROJECTS, NY CENTER FOR STUDY OF CULTURAL DEVELOPMENT, BELGRADE

CREATIVE INDUSTRIES IN BELGRADE Survival or Development

A Cultural System in Transition

SLOBODAN CVEJIC Faculty of Philosophy, Belgrade University scvejic@sbb.rs

Creative Industry

Different professions in arts and culture Operates as separate field of economy Accumulates revenue other than from state or private funds Supports development of other industries in 3rd and 4th sector (R. Florida. 2002. The Rise of the Creative Class, NY: Basic Books) Concept built in developed countries and transferred to developing countries Now we have to boost it with contents

Three transitions

From former Yugoslavia to nowadays Serbia From state paternalism during socialism to cultural market and national strategy From war and crisis to normal conditions Path dependence theory: building new from the elements of old

Project purpose

Old industrial sites reconstruction into housing and work space for CI people Experience transfered from Art Space Intnl., Mineapolis Sustainability under the local conditions Need for feasibility study Marketing analysis as a part of feasibility study

Marketing analysis purpose

To provide reliable information on project outreach To define project target group in capacity, habits and preferences To give precise wiev on needs in housing and work space (location, size, equipment, fascilities) To estimate financial capacity and payment schemes

Marketing analysis
Arts and culture in economic and institutional transition Belgrade CI people housing and work capacity and needs
Desk analysis on institutional and financial capacity M. DragicevicSesic Belgrade CI survey, individuals and organizations S.Cvejic

Real estate market in Belgrade

Belgrade real estate market analysis M.Petrovic

CI SURVEY (sampling, operationalisation, measurement)

Targeted CI population

Housing, work and income indicators

External data used in post-sampling procedure to overcome gap

Targerted CI sample Selected indicators

Realized sample Really measured indicators

Clogg, C.C. and Dajani, A.N. (1991): Sources of Uncertainty in Modeling Social Statistics: An Inventory, Journal of Official Statistics, 7

CI realized sample (stratified design)

creative industries group
Poetry, literary / creative writing Dance (traditional, modern), ballet Acting (theatre, movie) Other professions related to theatre Other profess. related to movie/video Classical music (vocal, instrumental)

No. of respondents
56 44 54 52 54 36

% of whole CI
13 2 8 8 4 4

Modern music (vocal, instrumental)

Painting, sculpture Crafts and graphic arts Architecture Design Photography, computers, new media, mixed media, performance TOTAL

51
40 45 54 40 41 576

11
17 9 13 4 7 100%

Operationalization and measurement example - workspace

IS THERE ANY SPACE THAT YOU CURRENTLY USE SPECIFICALLY FOR YOUR CRAFT (STUDIO, HALL, ETC.)? No Yes
IF YES, IS THE SPACE YOU PRACTICE YOUR CRAFT IN: Within your home Within walking distance More than 3 miles WHAT IS THE CURRENT OWNERSHIP STATUS OF THE SPACE YOU PRACTICE YOUR CRAFT IN? I rent it I own it I use my parents facility I practice my craft in the institution of my employment I use public space for free I use other space for free (please specify) ___________________________________

Operationalization and measurement example - workspace

INCLUDING YOURSELF, HOW MANY PEOPLE SHARE THE SPACE YOU PRACTICE YOUR CRAFT IN? One Two Three or more WHAT IS YOUR AVERAGE MONTHLY COST OF THE SPACE YOU PRACTICE YOUR CRAFT IN, INCLUDING UTILITIES? $_______________ Have no studio/space Dont pay for it WHAT IS THE APPROXIMATE SIZE OF THE SPACE YOU PRACTICE YOUR CRAFT IN? (MEASURED IN SQUARED METERS) ______________________ ON A SCALE OF ONE TO TEN, HOW SATISFIED ARE YOU WITH THE SPACE YOU PRACTICE YOUR CRAFT IN (10 BEING THE MOST SATISFIED)? 1 2 3 4 5 6 7 8 9 10 WHAT IS THE MINIMUM SIZE NECESSARY FOR THE SPACE YOU PRACTICE YOUR CRAFT IN? (MEASURED IN SQUARED METERS) _________________________

Operationalization and measurement example - workspace

OF THE FOLLOWING, PLEASE RANK THE THREE THAT ARE MOST IMPORTANT FOR THE SPACE YOU PRACTICE YOUR CRAFT IN (the most important gets rank 1).
Natural light _________ High-load bearing floors _________ Special electrical wiring _________ Special plumbing _________ Special ventilation _________ Soundproofing _________ Wheelchair accessibility _________ Oversized doors _________ High ceilings _________ Sprung floors _________ Additional storage _________ High-speed data lines _________ Other (specify) ____________ _________

Operationalization and measurement example - workspace

IF THE FOLLOWING SHARED AMENITIES WERE AVAILABLE, WHICH THREE WOULD BE MOST IMPORTANT TO YOU? (please rank 3) Theater/performance space Classrooms Outdoor work area Conference room Color copier/office equipment Rehearsal space Dark room Foundry area Recording studio Postage metering/mail room Video/film projection Gallery space Retail space Paint room Sprung dance floor Satellite uplink/downlink Printmaking facilities _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________

_________

_________

Operationalization and measurement example - workspace

IF ADDED TO YOUR HOUSING COSTS, WHAT IS THE MAXIMUM MONTHLY AMOUNT YOU WOULD CONSIDER PAYING, INCLUDING UTILITIES AND INSURANCE, FOR THE SPACE YOU PRACTICE YOUR CRAFT IN? None _____________ din
WOULD YOU RELOCATE THE SPACE YOU PRACTICE YOUR CRAFT IN TO A SPECIALLY-DESIGNED FACILITY WITH OTHER CREATIVE INDUSTRIES PROFESSIONALS? Yes No No, not interested in this type of project

Former Yugoslavia

Multicultural Multicentric Wide market Much higher level of cultural freedom than in other communist countries Together with elements of market economy this represented a core of Yugoslav image as the most Western of all CEE countries

Cultural policy priorities during the 1990`s

to centralize decision-making processes in the hands of the Ministry responsible for culture; to create internal embargoes as a reaction to international cultural embargoes that prevented institutions and individual artists to join European cultural networks. Cultural exchanges were supported with only a few countries, such as China, Cuba, or with "spiritually close countries", such as Russia, Belarus, Georgia, Armenia, etc.; to use culture as a tool for raising nationalistic feelings; to promote commercial folk culture as a tool of evasion or annihilation of critical thinking; emphasize certain cultural institutions and projects relative to Serbian history or national identity (Museum of Genocide, etc.).

Necessary priorities for all levels of public policy-making today

decentralisation and detatisation of culture; establishing an environment to stimulate the market orientation of cultural institutions and their efficient and effective work; setting a new legal framework for culture (harmonisation with European standards); multiculturalism as one of the key characteristics of Serbian society and culture; re-establishing regional co-operation and ties; active co-operation in pre-accession processes to the CoE, EU and WTO.

Actors in cultural life

State level: ministry of culture and information, Public cultural institutions City level: city councils in 4 cities Municipalities Cultural industries Private non-profite sector Civil sector Branch sectors

Present situation

Old institutional structures still have to be deetatized in order to take an active public role New cultural system mostly built within the civil sector, vey dependent on foreign partners and donors The artistic community is divided, not only by artistic criteria but also because of ideological reasons

Present situation

The present organisation of cultural, arts and media institutions in Serbia is weak and not being motivated to come up with new strategies Due to the lack of funds, professionals in the cultural field do not participate in the process of life-long learning, in retraining programmes or courses to improve their professional skills Special accent is now being placed on reforms to the main national cultural institutions and the public sector in general, demanding the introduction of new managerial and marketing techniques. The Ministry of Culture has recently set up a Working Group to examine policy issues regarding culture industries development

Present situation

Geocultural map 2002: 14,927 people employed in cultural field, 11,061 full time Estimates go up to 20,000 in Serbia Belgrade cca. 60% human resources in the field and cca. 40% institutions (25% in overall population) High brain-drain in the field Number of radio stations increased from 100-162, 1995-2000 TV broadcastings from 20 to 66, 1995-2000 Theatres from 26 to 41, 1989-2000

Present situation

the budget of the Ministry of Culture for 2002was planned to represent 1% of the State budget, compared to 0.3% in 2000 and 0.8% in 2001 Cultural expenditure per capita in 2000 was close to 4 USD The part of the budget going directly towards programs and projects is very small 18,8 %, as the huge infrastructure is demanding quite a big proportion for investment and care, as well for salaries (if taken together with expenses for energy and electricity it would represent 77,18 %).

Structure of resources Geocultural Map 2002

Financial archives libraries resources
Donations Ministry of culture City Halls Own resources 0,15 83,84 10,68 4,57 0,50 3,79 81,75 9,44

museums
1,50 27,33 49,88 11,33

theatres
4,98 6,67 54,97 25,30

Institute for heritage

0,08 65,40 13 13,35

Cultural centres
3,17 3,06 54,47 29,63

Sponsoring Foundations
Other

0,50

1,34 0,12

3,10 0,69
6,17

4,11 3,71
0,08 8,16

4,97 2,13
2,59

0,26

2,93

Participation

Performing arts: more or less stable in umber of performances and the number of attendees. In 1995, there were 998,000 visitors and in 2000 1,065,000. In Belgrade in 2003 the total number of attendance in ten city theatres was 565,078, while in 2001 was 601,703. Cinema attendance decreased from 32,536,000 in 1985 to 3,702,000 in 2000. Cinemas raised ticket prices during that time and the film audience starting renting more videos. Book sales dropped from 26 000 000 in 1985 to 11 000 000 in 2000. In reality, the book market has started to regain its importance Libraries: the number of users dropped from 11,696,000 in 1983 to 5,763,000 in 1998. Libraries do not have the books users are looking for. In Belgrade in 2003, the number of library members was 101 896 which is only 5 % of the inhabitants, and in 2001 was only 74 363. Museums: The number of visitors decreased from 4,510,000 in 1985 to 1,361,000 in 2000. Number of museums did not change, but the number of exhibit., permanently exhib.ts and registered objects have decreased. Galleries. According to datas relevant for Belgrade galleries in 2003, the total annual number of visitors varied from 105,738 in Gallery Ulus (pedestrian street) to only 3,150 in Gallery Belgrade (first Selling gallery in Belgrade). The gallery entrance is free.

Cultural models - population

BEOGRAD
50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 43.80% 18.50%

16.00% 7.50%

14.20%

4 urbani

5 elitni

folklorni rurbani pristojni

Cultural models books reading

KULTURNE POTREBE (ITANJE KNJIGA)
100.00% 80.00% 60.00% 40.00% 20.00% 0.00%

1
folklorni

2
rurbani razvijene

3
pristojni delimicno razvijene

4
urbani nerazvijene

5
elitni

Cultural models going to theatre

KULTURNE POTREBE (POZORITE)
80.00% 60.00% 40.00% 20.00% 0.00%

1
folklorni

2
rurbani razvijene

3
pristojni delimicno razvijene

4
urbani nerazvijene

5
elitni

Weaknesses of existing cultural system

Lack of contemporary arts institutions such as those for contemporary dance, digital arts, etc; Weak international links of institutions in public sector; Lack of resource centres such as Sound archive (phonotheque), TV archive (museum) etc; Lack of important elements of branch cultural systems (publishing houses specialized for partitions in classical music, film development laboratories, film studios, etc.); No tax stimulation for private investment in cultural industries / entrepreneurship and even sponsoring; No coherent intersectorial policies (linking education & culture; culture & tourism; culture & business, culture & employment, etc.); Lack of policy instruments regarding decentralization of cultural activities; Weak infrastructure in provinces in public sector (technical equipment, lack of retrained professionals etc.); Lack of policy instruments regarding re-training of professionals; Unequal territorial distribution of resources in civil and private sector; Influence of political & ideological divisions on cultural development;

Strenghts of existing cultural system

Existence of new types of cultural institutions and alternative cultural spaces (infrastructure) as platforms for independent cultural initiatives (linking NGOs and sectors through projects); BUT lacking sustainability without foreign donors; Innovative, interdisciplinary and risk-taking art projects; BUT: relying on foreign grants and subventions; Numerous artists recognized on European and world art scene Regional collaboration and European network activities; NGO sector had developed a lot of programs of intercultural dialogue, partnership and co productions Trainers/teachers of cultural professionals possessing the knowhow of art management Strategic planning, Evaluation, Project management, Business plans for sustainability, Partnership cross/disciplinary, with tourism, agricultural, ecological initiatives, etc.); New generation of entrepreneurs in cultural industries/private sector which have already proven their sustainability; development of a debate on controversial (policy) issues within the society,

Belgrade CI market surveys

566 individuals and 53 organizations or companies Questions about needs, preferences and practices in work, housing and cooperation Major goal: to establish capacity for sustainable self-financing in provision of work/living space

Survey results - individuals

60% of respondents does only CI job for living, 13% is basicaly relied upon CI job, but does something else as well (mostly teaching in arts, or other expert work outside CI), and 27% does something else for living and has CI as second choice of activity (they are mostly students or professionals outside CI) pretty high job consistence in an economy which is strongly marked by informal economic activities and survival strategies 84% of our respondents make money out of their creative work. Their market is highly localized: 82% sell or performe in Belgrade, 38% in big cities in Serbia, 27% reach former Yugoslavia states, only 16% has market in Southern-Eastern Europe, 25% in Europe and 13% globaly. The income they make in CI is pretty low. 51 didnt want to answer, but for the rest average annual personal income made in the crafts is 276,000 CSD (4,600 USD). As for the household annual income, it is 690,000 CSD (11,500 USD) in average and with the smaller variation than the one above, which means that our respondents indidvual economic activity is settled in household economic strategy.

Survey results - individuals

CI group Poetry, leterary/creative writing Dance (traditional, modern), balley Acting (theatre, movie) Other professions related to theatre Other profess. related to movie/video Classical music (vocal, instrumental) Modern music (vocal, instrumental) Painting, sculpture Crafts and grafic arts Architecture Design Photography, computers, new media, mixed media, performance Annual average for the group in CSD 252,000 248,000 422,000 400,000 487,000 196,000 293,000 138,000 182,000 313,000 310,000 264,000 In USD 4,200 4,100 7,000 6,700 8,100 3,300 5,000 2,300 3,000 5,200 5,200 4,400 Variation inside the group High Very low Standard Standard Standard Standard Very high High Low Very low High Very high

Survey results - individuals

Narrow circle of operation: 47% say they dont rely upon some organization, publication or Internet to get information or resources needed for their craft. 22% rely primarily upon Internert 44% are not memebers of any local professional organization or trade union When asked if they would join an international association of CI if this would help them achieve their personal goals, 96% said they would However, 15% wouldnt be ready to pay membership fee, another 44% would pay up to 50 EUR (65 USD), and only 13% would pay more than 100 EUR (130 USD).

Survey results - individuals

53% need more rooms in living space compared to what they have now However, only one quarter is ready to pay considerably more (at least 100 USD more) for working/living space than they pay for housing now. Among them, those who live at parents/relatives/friends appartment are overrepresented compared to the whole sample, and they make 54% 25% are ready to pay substantialy more (100 USD or more above todays cost) for work space than they pay now. Among those who need bigger work space painters and sculptors dominate (22%), followed by writers and poets (14%) (the rest goes more or less equaly to other groups). Among those who are ready to stend substantialy higher costs related to work space architects and writers/poets dominate (15% each), followed by equal share of painters/sculptors and craft artists/graphicians (10% each).

Survey results - individuals

Concerning financial arrangements for work/living space, the most preferable one is buying it at subsidized price and with a loan (67% of choices), the second one is renting at subsidized price (54% of choices), than renting at market prices or buing at market prices with favourable loan conditions (38% each), co-ownership with a public institution (33%) and finaly buing it at market prices (11%). Concerning the constractual solution for CI building 87% of our sample prefer a new building, 72% would accept adaptive reconstruction of any old building, 70% would move to reconstructed old industrial site, and 64% prefers restored historical object Work space in a building separate from the living one is the most preferable solution (71% selected this option), followed by separated work space in same building (65%) and integrated working/living space (54%).

Survey results - organizations

64% of organizations/companies that took part in the survey are privately owned, 31% are NGOs and only 6% are state-owned companies. Most of them are small in number of employees, 54% has 0-3 permanently employed people (average for the sample is 11). However, they engage experts and volunteers and average for total human resources engaged is 40 with majority (55%) engaging between 3 and 20 people. The CI organizations/companies surveyed vary significantly in annual income (coefficient of variation is 1.8!), based on 31 who answered to this question. They produce 3,700,000 annually in average (60,000 USD), but majority (49%) falls between 1 and 5 million (16,000 and 80,000 USD).

Survey results - organizations

Highly localized market: 96% in Belgrade and 85% in other Serbian cities. 53% in former Yugoslavia, 34% bring their products/services to South-East Europe, and 38% Europe wide. Oonly 19% approaches global artistic/cultural market. 20% do their business individually, without cooperation. Out of those who did cooperative business 21% had half or more cooperation with foreign/international companies and NGOs. The need for incentives to networking and cooperation: 50% of interviewed organizations are not members of cultural association or network. However, 96% would join an international association/network if this would help them achieve their professional goals. For this purpose, most of them (25%) would be ready to pay a 50 EURO (75 USD) fee (average for the whole sample being cca 180 USD), 10% would pay 0 and 10% 650 USD.

Survey results - organizations

72% believe that their organization/company needs more space than now Two peaking intervals are between 70 and 100 sqm (38%) and between 200 and 300 sqm (23%) For this most of them (55%) would be ready to pay less than they pay now. 15% would pay the same amount they pay now, and 30% would pay more. Almost absolute majority (38%) would pay between 40,000 and 60,000 CSD (650 and 1,000 USD). 88% of the respondents would accept to have their work space situated in the building specialy designed for CI professionals. For this purpose, most of them would most gladly take into consideration either construction of a new building (75%) or reconstruction of an old industrial site. Only 6% would accept to by such a space at market price. 33% would pay full price with subsidized loan. 37% would accept co ownership with a government institution. 44% would rent the space at market price and 58% would rent it or buy it at subsidized price.