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The Impact of the Economic Crisis on the EU Cultural Industry

This presentation by Krisztina László, PhD student at the University of Pécs, delves into the cultural industry of the European Union, examining its significance and challenges during an economic crisis. Utilizing UNESCO definitions, it outlines various sectors within cultural industries, including music, arts, and audiovisual media. It reviews financing mechanisms and cultural expenditures pre- and post-crisis, analyzing employment trends and budget changes across EU nations. The findings highlight the resilience of the cultural sector and the need for ongoing research amid economic fluctuations.

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The Impact of the Economic Crisis on the EU Cultural Industry

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  1. Krisztina LászlóPhD student, University of PécsThe cultural industry of the EU in the light of the economic crisis 28.10.2011

  2. 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

  3. Financing arts and culture in the EU An overview 3 main kind of systems: • Top-down and state driven system - Disadvantages: no room for lobbying, arts may be influenced by state • British system - Funding is coming from the state, butit is not the state’s body that distributes it • Down-to-up method • Independent art councilsgives expert advice • The financial decision is made by the Minister of Culture

  4. 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

  5. The economic crisis • Gross Domestic Product (GDP) • Level of employment 2008-2009: 2.1% • The number of nights spent in hotels: 5.1%

  6. The spatial contagion Reference: Spatial Contagion of Global Financial Crisis. 2009.

  7. Cultural sector in 2009 Employment 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

  8. Cultural sector in 2009 Percentage of persons having part time job (Cultural statistic 2011) • Part time employment was more frequent in the cultural sector

  9. 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

  10. 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

  11. Financial Crisis and its Effect - Surveys • 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

  12. Effects on Culture PUBLIC RESOURCES FOR CULTURE • EU Structural Funds • Central government budgets • Regional level • Municipal level • Table: Change of cultural budget in the central government

  13. Effects on Culture • PRIVATE RESOURCES FOR CULTURE • Cultural habits and expenditure of citizens • European Capital of Culture title? • Individual donation • Corporate sponsorship

  14. Effectsby 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

  15. 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

  16. Thank you for your attention!

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