Cultural Policy

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2 Definitions of Culture

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* Anthropological: Shared values, customs, ways of lifeFunctional: Activities, practice of the arts

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3 Characteristics of Cultural goods & services

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* Require creative human input
* Serve a larger communicative purpose; they are more than simply utilitarian
* Contain intellectual property that is attributable to the producer(s)

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2 Values of Cultural Goods

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* Cultural value: Complex, multifaceted values, not expressible in monetary terms
* Economic value: Utilitarian value, expressible in monetary terms

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Valuation

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* The process by which value is assigned to something

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2 Criteria for valuation of Cultural goods

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* Value based on artistic or cultural criteria (used when main concern is support for the arts)
* Value based in economic and monetary terms (used when main concern is economic orientation of cultural goods)

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Private Goods

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* Goods that benefit only private agents (individuals/firms)

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Public Goods

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Goods that benefit everyone in a given community

* Non-excludable: Available to everyone (no one is excluded from consuming them)
* Non-rival: One person’s consumption does not diminish another’s

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Mixed Goods

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Goods that have both private-good and public-good characteristics

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Existence Value

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Existence Value: Benefits non-consumers through it’s existence

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Option Value

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People retain the option to consume if they wish

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Bequest Value

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People are able to pass on the good to future generations

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2 Markets for Cultural goods

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* Physical Market: Determines the economic price and has only one value at any given time
* Ideological Market: Determines the cultural price, may have multiple valuations

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3 Ways of Determining Cultural Value

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* Using criteria (historic, aesthetic, social, authentic, spiritual, symbolic value), value can be assessed by an individual/group

Experts can be used to advise on value
* Public opinion can be used to advise on value

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8 Stakeholders in the Cultural Sector

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* Cultural Workers
* Commercial (for-profit) firms
* Non-profit firms:
* Public Cultural Institutions
* Education and Training Institutions
* Government Agencies and Ministries
* International Organizations
* Consumers/Consumer Organizations

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Value Chain for Cultural Goods and Services

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* Model that views the cultural sector as a chain: Creative ideas are linked with other inputs to create a cultural good, which is then linked to marketing and distribution channels to reach the consumer (May also be viewed as a network)

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Concentric Circles Model

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* Model which views the cultural sector as a series of concentric circles: The higher the proportion of cultural-to-commercial content, the closer to the centre

Core Creative arts
* Other Core Creative Industries
* Wider Cultural Industries
* Related Industries

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6 Stages of the Policy Process

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* Identification of Objectives
* Allocation of Responsibilities
* Coordination Between Administrations
* Choice of Instrument(s)
* Implementation
* Monitoring and Evaluation of the Effects of Policy:

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6 Economic Objectives of Cultural Policy

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* Ensuring Market Efficiency
* Creating Equity
* Growth
* Employment
* Price Stability
* External Balance (export/import balance)

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Reasons for Government Intervention in theCultural Sector

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* Help increase cultural producers output
* Positive Externalities warrant collective assistance (e.g. passersby enjoy a beautiful heritage building but do not pay for it, therefore assistance should be provided through tax money)
* Correct market failure due to intellectual theft
* Prevent market monopolies
* Correct market failure due to ill-informed buyers/producers

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4 Artistic and Cultural Objectives of Cultural Policy

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* Promoting excellence, Innovation, Access
* Defining Cultural Identity
* Celebrating Diversity
* Ensuring Continuity of Culture

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5 Policy Instruments

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* Fiscal Policy
* Regulatory Measures
* Industry Assistance Measures
* Labour Market Intervention
* Trade Policy

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Fiscal Policies

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* Direct Provision of Cultural Goods & Services
* Subsidies and Grants to Cultural Producers
* Tax Concessions
* Assistance to Consumers

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Regulatory Measures

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* Intellectual Property Law

Cultural Rights
* Media Policy
* Heritage Policy

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Industry Assistance Measures

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* Business Start-Ups: Business incubators, provision of finance, provision of business management training
* Industry Development Strategies: Use of multiple elements together as a national strategy
* Creative Clusters: Encouragement of clustering of creative businesses

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Labour Market Intervention

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* Minimum wage legislation, financial support, pensions
* Occupational Health and Safety Standards
* Vocational Training and Skills Development

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Trade Policy

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* Export Promotion: Promotion of international sales, cultural diplomacy (e.g. sending an orchestra to potential trading partner)
* Import Controls: Implementation of tariffs, import quotas

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Ways of Monitoring & Evaluating Cultural Policy

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* Observe levels of output

Measure value of output
* Measure levels of cultural exports/imports
* Measure growth rates
* Observe prices Levels
* Observe income levels of creative workers
* Objective &Subjective Evaluation of Cultural Outcomes

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Merit Good

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* a good/service provided by the public sector regardless of public opinion

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Dualism

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Idea that culture provides both

* Extrinsic benefits
* Intrinsic Benefits

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2 Types of Direct Support

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* Direct Control of funding by Arts/Culture Ministry
* Arm’s Length Bodies used to decide funding

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3 Aspects of Direct Support

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* Objectives
* Allocation decisions
* Governance issues