Posts with tag crisis

Listen to a conversation on how some cultural organizations in USA cope with the economic crisis and how they have been affected.

An article in Kenyan paper the Nation (June 27, 2009), written by journalist Gitau Gikonyo puts forward a new tendency he sees. As the middle class is growing in Kenya, the engagement for social issues is declining. The middle class seem to be happy with their lives, driving the car back-and-forth to their jobs, living in houses, children going to good schools, and as the number within this class grows, the interest for politics and to work for a better society for all diminishes. The only ones left to lift these issues are either the elite or the very poor, the article states. In India the middle class accounts for around 200 million and is the economically most dynamic group on this planet. But overall they don’t care about politics or social reforms, Gikonyo states. They are well as it is.

People we meet in Nairobi are very committed. They want to see change, take the opportunity. But for the Arts in Kenya one major question is: Is the Art sector ready for change? In Kenya Art and culture is not described in economic terms, as it is in Europe. And to reach changes, basic needs like food, electricity, sanity and infrastructure have to be in place. Working with culture without a conscious mindset also on social and societal issues just does not work. “Freedom of Speach is not recognized in this country since Art is not recognized” one person tells us.

Culture have a mindset towards society. How does this fit with private investors’ interest? The complexity rises. Investors have another rationale and value system than the Arts. The market value chain also looks different. The traditional industry is a linear process from origination to consumption, in creative industries it’s a disruptive process. It doesn’t follow linear expectations, rather you need to in every step from origination to distribution and consumption think in several different options (for more, have a look at Donna Ghelfi’s report below). Time value of money, opportunity cost, as well as net present value counted in the figure: PV-FV=NPV is all investors talk, which has to be layered with cultural production and entrepreneurship if you want these to different fields to meet. Without loosing the value of the Art, the Artistic integrity and the social aspect so closely linked to Artistic work. How should this be done?

The project is a project funded by the Swedish Institute and Strömme Foundation and run by Pratik Vithlani at Mangowalla Ventures in cooperation with Godown and Nätverkstan. Below you can find some of the reports used in the environmental scan for the project.

Read the much debated report on the post-election violence in 2007 written by the Commission of Inquiry into Post-Election Violence, the Waki Report: wakirep.

For information about culture in Africa, have a look at Obervatory of Cultural Policy in Africa. Another interesting initiative is the Arterial network, which started with a conference in Senegal in 2007. The report can be downloaded here: arterialconferencereport.

Read also the reports by Dominic Power, at the University of Uppsala, Sweden, on creative industries, intellectual property and so forth, download here one: dominic-power_-revisied-cluster-theory-for-cultural-industries. Download Donna Ghelfi’s, Programme Officer at Creative Industries Division, interview with John Howkins, a leading thinker on creativity and intellectual property, here: cr_interview_howkins. For an economic perspective on Eastern Africa, look at the report prepared for the investment company Swedfund in 2009 by Peter Stein: reporteastafrica-publ

Check out this fantastic presentation by Hans Rosling, Professor of International Health at Karolinska Institutet in Stockholm at ted.com (or below) where he gives perspective of global development.

As we in the project team pursue the question of interaction between business and cultural field during our sessions, several things emerge. And as we get in to the thought of investors investing in cultural businesses to make profitable returns, a few more things get clear.

Many of the people we meet talk about the potential of creative industries in Kenya, people from both business and cultural side. There is an opening, a collective thought is, a potential, which should be addressed. But how? How would you do to catalyze this potential and at the cost of what? What are the trade-offs?

Samuel Muvelah, at Zimele Asset Management Company Limited, has long experience of project work in different parts of Kenya, venture capital and is now a money manager for those who put in around 50 dollars and want their savings to grow. ”The reason the creative field is not seen, is that it’s lacking sufficient institutional organization to integrate with formal capital structures”, is his major point. “The field is disorganized, so how do you find talent? How do you begin to cooperate with creative industries?” ”To catalyze the potential you need an entry point!”

Muthoni Udonga, on the other hand is musician and a real entrepreneur. She runs festivals with a variety of the top East African Artists, run workshops, and she does this with the perspective of both doing excellent music events, and do activities that develop the field. All this at the same time as she runs her own music career. “Film, tv, music are really taking off here in Nairobi. On small budgets and very entrepreneurial”, she says. Together with producer Robert Wawawei, they describe a growing and bubbling music life with many upcoming new Artists. It’s a growing field, but one also struggling with skills gaps. ”Artists have to think like entrepreneurs, but that doesn’t happen here”, is Muthoni’s point. Together with few funding bodies, lack of investment money and an unpredictable audience, it’s hard to come forward. Hard – but not impossible.

So how could this funding gap between investors wanting to invest in creative industries but don’t know how, and a creative field wanting to be able to live on their content be resolved? How can bridges be built? In September the first meeting will be held in Nairobi putting these partners together to find concrete suggestions to come forward.

But in such a complex project there are many things to consider, and the team of Godown Art Center, Mangowalla Ventures and Nätverkstan, have been digging deep in to these discussions. A few things has emerged, perhaps not so new, but still very evident.

1. Investors expect an economic profit in their investments. Considering the creative field, which consists of a wide variety of activities from the Arts to design and media, only a few will be in consideration. Only a very small portion of cultural businesses and organizations has the chance to make these sorts of profits. They exist, of course, and there is a point to build bridges so they can meet, but for the cultural field as a whole, this will not be a solution.

2. Majority in the creative field are single Artists, small-scale cultural entrepreneurs and organizations that run not-for-profit entities. These might not be in the viewpoint of the investors, but are important as job creators. Here future jobs will be created.

3. Content production and symbolic value are becoming more and more important in the business world. The business field needs the creative field to be able to sustain the value of their products in a world in fast transition.

4. The Artists and investors have one common denominator: they both live on taking risks. The Artist takes risk to create meaning, the investor to create returns.

5. What are the trade-offs? For the investor one such is perhaps the relation between the higher expected returns, the less quality of the Artistic work, if you in the “quality”-word also put in the aspect of uniqueness. This relation might not be binding, a film production selling very well and generating a large profit might also be of high quality. But for most cultural entrepreneurs striving in the field, there will not be large amounts of money to be made, unless you put less amount of time into increasing quality or your Artistic talent or do something else.

So for the Artist on the other hand, the relation between Artistic value and survival are true. Will you be able to live on your Art? If you want to earn money, is there a trade-off on your Artistic value?

The project is a project funded by the Swedish Institute and Strömme Foundation and run by Pratik Vithlani at Mangowalla Ventures in cooperation with Godown and Nätverkstan.

The post-election riots in Kenya in 2007 with many people killed and injured is still an open wound in society. Even though troubles between ethnic groups have been seen before, the strength and cruelty of the reactions in 2007 shook people from the ground. How could it happen?

At the opening of Kenyan Artist Peterson Kamwathi’s exhibition at Goethe-Institute in Nairobi on June 23, both of the inaugural speakers talk about the riots and the fact that no-one, still after two years, has been put to justice. Kamwathi’s exhibition ”Sitting Allowance” is a direct reaction of the environment before and after the election in 2007. In a text the Artist himself describes his work:

” The composition of these drawings is inspired by formal photos. The formal posture is meant to depict the rigidity and conformity that at many times is prevalent withiin institutions. Institutions are chapmpions of formality and while there is nothing wrong with that, at times formality can be at the expense of humanity”.

Many we meet talk about the riots and the importance of building a positive development. Next election is in 2012 and the fear is that the same will happen. At Godown Art Center Art and culture are important factors for development, both societal and economical. The Art center is still a work-in-progress, Joy Mboya and Judy Ogana tell us as we walk around the compounds. They managed to get a hold of localities in an industrial area in Nairobi and have made it into an Art center with studios for Artists, renting out places for music studios, dance company, puppet maker. They also have an exhibition hall and a performance stage. They wanted to – among many other things – give Artists a sense of belonging, a place where they could go to perform, paint, and exhibit.

We are here for a week to prepare for a project and event that aim to bring investors, donors and businesses together with cultural entrepreneurs and organisations from Kenya and Sweden. The funding gap between cultural field and funding bodies is universal. But there is also another side. As the creative field is growing and becoming more important for economy there is a growing interest from investors to find partners in creative field. But they have a hard time finding where and with whom to invest. So what will happen if we bring these two together around the same table?

The project is a project funded by the Swedish Institute and Strömme Foundation and run by Pratik Vithlani at Mangowalla Ventures in cooperation with Godown and Nätverkstan.

Reports and links on Kenya will be posted on this site. For now, have a look at African Colours, an Internet portal for African contemporary Artists.

Read more about creative industries, creativity and thoughts of the current state of the economy and how the field we work in should respond in order to create a better future. Several different contributors has given their thoughs and ideas in “After the Crunch”, a project started by John Holden, John Kieffer, John Newbigin and Shelagh Wright, their common work is also expressed in creative-economy.org.uk.

Download “After the Crunch” here: after_the_crunch.

Professor Justin O’Connor at Queensland University of Technology, Creative Industries Faculty, in Australia has written two interesting papers on creative industries. Developing a Creative Cluster in a Post-industrial City: CIDS and Manchester and Creative Industries: A new direction?. Both can be downloaded here. Read also a note on the website of Arc Centre of Excellence for Creative Industries and Innovation.

Downloads: cciextended and cids-revised.

These days, when entrepreneurship is put forward as the solution of the cultural field’s economic difficulties, and when funding bodies on all levels are talking more frequently of Artists and cultural organizations having to be more entrepreneurial, searching for “sponsorship”, “alternative funding” and “market demand”, it might be time to kill some myths.

An issue of the Economist this spring (March 14–20, 2009) with a special focus on entrepreneurship, put forward five myths of entrepreneurs that needs to be put aside if we are to understand and catalyze entrepreneurship.

Myth 1. Entrepreneurs are lonely, socially incompetent geniuses that come up with great ideas. Instead, the article argues, entrepreneurship is a social activity. An entrepreneur might be very independent, but needs a business partner or social networks to succeed.

Myth 2. Most entrepreneurs are extremely young. Some have been very young, like Steve Jobs and Bill Gates, the article lift forward. But a significant amount is also older, like Gary Buller who started the GPS company Garmin at the age of 52.

Myth 3. Entrepreneurship is driven mainly by venture capital. In fact, venture capitalists fund only a very small fraction of start-ups. Majority of money put into start-ups, the article shows, come from personal debts and of the “three f:s”: Friends, fools and families.

Myth 4. To succeed, entrepreneurs must produce a world-changing product. Instead, experience shows that the most successful entrepreneurs focus on processes rather than products.

Myth 5. Entrepreneurship cannot flourish within large companies. Small start-ups are very important, the article points out, but also large companies are being successful in keeping an attitude of entrepreneurship. The company Johnson & Johnson is put forward as an example.

The personal computer, the mobile phone and internet has made entrepreneurship flourish. Many initiatives has grown since these technological changes were introduced, entrepreneurs come from all parts of the world. Due to falling prices in communication, a global market can be reached instantly.

One interesting initiative is the The Indus Entrepreneur (TIE), started in Silicon Valley in 1992 by a group of Indian entrepreneurs living in the valley. Today they have 12.000 members spread in 12 countries. The idea was to promote entrepreneurship through mentoring, networking and education. A network meeting is held in Stockholm, on 27th of May, organized at the Stockholm-based meeting place the Hub.

“We need a new Georgian Utopia”. Magda Guruli, Curator and Artist, meet us in her  home in Tbilisi. 1970s and 80s was a very artisticly interesting period in Georgia, she tells us. Many interesting initiatives with artistic high quality were taken. After the Soviet period, this infrastructure fell  and everything needs to be rebuilt. A whole new infrastructure is needed. This takes time. Perhaps the gap between systems will allow for new ideas, a transformed artistic scene?  “In the system of Art, we are still in the mentality of Soviet. We need something completely new”.

Many Artist have their own NGO, as the platform to work from. They have their offices at home. The driving force is to do Art with high quality, but also be part of transformation of society.

Human Rights Center is a center working with issues like freedom of speach, discrimination, injustice. Through newsletters, research, workshops, training and projects they want to work for mutual understandning between ethnic groups in Georgia and put the focus on injustices performed by the Georgian government. Informing the public is as important as working with target groups like refugees. They offer services like legal support and counselling in entrepreneurship.

“Through Art you can make the changes otherwise not possible.”

The visit to Georgia is part of the project EKAE2009, run by Natverkstan and financed by the Swedish Institute.

The heroes survived. They were supposed to be killed after the film was made, but the film maker just couldn’t. The animated dolls were characters, personalities, so how could you kill them? Instead he hid them. After each movie he hid them in his house with the risk of getting caught. Intellectual property rights in the 70s, the government was afraid that the dolls would be used in another movie and they would have troubles with angry doll makers who wouldn’t get paid. Now we are able to watch them in a small, one-room museum. Beautiful hand-made dolls, made in Russia in the 70s for animated film made in Georgia. The most known is Bombora, a character who just wanted to go to school and in his frustration for not being able to sets fire on things. Now this character is posing over the entrance in the newly made amusement park at Tatsminda.

Wato Tsereleti, a well-known curator and Artist is describing the contemporary Art scene for us on a café. A major problem, many Artist tell us is space and funding. There is no space for Art or large events. In October the conference Artisterium is taking place, and a difficult part has been to find where to have it. A wonder, really, since Tbilisi is still very much a city in transition and there are many empty spaces. Wato Tsereleti has finally been able to find a locality, and the idea is to restore it into an Art center.

Many meetings has been taking place among visual Artists and Art education, between colleagues in the literature and publishing scene in Sweden and Georgia, as well as performance and film. Bakur Sulakauri Publishing is the biggest publishing house in Georgia, publishing around 200 books every year. They are meeting with colleagues at the publishing house Tranan in Sweden, together with writers, to discuss on how they can work together. The idea is that each Art form will come up with project ideas for future cooperation and exchange.

And as we walk to all these meetings, have  discussions between colleagues in the Art world, we pass the cells at Rustaveli Avenue and get reminded of the situation in this country. What is it we see in the streets? At Rustaveli, near the Parliament and Freedom Square the streets are filled with cells, small plastic covered boxes where people stay all day, all night in protest of the government. It’s difficult to analyse or understand what the cells stand for. Is it an organized protest of a well defined opposition? Or a more a protest of angry inhabitants showing their miscontent of the president? Or is it a show put forward by a few people with economic resources wanting to overthrow the president and take power? Perhaps it’s an Art show, or an installation? We get different versions, different stories. But it is clear that many people are very tired of the situation, of the threats of war, and long for coming back to a normal situation.

The visit is part of the project EKAE 2009, run by Natverkstan and financed by the Swedish Institute.

National Endowment for the Arts in the US recently published a research done on unemplyoment rates for Astists since the financial crisis. The findings are not surprising, but still sad news in a field where income levels are known to be lower than the rest of the working force.

The study put forward several findings:

• Artists are unemployed at twice the rate of professional workers, a category where Artists are put since their high levels of education.

• Unemployment rates for Artists have risen more rapidly than for US workers as a whole.

• Artist unemployment rates would be even higher if not for the large number of Artists leaving the workforce. Some decline may be Artists’ difficulties of finding job prospects.

• Unemployment rose for most types of Artist occupations. High unemployment rates are found in performing Art (8.4%), fine Arts, art directors, and animators (7.1%), writers and authors (6.6%) and photographers (6.0%).

• The job market for Artists is foreseen as unlikely to improve until long after US economy starts to recover.

At the same time as these discouraging news are put forward, another report by National Governors Association recognized that the Arts directly benefit states and communities. This is done through job creation, tax revenues, attracting investments, invigorating local economies, and enhancing quality of life. Figures are put forward by Americans for the Arts, that there are 100.000 nonprofit Arts organizations that support 5.7 million jobs and return 30 billion dollars in governement revenue every year.

Read more of the study here.

Committee of the Regions, a political assembly giving local and regional authorities within EU a voice within the EU structure, arranged a two-day meeting in Brussels on 20 – 21 of April. More than four hundred participants gathered, together with a hundred invited “young talents” from many parts of Europe, to discuss what makes regions and cities creative, what would make Europe more creative and together with practical examples both in panels and study visits around Brussels.

The first panel discussion addressed the question “What makes regions and cities creative?”. A crucial question for EU-Commission if the aim of the year of creativity and innovation is supposed to give results in more innovation and affect economy in a positive way. Many things were put forward, both by the panel, and also by the many young entrepreneurs, cultural practitioners and students in the audience. Why doesn’t education in Europe have more ideas about how to foster creativity? How come the visionary eyes of the young child is gone in the eyes of grown-ups? What happens going through the educational system? Many Art Educations are quite conservative, how could these change? How can Artists and politicians work more together? Are there educational tools to be used? Where do you turn to if you have ideas of something to start?

On the question “If you get to choose, what is the priority action at EU level?” the answer was unison: Get rid of the blocks in EU, make access to EU money less bureaucratic!

A crucial question if the hopes of creative economy is to come true. There is also a close link between the year of intercultural dialogue in EU last year, and the year of creativity and innovation. If new creative ideas are to happen, the wide variety of competence, skills, cultural and ethnic backgrounds need to be addressed and taken care of in a different way than is done today. There are hopes that the creative field will be the new savior in the financial crisis. Perhaps it will be. But only if you do a correct analysis of the field, understand how running organisations, Artistic practice, projects work, using the competence in the field to find the right incentives to catalyze the potential – there are of course an enormous potential. If you don’t, and get stuck in policies and the overestimated perception of what creativity and innovation is, it will be more difficult. There is a balancing act that needs to be performed.

Artist Jörgen Svensson represented Region Västra Götaland with the project Art and Politics and the project Community Art Lab formed together with Nätverkstan, a project based on using creative processes as a tool for city development. Interesting projecs were for instant FIRST innovation Park in Brno, Czech Republic, and the housing project led by Territorial and Urban Development of Castilla-La Mancha in Spain, led together with Mia Hägg, an archtiect in Paris running Habiter Autrement. Urbact, European Programme for Urban Sustainability, just launched a report that can be found on the website.

The Community Art Lab project will soon be posted on this website. Other posts connected to this are for instand Robert McNulty from America for the Arts, on Migration and Entrepreneurs, the seminar in Barcelona in January on the same topic, and examples from India. A programme of the seminar can be downloaded here CreativeCitiesRegions16-04-09. Encatc had a smaller seminar in the afternoon of the 21st of April to continue the discussion, with interesting inputs from Pascale Bonniel Charier of experiences from Grand Lyon and Donato Guiliani from Region Nord Pas de Calais. Download the programme for the Encatc seminar here seminar_encatc090421.

Do you have a hard time following how in the world we ended up in the financial crisis? Here is the animated film that describes it: “The Crisis of Credit Visualized – Part 1.

It looks like the line of dirt in a bathtub. At many of the buildings and facades of houses in New Orleans you can still, three years after the hurricane Katrina, see how high the water was under the flood. Sprayed messages from the rescue teams are still left. Cryptic short messages you need help to understand. ”NE” means ”No Entry”; the rescue team has not been in the building. ”2DB” means ”two dead bodies found”.

You don’t have to go far from the tourist areas to see the devastation. Whole areas of the city are empty. Only half of New Orleans inhabitants of half a million people have returned. Around two hundred thousands have not.

New Orleans is hosting the World Cultural Economic Forum. Participants from around seventy nations have notified their presence and cultural ministers crowd the podium together with ambassadors. The Region of Kalmar and the Hultsfred Festival is representing Sweden.

The event has strong political support both in New Orleans and the state of Louisiana. It’s well understood why. If there is any truth in all these reports of the economic impact of culture, the growth potential and its role as a force for development, then this should show in New Orleans. The city was known for its pulsating cultural life. Here, if anywhere, it should be possible to attract well-off tourists.

In the book “Why New Orleans Matters”, a declaration of love to New Orleans, a city he in despair saw being washed away, Tom Piazza underlines how neatly the New Orleans culture was knitted together. It was built on a weave of tight fabric of music and food, of people and meeting places. It was a cultural field of carnival qualities.

Now this fabric has been torn apart. Houses can be repaired. But people? One documentary film producer tells me what hit him the most when he interviewed survivors of Katrina. At the question of what she missed the most, an elderly woman replied: ”my neighbours”.

Here the rhetoric of the conference is put on an edge. The cultural field has a growth potential, absolutely. But if neighbours are not returning? New Orleans is famous all over the world for the creative energy that was catalysed just in the quarters and housing areas that now are empty. Can you build a city without inhabitants? Can a cultural life re-establish?

The text is written by David Karlsson, President of the Board of Nätverkstan, and was published in Dagens Nyheter on November 12 2008. World Cultural Economic Forum was in New Orleans on October 30 to November 1 2008. For the original Swedish text, download here: dnneworleans.pdf.

To get more views of the on going financial crisis, have a look at two articles in The New York Review of Books. One by Paul Krugman, Professor of Economics and International Affairs at Princeton, and Nobel Prize Winner in Economics in 2008, on the title What to Do. The other by George Soros, a financial speculator, investor and Chair of Soros Fund Management (and known for breaking the Bank of England in 1992) on The Crisis & What to Do About It.

The cultural field knows what it feels like to be without money. And to have to worry about having a job or not. Spend days working with an “ordinary” job, to be able to do the artistic work on nights or weekends. Or spending hours looking for money, filling in applications, and perhaps turning to the state for support. The business world have been there with the answers on hand, willing to support with sponsorship and know-how. Now they are in trouble.

After weeks of financial crisis, with the breakdown of the economic system, and rescue-packages from governements in US and Europe (where the states will go in with money to save it all), the cultural journal and publishing house Glänta reaches out a hand to help the business world with know-how and experience. Read their advice (in Swedish) at Glänta’s webpage. As soon as an English translation is there, we will put it on the webpage.

Read also our former contribution on Glänta here.

Car industry in West Sweden is in trouble. Thousands of people risk loosing their jobs in the crisis. Both Saab and Volvo, two of the traditionally strong industries on the West coast, have difficulties. The reason for Volvo is said to be that they haven’t put enough effort into finding new models that are environmentally friendly and competitive on a global market. An interesting reason, and the conclusion easily comes to mind that it must mean ignorance and a lack of initiative at Volvo or Ford. There are research on climate change since several years back, one reason in the climate drama is discharge from cars. Other car manufacturers have been quick in finding models with alternative fuel. So, why have Volvo been so late?

It’s said that one employee within the car industry generate five jobs in other areas of society, could be at day-care centres, advertising agencies, technicians and so forth. In the long run this also affects tax income to the state and region, when private sector is declining there will be less money for universities, hospitals and public day-care. If a thousand people loose their jobs, it means in reality six thousand jobs. The conclusion is that money needs to be invested in Volvo, on research and development, to hold the business on its feet. The state has been quick in their support when it comes to finish building infrastructure, two-lane freeways between Göteborg, Trollhättan and Oslo. The Region of West Sweden just declared that they will go in with 200 million SEK to help save Volvo.

But is it well invested money to keep holding the old industry under its arms, when reports and research show that the economy for the 20th century is changing from large traditional industries to small niche markets? And why not put forward a rescue package that includes investing in other areas such as the creative field, as well as Volvo? The thought of one employed generating five other jobs is also true within other areas, for example the creative sector. The problem in this field is that it consists of very small niche businesses and is an underdeveloped field where the state and regions have not invested enough to let this grow to its full potential. Instead, when the government around a week ago put the budget forward, the traditional cultural, and Stockholm based, institutions are the winners; the Opera, Dramaten, cultural heritage. Very little was put into new and forwardlooking ideas, development of the artistic field or cultural businesses.

Read articles of the car industry in West Sweden (Swedish) in Göteborgs-Posten. The state budget for 2009 is found at the website of The Swedish Government.