BRAZIL/BRASIL THE ROLE IS PLAYING IN THE INTERNATIONAL ART WORLD

ALEXANDRA REYHL LEIVE 15 MAY 2013 EXECUTIVE MASTER IN ART MARKET STUDIES UNIVERSITY OF ZURICH

SONNEGGSTRASSE 30 8006 ZÜRICH, SWITZERLAND [email protected] +41 79 902 9621

THESIS SUPERVISORS: FLORIAN BERKTOLD & DR. NICOLAS GALLEY

I hereby certify that this master thesis has been composed by myself, and describes my own work, unless otherwise acknowledged in the text. All references and verbatim extracts have been quoted, and all sources of information have been specifically acknowledged. This master thesis has not been accepted in any previous application for a degree.

TABLE OF CONTENTS INTRODUCTION ...... 4 CHAPTER 1 HISTORY...... 7 1.1 BRAZILIAN MODERNISM AND THE 1920S THROUGH 1930S ...... 7 1.2 NEOCONCRETISM AND THE LATE 1940S THROUGH EARLY 1960S ...... 8 1.3 THE MILITARY DICTATORSHIP, 1964-1985 ...... 18 1.4 THE “REAL PLAN” AND THE 1980S THROUGH 1990S...... 20 1.5 BRAZIL SINCE 2000 ...... 21 1.6 BRICS NATIONS...... 21 CHAPTER 2 ECONOMY ...... 23 2.1 ECONOMIC CHANGES WITHIN THE LAST TWO YEARS AND PREDICTIONS ON FUTURE GROWTH...... 23 2.2 INCREASE IN PERSONAL WEALTH AND HIGH NET WORTH INDIVIDUALS ...... 24 2.3 TAXES...... 27 2.4 THE ECONOMICS OF THE BRAZILIAN ART MARKET ...... 30 CHAPTER 3 THE COLLECTORS AND THE ARTISTS ...... 32 3.1 INTRODUCTION...... 32 3.2 COLLECTORS ...... 33 3.2.1 INTRODUCTION ...... 33 3.2.2 WHO ARE THE COLLECTORS? ...... 34 3.2.3 MOTIVATIONS AND TRENDS ...... 36 3.3 ARTISTS...... 40 3.3.1 INTRODUCTION ...... 40 3.3.2 CONTEMPORARY ARTISTS ...... 41 3.3.3 ADRIANA VAREJÃO...... 42 CHAPTER 4 THE GALLERIES ...... 49 4.1 INTRODUCTION...... 49 4.2 THE BRAZILIAN GALLERIES ...... 50 4.2.1 ASSOCIAÇÃO BRASILEIRA DE ARTE CONTEMPORÂNEA l ABACT...... 50 4.2.2 EVOLUTION OF BRAZILIAN GALLERIES ...... 53 4.2.3 BRAZIL’S YOUNGER GALLERIES ...... 55 4.2.4 THE GALLERY COMMUNITY...... 57 4.2.5 THE DEMAND FOR BRAZILIAN ART ...... 58 4.3 THE INTERNATIONAL GALLERIES ...... 60 4.3.1 CHALLENGES ...... 61 4.3.2 BRAZILIAN ART IN INTERNATIONAL GALLERY EXHIBITIONS ...... 61 4.3.3 BRAZILIAN ARTISTS IN INTERNATIONAL GALLERY PROGRAMS ...... 63 4.3.4 EXPANSION INTO BRAZIL ...... 64 CHAPTER 5 ART FAIRS...... 68 5.1 INTRODUCTION...... 68 5.2 BRAZILIAN ART FAIRS...... 68 5.2.1 INTRODUCTION TO THE FAIRS...... 68 5.2.2 FUTURE GROWTH OF THE FAIRS...... 70 5.3 INTERNATIONAL ART FAIRS ...... 72 CHAPTER 6 INSTITUTIONS...... 75

2 6.1 INTRODUCTION...... 75 6.2 BRAZILIAN INSTITUTIONS ...... 75 6.2.1 BIENAL DE ...... 75 6.2.2 BRAZILIAN MUSEUMS ...... 77 6.2.3 DAROS LATINAMERICA ...... 79 6.3 INTERNATIONAL MUSEUMS...... 80 6.3.1 INTRODUCTION ...... 80 6.3.2 EXHIBITIONS OF BRAZILIAN ARTISTS ...... 80 6.3.3 ACQUISITIONS OF BRAZILIAN ART ...... 81 CHAPTER 7 AUCTIONS ...... 83 CONCLUSION...... 87 APPENDIX A CHARTS AND GRAPHS ...... 90 APPENDIX B SELECTION OF INTERVIEW QUESTIONS ...... 92 BIBLIOGRAPHY ...... 95

3

INTRODUCTION

Emerging. Globalization. Trend. Growth. Booming. Vibrant. Wealth. In recent discussions on Brazil, these are the words I most frequently came across during my research for this paper, many of them followed by question marks. They all refer to Brazil’s incredibly unique position within today’s international art world.

Brazil today sits on the cusp. Until the last decade, despite a vibrant art scene and rich history, Brazil remained largely separate from the mainstream art world. And this is why I find the Brazilian situation to be so incredibly interesting, particularly with regard to the art market. Having worked with Latin American Art for several years, I have seen a slow but steady increase in the interest being focused on Brazilian art and collectors both within the market and at museums and galleries. However, the incredible frenzy surrounding Brazil today is something entirely new and very palpable, both within Brazil and internationally.

The main questions I am seeking to answer are why there is such a sudden international interest in Brazil, what role Brazil is currently playing in the international art world and how this is likely to develop in the future. I conducted the majority of my historical research through traditional references. As this topic is just beginning to be explored, the research for the remainder of the paper comes from a variety of sources including exhibition catalogues; extensive reading of both Brazilian and European/American political/economic and art-related press; recent wealth studies conducted by private institutions including the 2012 TEFAF Art Market Report; and most importantly through personal interviews conducted with various art world professionals directly involved with Brazil. Of the interviews I conducted, the ones I found the most relevant and are the most frequently cited were with Mônica Novaes Esmanhotto, Manager of Latitude – Platform for Brazilian Art Galleries Abroad and the Associação Brasileira de Arte Contemporânea l ABACT; Ricardo Sardenberg, Curator and VIP Relations Brazil, Art Basel & Art Basel Miami Beach; Mariana Teixeira de Carvalho, Associate Director, Hauser & Wirth and August Uribe, former Senior Vice President,

4 Impressionist & Modern Art (and Latin American Art), Sotheby’s. The answers and opinions provided in these interviews form the crux of this thesis. A list of questions asked during these interviews is included as Appendix B.

What unfolded from my research was decidedly more complex than I had been anticipating. There were many opinions that were universal while other aspects were less cohesive. With this I was able to very clearly answer some questions while other questions remain open-ended and I can only offer my opinion.

I will begin by introducing the historic and economic background that is necessary to be able to understand the Brazilian art world today, with a particular focus on the NeoConcrete period. This section will also serve to lay the groundwork for some of the intrinsic challenges that threaten the growth of the Brazilian art market (both domestically and internationally).

In order to answer the question of the role that Brazil plays in the international art world and how this is likely to develop going forward, it is necessary to, at least briefly, look at all the players who have a role in it: the collectors, the artists, the galleries, the art fairs, the institutions and the auction houses. The collectors and the artists are, in the simplest terms, the central elements around which the art market orbits. I will introduce the types of collectors emerging out of Brazil and discuss their collecting motivations and trends as well as an introduction to some of the contemporary Brazilian artists who are having the biggest impact on the market today.

Expanding from this foundation, the remainder of the paper will explore the role Brazil is playing in the international art world through a sometimes very intertwined examination of the different sectors of the art world that are responsible for it, beginning with those that are closest to the collectors and artists – the galleries – and expanding outwards to the role that art fairs, institutions and auctions are playing in supporting this core. The connections that exist between these sectors illustrate the growing importance of Brazil within the global art market but also the significant challenges that are impeding this growth and threaten the country’s future development in this regard.

5

In an interview with Hans-Michael Herzog of Daros Latinamerica, the artist Valeska Soares made a very interesting statement about Brazil, which is relevant to keep in mind:

I am a Brazilian, I never stopped being a Brazilian, it’s not about that at all, but it’s very restricting when people think that we only achieve importance, relevance, within the national context. The people here are talking as though Brazilian art were still in a process of gestation, as though it hadn’t happened yet, which is a mistake. It’s that same old cliché, considering Brazil as the country of the future, but the future never arrives for these people. The future is here. Brazil is, it’s not going to be; it is, we are.1

1 “Hans-Michael Herzog in conversation with Valeska Soares, Inhotim, Minas Gerais, 19 April 2006,” in seduces: Valeska Soares, Cildo Meireles, Ernesto Neto (exhibition catalogue), Daros- Latinamerica Collection at Daros Exhibitions, Zurich, 2006.

6 CHAPTER 1 HISTORY

As with any country, it is impossible to fully understand the current situation without first looking at the history that led to its creation. Both the art world and art market are indelibly tied to the general cultural, political and economic situation within a given country. Add an international influence to this and a very complicated, but unique situation is produced. The rich trajectory of Brazilian art and cultural history in dialogue with the European and American art worlds has led to a dynamism and energy that has had a significant impact both domestically and globally.

1.1 BRAZILIAN MODERNISM AND THE 1920S THROUGH 1930S

For today’s art world, the period in Brazilian history from the late 1940s onward is the most relevant. However, it is necessary to briefly mention the period in the early 1920s that would lay the groundwork for this. In 1922, Semana de Arte Moderna (Modern Art Week) took place in São Paulo, an event that is considered a pivotal moment in Brazilian art history. Organized on the occasion of one hundred years of independence from Portugal, the Modern Art Week declared a break with the cultural and aesthetic traditionalism of the past hundred years and the evolution towards a new modern style that bore influences from some of the most influential European art movements of the time including Cubism, Futurism and Surrealism. Some of Brazil’s most recognized artists including Emilio di Cavalcanti, Tarsila do Amaral, Anita Malfatti, Mário de Andrade and Cândido Portinari hail from this period, which would span the 1920s and 1930s – historically significant because it represented the moment that Brazil first opened its doors to the influence of international art movements.2 The resulting interpretations and transformations were uniquely Brazilian, but in dialogue with the international avant-garde, a confluence that would be echoed in the 1950s and 1960s.

2 “Modernism in Brazil,” in Encyclopaedia Itaú Cultural, Visual Arts, Itaú Cultural, São Paulo, 6 October 2009. Retrieved from http://www.itaucultural.org.br.

7 1.2 NEOCONCRETISM AND THE LATE 1940S THROUGH EARLY 1960S

This second decisive moment in the evolution of the modern art world in Brazil took place beginning in the late 1940s and lasted through the early 1960s. This is undoubtedly the most important period within Brazilian art history without which it would be impossible to fully understand today’s art world in Brazil. Not only is this period crucial for historical understanding but it is also a constant reference point for artists, museums, galleries and collectors around the world. Two of Brazil’s most famous artists, and Hélio Oiticica would emerge from this period and their immense influence is felt as strongly today as it was during this period. These artists were appearing on, while at the same time creating, the art scene in Brazil during a period of optimism “before the utopian dream of a modern society was thwarted by the oppressive military regime in the 1960s.”3

At this time, there were many new developments in the cultural sectors of both and São Paulo, due in large part to a significant increase in urbanization (particularly in those cities), which in turn led to an unprecedented surge of industrialization. Rio, which at that point was still the capital, saw the significant development of modern architecture and landscape design fostered by great public commissions; while in São Paulo the cultural sector was rapidly expanding thanks to funding by private initiatives.

During this period, as with today, the art world began to flourish as a direct result of the political and economic situation. There were several changes within the government between the late 1940s and mid 1950s but it was not until 1956, when Juscelino Kubitschek came to power, that things significantly began to develop and a new era of prosperity and economic success was ushered in that began to attract international attention (see fig. 1, p. 10). It was during Kubitschek’s years as president that Brasília would replace Rio as the new capital and the country would be transformed into an increasingly urbanized one. The resulting boom in

3 Ann Gallagher, “Hélio Oiticica: Exhibition guide,” Tate Modern, published online in conjunction with the exhibition: Hélio Oiticica: The Body of Colour, 6 June – 23 September 2007.

8 industrialization created an economic surge that, along with a series of new policies, opened the Brazilian economy to foreign capital and trade.4

[During this period], the state led the way, adopting daring plans. The goal of President Kubitschek, known as ‘President Bossa Nova’, was to achieve in five years what usually took fifty. ‘Energy and transport’ was the slogan of his government, while infrastructure projects – roads, hydroelectric plants, the building of a new capital – fired the people’s imagination. For the first time, up-to-the-minute innovations took visible form. It was in the big cities that the unprecedented climate of democratic enthusiasm and optimism was most evident…Emancipated from the blind positivist belief in science typical of the nineteenth century, Brazil in the 1950s witnessed the maturation of an intellectual consciousness quite different from the one that had prevailed since colonial times.5

This was particularly strongly felt in Rio, which during the 1950s broke free from its staid traditional past to become a metropolis of 2.5 million people. The city quickly developed a new modern cultural identity not only through art but also through architecture, music and film. The names of these movements directly embodied this sprit of renewal: NeoConcretismo, the Bossa Nova and Cinema Nova and these movements would blend together different genres and cultures, the results of which were uniquely Brazilian. The NeoConcrete artists were inspired by the movement happening in Europe while the Bossa Nova blended together jazz, samba and classical music.6 A new capital was even created in Brasília in 1956, a city built from the ground up by state-led architectural and landscape projects spearheaded by and Roberto Burle-Marx

4 Paulo Venancio Filho, “Brazilian Modern and Contemporary Art: Decisive Moments,” in Contemporary Art Brazil, Thames & Hudson, London, 2012, p. 10. 5 Ibid, p. 10. 6 Lars Nittve, “Foreword to the Catalogue,” in Time and Place: Rio de Janeiro 1956-1964 (Hot Spots: Rio de Janeiro / Milano – Torino / Los Angeles, 1956 to 1969) (exhibition catalogue), Moderna Museet, 2008. Retrieved from http://www.modernamuseet.se/en/Stockholm/Exhibitions/2008/Time--Place-Rio-de- Janeiro/Foreword-from-the-catalogue/.

9

Fig. 1, Cover of TIME Magazine, 13 February 1956. Cover Credit: Boris Artzybasheff. Source: www.time.com.

10 respectively. The city, today a UNESCO World Heritage sight, was a symbol of this new vision of Brazil.7

These developments were also marked by the establishment of several important cultural institutions, particularly in São Paulo, which became centers that stood for this new modernism. In 1947, the Museu de Arte de São Paulo (MASP) was conceived by the Italian dealer Pietro Maria Bardi and his wife Lina Bo (who would later become one of Brazil’s most beloved and iconic figures) and financed by the communications tycoon . The museum held exhibitions by key modern artists including Alexander Calder in 1949 and Max Bill in 1950 (whose exhibition was responsible for the development of the Concrete and NeoConcrete movements in Brazil). MASP was critical for the development of Brazilian art by bringing Brazilian artists into direct contact with works by the international artists who were responsible for the new artistic movements of the mid-twentieth century. It was also responsible for pioneering the circulation of new and evolving design practices through its Instituto de Arte Contemporânea, which held workshops based on Bauhaus practices run by and other seminal architects of the time. In 1949, Geraldo de Barros even organized a photography laboratory at the museum.8

The opening of MASP was followed by the founding of the Museu de Arte Moderna de São Paulo (MAM) and its counterpart the Museu de Arte Moderna do Rio de Janeiro, both in 1948. In 1951, the Bienal de São Paulo was inaugurated, created by the same man who founded the MAM de São Paulo, the industrialist Francisco (Ciccillo) Matarazzo Sobrinho.9

7 “World Heritage List: Brasilia,” UNESCO – Culture – World Heritage Centre, United Nations Educational, Scientific and Cultural Organization, n.d. Retrieved from http://whc.unesco.org/en/list/445. 8 Ana Maria Belluzzo, “The rupture Group and Concrete Art,” in Inverted Utopias, Avant-Garde Art in Latin America (exhibition catalogue), Yale University Press, New Haven and London in association with The Museum of Fine Arts, Houston, 2004, p. 204. 9 Kiki Mazzucchelli, “The São Paulo Biennial and the Rise of Brazilian Contemporary Art,” in Contemporary Art Brazil, Thames & Hudson, London, 2012, p. 18.

11

Fig. 2, Photograph of the First Bienal de São Paulo, 1951. Source: www.bienal.org.br.

Fig. 3, Antonio Maluf, Poster for the First Bienal de São Paulo, 1951. Screenprint. Source: www.artnexus.com.

12 The Bienal would be a watershed event that would truly open Brazil up to the international art world (see figs. 2 and 3, p. 12). The importance of the Bienal in laying the groundwork for the current art world in Brazil cannot be underestimated. From the outset, the Bienal’s history was inextricably linked to the development of the domestic art scene as well as with bringing international attention to Brazil. The artistic director of the first edition of the Bienal, Lourival Gomes Machado (then the director of MAM de São Paulo) declared the Bienal’s vision: “by its own definition, the Bienal should accomplish two main tasks: to place Brazilian art not merely in confrontation, but in living contact with world art; and at the same time to seek to establish São Paulo as an art center on a global scale.”10 Written in 1951, these words still hold extraordinary resonance today.

It was thanks to these institutions that the NeoConcrete movement was able to develop in Brazil. As mentioned, in 1950 a retrospective of the works of the Swiss Concrete artist and architect, Max Bill, was held at MASP and captivated the generation of young Brazilian artists (and critics) living in São Paulo who were seeking to engage in and debate the role that art (particularly abstraction) could play in their rapidly developing nation and the influence it could have within the social sphere. The following year, Bill would win the Grand Prize at the inaugural Bienal de São Paulo, a potent signal of Brazil’s cultural engagement with the international art world.11

The Concretism that reached Brazil was based on the corresponding movement taking place in Europe, developed by Bill and first introduced by Theo van Doesburg in his 1930 manifesto titled The Basis of Concrete Art. In it he declared, “painting should be constructed entirely from purely plastic elements, that is to say planes and colors. A pictorial element has no other significance than itself and consequently the painting possesses no other significance than itself.”12 Organic forms and any kind of subjectivity were strictly forbidden - inspiration was derived from geometric shape, mathematical formulas and grids as opposed to forms in

10 Ibid, pp. 18-19. 11 Joshua Mack, “Reviews: 30th Bienal de São Paulo: The Imminence of Poetics,” in Art Review, September 2012, n.p. online edition. 12 “Concrete Art,” MoMA Art Terms (Source: Oxford University Press), Museum of Modern Art, New York, n.d. Retrieved from http://www.moma.org/collection/theme.

13 nature. Brazilian Concretism was officially inaugurated by Grupo Ruptura, a group of seven artists based in São Paulo (although mostly of foreign descent), with an exhibition held on 9 December 1952.13 A parallel group came together in Rio, . The Rio group had a more open interpretation of the Concrete movement, which stood in sharp contrast to Ruptura. The 1956 National Exhibition of Concrete Art brought artists from both groups together (see fig. 4, p. 15). What became apparent was a significant divide between the two groups: the Rio artists had a more intuitive and empirical approach while those from São Paulo were more theoretical.14

NeoConcretism would develop mostly from the Frente group although a few members of Ruptura would join as well. By the end of the 1950s, the artists who would make up the NeoConcrete group had evolved away from the purist aesthetic of Concretism towards a more Brazilian interpretation that advocated for the use of organic forms, the importance of subjectivity and a freedom of experimentation. The artists who emerged from this movement, in addition to Clark and Oiticica, are some of Brazil’s most well known names including, among others, , Mira Schendel, Geraldo Barros and Willys de Castro.

In March 1959 this was formalized when Clark publicly seceded from the Concrete Art movement and, along with several younger artists, “founded” the new group: NeoConcretismo.15 The NeoConcretist Manifesto was published in the Sunday supplement of the Jornal do Brasil newspaper on the 23rd of March 1959. Written by the poet and critic, , the manifesto begins:

The term ‘neoconcrete’ indicates a position vis-à-vis non-figurative ‘geometric’ art (neoplasticism, constructivism, suprematism, the Ulm School) and, in particular, concrete art taken to a dangerous rationalist extreme. The painters, sculptors, engravers and writers participating in this

13 “Grupo Ruptura (Rupture Group),” in Encyclopaedia Itaú Cultural, Visual Arts, Itaú Cultural, São Paulo, 23 November 2005. Retrieved from http://www.itaucultural.org.br. 14 Belluzzo 2004, p. 204. 15 Hal Foster, Rosalind Krauss, Yve-Alain Bois and Benjamin H. D. Buchloh, art since 1900 modernism antimodernism postmodernism, volume 2: 1945 to the present, Thames & Hudson, New York, 2007, p. 377.

14 Fig. 4, Poster for the First National Exhibition of Concrete Art: Waldemar Cordeiro, Lothar Charoux, Geraldo de Barros, Luis Sacilotto and Antatol Wladyslaw, et. al. Offset Lithograph, 1956. Source: http://mondo-blogo.blogspot.ch/2010/12/constructive- art-posters-from-brazil.html.

15 first neoconcrete exhibition – as a result of their artistic experiences – are reviewing the current theoretical positions adopted with respect to concrete art. This is because none adequately ‘covers’ the expressive potential opened up by such experiences.16

One of the most important elements - and lasting legacies - of NeoConcrete art was the artists’ desire to reduce both the physical and emotional space between the artwork and the viewer, reducing the distance between the two. Clark and Oiticica were the first artists to explore this new dimension of artistic creation - both artists encouraged the interaction between art and viewer, even creating works of art that were expected to be adapted, handled or even worn by the viewer. The most famous of these works were Clark’s Bichos (see fig. 5, p. 17), free-form objects designed to be installed and arranged in any configuration chosen by the viewer and Oiticica’s Parangolés and Penetrables, which were designed to be worn (Parangolés) (see fig. 6, p. 17) and entered into (Penetrables) by the viewer.17 The magnitude of what they were exploring caught the attention of the international art world early on. Though the recognition they received was significantly less than that surrounding established European artists, it was nonetheless impressive given that at that point, Brazil was still relatively isolated from the art world capitals centered in New York and London. In 1960 both artists were included in the Konkrete Kunst exhibition in Zurich. Between 1960 and 1968, Clark was exhibited in the 30th, 31st and 34th Venice Biennials. Oiticica was given a solo exhibition at the Whitechapel Gallery in London in 1969 and in 1970 he participated in the Information exhibition at the Museum of Modern Art in New York and was awarded a Guggenheim Foundation scholarship. Both artists participated in numerous São Paulo Biennials (Clark in eight, Oiticica in six) beginning with the second edition held in 1953.18

16 Art in Brazil 1950-2011 (exhibition catalogue), International Arts Festival europalia.brasil, Centre for Fine Arts, Brussels, 2011-2012, p. 55. 17 Edward J. Sullivan, “Lygia Clark and Hélio Oiticica,” in Brazil Body and Soul (exhibition catalogue), Guggenheim Museum, New York and Bilbao, 2002, p. 452. 18 “Rio de Janeiro Biografien,” in Time and Place: Rio de Janeiro 1956-1964 (Hot Spots: Rio de Janeiro / Milano – Torino / Los Angeles, 1956 bis 1969) (exhibition catalogue), Kunsthaus Zürich, 2008, pp. 85-87.

16

Fig. 5, Lygia Clark, Bicho de Bolso, 1966, aluminum, 12 x 13 cm. © Courtesy Maria Cristina Burlamaqui Collection. Source: www.tate.org.uk

Fig. 6, Hélio Oiticica with Bólides and Parangolés in his studio in Rio de Janeiro, c.1965. Photo: Desdemone Bardin © Projeto Hélio Oiticica. Source: www.tate.org.uk

17 Though the NeoConcrete movement was short-lived (it was disbanded in 1961) it had a tremendous influence that was no doubt perpetuated by both Clark and Oiticica moving abroad (Clark to Paris in 1970 and Oiticica to New York in 1971) and their works would continue to be rooted in the tenets of NeoConcretism throughout their lives.

1.3 THE MILITARY DICTATORSHIP, 1964-1985

This period of cultural flourishing was followed by a military dictatorship that, in various incarnations, lasted from 1964 until 1985. During this period there was heavy censorship of the media and arts and suppression of all who stood in opposition to the government. Gone were the days of open experimentation and interaction with the international art world. Brazil, during this period, was effectively isolated from the rest of the world as the government adopted highly protectionist policies to stimulate economic development.19 This period gave rise to a new generation of artists who were forced to approach art from a less direct and more subversive angle. Like the NeoConcrete artists before them, the social relevance of their art was a main concern but the framework within which they were able to work was vastly different. Innovative art forms became preeminent including conceptual, performance and media-based art. Though these movements were also evolving around the world, in Brazil they also provided a way to avoid censorship and persecution under the strict military regime.

One of the most influential artists to emerge from this period was Cildo Meireles (see figs. 7 and 8, p. 19). One of the leading conceptual artists of his generation, not only in Brazil but globally20, Meireles placed significant importance on art and its process as a method of social involvement, positioning him very much in line with the NeoConcrete artists in that regard. In contrast however, Meireles used his art as a tool for political opposition. And he was not alone in this - the artists working in Brazil at that time were doing so under difficult circumstances and due to the relatively closed borders of the country were essentially unknown

19 Clare McAndrew, TEFAF Art Market Report 2013: The Global Art Market, with a focus on China and Brazil, The European Fine Art Foundation (TEFAF), Helvoirt, 2013, p. 155. 20 Meireles was, in fact, the first Brazilian artist to be given a full retrospective at the Tate, London.

18

Fig. 7, Cildo Meireles, Insertions into Ideological Circuits 2: Banknote Project, 1970, Ink on banknote. Source: www.tate.org.uk

Fig. 8, Cildo Meireles, Insertions into Ideological Circuits: Coca-Cola Project, 1970, 3 glass bottles, 3 metal caps, liquid and adhesive labels with text, object, each: 250 x 60 x 60 mm. Source: www.tate.org.uk

19 internationally. In spite of this, after a curator at the Museum of Modern Art (MoMA) in New York saw a piece by Meireles in 1969, he was invited to participate, along with Oiticica, in the groundbreaking 1970 exhibition, Information, held at MoMA - the first conceptual art exhibition mounted by an American museum. 21 This international inclusion was incredibly relevant for Meireles’s career particularly because in 1969 many countries, led by the United States and France, also reacted to the political situation in Brazil and the resulting censorship of the arts, by participating in what would become a ten-year boycott of the Bienal de São Paulo.22 While they were in solidarity with Brazilian artists in criticizing the government’s heavy-handed interference in dictating which exhibitions and art were allowed (including at the Bienal), the withdrawal of much of the international art world from Brazil was also a significant detriment to the domestic art scene, leaving Brazil in relative isolation.

Somewhat surprisingly, economically speaking, this period was one of significant growth. Because of this, the years between 1968 and 1973 came to be known as the “Brazilian economic miracle.” 23 During this period there was a significant increase in wealth due to export-led growth. However, it also became more concentrated, benefitting a comparatively small group of individuals. According to estimates, by the late 1970s there were about 50,000 art collectors in Brazil, although a much smaller group of around 200 were considered to have any significant degree of connoisseurship.24

1.4 THE “REAL PLAN” AND THE 1980S THROUGH 1990S

The period between the fall of the regime in 1985 and 2002, when Luiz Inácio Lula da Silva (popularly known as Lula) took office was characterized by uncontrollable inflation until 1994 when future President Fernando Henrique Cardoso introduced the “Real Plan,” which very simply introduced a new currency, a floating exchange rate and increased taxes. Moreover, what the plan also did was lower the import

21 Claudia Calirman, “Brazilian Art under Dictatorship: Antonio Manuel, Artur Barrio and Cildo Meireles,” Duke University Press Books, Durham, North Carolina, 2012, p. 123. 22 McAndrew 2013, p. 155. 23 Albert Fishlow, “Brazil’s Economic Miracle,” in The World Today, Volume 29, Number 11, November 1973, p. 474. 24 Ibid, pp. 155-156.

20 taxes against foreign importers and goods, which was significant. The import tariffs were reduced from an average of 51% in 1988 to 14% in 1994. This was the last reduction to import taxes which will be a significant issue discussed later in this paper. The economic growth benefits of the “Real Plan” also laid the groundwork for the enormous growth Brazil would experience in the 2000s.25

1.5 BRAZIL SINCE 2000

In 2002, Lula took office, becoming Brazil’s president until he finished his second term in 2010. It was during his presidency that Brazil experienced the enormous period of decade-long growth that leads us into the discussion of Brazil and its economy today. During Lula’s presidency Brazil became the world’s eighth-largest economy and more than 20 million people rose out of poverty. He gave the Brazilian Central Bank greater autonomy, thus ensuring that decisions were made in the best interest of the economy, not politics. Lula also did a significant amount to internationalize Brazil, forging strong ties not only with established economies, but also with other emerging economies. The trade partnerships he formed ensured that the demand for Brazilian goods would remain high, thus ensuring the economy would remain strong. This diversification of trading partners was also a significant hedge against the economic crisis and one of the reasons that Brazil was able to pass through it relatively unscathed. Lula also advocated strongly for Brazil to become a larger global player, including the establishment of the G-20 countries in 2003. 26 In 2010, Lula was succeeded by a member of his administration, Brazil’s current president, Dilma Rousseff who is now responsible for ensuring that Brazil can sustain its growth trajectory.

1.6 BRICS NATIONS

During Lula’s presidency, Brazil’s role as an emerging market became the focus of much attention when in 2001 Jim O’Neill, the head of Global Economic Research at Goldman Sachs, coined the acronym BRIC to refer to the developing market

25 Sean Williams, “Why is Brazil an Emerging Economy?”, University of Iowa Center for International Finance and Development, April 2011, Section III, n.p. 26 Ibid, Section III, n.p.

21 economies of Brazil, Russia, India and China, which he forecasted would, over the next fifty years, lead the way in world economic growth.27 In 2010, South Africa joined the list, changing the acronym to BRICS.

O’Neill’s prediction has so far been proven right, particularly in the last few years, as emerging markets have significantly outperformed more developed economies. This was made even clearer during both the global crisis and the current recovery from it. The BRICS economies were hit less severely by the global financial crisis, and, generally speaking, have recovered more quickly than other economies in Europe and the United States. According to 2012 numbers, the growth rates (driven by strong commodities exports and booming domestic markets) of the BRICS nations are “nearly five times the current average of the G7 countries, and are expected to grow at least three times as fast over the next five years.”28 The tremendous economic growth has in turn led to a tremendous increase in wealth.

Brazil’s economic development over the last 20 years has buoyed the country’s wealth, increasing both average incomes and the population of millionaires. Both have helped to drive demand in the art market. In the decade from 2000, Brazil benefitted from an increased formalization of the labor market with at least 40 million Brazilians entering the middle classes, while a booming commodities market led to growth in investments, wealth and exports. Like the other BRIC nations, incomes are still very divided between the rich and the poor, with 65% of Brazilians having net wealth of less than $10,000 in 2012, while only 0.2% of the population is in the category of over $1 million. Like China however, the middle-income segments are becoming larger, with those individuals in the bracket from $10,000 to $100,000 now representing just under one third of the population.29 (see Appendix A, fig. 1)

27 Biography: Jim O’Neill, Investment Management, London, Goldman Sachs. Retrieved from http://www.goldmansachs.com/our-thinking/topics/brics/bios/Jim_O'Neill_Bio.pdf. 28 McAndrew 2013, p. 191. 29 McAndrew 2013, pp. 177-178.

22 CHAPTER 2 ECONOMY

2.1 ECONOMIC CHANGES WITHIN THE LAST TWO YEARS AND PREDICTIONS ON FUTURE GROWTH

For the aforementioned reasons, Brazil has been praised as an emerging economy success story, attracting foreign investments and global attention. Brazil’s average real Gross Domestic Product (GDP) growth30 between 2004 and 2010 was 4% and in 2010 leapt to 7.5%.31 However, in sharp comparison, the average real GDP growth in 2011 was 1.8%32 and only 0.9%33 in 2012, which was the lowest of the BRICS nations. Notwithstanding this slowdown in growth, Brazil’s national financial position remains very strong, with nearly $377 billion of foreign exchange reserves (ranking Brazil seventh in the world, ahead of both the United States and the Eurozone)34, well-capitalized banks and little government foreign debt. All of this combined has prompted a debate as to whether Brazil’s economic boom is over and at what rates the country’s economy will continue to grow.

Trade is a crucial element in answering this question particularly with Brazil’s growth being significantly bolstered by its heavily export-driven economy. Over the last decade, many developing markets, specifically China and Brazil, have opened up their economies significantly. Yet despite these advances, there are still major trade regulations and policies in place that hinder the internationalization of these markets.35 “Growth slowed in 2011 and 2012 due to both cyclical factors (including the effects of protectionist policies to curb inflation and poor external developments) and some natural slow down in domestic demand. However, it remained positive and is expected to increase to a more stable and higher level over the next two years.”36

30 Growth is measured by the percent rate of increase in real Gross Domestic Product (GDP). 31 David Lavin, “Bad Roads, Red Tape, and Other Reasons Brazil’s Economic Shine is Fading,” The Atlantic, March 2013, n.p. online edition. 32 Joe Leahy, “Brazil hits growth ‘stumbling block’,” Financial Times, 27 March 2013, n.p. online edition. 33 Lavin 2013, n.p. online edition. 34 “Brazil: International Reserves and Foreign Currency Liquidity,” International Monetary Fund, 8 April 2013. Retrieved from http://www.imf.org. 35 McAndrew 2013, pp. 78 and 81. 36 Ibid, p. 179.

23 Two events to bear in mind, though unconnected with the art world, that are likely to make a difference to the Brazilian economy and infrastructure are the upcoming 2014 World Cup and 2016 Olympic Games. A significant amount of money will be poured into updating the country’s infrastructure in preparation for this. Brazil is investing an estimated $470 billion of both public and private funds into the cultural sector in advance of these events for the construction of at least five museums in Rio in an attempt to create a rival to the established institutions already in São Paulo.37

2.2 INCREASE IN PERSONAL WEALTH AND HIGH NET WORTH INDIVIDUALS

Brazil’s rapid economic growth over the last decade resulted in a significant increase to the general level of wealth, which in turn is a substantial reason behind the recent interest in Brazil. Rapidly rising commodity prices fuelled by Chinese demand (one of Brazil’s biggest trading partners) combined with significant recent offshore oil discoveries have created a new class of wealthy Brazilians. The corresponding growth within the financial sector has also led to another sector of new collectors: those working in the financial sector.38 In addition to this the increased wealth has spread to almost all sectors of the economy including to those working in the real estate, construction or retail sectors, for example.39

During this period the number of High Net Worth Individuals (HNWIs) and millionaires has substantially increased. Emerging markets, in general, have been critical within this context and account for a significant portion of these individuals worldwide.40 “The [economic] stability has allowed Brazil’s share of High Net Worth

37 Charlotte Burns and Charmaine Picard, “Is the coffee economy grinding to a halt? Brazil, once the rising star, has seen virtually no growth so far this year. And its tax regime does the art market no favors whatsoever,” The Art Newspaper, November 2012, n.p. online edition. 38 Joe Leahy and Samantha Pearson, “Brazil wealthy set to double in 11 years,” Financial Times, 18 May 2012, n.p. online edition. 39 Ivan Castano, “Brazil's Booming Economy Is Creating 19 'Millionaires' Every Day,” Forbes, 28 November 2011, n.p. online edition. 40 McAndrew 2013, p. 154.

24 Individuals (HNWIs)41 to increase, and it will make Brazil an important hub for luxury goods and services in the coming decade.42 (see Appendix A, fig. 2)

It is necessary to specifically discuss Brazil’s HNWIs as these individuals have been referred to regularly within the press over the last two years. In general, the concept of the HNWI has been used with more and more frequency within the art world as a way of referring to the world’s biggest collectors. According to the 2012 TEFAF Art Market Report written by Clare McAndrew:

Brazil’s principal significance to the global art market has been through the buying power of its high net worth art collectors. Brazil’s HNWIs and ultra- HNWIs have undoubtedly had an impact on the global art market, although it is difficult to measure precisely its extent. But it seems clear that, in the short to medium term, Brazil’s global significance will be based on its increasing number of HNWIs, rather than on the size of its domestic art market. In this respect it has similarities to both Russia and India.43

While McAndrew’s statement is certainly accurate, I think it does not broadly enough encompass all the new collectors appearing out of Brazil, which will be discussed in the next section. However, to put her statement into perspective, by 2012 Brazil had nearly 227,000-dollar millionaires, which in comparison to the world’s millionaire population is quite small at just 0.8%.44 In sharp contrast, by 2013, the country had an extremely high share of billionaires, at almost 3%, representing the ninth largest billionaire population in the world. There are five Brazilian billionaires on the Forbes 2013 Top 100 list of richest billionaires, placing Brazil tied for fourth place with Hong Kong behind the United States, Russia and Germany. The list includes Jorge Paulo Lemann (no. 33), Joseph Safra (no. 46), Antônio Ermiírio de Moraes and family (no. 74), Dirce Navarro de Camargo and family (no. 87) and Eike Batista (no. 100).45 Within Latin America, Brazil has the

41 HNWIs are defined as individuals with more than $1 million in net financial wealth. Source: World Wealth Report 2012, Capgemini and RBC Wealth Management, 2012. 42 McAndrew 2013, p. 179. 43 Ibid, p. 154. 44 Ibid, pp. 181-182. 45 Louisa Kroll and Kerry A. Dolan, “The World’s Billionaires: The Richest People on the Planet 2013,” Forbes, 4 March 2013. Retrieved from http://www.forbes.com/billionaires/.

25 highest population of millionaires (with Mexico in second place with approximately 141,000 dollar millionaires in 2012) and the second highest percentage, after China, of the BRICS countries. In 2011, Brazil had 165,000 HNWIs and almost 90% of those individuals were ultra-high net worth (with investable wealth over $30 million). Furthermore, as an illustration of Brazil’s rapid economic growth over the past decade, these numbers have increased 120% since 2002. This continual year-on-year growth (at an average of 6%) is unique to Brazil - the number of HNWIs in other countries remained essentially the same over the same period of time.46 (see Appendix A, fig. 3)

These numbers and percentages, while interesting for the illustration of Brazil’s growing economic wealth within the global economy, do not necessarily translate to the art market. Nevertheless in general it can be assumed that the two will have some sort of correlation. According to the 2012 TEFAF Art Market Report:

In the last two years [2010-2012] with increased volatility in other asset and financial markets, many HNWIs have increasingly approached their luxury purchases as investments, seeking out those items perceived to have tangible long-term value, most notably art and antiques, which have been seen as the most likely of all such assets to hold or gain in value. Research conducted in early 2012 revealed that the allocation of HNWIs specifically to these passion assets averaged around 10%, although this proportion varies widely between countries. Individuals in countries with more volatile or less developed financial and stock markets and with high inflation often hold more assets such as art, precious metals and jewelry as they are seen as being more secure than stocks and as a hedge against inflation. The highest allocations to these assets were found in some of the emerging art markets, including the UAE (18%), China (17%) and Brazil (15%), whereas the more established art markets showed lower allocations (with 7% in the UK and 9% in the US).47

46 McAndrew 2013, pp. 181-182. 47 Ibid, p. 78.

26 Because of this, the current economic situation in Brazil is very interesting to look at. The country achieved the success it is enjoying today based on economic policies that were geared towards the development of an emerging nation. However, Brazil now finds itself at a point where, having already achieved significant growth, it is now in an entirely different position to which new economic, political and trade policies must be adapted in order to continue to grow over the coming decades. In fact, it is a crucial necessity that some of these policies change otherwise it could be a significant deterrent to future growth, particularly within the art market.

Chief among these policies is the tax system in Brazil, which has been largely based on protectionist economic principles – in very simplified terms, encouraging the growth of the Brazilian market by encouraging exports and discouraging imports of competitive foreign goods. Though this is an effective economic structure for a developing market - one that has been used by most developed nations at some point – and makes sense for the trade of commodities or manufactured goods, it has an undeniably negative effect on the trade of art.

2.3 TAXES

The tax situation is Brazil is arguably the most critical issue with regard to the future development of the Brazilian art market, both domestically and abroad. The tax structure in Brazil is one of the highest and most complex in the world. It is considered by most art world professionals, both Brazilian and international, to be a significant deterrent to the future growth of the art market in Brazil. The costs associated with importing international art into Brazil have made it very difficult for Brazilian galleries and collectors, both private and institutional. It has also become a major encumbrance for any international galleries who might wish to expand into Brazil.48 And it is not only imports that are affected; there are several value added taxes which also affect the domestic market at a very sharp rate and from which there is no reduction or exemption for the trade of art (such as exists with VAT rates in most European countries), as explained below.

48 Ibid, p. 15.

27

While certain individuals and institutions have found ways to circumvent these laws, tax laws and regulations remain a significant stumbling block in the market’s openness to the international art trade. While the Brazilian government has been keen to work with the art market to find ways to export Brazilian art, their continued protectionist stance on imports has kept the market somewhat insulated and domestic in focus.49

Brazil’s tax system with regard to all imported goods is quite complicated. When importing a work of art into Brazil, the cumulative tax rate can exceed 45% of the original purchase price (and is in fact as high as 50% for photographs and 80% for video art). There are two Value Added Taxes, one at the federal level and one at the state level. The tax scheme is based on the original purchase price plus the cost of shipment plus the cost of insurance plus any additional import expenses (we will call this accumulated cost: the base price). The Federal Import Tax (IPI) of 4% is calculated based on this amount. Then the State Sales Tax (ICMS) of 18% for São Paulo and 19% for Rio de Janeiro is levied against the base price plus the IPI. And finally there are three additional taxes: taxes on services (ISS) which average 5% and social contributions on billings (COFINS) plus contributions to the Social Integration Program (PIS). The combined average of these three taxes being approximately 9% on imports and 4% on internal sales. This third level of taxes is calculated based on the base price plus the IPI tax plus the ICMS tax.50

These taxes impede the growth of the domestic Brazilian market, are prohibitive for collectors or galleries seeking to import international art into Brazil and are a significant obstacle for international galleries who are looking to grow within Brazil. There is hope that the government will amend these policies with regard to taxation but it is unclear exactly (or even approximately) how long it will take for that to happen. According to Mônica Novaes Esmanhotto, Manager of Latitude – Platform for Brazilian Art Galleries Abroad and the Associação Brasileira de Arte Contemporânea l ABACT in São Paulo, it is important to make the government understand that art, as a cultural good, cannot be charged in the same way as any

49 Ibid, pp. 173-174. 50 Ibid, p. 175.

28 other sector of the economy would. Some of the more serious ramifications of this are that:

The way it is done today, what actually happens is that a lot of our art is going out, is leaving Brazil and not coming back. I think this is very serious because what are we actually building for future generations in terms of a collection? So it‘s not really just about the business - this is a much more serious consequence of these politics.51

Esmanhotto’s feelings on this were supported by Andrea Hinteregger de Mayo, Co-Owner of Christinger De Mayo in Zurich: “The tax law and particularly import regulation have made it very difficult to sell international art and for public collections in Brazil to import art or to build international collections.”52

According to August Uribe, former Senior Vice President of Impressionist & Modern Art (and Latin American Art) at Sotheby’s in New York, “it is just a ruinous tax that is basically preventing Brazil from keeping international cultural patrimony, which eventually could wind up in museums.”53

Focusing on the market, White Cube gallery director Tim Marlow acknowledged, “It would be disingenuous to say that the high import tax rate will have no effect on the sale of Western art in Brazil.”54

The repercussions of these taxes remaining in place are felt in all sectors of the art world, both market related and institutional, and ultimately hinder the cultural dialogue between works of art and artists from different nations that is so necessary for the proper appreciation and understanding of art. As a collector one is faced with the question of how to deal with this: whether to pay the taxes or to try to circumvent them. And ultimately what has resulted is that many collectors

51 Mônica Novaes Esmanhotto. Manager of Latitude – Platform for Brazilian Art Galleries Abroad and the Associação Brasileira de Arte Contemporânea l ABACT. Telephone Interview. 24 April 2013. 52 Andrea Hinteregger De Mayo. Co-Owner, Christinger De Mayo. Email Interview. 27 April 2013. 53 August Uribe. Former Senior Vice President, Impressionist & Modern Art (and Latin American Art), Sotheby’s. Telephone Interview. 9 May 2013. 54 Burns and Picard 2012, n.p. online edition.

29 simply do not buy international art because of this, which does not benefit anyone as both the opportunities for cultural exchange and cultural enrichment are lost.55

Steps have been taken in the right direction to reduce these taxes, however these are short-term solutions. In 2011, the founders of the first edition of ArtRio, Brenda Valansi and Elisangela Valadares, were able to negotiate that the State Sales Tax (ICMS) be waived. SP-Arte was then able to negotiate the same. Though only residents of the cities in which the fairs took place were able to benefit from this, it does signify that a dialogue has at least begun and that this pressure is coming from various participants in the art market.56

In summary, the tax situation in Brazil is a significant deterrent to the continued evolution of the art market, whether domestic or international. Though there are moves to try to amend the tax structure, the negotiations are moving slowly and it is uncertain when they will be resolved, if ever. Until then, this is a large stumbling block in the path to development.

2.4 THE ECONOMICS OF THE BRAZILIAN ART MARKET

The role that the art market plays within Brazil’s general economy had essentially neither been researched nor explored until very recently. Though the value of the trade in art is quite small in comparison to Brazil’s economy as a whole, the numbers are still quite high and more significantly, show incredible growth within the last two years.

The Brazilian art market is still relatively underdeveloped compared to the established art market centers, despite the significant growth in the primary market. 57 Dealer numbers are opaque and chronically difficult to ascertain however, according to a study conducted by McAndrew, the majority of works sold by Brazilian galleries were sold for less than 50,000EUR in 2012. It was also

55 Mariana Teixeira de Carvalho. Associate Director, Hauser & Wirth. Telephone Interview. 8 May 2013. 56 Novaes Esmanhotto Interview. 57 McAndrew 2013, pp.153-154.

30 reported that no Brazilian dealers reported sales of works over €350,000 (this is in contrast to the 6% of dealers worldwide who reported sales in this segment). It should also be noted though that most Brazilian galleries reported an increase in growth in the last five years, including during 2012 despite the general slowdown in the Brazilian economy.58

In 2012, reported sales in the Brazilian art market were estimated at €455 million, which is approximately 1% of the global art market. 59 Brazil’s major trading partners, with regard to the art market and in terms of imports were the major Western art markets: the United States at 39%, the United Kingdom at 17% and France at 10%. These were followed by Spain at 8% and Portugal at 4%.60 Interestingly, with specific regard to the art market, Brazil has run a trade surplus for art since 2009, which makes sense due to the incredibly high tax burden that restricts imports. In 2011, exports from Brazil were almost four times the size of imports, with exports reaching €41 million (a 1,500% advance over the decade) and imports €12 million. Over the last five years, the value of exports has increased by nearly six times.61 (see Appendix A, fig. 4)

58 Ibid, p. 159. 59 Ibid, p. 15. 60 Ibid, p. 171. 61 Ibid, pp. 91 and 171.

31 CHAPTER 3 THE COLLECTORS AND THE ARTISTS

3.1 INTRODUCTION

One of the most important elements to consider about Brazil is that there is a history, not necessarily of collecting, but of an appreciation and fostering of culture and the arts including literature, music, dance, architecture and art. Whether consciously or not, the current art market grew out of this past.

The collectors and the artists form the basis of the art market and are both indelibly interconnected with each other and with every other aspect of the art world. They also, quite simply, answer the question of why there is so much international interest in Brazil right now. There is an incredibly rich and vibrant contemporary art scene occurring in Brazil today with an array of artists ranging from those very established internationally recognized names to young, emerging artists. This is undeniably a draw for international collectors, galleries and museums who are looking for new art that is different from what is being produced in the main art centers. Intersecting with this more art historical interest in Brazil is the economic interest in Brazil in the form of the increasing wealth and buying power of Brazil’s rapidly growing new collector base. I would argue that it is the latter that, certainly initially, was more responsible for attracting such attention to Brazil. Mariana Teixeira de Carvalho, Associate Director of Hauser & Wirth, offers a more well rounded opinion:

I could see the change in how foreign collectors would see a Brazilian gallery. And then how an international gallery was trying with a lot of effort to approach the Brazilian market. So I could tell you that the turning point was about 2010 to 2011. It was when you could see the same international collectors would buy from Brazilian galleries because they have been following the Latin American market and the Brazilian market for a long time and they had that preference and they had that focus in their collections. What happened after this is that all sorts of collectors decided to turn to Brazil as the new market to look at. So it’s fresh blood actually. There is that

32 element to the picture, where can we go now that is not going to be just the same kind of inspiration going on and on and the same Americans and the same Europeans and the students of those doing what they were doing twenty years ago and it’s just rereading what has been done so why don’t we go to a place that has been producing all along but had been neglected and overlooked in a certain way.62

3.2 COLLECTORS

3.2.1 INTRODUCTION

To begin with, the role of Brazilian collectors in the international art market is a crucial part of answering the question of why there is so much international interest being focused on Brazil right now. It is one of the most important elements of Brazil’s growing role as a global player in the art market. Within the last five years, the number of potential collectors has skyrocketed. What is particularly important to note is that these people are developing across different wealth levels and collecting categories, creating an incredibly diverse new class of collectors. This economic and aesthetic diversification of the collector base in Brazil is incredibly important to the future sustained development of the art market: these collectors are supporting different galleries and sectors of the art market and, in a way through their diversity, are hedges against any future economic dips.

Where are the new collectors coming from? As discussed, the growth of the Brazilian economy over the last decade has led to a general increase in wealth which in turn has led to a whole new sector of potential art collectors. Much of the press (particularly the economic press) surrounding the increase in wealth in Brazil, has been focusing on the growing role of the HNWIs and the tremendous role that they play within the art market through their buying power and attractiveness to international galleries and auction houses. However, in speaking with different art market professionals, it seemed to be universally agreed that the

62 Teixeira de Carvalho Interview.

33 rapidly expanding (and new) upper middle class is also where a significant portion of the attention should be focused.

3.2.2 WHO ARE THE COLLECTORS?

One of the most important elements to understand about Brazil’s growing collector base is how new most of these collectors are. There are absolutely established serious collectors who have been involved in the art world for a significant amount of time and have built globally significant collections. These include perhaps Brazil’s best-known collector, Bernardo Paz of Inhotim as well as the Steinbruch family and José Olympio Pereira. Their collections have become reference points for contemporary art, both Brazilian and international.

However, it is the rapidly growing (both in terms of wealth and size) class of new, young collectors that both Brazilian and international galleries should be focusing on as the future of Brazilian collecting. These individuals, though perhaps not immediately buying at the top end, are certainly playing a significant role in the domestic art market and as their wealth continues to increase, will continue to play a growing role in the art market. According to the Credit Suisse 2012 World Wealth Report, “wealth mobility over time also means that many of the future successful entrepreneurs, and investors are currently located in the lower wealth strata.”63 The report continues by predicting that Brazil will see a substantial increase of 270,000 in the number of millionaires by 2017, which behind China, is the most significant increase of the emerging markets. This represents a predicted increase of 119% (the highest of the selected countries), and would place Brazil fifth in the world in terms of millionaire growth.64

Throughout my research and particularly through the interviews I conducted, it was universally agreed that there has been an absolutely enormous shift within the last two to five years. According to Teixeira de Carvalho:

63 Global Wealth Report 2012, Credit Suisse Research Institute, October 2012, Zurich, p. 21. 64 Ibid, p. 41.

34 The collectors in Brazil that buy from big galleries in São Paulo, Rio and Minas, you can count. Everyone knows who they are - they are very limited in number. They do travel, they do go to art fairs, they do have a relationship with international galleries but they are not what represent the Brazilian market nowadays. The Brazilian market nowadays, in terms of who is buying contemporary art, is getting huge. But the way [the new collectors] start is they start with the more commercial galleries in Brazil, and then they do their own research, sometimes they use art advisors/consultants and then it’s just the natural step to move into a more global collection as well. So because of this new commerce, these new collectors have started to appear in the past five years mostly. It’s a way of investing their money, it’s getting a lot of attention, and it’s never been so publicized in any media in any place, especially [in Brazil].65

Ricardo Sardenberg, VIP Manager Brazil for Art Basel and Art Basel Miami Beach agreed:

Ten years ago, as far as the market goes there were around ten collectors. If you couldn’t sell it to them, you put the work in deposit and waited until the day you could sell it. Now it is a much more diverse marketplace. There are all kinds of levels: entry level, young collectors, middle collectors, big collectors. You have collectors who only collect Brazilian art, you have collectors who collect all over the place, you have Brazilian collectors who only collect international artists…so it’s very, very, much more broad and mixed.66

Eduardo Brandão of Galeria Vermelho continues: “The art market has grown with the economy, and art is no longer thought of as just for the elite.” Katia Mindlin Barbosa of Sotheby’s adds that “collectors are much younger today, and they do their homework.”67

65 Teixeira de Carvalho Interview. 66 Ricardo Sardenberg. VIP Relations Brazil, Art Basel & Art Basel Miami Beach. Telephone Interview. 2 May 2013. 67 Georgina Adam, “Latin American Art is on the up,” Financial Times, 13 October 2010, n.p. online edition.

35 3.2.3 MOTIVATIONS AND TRENDS

In order to be able to offer any sort of prediction as to how this will continue to develop in the future and whether this will have a long lasting impact, the second crucial element to understand is what Brazilian collectors are buying and how they go about doing so. Generally speaking with regard to emerging art markets, the first phase of building up a collection begins with collecting artists from one’s home country. Interestingly in Brazil, this does not define the norm. What comes into play here, in varying forms, are the Brazilian galleries, the international galleries, the art fairs, societal influences and the tax issue. There is also the motivation of art as an alternative investment strategy that bears mentioning.

One of the main questions I am looking at is whether Brazilian collectors are focusing mainly on Brazilian art or if there is a significant desire to collect international art as well (or instead). Here there is a significant difference between the older and younger generations of collectors. According to Brandão of Vermelho, “I think the people that were buying at the time [during the dictatorship], the older collectors, they are not buying yet outside of Brazil or international artists. The young generation is doing it. These collectors they go and buy in New York and London and they go to fairs and they buy in fairs.”68 This shift makes perfect sense considering the differences already discussed regarding the global outlook and policies of Brazil today versus the Brazil that existed during the dictatorship and during the economic volatility of the 1990s. This similar generational divide will be seen later as well in discussing the openness of Brazilian galleries to the international art world.

As mentioned, though a history of collecting certainly does exist in Brazil, it was limited to a small number of individuals. The same long history of collecting and patronage that exists in other global art centers does not exist in Brazil. However, in line with the psychology of collecting, through my interviews and research it became apparent that the same concept of peer motivation/social influence was

68 “Emerging Markets: Focus on Brazil. Interview with Eduardo Brandão, Galeria Vermelho, São Paulo and Ricardo Resende, Centro Cultural São Paulo,” TALKING GALLERIES, 16 December 2011. Retrieved from http://www.youtube.com.

36 one of the main motivating factors for collecting art, along with the desire to acquire luxury goods.

According to Serena Cattaneo Adorno, Director at Gagosian Paris, “the market is opening and collectors want to be a part of what is happening in other places. The desire to possess trophy works within Brazil is increasingly palpable.” 69 Sardenberg expands on this by discussing the significant presence of peer influence within the market. He explained that due to the rapid expansion of the financial markets in the past five years, those working at banks and private banks are building up increasing amounts of wealth. He believes the collecting bug in Brazil frequently stems from a vertical influence (as it does in many places) where, for example, if the owner of a bank has built up an art collection of important pieces it then follows that his junior officers would seek to do the same, something one sees happening frequently.70 Uribe expands on this:

The people who have new wealth want to validate themselves and have a much easier time validating themselves by having a painting that is well known regionally versus the possibility of putting up a painting that is well known internationally, such as a Franz Kline, on a wall, that may not be picked up as a masterpiece by some of the less cognizant people who these people are trying to impress. I am putting this in extraordinarily simplistic language but ultimately that is what it boils down to. Because a lot of these new rich people in Brazil, they have purchased their house, they have these new monster houses, they have their five cars, they have their country place and in many instances they have their airplane or airplanes, what’s the next thing that they are going to do? They are going to buy art…in order to have the social validation they’re going to buy art. So if for instance Adriana Varejão’s paintings which are now doing extraordinarily well on the international market, if you’re a collector and you have your Varejão over your mantle in Rio or São Paulo, people know that a. you’re an active collector and b. that you’ve arrived because you have a very, very

69 Alma D’Amico, “Gagosian Paris Director Serena Cattaneo on What Lured the Supergallery to ArtRio,” Artinfo, 14 September 2012, n.p. online edition. 70 Sardenberg Interview.

37 expensive painting by one of the more successful artists – and when I say successful I don’t mean entirely art market driven but also an artist who has gained international recognition from the curatorial community.71

In terms of what specifically the Brazilian collectors are buying, the answers varied rather significantly. What became clear was that, generally speaking, there is a desire for name recognition. Depending on the specific collector, their peer group and their budget this ranges from well-known Brazilian artists to world-famous international names. The smallest collecting category by far includes works by international artists who are not so well known in Brazil (though perhaps famous in Europe or the United States). This ties directly into the challenges of showing international artists in Brazil.

This lack of exposure to international art within the country becomes a significant challenge for international galleries looking at Brazil as does the lack of familiarity between international galleries and Brazilian collectors, which creates a hesitation on the part of Brazilian collectors to expand internationally. According to Teixeira de Carvalho, there is a fear among collectors that the big international galleries would try to take advantage of them, to an extent, by selling them not the best works by not the best artists, simply because they think they are not sufficiently well-educated enough in terms of the art world. This has created a resistance by many collectors to “go abroad.”72

Despite these challenges though, there has still been a significant amount of growth to international art in Brazilian collections, which is due in large part to the increased globalization of the market in general and an increased openness on the part of collectors. Sardenberg comments:

Thinking of the Brazilian collectors, they definitely collect much more international art than in the past, that’s for sure. I think with the movement of galleries going outside Brazil and being in international art fairs – it naturally brought the intention and the galleries show much more

71 Uribe Interview. 72 Teixeira de Carvalho Interview.

38 international art than they used to do. Back then you would have three shows by international artists a year in São Paulo. Now you have dozens of shows. At any time of the year there are at least one or two galleries showing an international artist. So the communication is much stronger and it makes sense that collectors are having contact with the international scene and start collecting international art. There is a problem with how you bring it to Brazil and the tax thing. Because the market in Brazil is so saturated with collectors, the Brazilian artists are not cheap, so for many collectors who have been doing this for many, many years, they realize that they have a better opportunity collecting internationally than collecting in Brazil. So that happens quite a lot as well.73

The question that is of course at the forefront of this discussion is how the collecting trends are likely to grow going forward. That they have the potential to grow is clear but this will depend on creating an educational and dynamic discourse and infrastructure that the collectors can profit from. Uribe comments on this:

I think that the collectors are certainly going to expand beyond their national borders. I certainly think they are going to move into Contemporary Art. The new generation is now in. These are individuals who are 40 to 65 and they are moving into the market now and I think that basically speaking, with the passage of time, you are going to see more of these individuals that aren’t active now - that are certainly in these homes of other Brazilians who are becoming active - sort of begin to participate.74

Sardenberg further develops on this:

It’s going to continue to expand but not in the same proportion. We started in a very small pool of collectors and now it is a much larger one. I expect that it’s not going to grow as much. It will grow slower but I think it is going

73 Sardenberg Interview. 74 Uribe Interview.

39 to become a better pool. That’s the thing. Which is something that takes time.75

According to Esmanhotto:

We were talking about how diverse the group of galleries have become. I can see the same happening in the collector base. I think there is a lot of room for different levels of collectors. From collectors that are entering the market right now and have a certain limited budget to collectors that have no limits at all to spend on art. So I think that is why there is room for everyone. We just have to organize the small and medium galleries to be able to cope with that and also create more and more new collectors to help enlarge the collector base and of course that depends not only on the market but that depends a lot on our institutions and the whole system of what is really happening in a broader way.76

The important role that the galleries and institutions play in this will be discussed further on.

3.3 ARTISTS

3.3.1 INTRODUCTION

“Perhaps more than ever…the artists who first appeared under the banner of neo- concretism – including Hélio Oiticica, Lygia Clark and Lygia Pape – have played a vital part in contemporary relational aesthetics with their approach to audience interaction and co-creation.”77

The second critical factor in answering the question of the role that Brazil is playing in the international art world is very clearly the art being produced and the artists who are producing it. It is here that the strength of Brazil’s art history

75 Sardenberg Interview. 76 Novaes Esmanhotto Interview. 77 Nittve 2008.

40 beginning with the NeoConcrete artists of the 1950s and 1960s becomes very important. Not only are these Brazilian artists some of the most important artists to have arisen from this generation within Brazil but they are some of the most important artists from that generation in the world. Their influence has been acknowledged by discerning curators, collectors and institutions since the 1960s however it was not until quite recently that they have really been given such visibility in the public eye. According to Matthew Slotover, co-director of Frieze, “What contributes to the strength of modern Brazilian art is that there is an uninterrupted history of creation through the 20th century, unlike some other emerging economies which had huge disruptions.”78 This trajectory has produced artists from every decade in Brazil who today have world recognition and this is an important reason to bolster Brazil’s growing role in the art world.

3.3.2 CONTEMPORARY ARTISTS

“What is new in Brazilian art today is perhaps the eruption of vigorous production in diverse urban settings…the art scene has changed radically in the last ten years. There was an abrupt expansion of artistic circles – museums, galleries, informal associations and the birth of formal schools – all this happening parallel to a bigger access to information…” observes independent curator (and curator of the 29th Bienal de São Paulo), Agnaldo Farias.79

As previously discussed, Brazilian art really began to capture vast amounts of international interest, particularly within the last decade, through the legacy of the NeoConcrete artists. It was mainly through exhibitions of these artists that there initially began to be a lens turned towards Brazil. Though the NeoConcrete artists were exhibited internationally as early as 1960, as well as at intervals throughout the rest of the twentieth century, it was not until the last ten years that Brazilian artists, both established and contemporary, have been exhibited with such increasing regularity in art centers throughout Europe and the United States. There has been a noticeable surge in the last five years at both galleries and museums. Several Brazilian artists are also achieving significant recognition along

78 Adam 2010, n.p. online edition. 79 Hossein Amirsadeghi, ed., Contemporary Art Brazil, Thames & Hudson, London, 2012, p. 145.

41 a parallel track – auctions – where high prices and record-breaking numbers create a constant flow of both speculative and laudatory press. The powerhouse combination of these two elements is drawing even more attention to Brazil.

As already mentioned, Oiticica, Clark, Pape, Schendel and Meireles are some of Brazil’s best-known artists. Through their groundbreaking work, they have all had a profound influence not only on future generations of Brazilian artists but also on international artists. There are a tremendous number of young Brazilian artists working today who are known only within Brazil yet there are also a significant number of artists who have developed serious international recognition including Sandra Cinto, Iran do Espírito Santo, Fernanda Gomes, Jac Leirner, Anna Maria Maiolino, , , Ernesto Neto, Maria Nepomuceno, Rivane Neuenschwander, Os Gêmeos, Miguel Rio Branco, Valeska Soares, Tunga and Adriana Varejão, among many others (see figs. 9 to 12, pp. 43-44). These artists have been shown in galleries not only in Brazil but also in London, New York and Berlin, which will be examined in more depth later in this paper.

3.3.3 ADRIANA VAREJÃO

One of Brazil’s best-known artists, Adriana Varejão, exemplifies the international attention being focused on Brazil. Considered one of Brazil’s most important artists, Varejão’s work is deeply rooted in Brazilian history yet has a far-reaching international appeal both in terms of aesthetics as well as through cultural and historic references. Her work has come to the attention of the international art world not only through inclusion in museum collections and exhibitions but also through the press generated by the very high prices her works have achieved at auction since 2010. Adriana Varejão is described as:

…one of Brazil’s leading and most accomplished painters. Her contemporary reinterpretation of Baroque imagery brought her early success both at home and abroad…The binary tension that underlies her work – between formalist grid and formless elements, outer skins and internal organs, abstraction and figuration, beauty and the abject, to name just a few elements – is at the heart of Baroque theory and demonstrates

42

Fig. 9, Fernanda Gomes, Untitled, 2012, wood and nail, 10 x 6 x 15.5 cm, unique. Photo: Aurélien Mole. Source: www.emmanuelherve.com.

Fig. 10, Iran do Espírito Santo, Untitled (Folded Mirror 14), 2011, mirror, 58 x 248 3/4 x 77 in. Photo: Aurélien Mole. Source: www.emmanuelherve.com.

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Fig. 11, Valeska Soares, Un-Rest, 2010, 128 foot stools and 1 glass chair, dimensions variable (chair: 83.3 x 45.7 x 50.8 cm). Source: www.maxwigram.com.

Fig. 12, Tunga, True Rouge (detail), 1997, networks, wood, blown glass, glass beads, red paint, sponges, billiard balls, brush cleaner bottle, felt, crystal balls, 1315 x 750 x 450 cm. Collection Instituto Inhotim. Source: www.inhotim.org.br.

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her profound knowledge of that style…With implied humor she cannibalizes the traditional decorative arts of Europe, transforming them into a new form of Brazilian imagery.80

Her work is a synthesis of painting and sculpture and the result is distinctly unparalleled within the art world. She builds two dimensions into three. Brazilian history and the legacy of colonialism are ever-present in her works, however so are artists ranging from Géricault, Rembrandt and Goya to Francis Bacon and the minimalist artists.81 Her work is equal parts richly historic, disturbing, provocative, beautiful and visceral (see figs. 13 and 14, pp. 46-47). Varejão has said:

My fiction does not belong to any time or place, instead it is characterized by themes dealing with rupture and discontinuity. These are stories about the body, about medicine, about painting, about Brazil, about tattoos, about Ming, Song or Iznik ceramics, about old tiles, either Portuguese or Delft, and also about modern and ordinary tiles, about maps, books, lacquers. Everything is contaminated. In my work, the formation of Brazilian culture from the colonial period onwards is used as a metaphor for the modern world. The works included in the “jerked-beef” series are like contemporary ruins, canvases of wall and rubble that end up losing their stony, insensitive, hard and inhuman nature and become flesh.82

Varejão’s works are in both private and institutional collections around the world. She has pieces in the permanent collections of the Fondation Cartier pour l’Art Contemporain in Paris, Fundació ‘la Caixa’ in Barcelona, the Hara Museum in Tokyo, the Stedelijk Museum in Amsterdam, the Tate Modern in London and The Solomon R. Guggenheim Museum in New York, among many others.83

80 Ibid, pp. 312-313. 81 Ibid, p. 312. 82 “Press Release: Adriana Varejão,” Victoria Miro Gallery, in conjunction with an exhibition held 30 January – 28 March 2002, n.p. 83 Adriana Varejão entre carnes e mares (between flesh and oceans), Editora de Livros Cobogó Ltda., Rio de Janeiro, 2009, p.341.

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Fig. 13, Adriana Varejão, Folds 2, 2003. Oil on canvas over aluminum, mounted to wood with oil painted polyurethane, 240.7 x 230.2 x 40 cm. Solomon R. Guggenheim Museum, New York. © 2003 Adriana Varejao. Photo: Masood Kamandy/courtesy of Lehman Maupin Gallery, New York. Source: www.guggenheim.org.

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Fig. 14, Adriana Varejão, Figura de convite II [Entrance Figure II], 1998, oil on canvas, 200 x 200 cm. Collection of the Artist. Source: www.lehmannmaupin.com.

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Varejão has also been included in exhibitions at the Brooklyn Museum of Art in New York, the Fondation Cartier pour l’Art Contemporain in Paris, Fundació ‘la Caixa’ in Madrid and Barcelona, Inhotim Centro de Arte Contemporânea (permanent exhibition) in Minas Gerais, the Institute of Contemporary Art in Boston, the Instituto Valenciano de Arte Moderno in Valencia, the Smithsonian Institution in Washington D.C., the Museo Reina Sofia in Madrid, the Museum of Modern Art in New York, the Museu de Arte Moderna do Rio de Janeiro, the Museu de Arte Moderna de São Paulo, The Solomon R. Guggenheim Museum in New York, the Stedelijk Museum in Amsterdam, the Walker Art Center in Minneapolis and the Whitechapel Art Gallery in London.84

84 Adriana Varejão, Biography, Artist Website. Retrieved from http://www.adrianavarejao.net/home.

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CHAPTER 4 THE GALLERIES

4.1 INTRODUCTION

The role that Brazil is playing within the international art world is fascinating to watch right now as it is growing and changing right before our eyes. However, this also makes it rather complicated to analyze, particularly as so many of the influential and relevant elements are intertwined. There is a constant search for dialogue between Brazil and the international world: between Brazilian artists and international galleries, between Brazilian galleries and international artists, between international institutions and Brazilian artists, between Brazilian galleries and international art fairs, between Brazilian art fairs and international galleries. Every angle can be examined and studied and all of these elements combined are what make Brazil such a powerful force in the global art world today. I will try to break down a few of the most significant connections and explain their relevance, challenges and future development. But perhaps it is the mere existence of this very complicated web that best illustrates the point of Brazil’s growing importance within the international art world.

One of the most important points to consider with regard to the internationalization of Brazil is that, of all the emerging markets, Brazil is the one most closely tied to the culture of the main art centers in Europe and the United States. Brazil is a Western country and its culture is not so different from those places so it is innately much easier to understand. This is a point that is seemingly obvious but it is incredibly relevant. Teixeira de Carvalho expanded on this:

[Brazil] is hot now because it’s the new big thing but it’s not new at all. The best or the most known part is the Modernism from the ‘50s and ‘60s. Artists and designers and architects, they all have been influenced by European and American movements from the same period and they use that to create a very particular Brazilian movement in any of these given fields. Most of them, they’ve been educated abroad. They were the

49 economic elite of the time (which was the case in Europe as well but it’s not the case nowadays). So they had access to the best schools, they had access to traveling, to going to Paris and to New York but then they went back and they tropicalized it in a way. They turned this into a very Brazilian thing with every different style they had. So it is kind of a symbiosis seen in an exotic place but it’s not so different. The religion is not so different; the language is a Latin language that came from Europe. So you have all of these references that maybe you wouldn’t find in Asia, you wouldn’t find in Africa. So you do have an element of familiarity with Europe and America that can be recognized - it’s familiar but it’s not the same. It’s not a continuation. That’s also very interesting for curators because now you are seeing all of these comparative shows. The NeoConcrete Brazilians and the Concrete English artists or the Swiss movement - Max Bill - and then the generation of the ‘50s. You have all of these dialogues that curators are exploring everywhere.85

To fully understand this, it is necessary to look at the critical role played by Brazilian galleries in creating a platform of exposure – both for the artists and collectors - in combination with the corresponding (and at times conflicting) role that international galleries play in doing the same.

4.2 THE BRAZILIAN GALLERIES

4.2.1 ASSOCIAÇÃO BRASILEIRA DE ARTE CONTEMPORÂNEA l ABACT

It is impossible to discuss the contemporary art scene in Brazil without first discussing what is now called Latitude – Platform for Brazilian Art Galleries Abroad, an organization that has been incredibly impactful and critical to the current success of the art market in Brazil. Their mission statement reads:

The Project of Internationalization of Brazilian Contemporary Art Galleries was started in 2007 with the core goal of creating business opportunities for

85 Teixeira de Carvalho Interview.

50 the art sector mainly through cultural promotion activities. During this period, the number of members increased. Currently, 54 primary market art galleries participate in Latitude, representing more than 1000 artists.86

To give a brief history of this organization, in 2007 the government launched the International Promotion Project, which was a significant event within the development of Brazil’s organized contemporary art scene. The project was led by APEX-Brasil (the Brazilian Trade and Investment Promotion Agency, which is responsible for promoting Brazilian products and services abroad and attracting foreign investments to strategic sectors of the Brazilian economy)87 in partnership with the Fundação Bienal de São Paulo with the goal of supporting and increasing the participation of Brazilian galleries in the international market. Since 2011, it has been run by the Associação Brasileira de Arte Contemporânea (ABACT) and in 2012 was renamed Latitude – Platform for Brazilian Art Galleries Abroad. According to Esmanhotto, the Manager of Latitude:

The reason why this happened was because when APEX first proposed this sectorial project for contemporary art, there was no existing entity that represented the galleries/businesses. It was a really remarkable confluence since APEX is a government-sponsored commercial project that aims at raising Brazil’s exports numbers in general and the Fundação Bienal de São Paulo is a completely institutional body. But they realized the need for a project like this to exist so they made it happen. While this was happening, it prompted the galleries to get together and begin to organize themselves into a more professionalized body.88

The galleries who initially formed ABACT were the leading contemporary Brazilian galleries of the time and still remain some of the most important galleries: Casa Triângulo, Gabinete de Arte Raquel Arnaud, Luciana Brito Galeria, Galeria de Arte Luisa Strina, Galeria Fortes Vilaça, Galeria Leme, Galeria Millan and Galeria Vermelho. Since then many younger galleries have joined. The goal still remains

86 Latitude – Platform for Brazilian Art Galleries Abroad, n.d. Retrieved from http://www.latitudebrasil.org. 87 McAndrew 2013, footnote p. 172. 88 Novaes Esmanhotto Interview.

51 to promote Brazilian art on the international market but also to create opportunities for these galleries abroad. The association’s programs range from providing financial support to Brazilian galleries participating in international art fairs to bringing international art world participants to Brazil. Since the beginning of the project, the number of exporting galleries and the participation of Brazilian galleries in international art fairs have increased significantly. Of the galleries involved in the program, 19 were exporting art in 2012, compared to only 12 in 2007 (the peak was 22 in 2011). According to data from APEX-Brasil, in 2007 the total combined export value of participating galleries was $6 million. This had reached just under $27 million in 2012, or an increase of 350%.89

The goals of the organization have developed and evolved over the last six years, adapting to the rapidly booming art market in Brazil and for this reason, the programming calendar is broken down into two-year increments. Today, the association finds itself in a very different position with very different issues to contend with. According to Esmanhotto, ABACT/Latitude incorporates a large range of galleries with varying degrees of international exposure - ranging from very new galleries who do not operate much internationally yet to the largest established galleries who have a very impressive international reputation. This presents one of the biggest challenges for the organization – the need to cope with the differing challenges of each of these sectors.90 And as the smaller issues are dealt with, there continue to be overarching problems that present a significant roadblock to growth. The association’s president, Alessandra Ragazzio d’Aloia of Fortes Vilaça remarks: “Economically Brazil is at an excellent moment, but if we do not take the necessary initiatives now – reducing high taxes, facilitating temporary imports/exports – it will be difficult for the Brazilian art circuit to match the pace of other sectors of the economy.”91

89 McAndrew 2013, pp. 171-173. 90 Novaes Esmanhotto Interview. 91 Adam 2010, n.p. online edition.

52 4.2.2 EVOLUTION OF BRAZILIAN GALLERIES

Brazilian and international galleries are both critical to the future development of the Brazilian art market however the main responsibility lies with the Brazilian galleries as they are the ones who are ultimately responsible for growing the domestic market. The galleries are the first and most important step in providing the artists with a platform from which they can grow, both locally and internationally as well as for educating an increasingly discerning collector base. Additionally if it were not for the work these galleries do, international museums would not put on shows by contemporary Brazilian artists and international collectors and galleries would not be looking at Brazil with such interest. According to Uribe:

You have a very, very vibrant and good contemporary artistic movement not just in Rio, not just in São Paulo but also throughout Brazil. Throughout Brazil there is a very thriving contemporary art scene and the main reason that these artists are thriving is that they do have local support. And I think that’s crucial. Because if you don’t have the local support they are not going to thrive.92

The majority of the galleries I refer to are centered in São Paulo but there is also a rapidly expanding gallery scene in Rio as well as in other Brazilian cities. To give a brief history, the majority of the important, more established, contemporary art galleries opened in the late 1980s and early 1990s, with the exception of Galeria Raquel Arnaud and Galeria Luisa Strina, which opened in 1973 and 1974 respectively. Galeria Nara Roesler opened in 1989 followed by Galeria Fortes Vilaça (then Camargo Vilaça) in 1992. Since 2000 there has been a rapid expansion of galleries, including Galeria Vermelho and Galeria Millan in São Paulo and A Gentil Carioca in Rio, all between 2000 and 2005.93 And there has been an even more recent explosion of younger galleries opening within the last few years, including Galeria Emma Thomas in 2006 and Mendes Wood in 2010. The aforementioned galleries have all achieved varying degrees of international

92 Uribe Interview. 93 McAndrew 2013, p. 156.

53 recognition, largely thanks to their presence at the main international art fairs. Their participation in these fairs directly correlates to the strength of their programs.

According to Sardenberg, there has been a significant, deeply rooted change to the gallery structure in Brazil. When Luisa Strina opened her gallery in São Paulo in 1974, she remarked how different the Brazilian art world was then: “The market was very small and local, and we were not allowed to take works out of the country.”94 Fifteen to twenty years ago, galleries did not really represent artists. They showed their works but did not exclusively represent them as agents and most artists sold work directly from their studios. This changed in the mid-1990s when the late Marcantonio Vilaça, who was (and still is) widely considered one of Brazil’s foremost art dealers, opened his gallery. He was the first real agent who represented artists in Brazil, adopting the gallery model that we are all familiar with today but that, at that time in Brazil, was relatively unknown: artists were not allowed to sell outside the gallery but the gallery would bring their work to fairs, introduce them to collectors and curators and manage the shipment of works to and from exhibitions. Vilaça was also instrumental in introducing international artists to Brazil and Brazilian artists to Europe and the United States. His gallery promoted (often with their first shows) some of Brazil’s best known artists including Milhazes, Varejão, Neto, Soares, and Leirner.

Today almost half of the gallery’s program consists of international artists alongside both established and emerging Brazilian artists. Of the 16 international artists represented by Fortes Vilaça, nine have been with the gallery since the early to mid-2000s and seven have been added since 2008, with four having been added in the last two years. The most recent addition to the program is Olafur Eliasson who the gallery is co-representing with Luisa Strina – they held joint exhibitions of his work this past April.95 The gallery’s commitment to bringing Brazilian art abroad and international art to Brazil is key and something that other Brazilian galleries are also beginning to adopt. Márcia Fortes declared: “The point is not Brazil. The point is these outstanding artists who happen to be producing

94 Adam 2010, n.p. online edition. 95 Galeria Fortes Vilaça, Artists. Gallery Website. Retrieved from www.fortesvilaca.com.br.

54 here, and our absolute conviction that they deserve wide recognition and a successful career.”96

Sardenberg noted that even around the year 2000, many galleries were still beginning to adapt to this new model that Vilaça had promoted.97 When Vermelho opened in 2002, Brandão commented that “there was money and a new possibility for a new society and we started trying to build up a new market” however at that point, aside from a few big Brazilian collectors, there simply were no collectors.98 He continued by discussing that the few established collectors would spend a lot of money but over a long period of time, generally only buying older, more established artists. He recalled. “At the time we got this attention from these youngsters who were starting to work in the financial market, or design or stores – new businesses in a flourishing city. We started selling to young collectors of 25 or 30 years old. I was amazed.”99 This is really remarkable in putting into perspective the freshness of the gallery scene in Brazil and the extent to which it was able to grow so quickly in such a short period of time.

4.2.3 BRAZIL’S YOUNGER GALLERIES

This also illustrates the significant change to the dynamics and business models of these galleries as compared to five years ago. 100 In contrast to the more established galleries who have had a decade or more to solidify their business model, one of the particular issues being dealt with by the younger galleries, as noted by several people I spoke with, is a lack of professionalization. As the gallery model is so new in Brazil, there is a complete shortage of art market professionals with proper training, aside from the gallery owners themselves. It was noted that until the last year or so most gallery employees came from a diverse range of backgrounds, with very few being art historians or art world professionals.101 This is, of course, something that can be easily changed within

96 Amirsadeghi 2012, p. 150. 97 Sardenberg Interview. 98 “Emerging Markets…” 2011. 99 Ibid. 100 Novaes Esmanhotto Interview. 101 Sardenberg Interview.

55 the next few years but it is relevant to note at this point as there is the disconnect between this situation and the highly professionalized arts industries in cities with strong art scenes.

Esmanhotto also notes that these galleries have an immediate desire to become internationalized.102 As briefly mentioned earlier, this seems to be a generational trend as the younger generation is maturing at a time when globalization is the rule, not the exception. It must be noted though that the inroads made by the more established galleries have significantly paved the way for the younger galleries to expand onto the international circuit, allowing them to quickly begin to have an impact both domestically and internationally. Chief among these galleries is Mendes Wood, which was opened in 2010. The gallery itself embodies the direction in which the country is beginning to move and in which it must continue moving if it wishes to continue to develop. The gallery’s mission statement reads:

Mendes Wood was founded in 2010 by partners Pedro Mendes, Matthew Wood and Felipe Dmab, with the intention to exhibit international and Brazilian artists in a context conducive to critical dialogue and cross- pollination. Central to the gallery’s program is a concern for regional difference and individuation while fostering cosmopolitanism and collaboration. Inspired by a belief that artistic practices broaden the scope of human agency and have the power to both touch and change the world, Mendes Wood endorses the new convergence of art, ecology, music, architecture and video for the collective good, celebrating conceptualism, political resistance and intellectual rigor.103

Though the gallery has a heavily Brazilian program, over a quarter is made up of international artists, each from different countries. In addition to this, many international artists are included in group shows and one very much sees the importance of a cultural dialogue in placing local artists within an international context and vice versa. And this sort of “cross-pollination,” as they called it, can only benefit the artists and collectors.

102 Novaes Esmanhotto Interview. 103 Mendes Wood, Gallery Website. Retrieved from http://mendeswood.com/about.

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The importance of including international artists in the programs of Brazilian galleries is just as important as including Brazilian artists in the programs of international galleries: it creates a cultural dialogue that will only help grow all those involved. The logic behind this is quite clear: galleries with strong international programs are more likely to be accepted into mid-size to big international art fairs and this exposure will allow the gallery to expand its network and recognition and ultimately collectors will be interested in the gallery’s artists, which will only benefit those involved, particularly if the specific gallery is the only one representing that artist. 104 The Brazilian galleries that currently have the strongest international presence also have the highest number of international artists in their programs, or at the very least regularly include international artists in their shows.

4.2.4 THE GALLERY COMMUNITY

There is undeniably a growing sense of community and “cross-pollination” among the Brazilian galleries, which is essential for cohesive future development and is in many ways due to ABACT/Latitude. Not only is this necessary to ensure the future collective growth of the Brazilian primary market but according to Sardenberg, this is also a critical factor in growing and educating the collector base in Brazil.

Before that, [the galleries] all fought with each other. This kind of relationship changed completely. It’s very important. There is a circuit in that sense and the galleries talk amongst themselves and they have their association and there is more trust. And at the same time this big pool of collectors has been growing and it was clear that the galleries were telling each other about these new collectors: they were introducing them to each other. So what happened is that in the end, after five years, now in São Paulo you have much more of a gallery circuit going on. Of course there is competition but there is a sort of knowledge that if you find a new collector, you cannot hold him forever so you should introduce him to other galleries

104 Teixeira de Carvalho Interview.

57 so the collector can start expanding his knowledge and being involved and that is how you get him to stay in the market for a long time. This means making the collector a better collector as well.105

4.2.5 THE DEMAND FOR BRAZILIAN ART

Entirely thanks to this growing consciousness, the primary market for contemporary Brazilian art has grown tremendously over the last several years. This has grown in tandem with an increase in demand for art from new Brazilian collectors, which has created a substantial rise in prices. This presents a challenge to Brazilian dealers who are trying to sell to international collectors (as well as international dealers who represent Brazilian artists): the prices for Brazilian artists, even young ones, can be prohibitively expensive.

Dealers also reported this problem, particularly in the last two years, when prices of Brazilian Contemporary artists, while acceptable in Brazil, had become out of proportion to their perceived value abroad. One dealer explained: ‘There are often artists who have super important status in Brazil, commanding prices that are more than commensurate by New York standards, but who are mostly if not completely unheard of in New York and London. This has created a challenge in ‘exporting Brazil’ because we would be exhibiting an artist that is completely unknown in the US, but translating his Brazilian prices to USD would result in prices equal to, or even much higher than, artists that are very well known in New York. Over the past couple of years this was partly exchange-rate driven and partly driven by the frothy economy in Brazil, and therefore has been somewhat attenuated this year as both of these trends reverse, but even now the discrepancy remains.106

105 Sardenberg Interview. 106 McAndrew 2013, p. 185.

58 Teixeira de Carvalho further explains the phenomenon:

Those collectors who have always been collecting Brazilian art, they became overprotective as well. Why is everyone looking into this now? The prices are going up too fast and too soon and that’s also a phenomenon that created a little bubble in Brazil. And there is a bubble and it hasn’t burst yet. But it obviously will reach its limit because if you look - especially at younger artists and mid-career artists - they are super expensive (even if you compare them to young artists abroad who have a much more solid career with a CV that would explain the rise in prices) whereas in Brazil you are not seeing that anymore.107

This explains why Brazilian galleries rely heavily on the domestic market as opposed to international sales. On average, Brazilian gallerists earned 85% of their profits from the domestic market in Brazil, with only 15% overseas at fairs. Only 3% of galleries reported sales of more than 50% abroad.108 It should also be noted that the majority of these sales within the Brazilian primary market are works by Brazilian artists. Despite the growing interest in and moves towards representing international artists, Brazilian galleries are also faced with a challenge when it comes to this because of the tax situation. According to Teixeira de Carvalho:

The Brazilian artists that could benefit from an international exchange are not getting that benefit because why would a Brazilian gallery represent a foreign artist if when they have a show there, they can’t show the work of these artists. If you are a Brazilian gallery, representing international artists, there is a reduction [in taxes] because you are not going to import it for the sale value; you are going to import it for your commission value. But if you are going to do it by the book, it’s also very high because it would still come to 25%. And then you are subject to all sorts of questions from customs.109

107 Teixeira de Carvalho Interview. 108 McAndrew 2013, p. 166. 109 Teixeira de Carvalho Interview.

59 Brandão of Vermelho commented:

For twenty years we had a dictatorship that taught us very well how not to communicate with the world and we are trying to get rid of this heritage. We are trying. It takes time because it was strong. During the military times everything we had in Brazil was made in Brazil. This made us self sufficient but made us apart from the world so now I think we are learning. I really don’t think Brazil wants to be that closed it’s just we don’t know how to do it. It’s going to take some time I think.110

4.3 THE INTERNATIONAL GALLERIES

I will transition to international galleries here, as there is a push and pull relationship between these galleries and Brazilian galleries. The dialogue that is being created (and must be created) between the two is what I believe will firmly cement Brazil’s place within the international art world.

That there is a significant amount of interest in Brazil is clear. The overarching question here is why are international galleries interested in Brazil? The first answer to this question is that there is money there in the form of new collectors. The second answer is that it is fresh and vibrant and that there are some incredible artists, both historically important and contemporary. Galleries are businesses - their main goal is to support their artists by providing a venue in which they can show their work and by placing their works into important institutional and private collections – however financial viability is undeniably a concern for them.

Though certain galleries have been working with Brazilian artists and collectors for some time now, the frenzy today is an absolutely recent trend. For the last three years, the press has been full of statements such as: “As South America establishes itself as a powerful force in contemporary art, a Latin wind is blowing over London. Smart dealers are increasingly showcasing artists from the region,

110 “Emerging Markets…” 2011.

60 catering to collectors whose interest has been piqued by what can only be described as a trend.”111 To refer to what is happening in Brazil as a trend is accurate insofar as there has been a burst of international interest within the last few years yet it also diminishes the strength of what is happening by implying that it will be short-lived. It is impossible to predict the future and ascertain how this will definitively develop but given the momentum and thought being focused on Brazil right now by both local and international players, it is likely that this will have the opportunity to continue to flourish, provided that the right steps are taken by all parties involved.

4.3.1 CHALLENGES

What rises as the most significant challenge for international galleries looking at Brazil are the necessary tools and channels to build connections. Without the opportunity and ability to get to know the Brazilian collectors, to include Brazilian artists in their programs and to increase recognition and knowledge of their already existing programs, international galleries will not have success in Brazil.

This requires a long-term approach and galleries are certainly beginning to do this but for those who do not have Brazilians working for them or people directly familiar with the Brazilian market, this can be a difficult task. The two most prevalent approaches are to attend the art fairs in Rio and São Paulo and to include Brazilian artists in group shows. These allow the galleries to both reach out to new collectors and to open the doors to incorporating more Brazilian artists into their programs.

4.3.2 BRAZILIAN ART IN INTERNATIONAL GALLERY EXHIBITIONS

This noticeable inclusion of Brazilian artists in international gallery exhibitions began between 2010 and 2011. In 2010, Alison Jacques Gallery held a solo exhibition of Clark’s works and as early as 2007 had held an Oiticica show. In

111 Colline Milliard, “Pinta London Announces Its Strongest-Yet Lineup for 2013 Fair,” in ArtInfo, 1 May 2013, n.p. online edition.

61 2011 Gagosian Paris held the gallery’s first show of Brazilian Art, Reinvention of the Modern, which focused on the NeoConcrete artists, as did Dickinson New York with their show, Playing With Form: Concrete Art from Brazil also in 2011. Dickinson followed up this inaugural show with another exhibition dedicated to the work of Ivan Serpa (who taught most of the NeoConcrete artists), which took place at the end of 2012. It is logical that many of these galleries, particularly the European ones, would begin by putting up historical shows of the NeoConcrete artists as there is a direct dialogue between these artists and the European movements of the same generation. These artists were also being brought greater international recognition thanks to a series of related museum shows over the preceding few years, which will be discussed more in depth later in this paper.

International galleries have also begun testing the waters by including contemporary Brazilian artists in group shows. Many galleries (focusing mainly on galleries in New York, London, Paris and Berlin) do not yet represent a Brazilian artist however it seems to be the case that many of them are actively looking. The challenge with this is finding the artists and having the appropriate network to reach out to them. Sardenberg explained, “I think that five years ago there were five galleries showing Brazilian artists. That was it. Five and today it’s not five. And even galleries who don’t have Brazilian galleries in their program, they’re interested; they’re showing them in group shows, sort of dating.”112

Several international galleries are mounting shows of Brazilian artists this year as well. Alison Jacques in London showed Fernanda Gomes in May and will also be focusing on the work of Lygia Clark in the Spotlight section of Frieze Masters this October in London. The gallery will also realize, in collaboration with the artist’s estate, a large-scale sculpture installation of one of Clark’s Bichos at Art Unlimited at Art Basel this year.113. Hauser & Wirth is planning a solo show of Anna Maria Maiolino’s work as well as a group show of historical NeoConcrete artists. Galerie Max Hetzler in Berlin just held a show of Ernesto Neto’s work earlier this year and Sean Kelly Gallery in New York hosted a solo exhibition of Iran do Espírito Santo’s

112 Sardenberg Interview. 113 Rozalia Jovanovic, “Art Basel's Unlimited Section for Really Big Art Gets Even Bigger,” Artinfo, 16 April 2013, n.p. online edition.

62 work last year. Stephen Friedman Gallery in London had several shows that included works by Brazilian artists last year and Tierney Gardarin Gallery (formerly Cristin Tierney Gallery) in New York chose NeoConcrete Art as its inaugural exhibition in May.

4.3.3 BRAZILIAN ARTISTS IN INTERNATIONAL GALLERY PROGRAMS

According to Teixeira de Carvalho: “I’ve never seen so many international galleries trying to get a Brazilian artist to represent.”114 That said, there are significant challenges with doing so. The international galleries do not know how the Brazilian galleries will respond if approached regarding one of their artists – whether they will help facilitate the incorporation of a Brazilian artist into an international gallery’s program or in fact make it more difficult. Some of the Brazilian galleries are protective of their artists and worry that if an established international gallery also represents a certain artist, that artist will produce all their work for the bigger gallery and relegate the Brazilian gallery to second place. Teixeira de Carvalho continues by saying, “And it’s not true. I think if an artist is established in Brazil it makes all the sense that they have a primary gallery in Brazil.” She argues that this is only logical as the Brazilian gallery is the one who will ultimately have to deal with the bureaucracy of exporting the works (otherwise the artist’s studio would have to handle that and most studios are not highly professionalized). “It makes all the sense that they have a local person behind them and that the Brazilian market understands that the artists are not being abducted by the big names. This is not the point of representing a Brazilian artist - it’s to improve the diversity as well. You take one of yours and I give you one of mine.”115

This “cross-pollination,” referring back to the term used by Mendes Wood, is absolutely beginning to take shape however it is still in its initial stage. The artists who are already represented by multiple galleries are, generally, the biggest Brazilian names on the market, not the younger artists who could really benefit from such a partnership. Varejão, for example, is represented by Victoria Miro in London, Lehmann Maupin in New York and Fortes Vilaça in Brazil. Sean Kelly and

114 Teixeira de Carvalho Interview. 115 Ibid.

63 Fortes Vilaça both represent Iran do Espírito Santo. Ernesto Neto is represented by Tanya Bonakdar Gallery in New York and, again, Fortes Vilaça. Beatriz Milhazes is, in fact, represented by four galleries: James Cohan in New York, Stephen Friedman, Max Hetzler and Fortes Vilaça. Very interestingly, since Milhazes generally produces fewer than ten paintings a year, her international team of dealers collaborate extremely closely on both prices and exhibitions – even following a set order for solo shows.116 The list continues but Vik Muniz, Valeska Soares and Fernanda Gomes, among others, all have multiple galleries supporting them. In discussing Gomes with Teixeira de Carvalho, she mentioned:

[Fernanda Gomes] is represented by Strina and between the Bienal de São Paulo last year and Miami in December, I can’t recall how many galleries approached me to ask how she was, how it would be working with her, if she would be interested, if she could be put in contact. It was kind of a shock. She is an amazing artist. She is great to work with but she is in her mid-50s. Why is everyone trying to locate her now? Suddenly everyone wants to work with her…New York galleries, London galleries, European galleries. She has always been around and Luisa has always been showing her at art fairs and then you ask why now? Because every international gallery needs to have a Brazilian artist and if you look at the programs they are all getting them.117

4.3.4 EXPANSION INTO BRAZIL

The challenges that are still threatening international galleries rest significantly with their ability to, quite simply, reach Brazilians and build a relationship with them. To begin with, as discussed since importation and taxation are still such difficult issues, many Brazilians still favor Brazilian artists. “They are territorialists so there is a preference to buy in house rather than to buy in international galleries.” 118 In addition to this, there is the very important issue that the

116 Eileen Kinsella, “The Secrets to Brazilian Painter Beatriz Milhazes’s International Success,” Art+Auction, 12 November 2012, n.p. online edition. 117 Teixeira de Carvalho Interview. 118 Ibid.

64 connection Brazilian collectors have with Brazilian gallerists does not necessarily exist with international galleries. “They don’t have the trust, they don’t have the point of connection with the galleries, and they don’t know who to talk to. There is a language barrier.”119

Many international galleries are dealing with this issue by bringing on Brazilian staff that can then help forge these connections. There is also the discussion surrounding whether international galleries will begin to open branches in Brazil. In December 2012, White Cube became the first gallery to open a branch there and rampant speculation has surrounded whether Gagosian (who opened a temporary space in Rio during the fair) and Pace are likely to follow suit. Gagosian director Victoria Gelfand-Magalhães commented that “whatever we do going forward will be subject to the sales import tax situation.”120

In addition to having feet on the ground in Brazil and easier access to collectors there are clearly additional benefits to an expansion into Brazil. However whether these would prove to be substantial enough to merit the investment is yet to be seen. In speaking with people about this possibility, many referred to the rapid expansion of galleries into Hong Kong and China with the question of whether this was in fact augmenting the galleries’ businesses at all.

What comes into play here are two significant issues: the Brazilian galleries’ reactions to this internationalization as well as the aforementioned tax situation. Esmanhotto discussed these very issues in the context of the 2013 edition of SP- Arte:

Everybody was trying to show their best. Truly doing that, which is great because that is what I personally expect from this international encounter. Some people are really afraid that [the international galleries] will take our domestic market because most galleries still live largely from the domestic market and I don’t see it much that way. I see these connections are part of what contemporary art is and having galleries with this level of experience

119 Ibid. 120 Burns and Picard 2012, n.p. online edition.

65 here can only try to raise the standards of what we have been doing in terms of our internal operations and management and all this criteria so I see it in a very positive way.121

Teixeira de Carvalho expanded upon this:

It was made clear that it’s the [Brazilian] galleries themselves, some of them, who would vote to maintain the tax as it is. In some ways they get the advantage of it because people would go to them and then if international galleries would need to show work in Brazil they would kind of use them. I don’t know exactly how it’s going because you get all sorts of information but White Cube opening a gallery in São Paulo was a smart move because by having a national company you can import works in a different way. Or you can have your artists produce the whole show there. Whether it’s all produced there or it’s not is a different matter but you have the legal protection that you don’t pay VAT, what we call ICMS, by having a Brazilian company. So you can bring your artists on a work visa. They can stay in the country for three months, they can produce the whole show and then it’s a Brazilian show with Brazilian works and then you don’t have the importation tax.122

According to Sardenberg, the expansion of international galleries into Brazil could certainly help professionalize the market there. On the other hand he does not necessarily believe that there is the room or necessity for this expansion given that many Brazilian collectors travel to New York or London anyway.123

Are there possible repercussions to the expansion of international galleries into Brazil? Absolutely. According to Esmanhotto: “I do think it brings some kind of harm, if there is such a thing, for the smaller galleries and the mid-sized galleries that are not so well structured. So a lot of what we do in our activities in the

121 Novaes Esmanhotto Interview. 122 Teixeira de Carvalho Interview. 123 Sardenberg Interview.

66 association now is to really try to give support to galleries - give them the tools and give them some hints on professionalization.”124

In this context, Brazil’s two main fairs, SP-Arte and ArtRio have also become very relevant tools for European and American galleries to test the waters. In an interview that took place shortly before the second edition of ArtRio last fall, Larry Gagosian commented, “We’ve had some success in recent years selling to Brazilian collectors at other galleries that we have in London and Paris, but honestly we don’t really know what to expect. Hopefully that’s just the tip of the iceberg and there are a lot of other collectors there in Rio.”125 And it appears that Gagosian did end up having a very successful fair.126

Perhaps with Gagosian as the exception, in general at the fairs the majority of the Brazilian galleries fared quite well while the international galleries had a bit more trouble, particularly the mid-range ones. The main reason behind this is an unfamiliarity with the galleries themselves and with many of the artists they show, which again brings up the issue surrounding the current lack of exposure of international art in Brazil. The exception to this rule is of course the brand name galleries and artists. Those galleries with worldwide brands such as White Cube or Gagosian are known as are many of their artists but even some of the top galleries in Europe and the United States, such as David Zwirner, are just now beginning to be known in Brazil.

124 Novaes Esmanhotto Interview. 125 Jenny Barchfield, “The Big Story: Art Market heats up in Rio with middle-class rise,” The Associated Press (online), 2 September 2012, n.p. online edition. 126 Sarah Hoover. Gagosian Gallery. Email Interview. 4 May 2013.

67 CHAPTER 5 ART FAIRS

5.1 INTRODUCTION

In this context, art fairs can be used as a tool to disseminate knowledge of international artists in Brazil (and vice versa). Art fairs have become the main networking tool of the twenty-first century art market across all sectors of the art world. Similar to the relationship between Brazilian and international galleries, the international and Brazilian art fairs play a parallel yet intertwined role and are mutually beneficial to one another. Within today’s rapidly globalizing world, art fairs have become a critical tool within the art market that almost all galleries are increasingly relying upon to reach out to different markets, whether established or emerging. In the case of developing markets, this is even more critical for both the domestic galleries hoping to gain international exposure as well as the international galleries hoping to gain entry and access.

The importance of art fairs for Brazilian galleries, as with most galleries outside the main art centers, is crucial. Not only are international fairs an ever-increasing arena through which to widen the knowledge of Brazilian artists but they are also an incredible opportunity to meet international collectors. In turn, as previously mentioned the Brazilian fairs are an opportunity for international galleries to gain access to Brazilian collectors and for Brazilian collectors to have access to international artists. Interesting to note is that so far the Brazilian fairs have not attracted a significant number of international collectors, which is a future goal. They have however drawn a huge number of art world professionals which, at this early stage, is equally if not more important.

5.2 BRAZILIAN ART FAIRS

5.2.1 INTRODUCTION TO THE FAIRS

The two main art fairs in Brazil today are ArtRio and SP-Arte both of which have experienced significant growth since they began. These fairs are important for both international and domestic galleries. According to Esmanhotto:

68

Things are happening so fast and it is surprising even for us. If you follow the market from very closely - we just had another edition, the ninth edition, of the São Paulo art fair a couple of weeks ago and it was very, very impressive in terms of how much they matured and how the fair hosted these major international galleries that came and how everyone behaved according to that and even how the Brazilian galleries reacted to that.127

Domestically speaking, these fairs have become an important sales tool for many Brazilian galleries. Last year in 2012, 47% of sales by Brazilian dealers were through art fairs (11% higher than the global average), with the majority of those at fairs within Brazil.128 Further to this, “the fairs in Brazil are responsible for 29% of the annual volume of sales by galleries on average.”129

SP-Arte opened in 2005 and was designed initially as a fair aimed at Brazilian galleries selling to Brazilian collectors. At its inaugural event, 41 galleries participated. In 2012, 110 galleries exhibited130 and in 2013 there were 122. The most important number to look at though is the increase in the number of foreign galleries participating in these fairs, which is significant. In 2005, only one international gallery exhibited at SP-Arte whereas in 2012 there were 27131 and 42 in 2013. This incredible increase in international participation is in many parts due to the changing global dynamic of art fairs but also to the increased competition coming from the creation of ArtRio in 2011.

ArtRio, as a much more recent fair, was opened with the distinct goal of becoming internationalized. In its initial year, the fair was comprised of 83 galleries, including 33 foreign galleries. In just one year this increased to 108 galleries, including 44 international galleries.132 Included in the foreign contingent attending these fairs

127 Novaes Esmanhotto Interview. 128 McAndrew 2013, pp. 166-167. 129 Ana Letícia Fialho, “Art, a sustainable business,” SeLecT, 2 October 2012 (translated from Portuguese), n.p. online edition. 130 McAndrew 2013, p. 168. 131 Ibid, p. 168. 132 Ibid, p. 168.

69 are some of the world’s most successful galleries, many of whom attended both fairs, including David Zwirner, Gagosian, Hauser & Wirth and White Cube.

ArtRio was also critical in leading the initiative to get State Sales Tax (ICMS) exemption on imports during the fair “which were critical in ensuring the continued participation of important international galleries such as White Cube and Gagosian. This was followed by a similar exemption for SP-Arte in São Paulo in 2012.”133 This tax exemption was critical not only for the fair but also as a way to lay the groundwork for the continued push to lobby for an overall reduction in the taxes levied against the importation of art.

5.2.2 FUTURE GROWTH OF THE FAIRS

The general consensus on the financial success of both fairs for international galleries was that they were not very successful, which is to be expected when moving into a new market, although certain galleries fared differently. Although it is hard to obtain exact numbers, from my discussions with people it seems that the larger galleries with highly recognizable “brand” names were more successful whereas it was a bit more of a challenge for the other galleries. According to Sardenberg, “I think the difficult thing is for the mid-range galleries. That’s the real challenge because they don’t have as much cash to go for as long and at the same time they are unknown and the Brazilians are conservative for a while. They are not fast. They are not fast buyers even in the art fairs.”134 This need for a longer-term commitment that Sardenberg refers to is, as mentioned before, a critical step for future success.

It is also interesting to consider whether and how both fairs will develop alongside each other, particularly in terms of international attendance as the fairs themselves are quite different. According to Sardenberg:

It’s a very new thing of course the whole art fair thing in Brazil. São Paulo’s art fair has been there for a long time and they have been very slow in

133 Ibid, p. 168. 134 Sardenberg Interview.

70 implementing their program and international ambitions and then when the Rio art fair opened two years ago that made the change because Rio came with the clear ambition of becoming an international art fair and they stated that São Paulo had to shape up to make sure they wouldn’t lose their position. The big difference between both fairs is that the people who run the art fair in Rio, they don’t understand that their primary client is the dealers, is the galleries. They have to be happy. To them, they are doing an event. And in São Paulo it’s more professional. Those are the differences between the São Paulo fair and the Rio fair. In São Paulo also it’s a market. São Paulo itself is the art market. You have collectors of course other places in the country but São Paulo is the place where you have this real large diversified group where you can be selling work from 5,000 and 10,000 dollars to a young collector and selling work of over a million to a big collector. São Paulo is the place where you have all these different scales and you have a good amount of people. In Rio it’s much smaller.135

Ultimately, at this point all that can be offered are predictions as this is still so new. Both fairs have the potential to become extremely successful and work well alongside each other, perhaps eventually balancing out with certain galleries attending one fair over the other. The critical element here however, as mentioned, seems to be a long-term commitment on the part of the international galleries. The Brazilians are not in a rush to buy and are, according to many, quite conservative. This is of course a generalization but the galleries that are able to look at this from a long-term perspective and have the funds and patience to do so, will most likely be the ones to reap the benefits. Sardenberg discussed the buying habits of Brazilian collectors and the importance of understanding them in order to be able to succeed.

Brazilians usually they buy on the second or third day at a fair. This is a bit of a generalization of course - there are a few collectors who come in a fair and they already know what they want and they rush to the gallery to buy. But in general, the Brazilian collectors look at everything and then they buy.

135 Ibid.

71 So they are very conservative in that sense and slow. They spend many days in fairs. They don’t run. They will stop by the fair every day for a few hours and look a little bit and be there and chat and exchange information with other collectors and sometimes dealers. And they are not in a rush. That's the way they behave. It’s very common. So when you are doing a fair in Brazil it’s also about that. Really, you have to get their trust to be able to do business with them in the long run.136

According to Uribe, when asked if he thought the fairs would continue to be successful: “Yes, only for the simple reason that as long as the reports are going out on the international wires that Brazil is doing very well and there is new wealth and growing wealth and interest in the art scene, absolutely. I think these fairs will not only continue to exist but also begin to thrive.”137

5.3 INTERNATIONAL ART FAIRS

In examining the flip side of this what is equally important to note is that in recent years Brazilian galleries have increased their attendance of international art fairs, in large part thanks to ABACT/ Latitude. In 2012, Art Basel had four Brazilian galleries participate (three Brazilian galleries participated in the 2003 fair)138, Art Basel Miami Beach had 14, Frieze London had six (in contrast to just one in 2003)139, Frieze Masters had three and Frieze New York hosted four.140 In addition to this, Brazilian gallerists are on the selection committees of both the Art Basel Miami Beach and Frieze fairs. The galleries that are on the main fair circuits are the top established and younger galleries in Brazil right now including A Gentil Carioca from Rio and Fortes Vilaça, Vermelho, Casa Triângulo, Nara Roesler, Luisa Strina, Luciana Brito, Millan and Mendes Wood all from São Paulo.

136 Ibid. 137 Uribe Interview. 138 “Indexes of Exhibitors,” Art 34 Basel (catalogue), 2003, pp. 636-637. 139 “Participating Galleries in the Frieze Art Fair 2003,” Press Release Frieze London, 12 August 2003. 140 McAndrew 2013, p. 157.

72 The art fairs have become a significant part of the business model for these galleries and it is largely due to the fairs that these galleries have been able to establish such strong international reputations for themselves as well as for their artists. As with any gallery attending any fair in the world, a long-term commitment is key both in terms of networking with collectors as well as broadening knowledge of one’s artists. In an interview, Brandão of Vermelho discussed how with most international fairs that the gallery attended, they barely sold anything their first and second years and how finally with the third year going forward they began to sell much more as people became more familiar with the gallery and their program.141 The necessity of a long-term commitment to breed familiarity is equally relevant in this case.

The Brazilian presence at fairs is not only increasing through the participation of Brazilian galleries but also significantly through attendance by Brazilian collectors, particularly over the last five years. According to Sardenberg:

In [my] first two or three years [at Art Basel and Art Basel Miami Beach], 2008 to 2010, we doubled the number of collectors coming every year. We don’t double anymore because that would be like bringing 500 people but it’s still a very growing amount of new collectors coming to Miami all the time. In Basel it’s more stable. I think because some people don’t go and new people come and it doesn’t really grow, in a way. It’s harder to bring people to Europe in that sense. It’s more stable - there are enough people, a good amount of collectors who come to Basel. I think also, the new collectors are scared of Basel in a way. I think it scares them off and you sort of have to tell them it’s not that big of a deal. It’s just more European, less American. But then it’s also like the work – they will know less about the work so they feel less homey in that sense. They recognize the art more easily in Miami for sure.142

In this way again, as previously discussed, the topic of the importance of educating collectors or perhaps more importantly, giving them the tools to educate

141 “Emerging Markets…” 2011. 142 Sardenberg Interview.

73 themselves, comes into play. As with any new collector, in any segment of the market, in any country, entering the art market for the first time can be an overwhelming experience and here it really becomes the job of the Brazilian (and international) art professionals to encourage this growth, movement and expansion.

In addition to the galleries and collectors having an increased presence at fairs, there is also an increased presence in the role that Brazilian curators are playing, particularly at Frieze, which has hired Brazilian curators for two of its fairs. At the first edition of Frieze Masters in 2012, the Brazilian curator, Adriano Pedrosa, was invited to curate the Spotlight project space and he will curate the 2013 edition as well. In addition, fellow Brazilian and Deputy Director of Art and Cultural Programs at Inhotim, Rodrigo Moura, was asked to curate the Frame and Focus sections of Frieze London.

Art fairs have the potential to be the most critical tool within the next few years in the development of Brazil’s role within the international art world, allowing for the cross-referencing and cross-pollination of ideas, collectors and artists.

74 CHAPTER 6 INSTITUTIONS

6.1 INTRODUCTION

The market has become a more and more powerful force within the art world and has caused prices to frequently overshadow value and it is for this reason that museums are becoming more and more important and necessary. The role that institutions outside of the art market play on the art market is crucial, however it is particularly so with regard to a developing scene like Brazil’s. In Brazil, domestic and international institutions both play an integral role in helping to validate a market that though incredibly strong is not necessarily well known outside the country.

Museums are one of the best ways to answer the question of how Brazil has become such a hot topic in the art world today as well as to answer how Brazil’s role is likely to continue to develop internationally. In answering both these questions, I argue that the biggest relevance lies with international museums. That said, Brazilian institutions will also play an important role in strengthening the domestic market, though they are not considered to be particularly strong by many on the Brazilian art market.

The importance of museums lies in the fact that on the one hand they are venues in which artists can show their work and experiment and on the other hand they are institutions in which critical studies of historically relevant art can be displayed, absorbed, analyzed and appreciated. And they are critical for creating a cultural dialogue alongside the understanding and development of art history both past and present, particularly with regard to an emerging market.

6.2 BRAZILIAN INSTITUTIONS

6.2.1 BIENAL DE SÃO PAULO

In her introduction to the catalogue of the 51st Biennale di Venezia, Rosa Martínez wrote: “A biennial…looks beyond the present and into the future…Biennials are

75 the most advanced arena for this expanded field precisely because they do not function like museums. Museums are temples for the preservation of memory…Biennials are a context for the exploration and questioning of the present.”143

One of the most important institutions in Brazil is the Bienal de São Paulo, briefly introduced earlier. From the outset its stated goal has been to bring the Brazilian art world together with the international art world and encourage the flow and exchange of ideas. The second oldest biennial after Venice, the Bienal de São Paulo has become a not-to-be-missed international destination. The Bienal platform is vastly different from a museum platform and offers a completely unique way to approach art. The 30th Bienal de São Paulo held in 2012 was one of the most successful and well received. Curated by Luis Pérez-Oramas, the Estrellita Brodsky Curator of Latin American Art at The Museum of Modern Art in New York, the 30th edition brought together 110 artists hailing from 21 different countries. Of these artists 23 were from Brazil, 13 from the United States and 13 from Venezuela (Pérez-Oramas’s native country).144 In addition to the Bienal, there were museum shows throughout the city including Adriana Varejão’s solo exhibition at the Museu de Arte Moderna de São Paulo, Carlos Cruz-Diez at the Pinacoteca do Estado de São Paulo and Alejandro Otero at the Instituto de Arte Contemporânea (IAC). The following week, the second edition of ArtRio took place and many art world professionals stayed in Brazil for the two-week period. All of the galleries were open, the majority with both group exhibitions and solo shows of some of their artists. This kind of organized art world event is exactly what will help the Brazilian art market continue to grow both on a domestic and international level.

143 Ethan Wagner and Thea Westreich Wagner, Collecting Art for Love, Money and More, Phaidon Press Limited, New York, 2013, p. 136. 144 Robert Turnbull, “São Paulo biennial artists announced: The biennial’s chief curator, Luis Pérez- Oramas, says the exhibition will question the meaning of globalization,” The Art Newspaper, 16 April 2012, n.p. online edition.

76 6.2.2 BRAZILIAN MUSEUMS

The question of the role that Brazilian museums play in both the domestic and international markets was one of the most divisive issues I came across. All market professionals agreed that museum exhibitions are incredibly important to the development of an artist’s career however the point of dispute came up with regard to the relevance of Brazilian institutions in particular. In many cases because there are not many Brazilian institutions and even fewer strong ones (all of which suffer from a lack of funding), some gallerists believe that the galleries are, in fact, the only ones that end up supporting the artists and giving them a platform from which to show their works. In an interview, Brandão of Vermelho said: “We have very few institutions in Brazil. Behind the institutions there’s us.”145 Sardenberg agreed:

Institutionally Brazil is not very strong. It’s not important for the market itself, it’s important for the artists more than anything else because they need venues to be exhibiting frequently and where they can experiment and try new things. In that sense I think it’s very important. For the market itself, it wouldn’t make a difference. There is a new phenomenon of a lot of independent spaces beginning in São Paulo, which are not for profit. Basically you have two kinds of institutions in Brazil. You have the regular museums as you know and you have these things that are called Centro Culturais, which usually belong to a bank. You have the Centro Cultural Banco do Brasil, Itaú Cultural, Santander Cultural and these institutions don’t collect but they do a lot of exhibitions. But they do exhibitions in a very strange way and they are usually flashy, not very experimental. It’s not a place for a young artist unless they end up falling into some sort of group show and then as far as the museums, you have very few, very good, active museums. They have the usual problems of funding and also lack of people working there - the problems that museums always have but accentuated because it’s in Brazil.146

145 “Emerging Markets…” 2011. 146 Sardenberg Interview.

77 What I think is the bigger problem moving forward is the lack of policies in place to encourage the building of these public collections, which is already a significant problem. Cattaneo Adorno of Gagosian further expanded on the considerable holes within the permanent collections of these institutions: “A big problem for the history of Brazilian art, and for the national market, is that limited finances for acquisitions have created giant lacunas in public collections, so there aren’t any systematic critical studies. And the rigid legislation and rules governing importing and exporting really aggravate the situation.”147

In contrast to the laws in other cultural centers, in Brazil there are no tax breaks or policies that encourage private collectors to donate their collections to institutions and the prohibitive import costs are impossible for museums to pay in order to build their own collections. There are of course collectors who have donated to Brazilian museums, including the long-term loan of a significant portion of the Gilberto Chateaubriand Collection to MAM Rio, but it must be noted that this is still very uncommon. According to Esmanhotto:

It is the power of the market compared to the powerless institutions we have. And the government has very little cultural politics in place in terms of thinking of building public collections. For example, to make a friendlier system for collectors to donate their works in order to make their collections available to a larger audience. There is very little done in that part so it scares me a little that the market is so powerful and institutions are not following the movement in the same speed and this unbalance might cause damage even to the market itself. We are talking about a system where we need all parts.148

Bernardo Paz’s Inhotim is an incredible and entirely unique example of a fully realized, dynamic and educational private collection within Brazil. Perhaps Brazil’s most famous collector, Paz has created a place that has now become a must-visit destination for anyone involved in the art world. Inhotim is unique not only within the framework of Brazil but globally as well. He has created an environment

147 D’Amico 2012, n.p. online edition. 148 Novaes Esmanhotto Interview.

78 through which artists are able to create site-specific works without any institutional limitation. As all the works are created at Inhotim, Paz is able to exhibit international artists without the burden of having to pay import taxes on their works.

Esmanhotto notes that slowly there are changes beginning to fall into place in terms of Brazilian collectors becoming involved with Brazilian institutions. “We are seeing collectors more and more involved in the national museums and collections. And we really hope they understand and realize that their support here is just as important or even more important [than their support of international institutions]. I can see that happening as well. They are taking more social responsibility.”149

6.2.3 DAROS LATINAMERICA

Another very relevant European institution that bridges the Europe-Latin America gap is Daros Latinamerica, which was opened in 2000 and just opened their first branch outside of Switzerland in Rio. Daros Latinamerica is the largest collection of contemporary Latin American art in Europe, comprised of well over 1000 works of art across all different media. According to Hans Michael Herzog, artistic director and curator, “We wanted to create a collection of contemporary art from all Latin American countries. In Europe, there was zero interest because people there knew nothing about Latin American Art; Latin American literature, yes, but contemporary, art, no. We started to acquire, which was so easy because the field was so very rich.”150 Herzog again referred to the lack of a cultural artistic dialogue and awareness between Brazil and the United States/Europe that was an issue a decade ago and is now, in part due to institutions such as Daros Latinamerica, beginning to change. In 2006 Daros Latinamerica held an exhibition devoted to the work of Valeska Soares, Cildo Meireles and Ernesto Neto.

149 Ibid. 150 Maria Lopez Conde, “Casa Daros Rio Opens in Botafogo,” in The Rio Times, 26 March 2013, n.p. online edition.

79 6.3 INTERNATIONAL MUSEUMS

6.3.1 INTRODUCTION

International exhibitions dedicated to Brazilian artists are something that has grown significantly over the last five years. Without a doubt, international museums have had a much more significant influence on Brazilian art than Brazilian institutions have. Over the last fifty years there have been a number of shows having to do with Brazilian art in international museums. The majority of these shows began as explorations of Brazilian culture and spirit as opposed to stringent critical analyses of a certain artist or movement. That is not to say that these did not exist but they were not regular occurrences and those that did exist were mounted by very forward-thinking curators and were not necessarily particularly well received by the public.

This has vastly changed over the last decade and particularly so within the last five years. The Clark and Oiticica retrospectives held in American and European museums during the 1990s and 2000s both confirmed and supported the growing interest in and importance of Brazilian art within an international context. In many ways the institutional focus on Brazilian art from the 1960s allowed for the international growth of many of the following generations of Brazilian artists who were surfacing onto the art scene at the same time including Varejão, Milhazes, Neto, Leirner and Soares.151

6.3.2 EXHIBITIONS OF BRAZILIAN ARTISTS

In large part thanks to the Museum of Modern Art in New York and the Tate in London, Brazilian artists have been gaining more and more international appeal. The Clark and Oiticica retrospectives held in European museums during the past decade both confirmed and supported the growing interest in and importance of Brazilian art within an international context. In 2006 the Musée des Beaux-Arts in Nantes, France held a retrospective of Clark’s work, Lygia Clark, da l'œuvre á

151 Felipe Scovino, “A Brief History of Identity in Brazilian Art,” AR:BR (Art Review: Brazil), September 2012, n.p. online edition.

80 l'événement. Nous sommes le moule. Avous donner le soufflé. The following year in 2007 the Museum of Fine Arts in Houston, Texas and the Tate Modern in London held a groundbreaking exhibition of the work of Hélio Oiticica, entitled The Body of Colour. This fall, the Tate will mount a solo exhibition of Mira Schendel’s work following her very successful 2009 exhibition, León Ferrari and Mira Schendel: Tangled Alphabets, held at MoMA.

And it has not been just the NeoConcrete artists receiving increased attention – younger Brazilian artists are increasingly receiving more and more institutional recognition. As a few examples, in 2005 the Fondation Cartier pour l’Art Contemporain in Paris staged a retrospective exhibition of Adriana Varejão’s work entitled Echo Chamber.152 In 2010, Rivane Neuenschwander was given a solo exhibition at the New Museum in New York, Rivane Neuenschwander: A Day Like Any Other Day. The New Museum also gave Cildo Meireles his first solo exhibition ever held at a US museum in 1999-2000.153

6.3.3 ACQUISITIONS OF BRAZILIAN ART

Equally important is that not only have museums begun curating these shows that include (or are entirely composed of) Brazilian artists but many have also begun significantly collecting these same artists, in turn inspiring private collectors to do the same. The collector/museum relationship goes both ways though as many influential private collectors of Brazilian art sit on the acquisition committees of some of the world’s most important institutions. The most notable and active of these committees is the Latin American Acquisition Committee at the Tate, which was created in 2002 and since then has grown increasingly stronger in expanding the visibility of Latin American and Brazilian art abroad. In large part thanks to this, there has been a significant increase to the number of Brazilian works in the Tate’s collection through gifts, loans and acquisitions. In addition to the works of the Neo- Concrete artists, Clark, Oiticica and Schendel, there are works from the next generation of Brazilians – Meireles, Neto, Varejão and Muniz in the museum’s

152 Amirsadeghi 2012, pp. 312. 153 “Exhibition: Cildo Meireles November 18 1999 - March 5 2000,” New Museum Digital Archive. Retrieved from http://archive.newmuseum.org.

81 permanent collection. The Tate, in fact, acquired its first Varejão after Director, Nicholas Serota, selected a work of hers from a solo exhibition held at the Victoria Miro Gallery in 2002.154 To put this relevance into context, Latin American artists born since 1985 comprise 25% of the Tate’s collection.155 And it is not just the Tate that is very seriously looking at this sector of the art world - among others, MoMA in New York and the Centre Pompidou in Paris both have Latin American Art Acquisition Committees and a significant number of works by Brazilian artists have been added to their permanent collections. Interestingly (though not surprisingly), museums are also turning to Brazilian collectors for funding.156

154 Adriana Varejão entre carnes e mares 2009, p. 340. 155 Colin Gleadell, “Art Basel: When Brazil moved to Miami,” in The Telegraph, 28 November 2011, n.p. online edition. 156 Fialho 2012, n.p. online edition.

82 CHAPTER 7 AUCTIONS

In contrast to the art historical importance that museum shows confer on Brazilian artists, auctions are a quite transparent reflection of the growing demand for Brazilian art and in many ways, serve as a form of widely broadcast advertising.

Brazilian artists are breaking records, Brazilian collectors are playing bigger roles at auction, and auction houses are expanding their offices into Brazil and conducting selling exhibitions exclusively devoted to Brazilian artists. Sotheby’s has just put together a selling exhibition of Brazilian art whose press release reads:

The first show of its kind in the United States, Sotheby’s S|2 selling exhibition of leading Brazilian contemporary art will bring together the vibrant, engaging works of many of the country’s most compelling and influential artists today. In consultation with prominent Brazilian collectors, Sotheby’s experts have chosen top works by figures with wide appeal in Brazil and beyond, including Adriana Varejão, Carlito Carvalhosa and Miguel Rio Branco, as well as by remarkable younger artists emerging on the international scene, to create an absorbing picture of “vivid Brazil.” Timed to coincide with our major Contemporary and Latin American Art auctions, as well as the Frieze New York fair, this unique event will showcase all of the creative richness and sophistication of Brazilian art.157

In addition, there has been significant press coverage of the auction records that have been set for Brazilian contemporary art. In May 2008, O Mágico by Beatriz Milhazes sold for $1,049,000 at Sotheby’s Contemporary Art Day sale, almost tripling its presale estimate of $250,000-350,000. Not only did this set a record for the artist but it set a record as the first contemporary Brazilian work of art to surpass the $1 million mark. Since then this record has been surpassed seven times. Five times by Milhazes with the record being $2,098,500 for Meu Limão sold at Sotheby’s New York in November 2012 and twice by Adriana Varejão with

157 “Brasil Vívido: A Selling Exhibition of Leading Brazilian Contemporary Art,” Sotheby’s, New York, 10-29 May 2013. Retrieved from http://www.sothebys.com/en/auctions/2013.

83 Parede com incisões a la Fontana II which sold for $1,775,216 at Christie’s London in February 2011 and Trois Petites Morts (in 3 parts) which sold for $1,172,500 at Sotheby’s New York in November 2012 (see figs. 15 and 16, p. 85).158 Works by these artists along with quite a few others (although at lower price points) regularly appear at auction in both Latin American Art and Contemporary Art sales, including Milhazes and Varejão with regularity in Evening Sales.

The international auction market for Brazilian artists is quite concentrated, with a narrow range of artists achieving a relatively high market share. In the last three years the top five artists have accounted for an average share of 69% of the market for Brazilian works. In 2012, the top selling artist Beatriz Milhazes accounted for 24% of the market, and the top five selling artists had a combined share of 70%.159

In this sector, the number of Brazilian collectors has also exploded in the past five years. At Sotheby’s in 2012 there was a significant spike in new Brazilian collectors with a significant number of new Brazilian bidders in the Impressionist and Modern Art Evening Sale, the highest number of new buyers from any emerging market.160

158 artnet. Retrieved from www.artnet.com. 159 McAndrew 2013, p. 163. 160 Anonymous Source, Impressionist and Modern Art Department, Sotheby’s, New York, May 2013.

84

Fig. 15, Beatriz Milhazes, Meu Limão, 2000, acrylic on canvas, 248.9 x 318.1 cm. Artist Auction Record: $ 2,098,500 Sotheby’s New York, November 2012. Source: www.artnet.com.

Fig. 16, Adriana Varejão, Parede com incisões a la Fontana II, 2001, oil on canvas and polyurethane on aluminum and wood, 180 x 250 cm. Artist Auction Record:

85 $1,775,216 Christie’s London February 2011. Source: www.artnet.com.

86

CONCLUSION

The Brazilian market has grown a lot, but I don’t think it’s even close to what it’s going to be in the near future. That’s why Brazil is a great place to be right now – an ascending market that is not fully established yet. For collectors we have excellent artists to introduce, and for galleries we have a new generation of collectors starting to collect all kinds of art, and not only Brazilian.161 – Brenda Valansi, co-director, ArtRio

The tremendous potential in Brazil’s current and future situation is what makes it such an exciting part of the art world to watch right now and this potential is, quite simply, the answer to one of the questions asked in my thesis: why there is such a sudden international interest being focused on Brazil.

When preparing to write this paper, I had anticipated my conclusions already: that the role Brazil is playing in the international art world is developing on two parallel, yet intertwined tracks. The first element being the increased wealth stemming from Brazil’s enormous economic growth over the last decade and the second element being the strength and vibrancy of Brazilian art and the undeniable appeal of the new - new art, new collectors, new developments. What I had not anticipated was the complexity that would unfold from the relationships between the institutions necessary to support this, including Brazilian and international collectors, artists, galleries, art fairs and museums nor the complexity that would evolve from the government policies in place that have bolstered the Brazilian economy yet are having the opposite effect on the art market.

What became apparent as one of the most significant keys to the continued growth of Brazil’s role within the international art world is the importance of cultural dialogue. This extends from bringing Brazilian artists into direct contact with works by international artists in museums and galleries to the ability to build relationships

161 “Interview with Brenda Valansi, codirector, ArtRio,” AR:BR (Art Review: Brazil), September 2012, p. 46.

87 between Brazilian and international galleries and collectors. It is the combination of these elements that has the potential to make Brazil a thriving and sustainable force in the global art world.

The challenge is having the necessary infrastructure, tools and channels from which this can grow however there are already significant developments in this direction. The art fairs will continue to play an incredibly relevant role as a recurring platform from which to launch these connections as will the openness to communication and exchange between international and Brazilian galleries. The increasing professionalization and organization of the domestic art market is also crucial to this, but well under way.

These are challenges that may take time but can absolutely be achieved, particularly given the energy and interest being focused on Brazil today. What manifests as the only significant threat is the tax situation, which is absolutely the most critical issue with regard to the future development of the Brazilian art market, both domestically and abroad. Without a resolution to this issue, it is unclear how Brazil’s art market will be able to develop internationally. The Brazilian art market would undoubtedly continue to flourish domestically whether or not there is any international involvement and the international art market will remain strong with or without Brazilian involvement but the tremendous exchange that is possible between the two would be lost and they would both be the weaker for it.

If we can keep up and take the most benefit from the conditions that we are seeing right now, I see that the legacy of all of this effort can be memorable. I think if we have this conversation again two years from now it is going to be unbelievable the kind of change that will have happened. If you talk about early 2000, or the first edition of the São Paulo edition compared to the ninth edition we just had, it is just something else, something that we cannot even compare. So how do I see the future? I see it as fantastic. I think it is going to be really, really amazing. I just hope we can use all this visibility, all this interest to build something sustainable and to make things last in a way that when the world, after us, is entertained with something

88 else, the next big thing, we won’t be left in the dark. Because we were wise enough to build out of that our own basis.162

162 Novaes Esmanhotto Interview.

89 APPENDIX A CHARTS AND GRAPHS

FIGURE 1. THE DIVISION OF WEALTH WITHIN BRAZIL AND OTHER ECONOMIES IN 2012. 163

FIGURE 2. POPULATION OF HNWIS IN BRAZIL (1000S) 2002-2011. 164

163 McAndrew 2013, p. 178. 164 Ibid, p. 182.

90

FIGURE 3. MAPPING THE WEALTH OF THE WORLD'S BILLIONAIRES.165

FIGURE 4. BRAZILIAN IMPORTS AND EXPORTS OF ART.166

165 Kroll 2013. 166 McAndrew 2013, p. 172.

91 APPENDIX B SELECTION OF INTERVIEW QUESTIONS

INTERNATIONAL INTEREST IN BRAZIL:

What do you think is behind the sudden interest in Brazil? Its artists, galleries and contemporary art scene have been firmly established for a while now.

What do you think is the biggest international appeal of Brazil right now – its high net worth collectors, its artists or both?

Do you think there are any negative consequences to the incredible international interest being focused on Brazil right now?

CHANGES TO THE BRAZILIAN ART MARKET:

As one of the leading contemporary art galleries in Brazil that has been around for a significant amount of time, what do you think about the changes in the Brazilian art market over the last decade, and particularly the last few years?

TAXES:

Do you find that the high taxes in Brazil are an impediment to your business model and to the growth of the domestic market? Do you find that they have any benefit?

Do you think Brazil’s protectionist economic policies benefit the art market in any way, as they do for other commodities?

Do you think it is likely that the tax situation can be resolved with regard to the buying and selling of art? How would you go about the seemingly difficult task of lobbying for import tax reduction? If this does not change, then what?

COLLECTORS:

Do you find that it is just the HNWI who are having such an impact on the international art market or has the high growth of the Brazilian middle class also had an effect?

The gallery represents some of the best-known Brazilian artists working today who have developed an extraordinary international reputation as well as some very well known international artists. Do Brazilian collectors have equally strong interest in both? And do you find that you have a significant number of international collectors buying works by your Brazilian artists?

Have you noticed an increase and diversification of Brazilian collectors in the last five years? How is the collecting pool changing?

92 Have you noticed a significant increase in the number of Brazilian buyers at auction?

Which nationalities do you find are the biggest buyers of Brazilian art?

THE ROLE AND EFFECT OF INTERNATIONAL GALLERIES AND ARTISTS:

As a Brazilian gallery, do you think the entry of international galleries onto the Brazilian art scene would be positive or negative?

Do you find that there is an increase to the number of Brazilian artists who are being represented by international galleries?

Do you think more international galleries will begin to add Brazilian artists to their programs or show more Brazilian art in group shows?

As an international gallery, do you have an interest in expanding more into Brazil whether through taking on Brazilian artists, finding collectors, fairs, etc.?

What do you think is the biggest hindrance to international artists being sold in Brazil?

ART FAIRS:

The fairs in Brazil have attracted a lot of international attention in the last couple of years since ArtRio began. What role do you think ArtRio and SP-Arte will play going forward, both on Brazil’s domestic market and as an international destination?

What do you think the future of ArtRio and SP-Arte will be in terms of international galleries and growth?

As a gallery that attends most of the international art fairs, do you find that this is a significant part of your business in terms of sales, network and promotion of your artists?

The gallery participates in an impressive number of international fairs – have you noticed a difference in recent years in terms of the international interest in the Brazilian artists you show at your booths? At which fairs do you find that the gallery has the most success?

GROWTH POTENTIAL:

There has been significant growth to the Brazilian art market recently with many young galleries opening. Do you think that this will continue to expand?

93 What do you think are the biggest impediments to the growth of the art market in Brazil (both domestically and internationally)?

What is your opinion on the continuing role Brazil will play in the international art market?

How do you see the contemporary art scene developing over the next five or ten years?

What do you think is the importance of infrastructure in the growth of the art market? The number of institutions, experts, etc.? Can the market grow without this?

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